Automakers and e-mobility companies in North America are actively overhauling product development, software architecture, and manufacturing operations to align with evolving regulatory pressures, electrification mandates, and software-driven design requirements.
These changes, documented in the newly published 2025 ISG Provider Lens Automotive and Mobility Services and Solutions report, reflect a significant industry-wide shift toward electric propulsion, digital vehicle platforms, and embedded services.
The report finds that engineering and R&D organizations within OEMs are shifting from legacy propulsion and control architectures toward modular, electrified platforms that support advanced driver assistance systems (ADAS), connected vehicle capabilities, and software-defined functionality. This includes the redesign of propulsion systems, reconfiguration of embedded software stacks, and implementation of scalable computing platforms to support continuous updates and data integration.
At the same time, engineering teams are adapting to unpredictable regulatory conditions, including fluctuating emissions standards and tariff uncertainties, while retooling manufacturing lines to accommodate battery-electric models.
As electrification accelerates, automakers are increasing investment in core battery technologies, vehicle control systems, and cybersecurity measures to protect highly connected platforms.
Software is becoming a primary differentiator in product development. The report notes a shift in engineering workflows to support over-the-air (OTA) update frameworks, digital feature deployment, and lifecycle service enablement. This has driven a realignment of development priorities toward cloud-integrated architectures and in-vehicle computing platforms.
Despite challenges in autonomous vehicle deployment and uneven uptake of shared mobility solutions, long-term R&D continues across all elements of the CASE (connected, autonomous, shared, electric) framework. Robotaxi pilots and autonomous system development remain active, while urban shared mobility platforms continue to evolve in response to changing transportation patterns.
The report highlights the growing role of external partnerships in addressing technical complexity. Collaborations between OEMs, mobility service providers, software vendors, and EV infrastructure companies are increasingly central to engineering roadmaps and platform deployment strategies.
ISG evaluated 40 service and solution providers across five categories: Automotive Engineering and Manufacturing Services; Electric Vehicles and Mobility Services; Autonomous Systems and Software-defined Vehicles; Automotive Retail and Aftermarket Services; and Technology Transformation and Consulting.
Key findings and rankings, including providers named as Leaders and Rising Stars across these segments, are available in the full report.
Filed Under: Technology News