How Technology is Transforming the Automotive Value Chain - Leddartech

Long dominated by car manufacturers and supported by a limited network of large system and component manufacturers, the automotive industry is going through a fundamental transformation. The electronics and software content in cars have doubled in 15 years, going from 15% of total car cost in 2000 to close to 40% today, a trend that is expected to continue upward (source: Goldman Sachs reports).

This creates a totally new context where large OEMs and tier-1 suppliers seek collaboration with technology disrupters to select the right technologies and integrate them into efficient and cost-effective systems. The future competitiveness of car makers will depend of how well they can define and execute this roadmap towards “smart mobility”. In addition, the capacity of tier-1 suppliers to act as system integrators becomes even more strategic in their relationship with automotive OEMs.

 

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