Projected IT Spend by 2025

A massive leap from ~$38B in 2015, reflecting the industry’s pivot to software and digital platforms.

Planned Digital Investment

Manufacturers are increasing digital investment to fuel electrification and autonomous development.

The IoT Endpoint on Wheels

Every new vehicle is a connected data hub, enabling services like predictive maintenance and OTA updates.

1. The Rise of Software-Defined & Connected Cars

Vehicles are evolving into platforms where capabilities from infotainment to performance are governed by software. This enables Over-the-Air (OTA) updates, reducing recall costs and allowing continuous improvement long after purchase.

• ✔Recurring revenue via subscription features (e.g., advanced ADAS).
• ✔Enhanced, personalized in-car customer experiences.

2. IoT-Enabled Smart Manufacturing (Industry 4.0)

Automotive plants are transforming into smart factories using IoT, digital twins, and analytics to optimize production. This is crucial for managing the complexity of EV and autonomous model variants while improving efficiency.

• ✔Predictive maintenance to increase equipment uptime and reduce costs.
• ✔Greater agility to support a retiring workforce and onboard digital-native employees.

3. The New Omnichannel Customer Journey

The traditional dealer-centric model is giving way to a seamless digital journey, from online research and configuration to purchase and ownership. Customers now expect e-commerce-like experiences, including transparent pricing and app-based vehicle management.

Automotive IT Spending Growth

Key Digital Investment Drivers