Beyond the shift towards BEVs and their components, in-vehicle software, digital services, and data analytics are consistently identified as major revenue opportunities: for OEMs targeting private purchasers, mobility service users, and commercial fleet operators; and for Tier 1 suppliers as a category that barely existed a decade ago. The proportion of OEMs rating autonomous driving and advanced driver-assistance systems (ADAS) as a top three revenue source will rise from 9% this year to 24% in 2030. Other opportunities include battery technologies and energy storage, and mobility services and platforms.
Non-organic growth
Shifting investment
Geographic movement
Product mix
When asked to rank their top three growth regions, the proportion of automotive executives selecting Western Europe falls from 44% today to 26% in 2030. In the same period, the proportion of those citing South Asia rises from 24% to 45%, and Southeast Asia from 31% to 44%. Among German respondents, notably, the proportion citing Western Europe as a top three growth area falls from 78% today to 48% in 2030.
Non-organic growth
Shifting investment
Geographic movement
Product mix
Globally, 68% of respondents identify R&D and product development as a top three investment area over the next five years, followed by manufacturing and operations (61%) and digital platforms and data monetisation (45%). R&D investment is oriented more strongly towards new growth than towards efficiency. This finding is a promising signal that the industry is at least partially aiming its investment budget at the area the new advantages should come from.
Non-organic growth
Shifting investment
Geographic movement
Product mix
Chinese and Indian respondents in particular show high propensities towards acquisitions, licensing, and public-private partnerships as accelerators of capability building. In India, electrification, urbanisation, and the growth of commercial fleet segments are unfolding simultaneously. Without a heavy legacy portfolio to defend, Indian automakers are, in many segments, building the new business from the ground up. Indian automakers plan acquisitions at roughly twice the global average rate.
Non-organic growth
Shifting investment
Geographic movement
Product mix