A new report by Boston Consulting Group (BCG) examined the ongoing shift from internal combustion engines toward electric vehicles (EVs) and the transformation of vehicles that are almost exclusively mechanical machines to ones with increasingly complex software-defined systems.

BCG said the software-defined vehicle (SDV) is just emerging, and it will continue to evolve over the next decade, creating more than $650 billion value potential for the auto industry by 2030.

That prediction would make up 15% to 20% of automotive value.

Further, OEM revenues from automotive software and electronics will grow nearly three-fold between now and 2030, from $87 billion to $248 billion, according to a BCG analysis of SDV growth.

And BCG said the supplier market for automotive software and electronics will nearly double, from $236 billion to $411 billion.

These assertions are among the findings from BCG in collaboration with the World Economic Forum in a report titled, “Rewriting the Rules of Software-Defined Vehicles.”

The report is based off insights from the Automotive in the Software-Driven Era Initiative that was launched by the World Economic Forum and BCG to unlock the potential of cross-industry and public-private collaboration.

To date, the initiative has engaged more than 30 leading companies from the automotive, new mobility and tech industries from around the world to join the effort.

“The magnitude of change that the software-defined vehicle represents cannot be overstated. Software changes the source of competitive advantage at the heart of the product, the way and speed at which innovation is achieved, the role of firms and entire industries in making the car, and the relationship to the end user,” said Alex Koster, a BCG managing director and senior partner and global lead for the firm’s automotive technology business.

“More than ever before, realizing the SDV and key functionalities such as advanced driver assistance will require combining the DNA of automotive and technology firms. Getting started now by figuring out their suitable role in this new environment is crucial for both industries,” Koster continued in a news release.

In the past, experts said that partnering has been limited as most companies were trying to develop individual solutions to occupy potential control points on their own.

In future stages, experts believe that technology complexity and ecosystem dynamics are making partnering and cross-industry collaboration essential to scale, improve safety, and meet customer demands.

Here are five other insights from the new report, which is available online:

—The industries’ SDV transformation is overshadowed by complexity, and cross-industry collaboration will play a critical role to regain scale.

—Collaboration needs to start on the basis of a shared, cross-industry tech stack taxonomy.

—Industry alignment forges ahead with interoperable platform development, driving industry profitability.

—Diverging regional innovation pace, user realities, and regulations require regional collaboration clusters.

—To thrive in a partnering-first world, organizations need to build their internal and external collaboration muscles, anchored in their operating model.

With the coming transition to the more developed stages of the software-defined vehicle, industry-wide, BCG said interoperable platforms are elementary to reactivate simplicity and scale.

Experts also see that forging alliances and partnerships across all layers of the vehicle will be crucial.

“New partnerships between the auto industry and technology companies must be fostered to fully realize the benefits software-defined vehicles can offer,” said Maya Ben Dror, practice manager of automotive and new mobility with the World Economic Forum.

“‘Automotive in the Software-Driven Era’ was created by industry leaders in Davos to serve as a platform for cross-industry and public-private collaboration purposed at improving safety, inclusivity, sustainability and overall system resilience,” Ben Dror continued.