The Software Defined Automotive Revolution
4 min readOct 2, 2021
Capgemini Research Institute released a report in July of 2021, “Next Destination: Software — How automotive OEMs can harness the potential of software-driven transformation,” that surveyed the sentiments of global automotive insiders and found that the next phase of automotive advancements are largely driven by software.
Marc Andreessen’s article “Why Software is Eating the World,” turned 10 years old this past summer and still has the prescient wisdom to analyze many markets, including the automotive sector. When Marc wrote that article he stated, “No one should expect building a new high-growth, software-powered company in an established industry to be easy. It’s brutally difficult.”
As we look at the state of the automotive industry, through the eyes of the survey data from the CRI we find a prediction that, “A key driver of this new revenue will be OEMs’ share of new vehicles based on a unified/common software platform, which will reach 35% by 2031, up from nearly 7% currently.”
7% of the current automotive market is built on a common software platform.
