Future of the automotive value chain

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The Future of the Automotive Value Chain

A 2025 Industry Outlook

The automotive industry and its stakeholders are facing disruptive times. The Future of the Automotive Value Chain Research analyses current and future industry trends in the automotive industry and the impact on the entire value chain.

The Future of the Automotive Supply Chain

News of disruptive, even historical, changes in the automotive ecosystem has dominated industry debates in recent years. Unfortunately, it is still not clear where the journey will end. Our new study tries to provide an answer to this uncertainty. 

We identified 5 main drivers of change in the automotive value chain. These are social change, technological advancement, economic shifts, environmental trends, and political developments.

A driver with a significant impact is the transition in focus in both the area of hardware and that of software and data. In the area of hardware, where there is currently a focus on the motor, interior and the chasis, the industry will instead focus on alternative powertrains, semiconductors, smart sensors and batteries. In the area of software and data, where the industry currently focuses mainly on mobility data (maps and traffic information), assistant systems and device integration, in the future a focus will be put on consumer specific data, mobility analytics and artificial intelligence. 

To make sense of all that will change, and how an automotive manufacturer will find its place in the market, we've developed 4 plausible scenarios.

Automotive Value Chain - Full Report

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Four Scenarios for the Automotive OEM in 2025 and beyond

Our research presents four different plausible scenarios that automotive suppliers need to consider. Download the full report for a detailed overview of these scenarios.

1. Data and mobility manager
In this world, connectivity has become a differentiator. E-mobility, autonomous driving, and integrated mobility are a common reality for the broad public. OEMs are able to set the standards and are the dominant players in the automotive industry.

2. Stagnant car maker
Massive lobbying by OEMs has prevented potential new high-tech players from entering the market. However, this defensive strategy has also slowed down technical development, with the result that many potential innovations have not been rolled out.

3. The fallen giant
The car is a mere means of transportation and brand attractiveness has diminished. The technology hype has cooled down, which has put an end to the rise of the high-tech car. Mobility has become a commodity, and OEMs are focusing on improving processes and cost efficiency.

4. Hardware platform provider
IT players have disrupted the automotive value chain. OEMs have mainly become the suppliers of white-label cars to the internet giants. In this world, OEMs can play a relevant role only if they provide a superior platform for ‘infotainment’ and mobility services and/or retain a strong brand image.

The four scenarios

Check out our video in which we explain the 4 scenarios we developed for automotive OEMs in 2025 and beyond.

More information?

For more information on the developments in the automotive market, and the impact on OEMs, please reach out to Slavko Savanovic via the contact details below.