The eighth annual Digital Auto Report is a global study with a focus on the U.S., Europe, and China. It consists of a quantitative market outlook based on detailed research and interviews with key industry executives at OEMs and suppliers, leading academics and industry analysts. The findings reveal that despite important innovation in connected services, the auto industry’s share of value is still low.
Technical readiness, consumer demand, regulation and superior economics will dictate transformation speed.
These changes have fundamental implications for OEMs and their suppliers. OEMs need strategies to reduce their R&D costs through partnerships, and to focus on developing new ideas while outsourcing non-core back-office, R&D and technology solutions.
We also believe five new sustainable roles for suppliers will emerge: smart infrastructure enablers, automated shuttle-vehicle manufacturers, platform providers, mobility intelligence providers, and vehicle feature and demand providers.
Finally, new flexible and hybrid organizations need to be created, and due to the scarcity of people with the right skills, the auto industry must upskill its existing workforce to perform digital and data-management roles.