Berlin – October 29, 2026 -- Fifty-one percent of automotive executives expect software and digital technologies to become their company's most important competitive differentiator by 2035, according to the 26th KPMG Global Automotive Executive Survey. The study polled 775 executives worldwide.
Execution lags ambition. Only 36% of AI and software initiatives have been scaled beyond the pilot phase on average, and 92% of companies need at least twelve months to roll out a new AI, digital or software solution enterprise-wide. More than one-third need over two years.
China expected to dominate the global top 10 by 2035
Forty-eight percent of respondents expect six of the world's ten largest automakers to be headquartered in China by 2035. KPMG's analysis cites China's growing capabilities in electrification, software and digital innovation.
Leading companies are also using these capabilities to pursue opportunities in energy storage, defense applications, connected services and financial services, the report finds.
Asia-Pacific leads Europe and the Americas on AI investment
Fifty-seven percent of executives in Asia-Pacific report substantial investment in AI and new technologies, against 52% in Europe and 48% in the Americas. Asia-Pacific also leads on integrating autonomous driving and driver assistance at 52%, while Europe and the Americas each stand at 44%.
On AI governance, the region reaches 50%, compared with 45% in Europe and 39% in the Americas.
Software maturity is uneven across the industry
Forty-nine percent describe their software-defined products and over-the-air functions as established or firmly embedded. Forty-two percent say the same of their overall software-defined vehicle strategy.
Ecosystem partnerships to supply 44% of value creation within three years
The share of value creation enabled by external partnerships and ecosystems is expected to rise from 30% today to 44% within three years. Half of the executives believe trust in digital and connected functions will largely determine which companies prevail over the same period.
Continuous transformation becomes the operating model
Technology, geopolitics, sustainability, operational pressure, customer expectations and new business models are hitting the industry simultaneously and with comparable intensity. Fifty-two percent agree that continuous transformation has become the norm.
Andreas Ries, Global and Germany Head of Automotive at KPMG, said that companies able to turn technology into customer value fastest, while adapting flexibly to different markets, will lead the industry's next phase. Nicolas Nowicki, partner at KPMG France and Head of Automotive for the EMA region, added that success depends on deploying technology effectively, building the right ecosystems and adapting to increasingly diverse markets, not on location or size alone.