SEVEN SHIFTS RESHAPING THE AUTOMOTIVE INDUSTRY

The automotive industry is undergoing one of its most significant transformations to date. Value is rapidly shifting from hardware to software, data, and digital platforms. This is highlighted in Nexer’s newest report, Code over Chrome – The Future of Automotive, which analyses how global competition is evolving and why Europe risks losing control over future value creation.

The report builds on the first edition from 2023, where Nexer identified software as a key driver of change. The new study shows that this development has now accelerated into a systemic transformation, fundamentally reshaping the logic of the entire industry.

– The automotive industry is not undergoing a gradual transition, but a structural transformation. The question is no longer who builds the best car, but who controls the software, data, and platforms around it, says Pierre Renhult, Automotive Industry Partner at Nexer.

The report identifies seven key shifts that together define a new competitive logic:

• From a single powertrain to multiple technologies based on use case
• From software-defined vehicles to AI-native systems
• From standalone autonomous vehicles to connected mobility networks
• From vehicle safety to cybersecurity in critical infrastructure
• From product sales to lifecycle-based service revenues
• From globalisation to regional ecosystems
• From incremental efficiency to AI-driven productivity

Together, these shifts mean that value is increasingly moving away from the vehicle itself to the systems and ecosystems in which it operates.

New business models and intensifying competition
The report shows that up to 75 percent of future profits may come from services and data, while platform players are expected to capture an increasing share of the value chain. New entrants are driving innovation at higher speed and lower cost, while established companies are forced to transform both their technology and business models.

At the same time, the market is fragmenting into regional ecosystems, with the US and China strengthening their positions.

– Europe has a strong industrial base, but currently lacks the speed and coordination required to compete fully. Without clearer direction and stronger collaboration, there is a real risk that European players become suppliers in systems controlled by others, says Pierre Renhult.

Ecosystems will define the winners
A key conclusion of the report is that future competitiveness will not be determined by individual products, but by the ability to take a position within digital ecosystems. This places new demands on collaboration between industry, technology companies, and policymakers.

Read the full report here.

About the report:
Code over Chrome: The future of Automotive – volume 2 is an updated edition of Nexer’s industry foresight report first released in 2023, developed together with Kairos Future. The report builds on scenario analysis and interviews with leaders across the automotive ecosystem.

About Nexer Group:
Nexer Group is an international tech company with roots in Swedish entrepreneurial spirit and innovation. Nexer has 2,450 experts in 16 countries and is part of the Danir Group, a Swedish privately owned company with 9,500 employees in 31 countries. Nexer works with some of the world’s largest and most demanding companies, providing expertise in digital transformation, IT, tech, and R&D.

For more information, please contact:
Pierre Renhult, Automotive Industry Partner, Nexer Group
pierre.renhult@nexergroup.com

Lina Hellström, Public Relations Manager, Nexer Group
lina.hellstrom@nexergroup.com