Automotive software, electronics market to reach $519 bn by 2035, outpace vehicle market growth: McKinsey New Delhi [India], July 25 (ANI): The global automotive software and electronics market is projected to grow to USD 519 billion by 2035, expanding at a compound annual growth rate (CAGR) of 4.5 per cent - more than four times faster than the overall vehicle market - as software-defined vehicles, artificial intelligence (AI) and advanced driver assistance systems (ADAS) reshape the industry, according to a McKinsey report. The report titled 'The Automotive Software and Electronics Market Through 2035' said that while the global vehicle market is expected to grow by only around 1 per cent annually, the software and electronics segment will see much stronger expansion as automakers increasingly differentiate vehicles through software, connectivity and AI-enabled features. 'In contrast to the overall vehicle market, which is growing by around 1.0 percent CAGR annually, the global automotive software and electronics market could grow by 4.5 percent CAGR and reach $519 billion by 2035,' the report said. McKinsey said the industry is transitioning towards software-defined vehicles (SDVs) supported by zonal and central computing architectures, enabling over-the-air software updates, enhanced connectivity and generative AI integration. According to the report, 'software, electronics, and gen AI have emerged as critical enablers of innovation, transforming vehicle development and customer experience and business models for OEMs and suppliers.' The report noted that although expectations for fully autonomous vehicles have moderated because of delays in Level 3 and Level 4 deployment, investment has shifted toward near-term opportunities such as ADAS and connected services. McKinsey estimates that by 2035, vehicles equipped with Level 2 and higher driver assistance and autonomous driving capabilities could account for nearly 70 per cent of global vehicle sales, with Level 2 vehicles alone making up 52 per cent of