The digital transformation in the mobility industry is in full swing and offers multiple opportunities for all players. The eleventh annual Digital Auto Report is a global consumer survey with a focus on the U.S., EU and China. It consists of a quantitative market outlook until 2035 based on regional structural research and interviews with key industry executives at OEMs and suppliers, leading academics and industry analysts.
Digital transformation is characterized by several key trends and shifts that demand attention and strategic flexibility of mobility players:
While Chinese OEMs are asserting their dominance domestically and gain traction in Europe, regulation in major markets on sustainability (CBAM), high tech (Chips Act), transparency (Digital Product Passport) or privacy (GDPR) will likely force players to localize in USA, Europe and China.
Balancing digital vehicle experience and customer satisfaction with the respective costs for the digital technologies remains key. OEMs should source tech capabilities and should focus on their experience differentiators and source tech capabilities (e.g. machine learning, operating systems or cloud storage) via ecosystem partnerships.
Implementation of ChatGPT technology in car voice interfaces
Smart materials allow physical surfaces to understand and react
Car dashboards are becoming ultra-wide entertainment systems
Augmented reality is becoming mature, and advanced
A diverse range of players are trying to develop software and solutions to capitalize on the digital opportunities in e-Mobility. Ample opportunities emerge around battery and charging value chains – OEMs should orchestrate their own platforms for partners to integrate and realize new service offerings. For suppliers, this is an opportunity to increase their share of service-based, recurring revenues.
digital e-Mobility Europe opportunity in 2030
Digital ID for batteries containing data about performance and manufacturing history, increasing transparency across the battery value chain.
Smart charging hardware equipment to optimize the charging process and interact with the electric grid, user preferences, and other external factors.
Software platforms and mobile apps that facilitate the interaction between EV owners and the charging infrastructure.
Software platforms designed to manage, operate and optimize charging networks, as well as enhancing the efficiency of charging services.
AD is gradually moving beyond experimental stages towards commercial viability in private and shared vehicles. Adoption of highly automated driving (L4/5) more conservative than in previous forecasts with 7% of new vehicle sales in EU and 9% in the US; Chinese expectations much more optimistic, driven by very ambitious government plans (36% in 2035).
Taxi services, last mile mobility.
Shared transport of people on a defined route or demand service shuttle service in defined areas
Concierge service for car sharing vehicles
Learnings from first wave of hype show that mobility players need to focus on asset utilization instead of differentiation:
First players becoming profitable demonstrates feasibility of those business models when rigorously focusing on utilization. Here are three emerging dominant ways to play:
Vehicle connectivity is becoming increasingly important and is playing a substantial role in remaining competitive among other OEMs. A greater share of C2-C3 connectivity is forecasted for the US and China, on account of more advanced software and automated driving features.
Electric vehicle penetration in key regions is expected to continue its growth momentum through the next decade. BEVs will remain the most popular type of alternative powertrain on account of regulatory incentives, OEM investments and new product offerings.
Automated vehicles need to overcome various technological and legal hurdles to get road ready. Moreover, consumers are still skeptical about the novel technology. However, AD is slowly moving from trial to commercial. High AD adoption expected in China, with significant policy support and 5G coverage.
Mobility modes have been diversifying since the Covid pandemic, when digital services and innovative ways to travel were in high demand. Today, MaaS and VaaS are ever more popular, especially for urban transport. Nevertheless, long-distance travel will continue to depend on private cars.
There are very specific strategic priorities for each mobility stakeholder group to stay competitive in the future.
| Automotive OEMs |
Automotive suppliers |
Mobility service providers |
|
|---|---|---|---|
 |
 |
 |
|
| Customer experience and activation | Own the digital experience | Provide modular platforms | Increase loyalty and asset utilization |
| Opportunity and value creation | Orchestrate e-Mobility & AD services | Become AD enabler at the right time | Prepare for the AD era |
| Partnering and tech capabilities | Bridge technology capability gaps | Enable ecosystem as integrator | Collaborate for MaaS success |
