The convergence of the technology and automotive sectors

Technology has vastly disrupted every industry, with automotives ranking near the top. Today, vehicles are essentially supercomputers on wheels — and greater evolution is en route.

In this report, KPMG’s Mark Gibson (U.S. National Sector Leader, Technology, Media & Telecommunications) and Gary Silberg (Global Sector Leader, Automotive) explore the growing impact of technology on the automotive sector and exciting innovations arising from its intersection with semiconductors.

• The automotive semiconductor market is estimated to reach US$200 billion annually by the 2030s and US$250 billion by 2040, fuelled by increased safety capabilities, infotainment and electrification. Semiconductor executives ranked the automotive sector as the second-highest driver of revenue growth for semiconductor companies in 2022.
• The automotive sector is progressing steadily towards autonomous technology. Driverless cars in mobility-as-a-service and and autonomous deliveries are set to hit the road, with pilots already underway. This, along with the anticipated rise in car prices due to the increase in number and advancement of technology components used, may tremendously disrupt current patterns of vehicle ownership.
• Not only will 5G technology enhance vehicle safety, it will also make way for unprecedented infotainment capabilities that will transform the driving experience.
• A war for talent between automotive and Silicon Valley's tech companies is driving restructuring in the auto industry. Specific divisions will be set up to address specific talent needs, such as software engineers for electric vehicles. These segments could operate at different paces and on different comp structures.

Read the full report for more insights.