Software-driven transformation is expected to help connectivity-embracing OEMs in automotive gain 9% higher market share on average than their peers.

A new report from the Capgemini Research Institute, ‘Next Destination: Software — How automotive OEMs can harness the potential of software-driven transformation,’ highlights how software-driven transformation is expected to deliver benefits for automotive OEMs in the next five years, such as such as improving productivity up to 40%, reducing costs by 37%, and improving customer satisfaction by 23%.

Despite this, nearly half (45%) of OEMs currently do not offer any connected services, and only 13% are monetising connected services.

Alexandre Audoin, group industry lead for automotive at Capgemini, said: “Software is redefining mobility and disrupting the entire automotive value chain.

“While the competition for innovation and growth undoubtedly lies within the vehicle, automotive manufacturers must not overlook the need to create a culture of agility and collaboration within the business.