IBM study reveals an electrified future for automobiles
16 Dec 2024|53 views
The IBM Institute for Business Value has published its latest 'Automotive 2035' study, revealing an industry grappling with an erratic transition away from current products and business models.
This study is a data-led analysis of automotive and mobility industries developments over the next 10 years and is based on 1,230 interviews with senior executives from automotive OEMs, suppliers, and surrounding industries across nine countries.
According to respondents, over the next decade, 80% of new cars will have a powertrain that will be electrified to some extent. The findings also revealed that 74% of executives believe that by 2035, vehicles will be software-defined and AI-powered.
Other highlights include that the industry is preparing to offer user experiences enabled by digital capabilities. With just 21% of budgets currently allocated to software and digital developments, this is expected to jump to 58% by 2035.
The technical challenge of separating software and hardware layer is seen as the top challenge, with 77% of senior executives bemoaning a lack of software development tools and methodologies. In addition, 74% of respondents mentioned that a strong mechanical-driven culture is hindering progression to a software-driven product development.
The IBM Institute for Business Value has published its latest 'Automotive 2035' study, revealing an industry grappling with an erratic transition away from current products and business models.
This study is a data-led analysis of automotive and mobility industries developments over the next 10 years and is based on 1,230 interviews with senior executives from automotive OEMs, suppliers, and surrounding industries across nine countries.
According to respondents, over the next decade, 80% of new cars will have a powertrain that will be electrified to some extent. The findings also revealed that 74% of executives believe that by 2035, vehicles will be software-defined and AI-powered.
Other highlights include that the industry is preparing to offer user experiences enabled by digital capabilities. With just 21% of budgets currently allocated to software and digital developments, this is expected to jump to 58% by 2035.
The technical challenge of separating software and hardware layer is seen as the top challenge, with 77% of senior executives bemoaning a lack of software development tools and methodologies. In addition, 74% of respondents mentioned that a strong mechanical-driven culture is hindering progression to a software-driven product development.
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