The software-driven mobility era: Beyond vehicles

The automotive industry is undergoing a profound transformation.

Software is no longer a supporting function – it’s becoming the strategic engine behind mobility innovation. As consumer expectations shift toward seamless, connected digital experiences, and digital-native players redefine the competitive landscape, traditional automotive organisations must evolve into software-centric enterprises.

The software-driven mobility era: Beyond vehicles, the latest report from the Capgemini Research Institute, explores how automotive leaders are navigating this shift to software-driven mobility (SDM) – from platform development and architectural redesign to talent transformation and ecosystem collaboration. Key findings include:

• Software is the future of automotive: 92% of automotive organisations believe every automotive organisation will evolve into a software company. 87% say software will be the biggest source of competitive advantage over the next five years.
• SDM is reshaping the value chain: 81% agree that software-defined products and services – not just physical vehicles – will become the core value proposition. 61% expect their SDM strategy to impact most (over half) of their brands within five years.
• Organisational transformation is essential: Only 14% have successfully scaled an SDM use case. 86% say SDM will impact their operating models, and 91% foresee an impact on skillsets. Legacy architectures and siloed operations remain major barriers.
• Cybersecurity and compliance are top priorities: 91% struggle to ensure supplier products meet safety and cybersecurity standards. A similar percentage plan to deploy FOTA (full over the air) patches for cyber risks, and nearly 75% centre their cybersecurity strategies on AI-driven threat detection.
• Digital natives are setting the pace: Chinese and global digital-native automakers are leading with software-first, user-centric models. Their success highlights the urgency for legacy OEMs to modernise architectures and embrace collaborative ecosystems.
• AI and cloud are reshaping vehicle systems: 85% report AI is a core component of automotive software. By 2030, 66% of vehicles will support OTA/FOTA updates, up from 28% today. Cloud-native DevSecOps and chip-to-cloud architectures are becoming industry standards.

This report is essential for automotive executives, especially CTOs, chief software officers, chief digital officers, and product strategy leads. It also offers valuable insights for suppliers, software innovators, cybersecurity leaders, and software engineering managers navigating the shift to SDM. To accelerate SDM transformation, organisations must:

• Set the foundation of a software platform for products and services. This includes establishing unified software platforms with centralised architectures, building uncompromising cyber, safety, and compliance resilience, and enhancing customer and user experience.
• Streamline industry-grade software delivery, which incorporates adopting cloud-native DevSecOps, CI/CD pipelines, building a unified data foundation for AI-enhanced vehicle development and accelerating time-to-market, and orchestrating an open, multi-party ecosystem.
• Accelerate to transform into a software company. This comprises creating profitable data- and service-centric business models, future-proofing talent, and fostering a software-driven culture as well as strengthening software sovereignty and supply chain resilience.

To explore how software is redefining mobility, download the full report today.