Recent research released in September 2026 shows that the automotive world is undergoing a rapid transformation driven by artificial intelligence software-centric vehicles and an accelerating shift toward electrification. By 2030, the share of manufacturers that have integrated AI and related advanced tools into any stage of the value chain is expected to climb from 47% today to 72%, marking a decisive breakthrough for a sector that traditionally emphasized mechanical engineering.
The same outlook highlights that more than half of senior executives now rank AI as the top technology required to achieve strategic objectives, surpassing even battery and electric-powertrain concerns. Around 39% also point to in-vehicle software connectivity as a critical lever, underscoring the emergence of the software-defined vehicle as the new platform for growth.
Strategic risk-taking and ecosystem participation differentiate ‘future-fit’ automakers
Competition is expanding beyond traditional rivals. Approximately 46% of respondents identify newcomers from the technology and energy sectors as the most serious threat over the next five years. Companies that have embraced this reality—labelled by the study as the top 20% “future-fit” firms—show a markedly higher appetite for bold moves: 80% of them report a strong tolerance for strategic risk, compared with just 49% among the rest of the industry.
One concrete manifestation of that risk appetite is the surge in ecosystem participation. Among the future-fit cohort, the figure jumps to 80%, reflecting a belief that collaborations with technology firms will soon eclipse the historic alliances with pure-play industrial manufacturers. In fact, the share of OEMs that list autonomous driving and advanced driver-assistance systems (ADAS) among their top three revenue sources is projected to rise from 9% today to 24% in 2030.
Electrification reshapes production mixes and geographic growth priorities
Battery-electric vehicles (BEVs) are set to expand from roughly 18% of global production today to 30% within five years, while the share of internal-combustion-engine (ICE) models is expected to drop from 60% to 41%. The trend is even more pronounced in China, where BEVs could reach 40% of output, displacing ICEs from 43% down to 29%.
Geographically, the focus is moving eastward. Executives now view Western Europe as a top-three growth market for only 26% of respondents—down from 44% previously—whereas South Asia and Southeast Asia are projected to become the most dynamic regions, climbing to 45% and 44% respectively. This shift mirrors the rising demand for electric and connected mobility services in those fast-growing economies.
Where AI money is flowing: product, process and platform
Investment patterns reveal three dominant buckets that together attract about two-thirds of all AI spending. The first concentrates on connected and automated services for software-defined vehicles, covering everything from voice assistants and predictive health monitoring to over-the-air updates and usage-based pricing models. The second focuses on R&D and engineering where AI accelerates virtual prototyping, digital-twin creation and battery-chemistry simulation, compressing development cycles from weeks to days.
The third bucket supports operational and enterprise functions such as manufacturing robotics, computer-vision quality checks, supply-chain forecasting and warranty analytics. While each individual use case may generate modest returns, the collective impact boosts efficiency and resilience across the entire automotive ecosystem.
Nevertheless, a gap persists between ambition and capital allocation. Seventy-three percent of firms say their manufacturing and operations budgets are aimed primarily at productivity, while only 12% allocate resources explicitly for growth-driven initiatives. Talent shortages exacerbate the challenge; more than half of respondents cite a lack of skilled personnel, particularly in AI and software engineering, as a major hurdle to unlocking value.
Companies that can reconcile the tension between short-term efficiency and long-term ecosystem bets are likely to emerge as the leaders of the mobility era.
