Automotive Sector To Experience Growing Demand For Tech Talent: Report

The overall demand for tech talent has increased by 20%-25% in the auto-tech space.


There is a surge in demand within the technology landscape of the automotive sector for specialised roles. It includes a range of proficiencies, including Mechatronics, Autosar, battery management, AI & ML, Robotics programming, and Product design and development. Additionally, the automotive industry's focus on cutting-edge technology is evident through the prioritization of candidates with programming languages such as C/C++, Objective C, and MATLAB.

According to a report by Spectrum Talent Management, the talent tech market indicates a remarkable surge of 20%–25% in demand. This growth is attributed to heightened competition within the industry and significant investments in Research & Development (R&D) and technology centers. Furthermore, the impact of downsizing in the IT sector has contributed to a positive demand-supply equation.

Certain regions have emerged as hotspots for tech talent demand in the automotive industry. Cities such as Pune, Bengaluru, Chennai, and Hyderabad stand out due to their concentration of automotive enterprises and the need for specialized tech expertise.

However, along with this demand comes a unique set of challenges. Some challenges, such as fierce competition from industry giants, disparities in remuneration, a demand-supply gap, and the cultural shift of tech talent from the IT sector to automotive are expected to emerge in the next few months. The growing complexities of projects and career growth projection for professionals also pose additional hurdles.

Innovations driving demand span autonomous driving, EV and Hybrid tech, connected vehicles, and vehicular communication are all aligned with digital transformation. While the demand is evident, there are skill gaps and areas where candidates from non-automotive sectors may lack proficiency. Moreover, developing advanced technologies for vehicles involves complex engineering challenges and regulatory considerations which act as a hindrance for conservative tech talents. Comparatively, the automotive sector's demand growth outpaces other domains, fueled by R&D emphasis. Demand for both junior and senior tech talent has surged, notably in the 2–7-year experience range, due to the requirement of on-ground workforce as compared to managerial/architectural roles.

“The automotive sector's hunger for tech talent is a driving force in today's competitive landscape," says Mr. Vidur Gupta Co-Founder & Director of Spectrum Talent Management. "To navigate such a high-demand environment, it's important to understand its current trends and prepare as per future projections. Employers equipped with the right market insights will be better prepared for meet the notable surge of up to 25% in demand for tech talent in the automotive sector”.

To attract and recruit top-tier tech talent in today's competitive landscape, companies are implementing multifaceted strategies. These strategies encompass competitive compensation, flexible work arrangements, robust online branding and presence, engagement with developer communities through tech meets and hackathons, employee referral programs, and comprehensive recognition and rewards frameworks.

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