A new study by consultants A.T. Kearney predicts that the use of intelligent IT components in cars will create 40,000 new jobs in Germany through 2025.

A sizeable part of the growth will come from electric vehicles, but other new automotive features will also create new jobs at automakers, suppliers and service providers.

A.T. Kearney notes that new applications and services are becoming important differentiators for the car brands. “Driver assistance systems are only the beginning of a whole range of new functions that are entering the passenger car,” said Andreas Kramer, a consultant in A.T. Kearney’s automotive practice.

Kramer said in a press release that electromobility in general will require many more embedded systems. He cited battery management and smart metering as examples and also said the development of car-to-car and car-to-infrastructure communication will be a big factor.

Growth can be held back, however, by consumers’ lack of understanding of many of the new technologies. Many find them too complex or too expensive, A.T. Kearney said.

Another potential problem is a lack of industry standards and a growing shortage of engineers.

“Companies must cooperate across industries and jointly develop applications and standards,” said Michael Roemer, the A.T Kearney principal who coordinated the study. “Embedded systems are still far down on the agenda of the development chiefs ”“ and that has to change,” he added.

A.T.Kearney said IT is still widely perceived as a cost by the top management of companies. Only 19 percent of the companies polled involve IT in the strategic startup phase of projects. That reduces the potential for IT to make a stronger contribution to growth.

The consultants interviewed 50 mid-level and senior development, IT and marketing executives at German automotive companies for the study. They also talked to communication and transport industry experts and conducted 80 indepth customer interviews.