Traditional automobile manufacturers face the considerable challenge of transferring their product lineups 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).
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,” says Michael Larner, industrial and manufacturing markets research director at ABI Research.
He added that 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 the new operations to life.
Larner added that before creating digital twins, automobile 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.
