Now Reading: McKinsey sees $519 billion software-defined vehicle market by 2035
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McKinsey sees $519 billion software-defined vehicle market by 2035
McKinsey projects the global automotive software and electronics market will reach $519 billion by 2035, growing at 4.5% annually. Vehicles with Level 2 or higher automation could account for nearly 70% of…
The Story in Brief
McKinsey projects the global automotive software and electronics market will reach $519 billion by 2035, growing at 4.5% annually. Vehicles with Level 2 or higher automation could account for nearly 70% of global sales by then, the report says. The rise of software-defined vehicles, AI, and advanced driver assistance systems is driving this shift.
However, greater connectivity brings cybersecurity risks. Upstream Security's 2026 report finds ransomware now drives 44% of documented automotive cyberattacks, more than double the share since 2024. Over 61% of these breaches threaten to disrupt thousands or millions of connected vehicles simultaneously. The World Economic Forum calls this the industry's most challenging transformation in over a century.
The Indian Opinion
The narrative that cars are becoming giant smartphones ignores Indian realities. Indian roads still struggle with basic lane discipline, and Level 2 autonomy requires clear road markings and traffic discipline. The cybersecurity scare is real, but 44% ransomware figures come from documented attacks globally, not Indian roads. Watch for Indian OEMs' actual adoption of over-the-air updates and how many new models below Rs 15 lakh offer any ADAS at all. That will tell us if this global wave touches Indian driveways.
Source: rediff.com
This story was synthesised by AI from the source linked above.
