SOURCE RESEARCH
Industrial and Manufacturing Markets Forecast
Market Data | 4Q 2025 | MD-IMMF-24
Get The ReportIn 2030, digital transformation spend by automotive manufacturers is forecast to reach US$161 billion and be both the largest and highest growing (16.3% CAGR) market. This is more than double the US$75.8 billion projected in 2025.
The transition to Electric Vehicles (EVs) is driving this growth. First, established Original Equipment Manufacturers (OEMs) need to develop new models and adjust their manufacturing facilities to accommodate them, while maintaining cash flows and operating margins. Chinese automakers do not face this challenge as they are only producing EVs; however, intense competition for market share in China and to generate sales volumes overseas fuels investments in digital technologies is this segment of the industry.
The automotive industry's digital transformation spend is dominated by devices and hardware, accounting for 55% to 60% of total digitalization investment between 2025 and 2030. Internet of Things (IoT) devices and the similar are critical to improving manufacturing operations.
Industrial software is the second-largest segment, accounting for US$25.6 billion of automotive digitalization spend by 2030. Tools like digital twins and simulation software provide huge benefits for automakers, improving team collaboration and accelerating the vehicle design phase.
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