Market intelligence platform IDTechEx believes that big technology companies could soon dominate the auto business as automakers become increasingly reliant on third-party software and hardware.
IDTechEx notes in its “Electric Vehicles: Land, Sea and Air 2024-2044” report that cars are becoming increasingly technologically advanced. The industry is currently transitioning to electric powertrains, while also introducing autonomous driving systems, infotainment suites, and internet connectivity. Customers tend to like these features, but their increasing adoption is due more to the monetization opportunities inherent in these innovations than to consumer demand. In another study, IDTechEx predicted that software will generate more than $700 billion in automotive revenue over the next 10 years.
However, manufacturing and implementing these technologies at scale requires considerable expertise, which is why many automakers are looking to partner with big tech companies like Google and Amazon. IDTechEx reports that several major technology suppliers, including Huawei and Foxconn, have begun leveraging their knowledge to build automotive hardware, with some even reportedly developing their own vehicles. I'm reminiscing.
The automaker has more experience making and selling cars than these potential competitors, but the more the industry becomes reliant on big tech, the more insider information will be traded. Masu. IDTechEx points to a new partnership between Amazon and Hyundai to sell cars online as evidence of the technology sector's rapidly growing interest in the auto market. Over time, industries are likely to undergo major changes, not only in the products they sell, but also in the people who sell those products.
