Software-defined products and closer scrutiny of technology spending are moving enterprises toward disciplined execution, ISG Provider Lens® report says

LONDON: $III #AI--Automotive and mobility enterprises across Europe are moving AI from experimental use cases into operations while modernizing engineering and manufacturing, 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 2026 ISG Provider Lens® Automotive and Mobility Services and Solutions report for Europe finds that enterprises are integrating digital capabilities across the vehicle lifecycle as electrification, sustainability expectations and changing consumer preferences reshape the regional market. Technology initiatives increasingly are evaluated on tangible business outcomes.

“European automotive companies are becoming more deliberate about how they scale new technology,” said Andreas Fahr, partner and managing director at ISG. “Faster engineering cannot come at the expense of quality or operational stability.”

Software is becoming a defining element of vehicle differentiation, prompting manufacturers to adjust their engineering practices to enable faster release cycles and continuous validation. Automated testing and virtual validation support faster product releases, while model-based engineering and digital twins reduce physical prototyping and help to uncover design issues earlier.

Engineering teams are applying AI to software development and system validation, while manufacturing operations are using intelligent analytics for production planning and predictive maintenance. Commercial teams are also using AI-based insights in forecasting and customer service, extending adoption across the business.

Factory modernization is focusing on flexibility as demand and supplier networks continue to shift. Manufacturers are expanding investments in connected factories, industrial AI and intelligent automation to respond more quickly to changing production conditions. Predictive quality management and energy optimization are also becoming more prominent in operations, ISG says.

“As engineering and enterprise technology become more intertwined, enterprises need partners that understand automotive operations as well as digital systems,” said Harish B, principal analyst and lead author of the report. “Buyers increasingly favor providers that can connect advisory work with engineering execution across multiple functions.”

The report also explores other trends affecting Europe’s automotive and mobility market, including supply chain diversification and stronger cybersecurity across connected vehicles and manufacturing systems.

For more insights into the challenges faced by enterprises in automotive and mobility enterprises in Europe, along with ISG’s advice for addressing them, see the ISG Provider Lens Focal Points briefing here.

The report evaluates 60 providers across five quadrants: Automotive Engineering and Manufacturing Services, Electric Vehicles (EVs) and Mobility Services, Autonomous Systems and Software-defined Vehicle, Automotive Retail and Aftermarket Services and Automotive Industry: Mid-tier and Specialist.

The report names Accenture, Capgemini, Cognizant, HCLTech, IBM, Infosys, KPIT, LTTS, TCS, Tech Mahindra and Wipro as Leaders in four quadrants each. Akkodis, Atos, Cyient and T-Systems are named as Leaders in three quadrants each. The report names eInfochips, PwC and Tata Elxsi as Leaders in two quadrants each. Aptiv, CI&T, Deloitte, DXC, EDAG, ETAS, EY, MHP, NTT DATA and Quest Global are named as Leaders in one quadrant each.

In addition, eInfochips is named as a Rising Star - a company with a “promising portfolio” and “high future potential” by ISG’s definition - in two quadrants. The report names Genpact, NTT DATA and Sasken Technologies as Rising Stars in one quadrant each.

In the area of customer experience, MHP is named the global ISG CX Star Performer for 2026 among automotive and mobility service and solution providers. MHP earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2026 ISG Provider Lens Automotive and Mobility Services and Solutions report for Europe is available to subscribers or for one-time purchase on 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 and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.

Fonte: Business Wire