Technology has vastly disrupted every industry, with automotive ranking near the top. Vehicles are now essentially supercomputers on wheels, with even greater evolution coming down the road. In this report, KPMG’s Mark Gibson (U.S. national sector leader, Technology, Media & Telecommunications) and Gary Silberg (global sector leader, Automotive) discuss these trends and how technology will continue to impact the automotive sector. Highlights include the following:
- Due to increased safety capabilities, infotainment, and electrification, the automotive semiconductor market will reach $200 billion annually by the 2030’s and $250 billion by 2040. Semiconductor executives now view the automotive sector as the second highest driver of revenue growth for 2022.
Applications driving semiconductor company revenue growth over the next year
(1=low growth and 5=high growth), average of responses
|2020 Outlook||2021 Outlook||2022 Outlook|
|Internet of things||3.7||3.8||3.6|
|Cloud computing/data centers||3.1||3.2||3.4|
Source: KPMG Global Semiconductor Industry Survey findings, 2022 (n=152)
- Progress is being steadily made towards autonomous vehicles and autonomous delivery of goods. This, along with the anticipated increase in vehicle cost due to more technology components, may tremendously disrupt current patterns of car ownership.
- Not only will 5G technology enhance the safety aspects of future vehicles, but it will also enable unprecedented infotainment capabilities that will transform the driving experience.
- Talent risk and finding enough skilled employees has long been a concern in the technology industry. The issue is now being exacerbated by other industries (such as automotive, financial services, and life sciences) seeking tech talent as well. The automotive industry, specifically, is reorganizing and strongly pursuing software engineers.
Read the report for additional insights.