The automotive business is more and more centring software program in its enterprise technique and operations, in line with a brand new report by the Capgemini Analysis Institute. The report, titled The software-driven mobility period: Past autos, discovered that 92 per cent of automotive organisations count on each automotive firm to transition right into a software program firm to help Software program Outlined Autos (SDVs) and software-driven mobility (SDM) companies. Greater than eight in 10 respondents mentioned software-defined services, not simply the bodily automobile, will change into their core worth proposition.
Regardless of robust ambitions, lower than half of automotive organisations have scaled their SDM initiatives in 2025. The report discovered that 34 per cent have partially scaled at the least one SDM use case, whereas solely 14 per cent have achieved full-scale deployment. The survey additionally highlighted that just one in 10 authentic tools producers (OEMs) has made progress in decoupling {hardware} and software program, with simply over 1 / 4 actively piloting new approaches.
Laurence Noël, World Head of Automotive at Capgemini, mentioned, “For many years, automotive management was pushed by {hardware} however at the moment customers demand related, digitally enhanced experiences. This requires adoption of a software program first method throughout the worth chain to allow holistic mobility options. Ahead–trying automotive organisations are already treating software program as their core product and leveraging key partnerships to increase their ecosystem. Whereas the ambition is excessive, it requires an entire organisational overhaul. People who align their expertise, platforms, and partnerships, whereas fostering belief and delivering an elevated buyer expertise, will keep forward of the curve.”
Partnerships and AI integration
The report discovered that automotive organisations are more and more looking for partnerships, with almost two in 5 collaborating with massive tech and hyperscalers for software program, cloud, and information capabilities. Whereas few have established joint ventures, a 3rd plan to take action inside three years. As much as 84 per cent are exploring new provider markets, and almost 70 per cent are growing in-house growth of key parts. Organisations are additionally adjusting provide chains to discover new sourcing markets, together with India, Southeast Asia, and Japanese Europe.Software program-defined merchandise and mobility companies are anticipated to change into vital income contributors for OEMs. Their share of complete income is projected to double, contributing to over 50 per cent by 2035.
AI can be turning into integral to automotive software program. Based on the report, 85 per cent of organisations mentioned AI is embedded in software program options and features, together with in-vehicle experiences, security, and cybersecurity. Over three-quarters (77 per cent) mentioned AI integration into software program growth, in-vehicle features, and mobility companies is a crucial aggressive benefit. Most organisations think about AI integration for Superior Driver Help Programs (ADAS) and autonomous driving as vital of their software-driven technique.
Organisational modifications wanted
The survey highlighted that 86 per cent of organisations consider SDM technique requires modifications to the organisational mannequin, processes, and ability units. Challenges embody software program engineering, compliance, security, cybersecurity, management, and expertise acquisition.
The report relies on a June 2025 survey of 600 executives from 200 established automotive organisations, together with OEMs, suppliers, mobility service suppliers, and digital natives throughout North America, Europe, and APAC.
