Automotive

The automotive industry in 2026 is doubling down on its drive towards electrification. Increased battery production, growing charging infrastructure, and rising consumer demand are some of the key enablers that will assist this transition over the coming years. 

Cambashi’s e-learning course and Industry Insights include more information about the Automotive industry, alongside high-level market intelligence from our market-leading datasets. 

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What is the current position of the automotive industry?

The Automotive industry in 2026 is set for a tough year ahead as trade protectionism, an uneven EV transition, and subdued consumer confidence weigh on production across major markets. China will remain the primary growth driver while Europe struggles. The US is forecast to contract in 2026 reflecting the effect of tariff-related cost increases. 
While supply chain disruptions, such as semiconductor shortages, are no longer causing a significant drag on automotives production, rising geopolitical tensions, global auto tariffs, and the possibility of deglobalisation could affect manufacturers. In response to tariffs some buyers consider local brands to avoid tariff-related costs, while others are ready to pay more for trusted imported quality. 
Another key driver is the shift to greener transport. Growth is being supported by model launches, falling prices, increased range and number of charging networks, purchase incentives, and CO2-reduction policies. However, confidence in the practicality of EVs is still acting as a drag on adoption. 

Automotive Industry Trends & Challenges

The automotive industry has faced significant challenges in recent years. Declining sales volumes predate the pandemic and continue to plague the industry. The pandemic also highlighted significant fragility in the supply chain, and the lack of resilience brought the industry’s JIT model under scrutiny. The increased requirement for remote working and monitoring of production, assets and processes has accelerated some initiatives such as digitalization and digital transformation. 

 Some of the challenges facing the sector include: 

  • geopolitical tension 
  • reduced or declining sales volume in most markets 
  • regulatory constraints particularly related to environmental concerns 
  • skilled worker shortages 
  • supply chain disruptions/tariffs 
  • trade barriers 

The underlying trends that will drive growth over the coming years include: 

  • changes in the consumer preferences and ownership models 
  • Connected, Autonomous, Shared, Electric (CASE) 
  • digital transformation 
  • growth of artificial intelligence 
  • Software Defined Vehicles (SDVs) 

For more in-depth information about the Automotive industry, check out our e-learning course and Industry Insights platform.

E-learning course & Insights Platform

E-learning course

  • Self-paced e-learning
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Objectives

  • Identify the industry terminology
  • Identify the relationships between typical companies in the industry and understand the structure of a typical business
  • Pick out some of the major issues faced by companies in today’s industry
  • Differentiate between the initiatives they take to respond to business issues

Cambashi Ltd is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE sponsors through its website: http://www.nasbaregistry.org

Industry Insights Platform

  • Tactical industry intelligence updated in real-time by industry experts.
  • The latest trends & challenges, business drivers, products & services, and technology.
  • Key players and consumer perspective
  • Industry terminology and metrics
  • Deeper knowledge across a variety of industry subjects

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Automotive Industry Related Professions

Analysis of the employment data highlights key geographical disparities in the make-up of the workforce. APAC has the largest number of workers, which is logical given their larger populations, followed by EMEA, then AMER. However, EMEA and AMER have a higher proportion of senior workers, whereas APAC primarily contains ‘lower skilled’ shop floor workers.

At the sub-industry level, the occupation breakdown changes. The Mfg of Motor Vehicles sees a much more even number of workers between EMEA and APAC, though the distribution of skilled versus unskilled workers remains tilted in favor of EMEA. Despite having less workers EMEA invests more in software to improve operational efficiency, this is reflected in the superior VA in this sub-industry.

As the amount of in-vehicle software continues to grow the industry must find ways to attract and retain software engineering talent. This transition reflects a seismic shift in the industry’s employment landscape, where traditional mechanical engineering expertise must now harmonize with cutting-edge software talent. The sector now finds itself in direct competition with the tech industry. The next decade will likely see a shift of software workers transitioning to the automotive industry.

Data from the Cambashi Employment Observatory shows that world-wide there are 8x the number of managers and skilled trades people compared with architects, engineers and technicians. This represents a significant opportunity not only for Aerospace software vendors but also for businesses looking for further efficiencies as part of digital transformation.

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Software Market in the Automotive Industry

The automotive industry develops and incorporates some of the most advanced technologies of any manufacturing sector. These technologies cover not only vehicle development but also production and supply. 

It is easy to recognize the advances in mechanical technologies used in vehicles which have led to safety, efficiency, and comfort improvements over many years, but manufacturing processes, production facilities, and increasingly software and electronics are also fundamental to the delivery of such a complex product. 

Factory automation, the use of robots, flexible production lines, just-in-time production systems, and quality management are core technologies essential to manufacturing performance. The industry has also been instrumental in advancing information technologies which support business processes across the value network including Resource Planning (ERP), Supply Chain Management (SCM), and Lifecycle Management (PLM). 

Here we can see the relative sizes of the Computer-Aided Technologies (Mechanical CAD, Mechanical CAE, CAM) and PLM software sectors in the global automotive market. The total is worth approximately $US3.4 billion annually. Note how MCAE is bigger than MCAD, which highlights the importance of engineering analysis and simulation in the automotive sector.

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Design/Engineering/Manufacturing Software Market Share – Automotive Industry

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CAE Automotive Industry Trend: Revenue and Growth

The automotive industry has been impacted on multiple fronts during the COVID-19 pandemic, with a sharp reduction in consumer demand as well as manufacturing impacts due to ‘lockdown’ and social distancing measures. As a result, many of the key simulation software vendors reported falls in revenue in the early quarters of 2020. CAE software vendors…

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Download “Reinventing The Wheel – How Software Is Driving Change in the Automotive Industry’s Transition to Electric Vehicles” 

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