Autonomous driving (AD), connected vehicles, electrification of the powertrain, and shared mobility (ACES) are mutually reinforcing developments in the automotive industry. Combined, they are not only disrupting the automotive value chain and impacting all stakeholders involved but are also a significant driver of the expected 7 percent compound annual growth rate (CAGR) in the automotive software (SW) and electrical and electronic components (E/E) market, i.e., from USD 238 billion to USD 469 billion, between 2020 and 2030. At this rate, the SW and E/E market is expected to vastly outpace growth in the overall automotive market, which is estimated to grow at 3 percent CAGR in the same time span. As a consequence, SW and electronics have become the focus of most automotive companies and their executives. In this context and based on our extensive research and analyses (Text box 1), we offer a perspective on three key questions: — What are the specific trends and drivers of the automotive sector’s SW and E/E growth dynamics and the changing landscape towards 2030? — How are these drivers going to affect the automotive industry’s long-established value chains? — How can players in and outside of the industry optimally prepare for the upcoming market developments? In the following three paragraphs, we provide a short answer to these questions while the remainder of this report will go into detail.