Traditional automotive manufacturers face the considerable challenge of transferring their product line-ups to Electric Vehicles ( EVs ), while balancing the need to maintain sales and profits to afford the switchover from sales of their vehicles with Internal Combustion Engines ( ICEs ). A new report from global technology intelligence firm , ABI Research , forecasts that automobile manufacturers will spend US $ 83.3 billion on digital technologies in 2023 , growing by a CAGR of 8.5 % to surpass US $ 188 billion in 2033 .
“ The transfer to EVs is driving demand for software , as manufacturers need to design new vehicles and simulate the vehicles ’ performance . The new production lines will also need to be simulated before launch . Manufacturers are realizing the potential of digital twins to enable teams to collaborate to bring new operations to life ,” explained Michael Larner , Industrial and Manufacturing Markets Research Director , ABI Research .
Before creating digital twins , automotive
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manufacturers will need to remove data silos and create digital threads with suppliers such as Amazon Web Services ( AWS ), Google , NVIDIA and Siemens standing to benefit , added the analyst .
Regarding regions : “ Latin America is forecast to be the fastest growing region ( a CAGR of 9 %) as OEMs scale digital investments across their facilities and invest in locations such as Mexico and Brazil . Meanwhile , in North America as well as Europe , the Middle East and Africa ( EMEA ), investments will be driven by the
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transfer to EVs and competition among the OEMs ’ different plants for producing the new vehicle line-up ,” Larner concluded .
These findings are from ABI Research ’ s ‘ Digital Transformation of Automobile Manufacturing ’ application analysis report . This report is part of the company ’ s ‘ Industrial and Manufacturing Markets ’ research service which includes research , data and ABI Insights . n
www . abiresearch . com
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Image : Shutterstock . com . |
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8 | ismr . net | ISMR December 2023 / January 2024 |