Technology · NEWS EXPLAINER
Auto executives expect software and China to reshape the industry by 2035
A 775-executive KPMG survey points to software-led competition, more China-based leaders and slow enterprise deployment.
Software and digital technology are expected to overtake traditional vehicle engineering as the main competitive battleground by 2035, according to a KPMG survey of 775 senior automotive executives reported by Reuters.
The same survey shows expectations of stronger China-based leadership, but also a practical bottleneck: most companies need at least a year to deploy a new AI, software or digital capability.
Software is expected to become the main competitive difference
Reuters reported that 51% of the 775 senior executives surveyed expect software and digital technology to become the automotive industry’s main source of competitive differentiation by 2035. KPMG’s underlying research likewise describes AI and software-defined vehicles as central but notes a large readiness gap.
China is expected to gain more seats among the largest automakers
Forty-eight percent of respondents expect six of the world’s top 10 automakers to be headquartered in China by 2035. That is an executive expectation, not a measured 2035 market share or a guarantee about which companies will rank in the top 10.
Deployment speed may constrain the shift
Ninety-two percent of surveyed companies need at least 12 months to deploy a new AI, software or digital capability, and more than a third need over two years. Significant spending was reported by 57% in Asia-Pacific, 52% in Europe and 48% in the Americas, but spending does not prove successful deployment.
