The automotive industry accelerates toward a software-driven future, with revenue share expected to double during the next decade

Core Insights - The automotive industry is transitioning towards a software-driven future, with 92% of organizations expecting to become software companies to support Software Defined Vehicles (SDVs) and software-driven mobility (SDM) services [1][2] - Software-defined products and services are anticipated to become the core value proposition for over 80% of automotive organizations [1] Industry Transformation - Less than half of automotive organizations have scaled their SDM initiatives as of 2025, with only 34% partially scaling and 14% achieving full deployment [2] - Decoupling hardware and software is essential for innovation and scalability, yet only 10% of original equipment manufacturers (OEMs) have made significant progress in this area [3] Strategic Partnerships - Nearly 40% of automotive organizations are partnering with big tech companies for software and data capabilities, with a third planning joint ventures within three years [5] - 84% of organizations are exploring new supplier markets for resilience, while 70% are focusing on in-house development of key components [5] Revenue Projections - Software-defined products and mobility services are projected to contribute over 50% of OEMs' total revenue by 2035, doubling their current share [6] AI Integration - 85% of organizations view AI as integral to automotive software, enhancing in-vehicle experiences and safety features [7] - AI integration is seen as a critical competitive advantage, with 77% of organizations recognizing its importance in reshaping the automotive value chain [8] Organizational Overhaul - 86% of organizations believe that a shift to SDM requires a complete overhaul of their organizational model, including new processes and skill sets [10] - A unified software platform is identified as a key component of the SDM strategy by 83% of organizations [10]