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These headwinds reflect the challenges revealed in Autodesk’ s State of Design and Make report, where nearly two-thirds( 61 percent) of automotive companies report feeling more uncertain than three years ago. Their top three challenges are cost control and management( 34 percent), technological advancements, including AI( 32 percent), and environmental sustainability( 29 percent).

Yet, despite this uncertainty, business leaders in the industry are still feeling bullish in some areas as they identify opportunities for disruption. We’ re seeing the industry redefining itself not only to meet consumer demand and regulatory requirements, but also to build a more sustainable future for mobility. In fact, 61 percent of leaders plan to increase overall future investments, while 75 percent believe that sustainability measures can generate more than five percent of their annual revenue.

As manufacturers strive to compete with EV giants abroad, new design and make possibilities are emerging. Here’ s how the industry is adapting and where the next wave of innovation is likely to arise.

The market shift towards electrification

EVs are projected to make up 50 percent of vehicle production by 2030, as consumer expectations for seamless digital integration and sustainability across the vehicle lifecycle increases. While this is positive news for the growing market segment, it increases competition in the industry at large and forces manufacturers to rethink their processes.

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