Digital Transformation of the Automotive Industry
In 2015, automotive industry investments in key focus areas were about $19.57 billion. Growing digitalization and advancements in technology will increase the investments to $82.01 billion by 2020. The rapid pace of digitalization is transforming the component hardware-driven automotive sector to a software and solutions-focused industry, accelerated by consumers’ evolving digital lifestyle expectations and demands for new and innovative services.
The future roadmap of digitalization in the automotive industry is expected to move rapidly from “digital services” to “car-as-a-service” to “mobility-as-a-service”, transforming the car into an element of a connected living solution by 2030. In the year 2016, digitalization underpins the transformation of business activities, process improvements, and the development of new competencies and business models across five key pillars within the automotive industry.
• Connected Supply Chain
• Industrial Internet of Things and Industry 4.0
• Connected and Autonomous Cars
• Digital Retailing
• Mobility as a Service (MaaS)
The study, Digital Transformation of the Automotive Industry, analyzes the strategies, growth analysis, competitive landscape, business models, and future focus areas of original equipment manufacturers (OEMs) and Tier I suppliers. Digitalization in the automotive industry will have a spiral effect on other industries. OEMs and Tier Is realized that digitization along with IoT, technology partnerships, software capabilities, and customized solutions will be the way forward for the global automotive industry from the year 2016 to 2025.
Growing digitalization initiatives and pilot projects with software-centric focus from automotive OEMs and Tier Is will increase automotive IT spending from $37.9 billion in 2015 to $168.8 billion by 2025 (at a CAGR of 16.1%). More than 1700 new digital startups are expected to disrupt the automotive industry supply chain.
In addition to OEMs, Tier I suppliers, and technology companies initiatives, this study covers a detailed list of startups and technology companies across the five key pillars.
Key Questions this Study will Answer
• What are the key pillars of automotive digitalization? What are the key recommendations to automotive OEMs? Discuss case studies and initiatives from OEMs, Tier Is, technology companies, and startups focusing on digitalization.
• What are the key markets for start-ups to venture into and what is the current revenue potential of those markets?
• Who are the key participants and what are their unique service propositions (USPs)?
• Considering automotive digitalization, how much will the automotive industry spend from technology and software perspective?
• What are the opportunities for digital ecosystem participants (aftermarket, Tier Is, technology companies and OEMs)?
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