European Automotive and Mobility Enterprises Embracing AI and Sustainability Amid Industry Disruption

Strategic Insights -

As the European automotive industry navigates dramatic changes, enterprises are investing in AI, IoT, and robotics to enhance product quality and reduce costs, according to a new research report by Information Services Group (ISG). The report finds that European automotive and mobility enterprises are at a critical juncture, driven by EU climate targets and evolving consumer expectations. Enterprises are adopting digitalization and sustainability practices to mitigate global supply chain risks, keep up with competitors, and reduce dependence on imports.

Key Takeaways:

  • European automotive enterprises are rapidly adopting digitalization and sustainability practices, with 41 providers evaluated across five quadrants in the 2025 ISG Provider Lens(r) Automotive and Mobility Services and Solutions report for Europe [1].
  • The regional industry is navigating demands for sustainability and digitalization due to EU climate targets and evolving consumer expectations, with enterprises investing in IoT, AI, and robotics for real-time monitoring and predictive maintenance [2].
  • To mitigate global supply chain risks, enterprises are localizing battery production, securing access to critical raw materials, and investing in autonomous and connected vehicle platforms [3].
  • The market is embracing personalized, flexible mobility solutions such as car-sharing, subscription services, and ride-hailing, targeting new revenue streams in urban areas where traditional ownership is impractical and environmental concerns are heightened [4].
  • European automakers continue efforts to reduce emissions, with the EU introducing stricter standards, such as the FitFor55 program, which pushes manufacturers to produce more low- and zero-emission vehicles [5].
  • Companies in the region are exploring new approaches to minimize the long-term environmental impact of EVs, adopting strategies such as battery recycling and second-life applications [6].
  • The report also explores growing investments in skills development and a surge in data connectivity transforming vehicles into digital platforms [7].

Statistics:

  • 41 providers were evaluated in the 2025 ISG Provider Lens(r) Automotive and Mobility Services and Solutions report for Europe [1].
  • 5 quadrants were evaluated in the report, including 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 [1].
  • 8 companies were named as Leaders in all 5 quadrants, including Accenture, Capgemini, Cognizant, HCLTech, IBM, Infosys, TCS, and Wipro [1].
  • 4 companies were named as Leaders in 4 quadrants each, including Akkodis and Tech Mahindra [1].
  • 4 companies were named as Leaders in 3 quadrants each, including KPIT, LTTS, PwC, and T-Systems [1].
  • 4 companies were named as Leaders in 2 quadrants each, including Deloitte, DXC Technology, EY, and Tata Elxsi [1].
  • 3 companies were named as Leaders in 1 quadrant each, including Aptiv, LTIMindtree, and UST [1].

Sources:

  • Information Services Group (ISG) (2025). 2025 ISG Provider Lens(r) Automotive and Mobility Services and Solutions report for Europe. [Available online].
  • Andreas Fahr, Partner and Manufacturing Industry Lead for ISG in EMEA. Quoted in ISG (2025). 2025 ISG Provider Lens(r) Automotive and Mobility Services and Solutions report for Europe.
  • Harish B, Manager and Principal Analyst, ISG Provider Lens, and Lead Author of the report. Quoted in ISG (2025). 2025 ISG Provider Lens(r) Automotive and Mobility Services and Solutions report for Europe.