McKinsey&CompanyAutomotive sottwareand electronics 2030Mapping the sector's future landscape
Automotive sottwareand electronics2030Mapping the sector's future landscapeOndrejBurkacky,MunichJohannesDelchmann,StuttgartJanPaulStein,Munichdgementsuctedbyfo
Table ot contentsIntroduction andkeyinsights9 11 The soft ware and electronics architectureinvehicle wllse a majpr evoltion12ACES trends andthe architecture evolution wilesut isigitficant growth in the121旧0 Vaudivarsoftheautomotivesector'schanginglandscape 21Software:the dlobalautomdative software martket willshowrdynamic growth2.2Electronicontrlunits/domaincontrlunitsconergence ofelectronidcontrol units willopen up anew market for domain controllers2.3Sensars;autonomous drivingywillbe the primary-triggerforsensordemand2.4Powerelectronicsandharnesses:transition to EVs willenable the formation%23.Disruntivetrends alona the indus try'slong-established alue chain.3.1Newtechnoloaiesarebreakinaunthe"nowerdvnamic"'oftraditionalrelationshiosbetweenOEMsandtier-1sunoliers,3.3 New companies are entering the playing field in nontraditional andJ3.4New partnerships and cooperation models are emerging - primarily forsoftware-and electronics-related topics841Stratecic considerations for each automotive player archetype4.2Fiststeos for ll layersinavigatingthe changinglandscape888乐学丰AppendixKeyaspectsofthemarketmodelsDefinitionsContactsand authorsAutomotivesoftwareandelectronics2030
Introduction andkey insights
Autoromous diving (AD), conecte d vehiles, electrficatonof the powertrain, and sharedmobilty (ACES) are mutually reinforcing developments in the automative industryCombined, they are notonly disrupting the automotive value chain and impacting allstake-holdersinvolked butare alsoasificantdiveroftheexpected?7percentcompound annualgrowthrate(CAGR)intheautomaive soflware SW.)a d lectial and ectronic components(E/E)market,ie,fromUSD 238blliontoUSD469bilon, between2020and2030I whichis estinated to grow at percent CAGR nthe samnetimespan.Asaconsequence, SWand electronics have becomethe focus of most automotive companies andIh this context and based on ourextensive researchand analyses(extbox.1), we offer aWhat are the specifictrends and drivers of the automotive sector'sSW and E/E growth-How arethese drivers going to affect the automative industry's long-established valuechains?-How canplyersin andoutside oftheindustryoptimaly preparefor the upcoming marketInthefoowing threpragaphs, we provideashort answer to these questionswhile theremainder of this report will go into detail.Text box1The insights of this report were generated based on closely linked qualitative andHow wederiveinsightsquantilativeresearch For the qualitaive insights, we held interviewswit hexecutives inforthisreportthe autondtive industry and combined them with the knowledgeof internalkeyexperts.wthin ouraut omdivepractice to b il a holistic iew on how ACES trends and additionaldrierswillinfluence the automotive SW andE/EmaretFor ourquantiwithintheautomotiveSWandF/Emarket:- SW development, integrat...
