Automotive Manufacturers’ Digitalization Spending

Over the next 10 years, manufacturers will commit more and more investments in technologies such as digital twins as they plan for and implement the transfer. In addition, manufacturers will increasingly invest in data collection and analytics to mitigate the risk of unplanned downtime and AI-based use cases that look to ensure quality levels. The upheaval of operating models and investments to improve quality levels is expected to drive spending on digital technologies to reach US$188.8 billion in 2033 (a CAGR of 8.5%).

Spending on new projects in North America will pause as the companies work through the outcome of the UAW strike, but with encouragement from the U.S. Government, manufacturers will be investing in EV facilities. Spending on digitalization in Latin America will be driven by firms scaling initial investments to plants in the region and more investments in automobile plants in Mexico to serve the U.S. market. Scaling investments at existing plants and the opening of new facilities will drive investments in EMEA and Asia-Pacific. In the case of Asia-Pacific, new facilities are forecast to open to hedge against the political risk of operating in China.