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Visit McKinsey & Company to read the article.
“Disruption lies ahead for the auto industry. Significant changes in consumer behavior—namely, a much greater focus on the in-vehicle experience rather than the driving experience—will almost certainly upend the status quo. Specifically, original equipment manufacturers (OEMs) and major (tier-one) suppliers will need to transform their products, as well as their capabilities and organizational structures, to survive and thrive. These changes present both great risk and great opportunity for the auto industry: while we expect the overall value pool to grow to $6.6 trillion in 2030 from $3.5 trillion today, traditional technologies and business models are expected to decline from 98 percent of the market today to 50 percent in 2030. Growth will be driven by disruptive technologies and business models in autonomy, connectivity, electrification, and vehicle sharing.”