The Automotive supplier ecosystem is changing

With the rise of mergers and acquisitions within the automotive industry as the market moves towards electrification and autonomy the faces of supplier ecosystem are now changing. Jean-Nicolas Brun from Accenture recently said in a statement that the automotive industry is “experiencing changes not seen in over a century”, and that the current industry ecosystem is evolving to the point it will “eventually resemble today’s high-tech sector”. With the rise of newer players in the market suppliers are going to have to do more to retain market share especially as they come under increasing pressure from OEMs and consumers to develop their technology. Technology will be another important factor, says Brun: “The industry´s focus on connected cars, autonomous driving, shared mobility, and electrification is prompting a shift in business models and the product mix. “As the automotive industry evolves to battery electric vehicles and fuel cell electric vehicles, industrial suppliers are reshaping their portfolios to emphasize innovation.” He predicts a shift away from exteriors, tires, and engine and towards software, a shift being accelerated “by the increasing customer demands for experiences while driving”.