North American Automakers Invest in Mobility's Future
Automotive and mobility industry navigates changing technology, regulation, consumer demand through innovation, partnerships, ISG Provider Lens™ report says
North American automotive and mobility companies are investing in transformations of their products and operations in response to significant changes in technology, consumer demand and regulation, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The 2025 ISG Provider Lens™ Automotive and Mobility Services and Solutions report for North America finds that demand for electric vehicles and advanced digital features is leading automakers to significantly update vehicle platforms, development processes and manufacturing facilities for long-term competitiveness. They are navigating these fundamental changes amid a volatile regulatory environment in which some emissions and efficiency rules are being rolled back while rising tariffs threaten profitability and long-term business planning.
"North American automakers are in the middle of major technology transitions involving propulsion systems, software architectures and ongoing vehicle support," said Bob Krohn, partner, manufacturing, for ISG. "Service and solution providers play vital roles in addressing this broad set of challenges."
The North American and global industries are heavily investing in research and development to make vehicles connected, autonomous, shared and electrified (CASE), the report says. Despite slower-than-expected introduction and acceptance of some CASE technologies, enterprises still believe they represent major long-term business opportunities. Autonomous vehicles (AVs) are steadily emerging through robotaxi trials and ongoing development, while a growing number of urban consumers are choosing shared mobility access over ownership.
Rising demand for digital features and services is turning software into a defining characteristic of vehicles, leading North American manufacturers to realign product development toward digital features and computing platforms, ISG says. Consumers are increasingly interested in continuous vehicle updates, personalization and connected services such as navigation and entertainment, while over-the-air software updates offer companies a way to continually improve driver assistance and AV systems. Manufacturers are also increasing investments in technologies to counter heightened cybersecurity threats to increasingly connected vehicles.
As the automotive landscape grows more complex, partnerships are essential to meet emerging challenges and opportunities, the report says. Partnerships among manufacturers, technology vendors, mobility service companies and providers of EV charging infrastructure are becoming more common in North America. Companies hope to use these relationships to streamline operations, enhance service offerings and address evolving consumer needs.
"Mobility is no longer a challenge that can be solved simply by building a better car," said Swadhin Pradhan, assistant director and principal analyst at ISG and lead author of the report. "Automakers recognize that they need to work closely with partners to give consumers the software, services and infrastructure for next-generation mobility."
The report also explores other trends affecting North American automotive and mobility enterprises, including investments to improve battery performance and cost and efforts toward more sustainable manufacturing processes.
For more insights into the challenges facing North American automotive and mobility companies, along with ISG's advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.
The 2025 ISG Provider Lens™ Automotive and Mobility Services and Solutions report for North America evaluates the capabilities of 40 providers across five quadrants: 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.
The report names Accenture, Capgemini, HCLTech, IBM, Infosys, TCS, Tech Mahindra and Wipro as Leaders in all five quadrants. It names Cognizant as a Leader in four quadrants and Deloitte, KPIT, LTTS and NTT DATA as Leaders in three quadrants each. Akkodis and EY are named as Leaders in two quadrants each. Aptiv, Genpact, Kyndryl, LTIMindtree, Quest Global, Softtek and Tata Elxsi are named as Leaders in one quadrant each.
In addition, CI&T, Cyient, DXC Technology, eInfochips, Hitachi Digital Services and Tata Elxsi are named as Rising Stars — companies with a "promising portfolio" and "high future potential" by ISG's definition — in one quadrant each.
Customized versions of the report are available from CI&T, eInfochips and Softtek.
The 2025 ISG Provider Lens™ Automotive and Mobility Services and Solutions report for North America is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
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Laura Hupprich, ISG
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Julianna Sheridan, Matter Communications for ISG
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