Tech Trends and the Role of IT in the Automotive Industry

Alexander Ivanov

Alexander Ivanov

Expert in Automotive Technologies

May 18, 2022
4 minutes to read

The pace of the automotive transformation we are observing is truly astonishing. We at Andersen know this better than anyone else, as the IT sector and the progress it enables are the main engines of the unprecedented ongoing advancements in the automotive industry. Today, we would like to briefly assess these far-reaching automotive trends. We will also address the corresponding role the tech world plays in them.

The automotive industry: new needs and patterns

As a major and complex sector, the automotive industry can still be defined as all the entities and operations involved in the production of vehicles and their components to be sold to individuals and companies. Previously, the main focus of this understanding was centered around motor vehicles, internal combustion engines, and personal ownership.

However, very soon, this framework will recede into the historical distance and will be replaced by a new IT-based reality serving newer usage preferences, driving practices, and ownership patterns.

Thus, as early as 2016, Mary Barra, Chair and Chief Executive Officer of GM, told the World Economic Forum that the industry will face a full-fledged revolution, determined by “convergence of connectivity, electrification, and changing customer needs.”

Indeed, due to unique constellations of factors at play, the automotive industry is being simultaneously reshaped by:

  • environmental concerns and a greater demand for cleaner e-vehicles,

  • tech progress enabling greater connectivity levels and AI-based autonomous driving,

  • recent trends focused on sharing and using, not on owning vehicles.

As a result, the PwC experts see “the car of the future” as “electrified, autonomous, shared, connected and yearly updated.” With these three dimensions in mind, we would like to dive deeper into the following four implications for the industry:

  • Electrification and battery software;

  • Autonomous driving;

  • Shared mobility;

  • Fleet management.


As the McKinsey experts put it, around 2030, “the share of electrified vehicles could range from 10 percent to 50 percent of new-vehicle sales.” What does this mean for automotive manufacturers? It implies that they need cheaper and more reliable batteries that can be controlled, monitored, and assessed by modern software.

Three years ago, the market size of battery management systems was only $5.81 billion. Around 2027, it is expected to be as high as $24.83 billion. To benefit from this growth, both automotive manufacturers and their IT teams and partners need to make sure that their battery management systems can successfully perform such crucial tasks as:

  • effective control and seamless tracking of batteries’ conditions in terms of charging and discharging,

  • sending and displaying timely alerts about the status of