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Design+ The transformation of the automotive industry

The industry will evolve into a multi-cooperation eco- involved in mobility services, with automotive companies
network where manufacturers (OEMs) no longer function primarily providing hardware and ICT firms offering
solely as integrators of automobile products but also as platform services. Despite some overlaps in technology
providers with specialized integration capabilities, actively and services, a complementary collaboration is emerging,
participating in this connected ecosystem. 44 especially in the development of software and hardware

Established automotive companies face the challenge components. 40
of adapting their ecosystems and partnerships to meet the Specified system suppliers and other relevant actors
new demands for dynamic capabilities. Particularly, the could be better positioned than established automotive
need for regular software updates presents a significant manufacturers to benefit from the transformation.
challenge, as they enable continuous improvements in According to Yeung, integrating semiconductor control
39
vehicle usability but also require advanced IT architecture modules, electronic components, and safety features
competencies within the vehicle. This development requires a complex structure, regardless of whether vehicles
forces traditional automakers to rethink and expand are shared or autonomously operated. System suppliers with
their technical capabilities and willingness to cooperate the necessary technological competencies for autonomous
to remain competitive in an increasingly digital and driving not only show increased resilience to emerging
connected market environment. 37 megatrends but are also in a favorable position to consolidate
or even expand their competitive advantages. Thus, these
4.2. Autonomous driving
actors could potentially become leading companies within
Autonomous driving is a key technology in the the newly structured automotive value chain. 39
transformation of the automotive industry, characterized Moreover, the increased capacity utilization of
by vehicles operating with minimal or no human autonomous vehicles could lead to a reduction in the
intervention. Essential components include sensors, such number of vehicles, presenting challenges for OEMs and
as Lidar and GPS, advanced data interpretation software, 37
technical infrastructure for computing capacity, and precise suppliers.
steering systems. The development and implementation 4.3. Electrification
37
of autonomous vehicles require the integration of various
technologies and disciplines, making the field highly Electrification in the automotive industry marks a
competitive and resource-intensive. 40 paradigmatic shift from internal combustion engines to
electric drives, driven by stricter emission controls and
The introduction of CAV depends on technological increasing environmental awareness. This development
advancements and the development of appropriate has accelerated the adoption of advanced microelectronics
concepts for mobility services. This development enables and battery technologies by automakers, altering
companies from various industries, including high-tech competitive dynamics, particularly with respect to system
firms, telecommunications companies, IT corporations, suppliers. 37,39 Yeung describes that electric drives have
39
venture capitalists, data management companies, and significantly fewer wear parts than traditional internal
energy providers, to realize innovative business models and combustion engines, impacting not only the complexity
ideas. Continuous data analysis optimizes these services and maintenance of vehicles but also the supplier industry,
and enhances the overall business environment. 38,40 especially manufacturers of standardized components
The increasing automation through autonomous and those specializing in internal combustion engine
vehicles brings significant digital innovations with the technology. Traditional suppliers manufacturing
potential to fundamentally optimize business models. components for electrical or electronic systems must adapt
According to Turienzo et al., these developments are their products to new processors to remain competitive.
driven by a variety of players, including start-ups, spin-offs, This could geographically shift value chains, particularly to
subsidiaries of established companies, and new entrants Asia, where the market for electric vehicles is growing. 39
from the information and communication technology Various propulsion technologies, such as battery electric
(ICT) sector. 37,38 The market for motorized private vehicles vehicles and fuel cell electric vehicles, are competing for
faces new challenges from companies in the ICT sector. 40 dominance, with infrastructure availability playing a
4
The findings of the study by Grimm and Walz crucial role. Ziegler & Abdelkafi’s study concluded that
40
suggest that automotive manufacturers primarily focus on experts predict a coexistence of both technologies, with
developing autonomous vehicles and their technological fuel cells being particularly advantageous for heavy loads
components, while ICT companies concentrate on creating and long distances and battery vehicles for passenger
digital environments and solutions. Both sectors are transport over shorter distances.

Volume 2 Issue 1 (2025) 9 doi: 10.36922/dp.4445