{"id":104913,"date":"2021-09-08T17:11:00","date_gmt":"2021-09-08T17:11:00","guid":{"rendered":"https:\/\/www.capgemini.com\/au-en\/?post_type=research-and-insight&#038;p=104913"},"modified":"2025-02-10T12:00:49","modified_gmt":"2025-02-10T12:00:49","slug":"next-destination-software","status":"publish","type":"research-and-insight","link":"https:\/\/www.capgemini.com\/au-en\/insights\/research-library\/next-destination-software\/","title":{"rendered":"Software: the new battleground of the automotive industry"},"content":{"rendered":"\n<header class=\"wp-block-cg-blocks-hero-reusable header heroReusable  \"><div class=\"header-bgs\"><picture><source srcset=\"https:\/\/www.capgemini.com\/au-en\/wp-content\/uploads\/sites\/10\/2021\/09\/ÎÚÑ»´«Ã½_CRI_NEXT-DESTINATION-S.png?w=2880&amp;quality=70 1x, https:\/\/www.capgemini.com\/au-en\/wp-content\/uploads\/sites\/10\/2021\/09\/ÎÚÑ»´«Ã½_CRI_NEXT-DESTINATION-S.png?w=2880&amp;quality=70 2x\" media=\"(min-width: 1500px)\"\/><source srcset=\"https:\/\/www.capgemini.com\/au-en\/wp-content\/uploads\/sites\/10\/2021\/09\/ÎÚÑ»´«Ã½_CRI_NEXT-DESTINATION-S.png?w=1440&amp;quality=70 1x, https:\/\/www.capgemini.com\/au-en\/wp-content\/uploads\/sites\/10\/2021\/09\/ÎÚÑ»´«Ã½_CRI_NEXT-DESTINATION-S.png?w=2880&amp;quality=70 2x\" media=\"(min-width: 992px)\"\/><source srcset=\"https:\/\/www.capgemini.com\/au-en\/wp-content\/uploads\/sites\/10\/2021\/09\/ÎÚÑ»´«Ã½_CRI_NEXT-DESTINATION-S.png?w=1024&amp;quality=70 1x, https:\/\/www.capgemini.com\/au-en\/wp-content\/uploads\/sites\/10\/2021\/09\/ÎÚÑ»´«Ã½_CRI_NEXT-DESTINATION-S.png?w=1024&amp;quality=70 2x\" media=\"(min-width: 768px)\"\/><source srcset=\"https:\/\/www.capgemini.com\/au-en\/wp-content\/uploads\/sites\/10\/2021\/09\/ÎÚÑ»´«Ã½_CRI_NEXT-DESTINATION-S.png?w=768&amp;quality=70 1x, https:\/\/www.capgemini.com\/au-en\/wp-content\/uploads\/sites\/10\/2021\/09\/ÎÚÑ»´«Ã½_CRI_NEXT-DESTINATION-S.png?w=768&amp;quality=70 2x\" media=\"(min-width: 0)\"\/><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/au-en\/wp-content\/uploads\/sites\/10\/2021\/09\/ÎÚÑ»´«Ã½_CRI_NEXT-DESTINATION-S.png\" class=\"header-img header-img-d\" alt=\"\" style=\"object-fit:cover;object-position:50% 50%\" loading=\"eager\"\/><\/picture><\/div><div class=\"heroPictureCardHeaderShape\"><\/div><div class=\"container\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"box\"><div class=\"boxTagWrapper\"><div class=\"tagInfo\"><\/div><div class=\"brandInfo\"><div class=\"brandLogo\"><img decoding=\"async\" loading=\"lazy\" src=\"\/wp-content\/themes\/capgemini2020\/assets\/images\/capgemini-research-institute.svg\" alt=\"capgemini-research-institute\"\/><\/div><\/div><\/div><div class=\"box-title\"><h1 data-maxlength=\"34\">Next Destination: Software<\/h1><\/div><h2 class=\"reasearchInsightTitle\">Report from the ÎÚÑ»´«Ã½ Research Institute<\/h2><div class=\"inner-row-insight download-btn\"><div class=\"col-md-4 downloadFiles \"><a class=\"button-download--small\" type=\"download\" href=\"https:\/\/www.capgemini.com\/au-en\/wp-content\/uploads\/sites\/10\/2021\/09\/Next-Destination-Software-_WEB-1.pdf\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><span>Final-Info&#8230;<\/span><span class=\"type\">5 MB  pdf<\/span><\/a><\/div><div class=\"col-md-4 downloadFiles \"><a class=\"button-download--small\" type=\"download\" href=\"https:\/\/www.capgemini.com\/au-en\/wp-content\/uploads\/sites\/10\/2021\/09\/Final-Infographic-Software-is-driving-automotive-1.pdf\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><span>Next-Desti&#8230;<\/span><span class=\"type\">1 MB  pdf<\/span><\/a><\/div><\/div><\/div><\/div><\/div><\/div><\/header>\n\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-1\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/www.capgemini.com\/au-en\/insights\/research-library\/next-destination-software\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https:\/\/www.capgemini.com\/au-en\/insights\/research-library\/next-destination-software\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div class=\"col-12 col-md-11 col-lg-10\"><div class=\"article-text article-quote-text\">\n<h3 class=\"wp-block-heading\" id=\"h-how-automotive-oems-can-harness-the-potential-of-software-driven-transformation\">How automotive OEMs can harness the potential of software-driven transformation<\/h3>\n\n\n\n<div style=\"height:47px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Software will drive the transformation of the automotive industry<\/p>\n<\/blockquote>\n\n\n\n<p>The transformation of the automotive industry is accelerating and software is firmly in the driver\u2019s seat. From enhanced customer experience, new revenue generation, and reduced costs of operation to improved regulatory compliance, software is delivering significant benefits to the automotive OEMs. But just how big is this opportunity, what advantages does it bring, and how can OEMs tap into it? We wanted to find out.<\/p>\n\n\n\n<p>For our ÎÚÑ»´«Ã½ Research Institute report,&nbsp;<strong><em>Next Destination: Software \u2013 How automotive OEMs can harness the potential of software-driven transformation<\/em><\/strong><em>,&nbsp;<\/em>we surveyed 572 global automotive executives and interviewed 17 automotive industry executives. All these executives were leading or closely involved in various software initiatives in their organizations.<\/p>\n\n\n\n<p>We found that&nbsp;<a href=\"https:\/\/www.capgemini.com\/au-en\/industries\/automotive\/software-defined-transformation\/\">software-driven transformation<\/a>&nbsp;is set to more than triple automotive OEMs\u2019 software-based revenue in the next 10 years, growing from about 8% currently ($181 billion), to 22% ($640 billion) by 2031. A key driver of this new revenue will be OEMs\u2019 share of new vehicles based on a unified\/common software platform, which will reach 35% by 2031, up from nearly 7% currently (per OEM on average). However, most OEMs are just starting to transform and merely 15%, who have double the revenue and stronger ambitions, can be considered \u201cfrontrunners\u201d in this domain. Frontrunners have a fundamentally different approach to transform themselves \u2013 they rely more on centralized units (67% vs. 35% for the rest), and spend a lot more (47% spending $1 billion+ vs. 28% of the rest who do so) in their software-driven transformation.<\/p>\n\n\n\n<p>To join their ranks and harness the full potential of software-driven transformation, OEMs should build a software-focused vision and strategy, leverage software toolchains and the agile methodology to foster greater collaboration across organizational units, forge long-term, strategic partnerships with tier-1 suppliers and software providers on key software frontiers, strive for software excellence by building and retaining software talent, define a clear roadmap for next-generation and standardized vehicle software architecture, and tap into the power of data to more quickly enable intelligent vehicles, operations, and services.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":103,"featured_media":518735,"template":"","meta":{"cg_dt_proposed_to":[],"cg_seo_hreflang_relations":"[]","cg_seo_canonical_relation":"{\"uuid\":\"b3bc8d0b-3f5f-41e5-9ad4-f80a1b2b7375\",\"blogId\":\"\",\"domain\":\"\",\"sitePath\":\"\",\"postLink\":\"\",\"postId\":null,\"isSaved\":true,\"isCrossLink\":false,\"hasCrossLink\":false}","cg_seo_hreflang_x_default_relation":"{\"uuid\":\"f5a55326-764f-4a9d-bd37-5ab1fc646ba2\",\"blogId\":\"\",\"domain\":\"\",\"sitePath\":\"\",\"postLink\":\"\",\"postId\":null,\"isSaved\":true,\"isCrossLink\":false,\"hasCrossLink\":false}","cg_dt_approved_content":true,"cg_dt_mandatory_content":false,"cg_dt_notes":"","cg_dg_source_changed":false,"cg_dt_link_disabled":false,"footnotes":"","related_resource_url":"","related_resource_id":0,"related_resource_size":"","related_resource_type":"","cg_author":0,"_yoast_wpseo_primary_theme":0,"primary_term":"","featured_focal_points":""},"tags":[459],"research-and-insight-type":[],"theme":[],"brand":[273],"service":[],"industry":[],"partners":[],"content-group":[],"class_list":["post-104913","research-and-insight","type-research-and-insight","status-publish","has-post-thumbnail","hentry","tag-mobility","brand-capgemini-research-institute"],"yoast_head":"<!-- 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