From electrification to software-defined cars, rapid advances in technology are reshaping the way people move. Innovations in new energy vehicles (EVs), advanced driver assistance systems (ADAS), and the path to autonomous driving are creating transformational opportunities for industry, consumers, and society.

However, realizing the vision of the next generation of mobility still faces multiple social and business challenges, as well as complex technical challenges. In this context, the automotive industry is recovering from several years of global supply chain crises and macroeconomic headwinds.

Automakers and their supplier networks must work together to overcome the biggest challenges facing the future of mobility. In order to promote deeper cooperation between traditional and emerging ecological partners, now is the time to build a new ecosystem for the next generation of automotive industry.

Rapidly expand the development scale of software-defined vehicles to meet consumer needs

From new product features to predictive repairs, today’s consumers expect real-time updates to improve vehicle safety, optimize the driving experience, and reduce maintenance costs. It is expected that by 2030, the automotive software industry market size will exceed 80 billion US dollars, and automobile manufacturers will face unprecedented opportunities and challenges.

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As automakers transform into mobility companies that provide technology, software, and content to meet consumer needs, they need to develop their own intellectual property to differentiate their products and services. Such innovations will require automakers to learn from the technology industry and work closely with new partners to develop and scale complete mobility systems and solutions.

In the past, automakers relied on a handful of tier 1 suppliers to provide a full range of services, from the design and manufacture of auto parts to the development of hardware and software for vehicle functions.

In recent years, this pyramid on the production line has evolved into an ecosystem. Software-defined vehicles require the support of several independent and specialized systems, so automakers need to collaborate with experts in various fields to develop and produce innovative and highly perceived features and functions. This need for collaboration opens the door for semiconductor companies, software developers, technology start-ups, as well as the design industry and manufacturers, to join the growing mobility ecosystem.

Although automakers have begun to collaborate with new industry partners, the level of “co-competition” and cross-industry cooperation is still immature and there is still a long way to go to achieve the scale of software-defined vehicle production. Automakers should recognize the importance of synergies and try to work with non-differentiated modules such as middleware platforms to accelerate innovation and optimize engineering resources.

With software R&D spending expected to grow to $47 billion by 2028 – and less than half of the money currently being spent on truly differentiating features, such as wireless software and AI software frameworks – the automotive industry must accelerate the growth of the industry ecosystem as quickly as possible to facilitate the growth of automakers. Focus your investment on the customer experience that defines the brand.

The industry ecology of the future must drive deep and continuous collaboration, allowing automakers and partners to leverage their respective strengths and collaborate at the very beginning of the product development cycle. By focusing on partnerships, automakers are able to respond faster to rapidly changing market conditions and deliver next-generation mobility products that are more reliable, resilient and faster.