Key facts
- Software and digital technology will be the key battleground in the automotive industry by 2035.
- China is expected to be home to six of the world's top 10 automakers by 2035.
- More than a third of companies need over two years to deploy new AI, software, or digital capabilities.
A survey of 775 senior automotive executives by KPMG indicates that software and digital technology will become the primary focus of competition in the industry by 2035. The study also projects China's growing dominance, with 48% of respondents expecting six of the top 10 global automakers to be headquartered there. Continuous transformation is seen as the industry's operating model amid technological, geopolitical, and market disruptions. Asia-Pacific leads in investment in AI and emerging technologies, with companies also exploring value creation in sectors beyond vehicle sales, such as energy storage, defense, and financial services.