Automotive and mobility enterprises across Europe are increasingly embracing AI, IoT, and robotics to cut costs, enhance product quality, and adapt to sweeping industry changes, according to the 2025 ISG Provider Lens® Automotive and Mobility Services and Solutions report for Europe from Information Services Group (ISG).
The report highlights that the industry is at a pivotal point in 2025, driven by EU climate goals and evolving consumer demands. Companies are leveraging real-time monitoring, predictive maintenance, and flexible production lines to align with sustainability and digitalization imperatives.
“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.”
Strategic Shifts in Production and Supply Chain
To counter supply chain risks and maintain competitiveness, firms are localizing battery production, securing critical raw materials, and advancing autonomous and connected vehicle platforms. These measures aim to reduce import dependency and meet EU mandates for sustainable mobility while safeguarding Europe’s tech leadership.
Digital Capabilities Driving Value
As vehicles’ value increasingly hinges on their digital features, automakers are integrating connected platforms and data-driven services to cater to modern consumer preferences. The market is embracing flexible mobility options like car-sharing, subscriptions, and ride-hailing to tap into urban demand where ownership is less practical and environmental awareness is higher.
Regulatory and Environmental Pressures
European automakers are responding to stricter emission rules, including the EU’s FitFor55 program, which accelerates the shift to low- and zero-emission vehicles. National initiatives, such as France’s Crit’Air program, are also spurring consumers and fleets toward greener vehicle choices.
Lifecycle Sustainability and Innovation
To address environmental impact and resource scarcity, companies are exploring battery recycling, second-life applications, and other sustainable practices. “The European automotive and mobility sector is embracing lifecycle sustainability practices in product design,” said Harish B, Manager and Principal Analyst for ISG Provider Lens. “This approach mitigates environmental impact and addresses resource challenges.”
Skills and Connectivity
The report notes a rise in workforce skill development and investments in connectivity, transforming vehicles into fully digital platforms. These advancements are helping shape the next generation of automotive solutions.
Market Leaders and Innovators
The 2025 ISG Provider Lens® report evaluates 41 providers across five categories: 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.
Leaders in all five quadrants: Accenture, Capgemini, Cognizant, HCLTech, IBM, Infosys, TCS, Wipro.
Leaders in four quadrants: Akkodis, Tech Mahindra.
Leaders in three quadrants: KPIT, LTTS, PwC, T-Systems.
Leaders in two quadrants: Deloitte, DXC Technology, EY, Tata Elxsi.
Leaders in one quadrant: Aptiv, LTIMindtree, UST.
Rising Stars: CI&T, Cyient, Genpact, UST (in one quadrant each).
A customized version of the report is available from T-Systems. Subscribers or one-time buyers can access the full report here.
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