Several technology firms developed open-source vehicle architectural operating systems and open electric vehicle (EV) platforms in 2021. According to a recent analysis published by market research firm Gartner, the adoption of innovative collaboration models in the automotive sector will increase in 2022. According to the latest analysis, as digital technology becomes the differentiator in the automotive industry, automakers will soon have no choice but to become tech or software firms themselves.
In order to construct or integrate ecosystems that will allow them to produce more enticing features or digital services, EV car businesses will increasingly look at data in the same manner that IT companies do.
According to Gartner, by 2025, half of the top ten automotive original equipment manufacturers (OEMs) will create their own chips and form direct, strategic, and long-term working relationships with chip firms.
Automakers have mostly focused on the mechanical aspect of car development for the past 100 years, leaving software to third parties. “As digital technology becomes the car’s differentiator, software will become the primary source of profit growth for manufacturers.” Original equipment manufacturers’ (OEMs) ultimate goal will be to transform into tech or software firms, according to Pedro Pacheco, senior research director at Gartner.
Automobile manufacturers are rethinking their long-held inventory strategy based on the just-in-time (JIT) philosophy, which resulted in OEMs and Tier 1 suppliers having no buffer inventory to fall back on amid the numerous chip shortages. As a result, automakers are rethinking their relationships with chipmakers and even developing their own chips. According to Gartner, by 2028, 70% of vehicles sold will run on the Android Automotive operating system, up from less than 1% currently.
“As developing technology and software on their own is difficult, car companies can either partner with digital giants to succeed in turning software into a main moneymaker or build vast in-house resources to achieve it mostly on their own,” said Pacheco.
Half of the top ten automakers will offer unlocks and capability upgrades through software updates paid after the car is sold by 2023, according to the report.