Showing 35 results
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July 01, 2025The global automotive industry is undergoing a profound structural transformation. Electrification, connected ecosystems, autonomous driving, and shared mobility are reshaping not just vehicles but also the underlying frameworks through which innovation is developed and delivered. Technology has become central to competitiveness, challenging traditional product development models through the rising need for software-first thinking, modularity, and digital continuity across the vehicle lifecycle. This transformation is taking place amid growing macroeconomic and geopolitical complexity. Inflation, interest rate hikes, and evolving trade policies are exerting cost pressures and creating operational uncertainty. Simultaneously, shifts in consumer demand, stricter environmental regulations, and competitive intensity are compelling automotive enterprises to rethink their focus on engineering investments. The focus is moving from mechanical systems to software-defined architectures due to the need for faster innovation, real-time features, and long-term platform flexibility. This report examines how leading automotive Original Equipment Manufacturers (OEMs) and tier-1 suppliers are realigning their R&D strategies in response. It examines the move toward centralized compute platforms, over-the-air update capabilities, embedded software ecosystems, and tier-0.5 supplier models. The report highlights the growing reliance on global capability centers as scalable hubs for software development, validation, and systems integration. Together, these shifts mark a decisive evolution in how automotive firms approach technology, talent, and transformation.
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Viewpoint
Systems of Execution (SoE) in Manufacturing: Enabling Agents to Revolutionize Shop Floor Operations
May 20, 2025Smart manufacturing, the cornerstone of Industry 4.0, empowers factories to think, adapt, and act autonomously. Yet, most enterprises remain stuck in a loop of fragmented insights, rigid automation, and siloed systems. Systems of Execution (SoE) offer the missing operational layer that transforms smart manufacturing from a digital aspiration into an autonomous reality. Unlike traditional Systems of Record, such as Enterprise Resource Planning (ERP) and Manufacturing Execution Systems (MES), or Systems of Engagement, such as mobile dashboards and human-machine interfaces, SoE activate real-time intelligence. They autonomously orchestrate decisions and adapt workflows across the factory ecosystem, resulting in predictive, agile, and resilient manufacturing operations. This Viewpoint explores SoE’s strategic necessity in smart manufacturing and offers a blueprint for manufacturing leaders to build adaptive, intelligent, and hyper-efficient production environments. Scope Industry: manufacturing Geography: global Content In this report, we: Define SoE in the manufacturing context Identify traditional manufacturing system limitations Examine the business case for SoE in smart manufacturing Recommend a roadmap to execute the SoE vision Memberships Engineering Research and Development Sourcing and Vendor Management -
April 03, 2025In April 2025, the U.S. announced a 25% tariff on all imported automobiles and selected components, targeting OEMs and suppliers across global markets. This is compounded by a hardware-software ban on Chinese and Russian tech in connected vehicles. The policy aims to strengthen domestic manufacturing and safeguard national security, but is already driving up vehicle prices, delaying purchases, and triggering supply chain realignments. OEMs are stockpiling inventory, reassessing sourcing, and shifting toward higher-margin models. Suppliers face cost inflation and compliance challenges, while consumers are shifting to used vehicles. Service providers have an opportunity to guide clients through this disruption with supply chain diagnostics, logo-level exposure analysis, and tech-driven engineering support. In this Viewpoint, we explore the near- and long-term implications of these policies across the automotive value chain, including their impact on OEMs, suppliers, consumers, and the opportunities they create for service providers. Scope Industry: Automotive Geography: Global Contents This research outlines Everest Group’s perspective on the business implications of the U.S. auto import tariffs and hardware-software ban, with specific insights for OEMs, suppliers, consumers, and service providers.
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Nov. 05, 2024The automotive industry is significantly transitioning due to shifting consumer expectations. Vehicles are evolving from being mere utilities to offering connected features, advanced safety, and personalized experiences. This shift has driven OEMs to rethink their approach to vehicle engineering and revenue channels and led to the emergence of Software-defined Vehicles (SDVs), where software acts as the vehicle's central control unit, controlling functionalities, analyzing data, and providing an enriched user experience. While OEMs are making strong inroads in capitalizing on the demand drivers and introducing SDV features, developing SDVs is a daunting task faced with challenges such as software development complexity, dynamic regulatory environment, and research and development ramp-up and monetization. All these challenges can lead OEMs to stray away from their course of action, incur cost overruns, and improperly prioritize applications from a monetization standpoint. In this viewpoint, we provide an overview of the North American SDV market and propose a framework that OEMs can utilize to assess their success in navigating these challenges, building SDV competencies, and monetizing their offerings. The framework will help them understand their current state of maturity and identify areas that they need to actively focus on. Scope Industry: automotive Geography: North America Contents In this viewpoint, we: Define SDVs and how they differ from traditional vehicles Give an overview of the North American SDV market dynamics Explain the challenges faced by OEMs in developing SDVs Provide a framework on how OEMs can assess their maturity in developing SDVs and driving market success Role of providers in supporting OEMs in their SDV journey Memberships Engineering Research and Development Sourcing and Vendor Management
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State of the Market
Navigating the Future of the Automotive Landscape: ACES Automotive Engineering State of the Market
Feb. 07, 2024The automotive sector is experiencing accelerated growth due to the convergence of global sustainability imperatives, heightened consumer expectations for efficient and safer vehicles, and rapid technological advancements. In this dynamic environment, the automotive industry is shifting from traditional mobility solutions to embrace a software-centric approach. The report provides an overview of enterprise spending for the automotive market, global automotive business dynamics, insights into various regulatory frameworks, and details around software-centric developments that revolutionize vehicle manufacturing, ownership, and operations. Our study examines the market size, trends, and enterprise priorities within each segment of autonomous, connected, electric, and shared mobility. This section includes key growth drivers, key enterprise challenges, and the roles of service providers. Additionally, we have allocated a dedicated section to analyze the outsourcing market, which includes enterprise spend analysis, the scope and offerings of outsourcing, delivery presence, enterprise feedback on service providers, and competitive investments made by service providers. Scope Industry: ACES automotive engineering services Geography: All geographies Contents This report is divided into the following three sections: Market overview and emerging trends: provides enterprise spend trend, market split by geography, software spend for automakers, global automotive business dynamics, and update on regulatory frameworks in the automotive engineering space ACES market overview: contains enterprises spend across ACES mobility, key growth drivers for the market, detailed observation on autonomous, connected, electric, and shared mobility market size and trends, key enterprise challenges, and role of service providers Outsourcing landscape: includes spend analysis, offerings and scope of outsourcing, areas of engagement, delivery presence and competitive investments from service providers Membership(s) Outsourcing Excellence Engineering Research and Development -
Provider Compendium
ACES Mobility Engineering Services – Provider Compendium 2023
Oct. 25, 2023The automotive industry stands at an inflection point where global sustainability concerns, increasing consumer demands, and rapid technological advances are propelling rapid growth. In this dynamic landscape, the focus is shifting from conventional mobility solutions to creating a more captivating and immersive automotive experience. Automotive enterprises are eagerly embracing this transformative paradigm, as they strive to enhance customer experience and redefine the future of mobility. Major areas of investment include advancing autonomous technologies (L3 to L5 autonomy), fostering connected ecosystems through collaborations with various sectors, increasing investments and partnerships with technology participants for software-defined vehicles, and investing in electric, hybrid, and fuel cell technologies to address environmental concerns. This compendium provides comprehensive and fact-based snapshots of 26 ACES (Autonomous, Connected, Electric, and Shared) automotive engineering services providers featured in the fourth edition of Everest Group’s ACES Automotive Engineering PEAK Matrix® Assessment. Each profile provides a comprehensive picture of the provider’s ACES automotive engineering services, key solutions offered, strategic partnerships and investments, performance in the market, and customer case studies. The report also presents our insights on enterprise sourcing considerations for each provider. Scope Industry: automotive Geography: global Contents In this report, we provide: ACES Automotive Engineering Services PEAK Matrix® 2023 Key characteristics of Leaders, Major Contenders, and Aspirants A summary dashboard capturing the relative assessment of providers’ vision and capabilities and market impact Providers’ strengths and limitations Membership(s) Engineering Research and Development Sourcing and Vendor Management -
PEAK Matrix®
ACES Automotive Engineering Services PEAK Matrix® Assessment 2023: Navigating the Future of Automotive Landscape
Sep. 06, 2023The automotive industry is at an inflection point, where global sustainability concerns, increasing consumer demands, and rapid technological advancements have coalesced to propel rapid growth. In this dynamic landscape, the focus is shifting from conventional mobility solutions to a more captivating and immersive automotive experience. Automotive enterprises are now eagerly hopping on to this transformative paradigm, embracing the idea of enhancing customer experience and redefining the future of mobility. Some of the major areas of investment include: Autonomy Advancements: Investments in L3 to L5 autonomous technologies, intelligent adaptive cruise controls, safety systems, and sensor fusion tech to transform driving experiences Connected Ecosystems: Connectivity and data management are forging powerful collaborations between automotive players and players from diverse verticals such as fintech, insurance, technology, and telecommunication to bring in several after-sales services Software-Centricity: With the emergence of software-defined vehicles, there is an increased level of investments in software development and partnerships with technology players Electrification Imperative: The need to address environmental concerns and stringent governmental regulations has accelerated the investments in electric, hybrid, and fuel cell technologies This research, the fourth edition of Everest Group’s ACES Automotive Engineering Services PEAK Matrix® Assessment, evaluates 26 engineering service providers, features them on the PEAK Matrix®, and shares insights into enterprise sourcing considerations. The study is based on RFI responses from service providers, interactions with their automotive engineering leadership, client reference checks, and ongoing analysis of the engineering services market. Scope: This research studies the following service providers associated with automotive engineering services: Alten, Capgemini, HCLTech, KPIT, LTTS, TCS, Wipro, Akkodis, AVL, Bertrandt, Cognizant, Cyient, DXC Technologies, FEV, FPT, IAV, Infosys, NTT DATA, Tata Elxsi, Tata Technologies, Onward Technologies, Sasken, Semcon, Sigma Software Tech Mahindra, and T-Systems. Industry: Automotive Geography: Global Contents This report maps and covers: ACES Automotive Engineering Services PEAK Matrix® 2023 Key characteristics of Leaders, Major Contenders, and Aspirants A summary dashboard capturing the relative assessment of each service provider’s vision & capability and market impact Providers’ strengths and limitations vis-à-vis enterprise sourcing considerations Membership(s) Engineering Research and Development Sourcing and Vendor Management -
Thematic Report
Webinar Deck: Navigating the Automotive Engineering Landscape
July 25, 2023Automotive original equipment manufacturers (OEMs), classified as Tier 1, 2, and 3, are experiencing a substantial and permanent change in customer preferences due to the widespread adoption of Software Defined Vehicles (SDVs) and Autonomous, Connected, Electric, and Shared (ACES) technologies – dramatically impacting engineering priorities in these markets. In this webinar, our experts explored the latest key engineering priorities and why the automotive engineering landscape has evolved. They also provided practical recommendations for engineering spend and examined the challenges that enterprises currently face. Our experts also shared the latest impacts on automotive outsourcing and provide insights on how enterprises can effectively realign talent, technology, and ecosystem engagement strategies to scale SDVs and ACES initiatives. What questions did the webinar answer for the participants? What are the key themes of engineering spending in the SDV and ACES market? What challenges do enterprises face while transforming to SDV and ACES vehicle production? How do you strategize for talent, technology, and ecosystem leverage to mitigate challenges? -
June 20, 2023The talent market has evolved rapidly following the pandemic, impacting every industry. The manufacturing industry which was already grappling with issues such as labor shortage and skill gaps, candidate misconceptions, and lacking employee engagement had to face newer challenges when the pandemic struck. However, the Recruitment Process Outsourcing (RPO) industry demonstrated strong resilience during this period of global disruption. It rapidly evolved to become more dynamic and reliable and significantly more agile in driving and shaping clients’ next-generation talent needs. This evolution paved the way for the future of RPO – RPO 4.0. This report examines RPO 4.0 and its key levers to address talent acquisition-related challenges. Scope Industry: Manufacturing Domain: RPO Geography: global Contents In this report, we look at: Talent- and talent acquisition-related challenges facing the manufacturing industry The role of RPO and its evolution RPO 4.0’s value proposition and its key levers Key levers to address talent acquisition-related challenges Membership(s) Recruitment Sourcing and Vendor Management
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State of the Market
Driving Next-generation Mobility Experiences: Autonomous, Connected, Electric, and Shared (ACES) Mobility Automotive Engineering Services State of the Market Report 2022
Dec. 24, 2021Evolving customer demands and experience centricity are driving disruptive changes across the automotive engineering landscape. As the expectations around mobility change, so do some of the market dynamics, with newer trends such as a shift in propulsion technologies to hybrid and electric, a significant market for autonomous driving and Advanced Driver Assistance Systems (ADAS), predictive maintenance and other new services, and a technology-centric landscape. These developments have fueled the need for a compelling ecosystem of partners, and engineering service providers are proactively enhancing their capabilities and offerings to help enterprises tackle the challenges in their automotive engineering journeys, stay relevant, and create experience-centric offerings for end consumers. This report assesses the spend dynamics of enterprises in the space, and the investments that engineering service providers are making in the Autonomous, Connected, Electric, and Shared (ACES) mobility market. Scope: Industry: automotive Geographic scope: global This study is based on RFI responses from service providers, interactions with their automotive engineering leadership, client reference checks, and an ongoing analysis of the engineering services market Contents In this report, we explore the trends governing the ACES engineering services market and examine the current market landscape, enterprise spend dynamics, engagement constructs, and the role of engineering service providers in serving the emerging mobility segment. The study is divided into the following three sections: Enterprise spending and emerging trends: we examine spending across market sub-segments, geographies, and macro-level trends impacting the landscape ACES market trends: we study typical focus and investment areas, and key market drivers and buyer challenges Outsourcing landscape: we conduct a spend analysis, and study engagement models and competitive investments from service providers Membership(s) Engineering Services Sourcing and Vendor Management