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European Automotive, Mobility Firms Adopt AI, Robotics

1. European automotive firms are adopting AI for cost efficiency and quality enhancement. 2. New digitalization practices address EU climate targets and consumer expectations. 3. Localizing battery production reduces imports and meets sustainability goals. 4. Stricter EU emissions standards drive manufacturers to prioritize cleaner vehicles. 5. Lifecycle sustainability practices minimize EVs' environmental impact.

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Why Bullish?

The report highlights ISG's leadership in technology amidst rising demand for AI solutions. Historical examples show companies that embrace technology trends often see stock price increases.

How important is it?

The report emphasizes ISG's leadership in AI research, which enhances relevance for investors and clients.

Why Long Term?

Technological and sustainability shifts will influence market dynamics over the coming years, particularly post-2025.

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Changing regulations, customer expectations trigger technology transformations for sustainability, efficiency, quality, ISG Provider Lens® report says LONDON--(BUSINESS WIRE)--Automotive and mobility enterprises in Europe are increasingly adopting AI and other technologies to lower costs and enhance product quality amid dramatic changes across the industry, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.European automotive enterprises are rapidly adopting digitalization and sustainability practices in all parts of their business. These initiatives are critical to navigating technological shifts and evolving customer expectations.Share The 2025 ISG Provider Lens® Automotive and Mobility Services and Solutions report for Europe finds that the regional industry is at a critical juncture in 2025, navigating demands for sustainability and digitalization due to EU climate targets and evolving consumer expectations. Enterprises are investing in IoT, AI and robotics to enable real-time monitoring and predictive maintenance while making production lines more flexible. “European automotive enterprises are rapidly adopting digitalization and sustainability practices in all parts of their business,” said Andreas Fahr, partner and manufacturing industry lead for ISG in EMEA. “These strategic initiatives are critical to navigating technological shifts and evolving customer expectations.” To mitigate global supply chain risks and keep up with competitors, enterprises are localizing battery production, securing access to critical raw materials and investing in development of autonomous and connected vehicle platforms, the report says. These initiatives are designed to reduce dependence on imports and meet EU directives to make mobility more sustainable and maintain Europe's technological leadership. As the value of new vehicles increasingly depends on their digital capabilities, companies are integrating digital platforms and data-driven services to satisfy consumer preferences. The market is embracing personalized, flexible mobility solutions such as car-sharing, subscription services and ride-hailing. Strategies to provide these solutions target new revenue streams in urban areas where traditional ownership is impractical and environmental concerns are heightened. European automakers continue efforts to reduce emissions as the EU introduces stricter standards, such as the FitFor55 program, which pushes manufacturers to produce more low- and zero-emission vehicles, the report says. In addition, national environmental initiatives such as France's Crit’Air program encourage consumers and fleet operators to acquire lower-emission vehicles, subsequently driving manufacturers to prioritize cleaner vehicles. Companies in the region are also exploring new approaches to minimize the long-term environmental impact of EVs. They are adopting strategies such as battery recycling and second-life applications to address resource scarcity and waste management concerns, ensuring sustainable practices that align with efficient resource utilization. “The European automotive and mobility sector is embracing lifecycle sustainability practices in product design,” said Harish B, manager and principal analyst, ISG Provider Lens, and lead author of the report. “This approach mitigates environmental impact and addresses resource challenges.” The report also explores other European automotive and mobility trends, including growing investments in skills development and a surge in data connectivity transforming vehicles into digital platforms. For more insights into the challenges faced by automotive and mobility enterprises in Europe, along with ISG’s advice for addressing them, see the ISG Provider Lens® Focal Points briefing here. The 2025 ISG Provider Lens® Automotive and Mobility Services and Solutions report for Europe evaluates the capabilities of 41 providers across five quadrants: Automotive Engineering and Manufacturing Services, Electric Vehicles and Mobility Services, Autonomous Systems and Software-defined Vehicles, Automotive Retail and Aftermarket Services and Technology Transformation and Consulting. The report names Accenture, Capgemini, Cognizant, HCLTech, IBM, Infosys, TCS, and Wipro as Leaders in all five quadrants. It names Akkodis and Tech Mahindra as Leaders in four quadrants each. KPIT, LTTS, PwC and T-Systems are named as Leaders in three quadrants. Deloitte, DXC Technology, EY and Tata Elxsi are named as Leaders in two quadrants. Aptiv, LTIMindtree and UST are named as Leaders in one quadrant each. In addition, CI&T, Cyient, Genpact and UST are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each. A customized version of the report is available from T-Systems. The 2025 ISG Provider Lens® Automotive and Mobility Services and Solutions report for Europe is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lens® Research The ISG Provider Lens® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage. About ISG ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments. More News From Information Services Group, Inc.

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