Making cars safer, smarter and more sustainable.
The automotive industry is experiencing its largest transformation since the assembly line was invented more than a century ago. Today, many car manufacturers differentiate not necessarily on engine size or body style but on the digital technology that powers a car’s mechanics—which means today’s manufacturers must be software innovators, too.
Manufacturers throughout Asia Pacific (APAC) and Europe, the Middle East and Africa (EMEA) are transforming the automotive market, leading toward a new era of manufacturing. They’re using technology that relies on data, such as in-car sensors, cameras, radar and even multi-access edge computing (MEC).
According to a 2024 report by Research and Markets, the connected car market is estimated to grow from USD $12.4 billion in 2024 to USD $26.4 billion by 2030 at a compound annual growth rate (CAGR) of 13.3%.1 Indeed, as more manufacturers embrace the benefits of Industry 4.0, the advance of these new, smarter, technology-enabled vehicles will increase. This, complemented by investment in more efficient, resilient supply chains, will see manufacturers prosper. With new smart vehicles able to process huge volumes of data in near real time, it will be possible to power a safer, better and more planet-friendly driving experience.2
Today’s consumers are increasingly environmentally conscious and demand greater sustainability in the vehicles they purchase. The Voice of the Consumer Survey by professional services firm, PwC, states that “more than four-fifths (80%) of consumers say they are willing to pay more for sustainable produced or sourced goods. In terms of a price premium, some consumers are willing to pay on average 9.7% more for goods that meet specific environmental criteria, including locally sourced, made from recycled or eco-friendly materials, produced in a supply chain with a lower carbon footprint, among others.”3
That explains why automotive manufacturers are committed to phasing out fossil fuel-powered vehicles by 2040.4 Global sales of fully electric and plug-in hybrid vehicles are set to rise by at least 17% this year to over 20 million cars.5
Connected, autonomous and self-driving cars have the potential to rewrite the rules on how people travel and how the very road network operates. Artificial intelligence (AI) and machine learning (ML) can help an autonomous car understand and quickly respond to data from its surroundings—letting it know whether it needs to stop at a red light or avoid hazards ahead. Self-driving cars can potentially lead to a reduction in road traffic accidents or deaths related to human error. They may also help to lower emissions and improve traffic flow.
"By 2030, up to 10% of global new car sales could be Level 3 vehicles: self-driving cars that let drivers take their eyes off the road and their hands off the wheel in select situations."⁶
Today’s automotive manufacturers are dedicated to increasing sustainability. Indeed, 89% have a sustainability/ESG policy in place. This ambition is evident in how companies strengthen their supply chains by diversifying suppliers, adopting advanced technology and making sustainable practices a greater priority. By broadening the supplier base, manufacturers can reduce their reliance on single sources, helping improve their sustainability. Plus, by introducing AI and the Internet of Things (IoT) into their processes, they can help streamline operations and reduce waste, while reacting faster to disruptions.
The automotive industry faces mounting pressure from all angles. Supply chain disruptions, steep inflation, rising wages and global economic uncertainty have converged to increase production costs and limit the availability of raw materials. There’s also the uncertainty and delays around policies on electric vehicles (EVs) and emissions to contend with.
Despite this, the automotive industry remains core to many global economies, and investments in digital technology and smart factories can help hone companies’ competitive edge over other manufacturers.
PwC expects that changing consumer preferences, increasing data privacy and security regulations, emissions policies, and national electric vehicle charging systems will boost the market for sustainable, intelligent cars. Automotive manufacturers can take advantage of an excellent opportunity to increase market share and usher in a new era of car making.
The drive toward more electric and autonomous vehicles puts automotive manufacturing supply chains under increasing pressure. With the need to source, manage and use a larger number of complex components, the supply chains become more complex, involving multiple suppliers. Disruptions in any part of the chain—from chip supply problems to variations in the price of raw materials—can have a significant impact.
As automotive manufacturers look to take advantage of digitalisation, they need to integrate new technologies into their manufacturing processes—from AI to automation and robotics. However, this is easier said than done. It requires significant planning and investment. Integrations can be costly and time-consuming. It also requires a shift in company culture and communication, with increased collaboration required between IT and operational technology (OT) teams.
The automotive industry is facing a significant shortage in skilled labour. According to recent data from the Institute of the Motor Industry (IMI), in automotive there are 4.3 vacancies per 100 employees. This rate is 43% higher than the cross-industry average, indicating a skills gap that could jeopardise the sector’s future.
This is particularly evident in areas such as software engineering and advanced manufacturing. Without adequate staffing, manufacturers face potential disruption to their production line, which could impact output. Inadequate staffing could also limit their ability to innovate and meet customer demand for new, advanced products.
As automotive manufacturers embrace smart, connected factories, they must contend with new challenges—cyber threats. Vehicle and automotive supply manufacturers listed cyber security as one of their biggest concerns. And it’s no surprise. Cyberattacks resulted in roughly $11.8 billion in total damages during the first half of 2023.10 With 97% of automotive manufacturers and their suppliers either using or considering shifting to smart technology10—and with cyber criminals becoming ever more sophisticated—the global threat level will continue to grow.
According to Deloitte, most consumers are unwilling to pay more for advanced technologies in most global markets. They have been trained to expect new vehicle features as a cost of doing business rather than a premium add-on for brands looking to differentiate themselves from their competitors.11
The automotive industry is a core pillar of economies. The manufacturing of motor vehicles and parts generates huge sales and high levels of production. Industry leaders know the opportunity for growth is massive, and they’re looking to invest in new digital solutions to elevate security, user experience and safety to another level.
$188B will be spent by automobile manufacturers on digital technologies by 2033.12
24% increase in digital investment by automotive manufacturers is predicted over the next few years.13
At Verizon, we’re here to help automotive manufacturers get more out of the latest technologies. We’ll work closely with you to assess your individual needs, then help you adopt the technology and services required to achieve digital transformation, driving forward efficiencies at scale. What’s more, we’ll always be on hand to assist you in enabling your network to support innovation and growth, wherever and whenever it’s needed.
Operating fully autonomous vehicles requires a variety of applications, all of which need strong network support. This is where our scalable network and its comprehensive platforms come in. With near real-time edge computing solutions that localise data, we offer the immediate response the technology demands.
To safely deploy connected and autonomous vehicles, in-vehicle systems and connected fleet services, you’ll first need to create a customised, connected vehicle strategy. With our global connectivity platform, plus our extensive ecosystem of partners and applications, we can help you build a blueprint for success.
Today’s customers don’t just want to buy a new vehicle, they want innovative, personalised and geo-based customer experiences. Whether it’s mileage-based and diagnostic triggers for the person in the driver’s seat, or infotainment options catered to passengers of all ages, we can help give you the capability to offer tailored experiences that exceed expectations.
Adopting smart, connected manufacturing processes increases the risk of internal and external threats to your critical company data and vehicles. We can help you understand these threats and build security into your innovation. We’ll also help you secure critical infrastructure, assets and data in your manufacturing process, whether they’re located in the cloud, mobile or at a factory.
Check out the following case studies to see how we put our professional promises into practical action…
Verizon Business and Audi AG announced a partnership to build a state-of-the-art private wireless network and tech-testing environment at Audi’s automotive test track in Neustadt, Germany.
Verizon Business has end-to-end responsibility for the delivery and support of the high-performance, stable and secure private LTE/5G network, which can be adapted to the developments of the 3GPP standard over time.
The dynamic multi-core network marries the onsite private test network with replicas of the Verizon public network in the USA, local European networks, and Audi’s MVNO partner networks in Asia-Pacific.
Verizon Business tapped into a robust ecosystem of partners. The network uses a dual 5G and LTE Modular Private Wireless platform from Nokia, C-V2X and private MEC infrastructure utilizing AWS Outposts from Amazon Web Services, and real-time video and data-transmission technology from Smart Mobile Labs.
"Verizon Business was able to provide a complete solution that will take time and cost out of the testing cycle and give us a competitive advantage."
—Petr Kozak, Head of Development Infotainment, Connectivity, Data Management and Artificial Intelligence, Audi AG.
The Port of Southampton covers hundreds of acres, including berths for cargo ships and a terminal for cruise ships. Across this vast area, there was only a little off-and-on public 4G coverage. Verizon was asked to bring the port’s network up to date…
Port operator Associated British Ports (ABP) knew its current ways of working and public 4G connectivity wouldn’t help it overcome future challenges. ABP needed to streamline processes and get a consistent view of operations and enable new technology.
Deploy a Verizon Private 5G Network. Verizon added eight access points covering between 200 and 230 acres at the port.
ABP has been thrilled with the coverage the new network provides. Verizon’s Private 5G Network has allowed ABP to mitigate latency. The port authority has consolidated parts of its network and the way it gathers communications for employees and customers, which also enhances security.
“The implementation with Verizon was excellent from start to finish, from the management of the program to the actual physical infrastructure. There was very minimal disruption to any of the operations across the whole of the port,” said Luke Stamp, Information Technology Business Partner for ABP.
Scott Sier, the port authority’s Head of Technology and Digital Experience added, “the Verizon team were instrumental in not only allowing us to conceptualize the idea of our Private 5G Network, but also in the planning, the solution, the design and the application for spectrum in the UK... We were delighted with the implementation of our Private 5G Network in Southampton; from contracts to production use in under six months was a real feat of engineering and a great example of teamwork and velocity.”
Our experts understand the importance of integrating the right technology that can help streamline your supply chain, drive product innovation and improve production line sustainability. We offer guidance and support in developing greater communication throughout your business and enhancing collaboration between IT and OT functions. And, of course, we offer the network solutions that help you connect your business, and protect you from cyber threats.
We have a large global presence, with experts and representatives in APAC, EMEA and other regions around the world. So, wherever you’re based, and wherever you are on your transformation journey, consider Verizon your first port of call.
Get in touch to find out moreManufacturers choose Verizon because we help them work smarter—thanks to our global reach, specialist IT skillsets, and ultrafast industrial connectivity that you can trust.
As more things become connected, not just in IT but in OT, we’re helping customers unlock innovation across their entire supply chains so they can push the boundaries of Industry 4.0.
We invest in startups, run innovation labs globally, and regularly collaborate with technology specialists to deliver seamless, superior solutions. These experts are our Verizon Innovation Partners.
Like you, at Verizon we’re making every effort to do more for our people and planet—from carving our own path to net zero, helping customers on their low-carbon journeys and creating more inclusive opportunities. As your partner, we’ll help you think outside the box.
Verizon named a Leader in first-ever Gartner® Magic Quadrant™ for Private Mobile Network Services.
Verizon is the only U.S. based service provider to be named a Leader, placed in the report for both “Completeness of Vision” and “Ability to Execute.”
Discover how Verizon can help you accelerate toward smart, connected automotive operations so you’re better equipped to meet your manufacturing goals.
1 researchandmarkets.com/report/connected-cars
3 pwc.com/gx/en/news-room/press-releases/2024/pwc-2024-voice-of-consumer-survey.html
7 the-future-of-commerce.com/2025/01/03/automotive-trends-2025/
8 pwc.com/us/en/industries/industrial-products/library/automotive-industry-trends.html
10 cybersecuritydive.com/news/cybersecurity-top-concern-auto-industry-rockwell-automation/720453/
14Gartner, Gartner Magic Quadrant for 4G and 5G Private Mobile Network Services, Sylvain Fabre, Peter Liu, et al., 06 January, 2025. verizon.com/about/news/verizon-named-leader-gartner-magic-quadrant
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