German Economy Faces Headwinds, Automotive Industry Embraces Software-Defined Future

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German Economy Faces Headwinds, Automotive Industry Embraces Software-Defined Future
German Economy,Supply Chain,Ukraine War

Germany's economic outlook is clouded by supply chain disruptions and the war in Ukraine. Meanwhile, the automotive industry is rapidly evolving towards electric, software-driven vehicles with increasing autonomy.

The German economy is facing challenges stemming from global supply chain shortages as well as Russia's ongoing war in Ukraine. The automotive industry is undergoing a significant transformation, driven by the rise of electric vehicles, software-defined vehicles (SDVs), and autonomous driving technologies.

According to a survey of 1,200 industry executives by IBM, Alliance for Automotive Innovation, AWS, and Red Hat, SDVs, where software controls all aspects of the vehicle, are expected to become mainstream by 2035. Carmakers anticipate generating 51% of their revenue from digital services and car software by 2035, up from 15% currently. The shift to a subscription model could lead to higher costs for customers, with autonomous driving features projected to generate $269 in monthly recurring revenue by 2035. Over-the-air (OTA) upgrades, allowing car owners to update features and extend vehicle life, are also anticipated to become popular

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