With an estimated $172 billion forecast global spend on digital transformation for automotive and transportation industries by 2023, these numbers reveal how connected cars, cyber security, digital twins, smart factories, and AI are reshaping everything from investment decisions to measurable operational gains.
Key Takeaways
- $172 billion is the estimated global spend on digital transformation by automotive and transportation-related industries by 2023 (forecast figure)
- $14.9 billion global market size for automotive cyber security in 2023 (market estimate)
- $52.2 billion global market size for connected car services in 2023 (market estimate)
- 72% of automotive manufacturing leaders say they use industrial analytics (adoption share)
- 45% of automakers report using a PLM system to manage vehicle lifecycle data (adoption share)
- 52% of automotive companies use vulnerability scanning as part of continuous security testing (practice adoption)
- 10–15% reduction in energy consumption can be achieved via smart factory/industrial IoT optimization (benefit range)
- 20–50% reductions in inventory are possible with advanced planning and scheduling (APS) and digital supply chain optimization (range)
- 1.5x faster incident resolution is reported for organizations using AI-assisted IT operations analytics (benchmark)
- $6.9 million average annual savings from cyber-risk reduction is estimated for midsize enterprises using risk analytics (cost impact statistic; cybersecurity digitalization)
- 39% average reduction in breach-related costs is projected with effective security governance and controls (savings estimate)
- 20–30% savings from automated testing in software delivery pipelines (cost reduction range)
- 9% of consumers are willing to pay extra for connected car features (willingness-to-pay rate)
- 2.1 billion connected vehicles forecast worldwide by 2030 (connected vehicle fleet estimate)
- 75% of connected vehicle data is generated outside the vehicle during trips (data share estimate)
Automotive digital transformation is rapidly expanding, with major spending and growth in connected car services, cybersecurity, and data driven factories.
Market Size
1$172 billion is the estimated global spend on digital transformation by automotive and transportation-related industries by 2023 (forecast figure)[1]
Verified2$14.9 billion global market size for automotive cyber security in 2023 (market estimate)[2]
Verified3$52.2 billion global market size for connected car services in 2023 (market estimate)[3]
Verified44.2% CAGR (2018–2026) is forecast for connected car services (growth rate)[3]
Directional5$1.9 billion global market size for automotive AR/VR in 2023 (market estimate)[4]
Single source6$4.1 billion global market size for automotive digital twins in 2022 (market estimate)[5]
Verified737.2% CAGR (2021–2031) is forecast for the automotive digital twin market (growth rate)[5]
Verified8$14.1 billion global market size for automotive simulation software in 2023 (market estimate)[6]
Verified911.1% CAGR (2024–2029) is forecast for automotive simulation software (growth rate)[6]
Directional10$20.7 billion global market size for automotive IoT (2022) (market estimate)[7]
Single source1126.7% CAGR (2020–2027) is forecast for automotive IoT (growth rate)[7]
Verified12$6.9 billion global market size for automotive HMI (2022) (market estimate)[8]
Verified139.1% CAGR (2023–2032) is forecast for automotive HMI (growth rate)[8]
Verified148.2% share: digital transformation is the largest segment within “smart manufacturing” investment in automotive/transportation-related manufacturing (share estimate)[9]
Directional15$30.3 billion (2022) global spending on industrial IoT in manufacturing (context for automotive factories)[10]
Single source16$52.5 billion (2026) is forecast for industrial IoT spending in manufacturing (forecast)[10]
Verified17€2.5 billion funding allocated for EU digital innovation hubs in manufacturing-related programs (funding figure)[11]
Verified18$9.0 billion global market size for vehicle cybersecurity management platforms in 2022 (market estimate)[12]
Verified1919.7% CAGR (2023–2030) is forecast for vehicle cybersecurity management (growth rate)[12]
Directional20$6.0 billion global market size for autonomous vehicle fleet management software in 2023 (market estimate)[13]
Single source2120.2% CAGR (2024–2031) is forecast for autonomous vehicle fleet management software (growth rate)[13]
VerifiedMarket Size Interpretation
Automotive digital transformation is accelerating across the value chain, with global connected car services reaching $52.2 billion in 2023 and expected to grow at a 4.2% CAGR from 2018 to 2026 alongside rapid cybersecurity expansion to a $14.9 billion market in 2023.
User Adoption
172% of automotive manufacturing leaders say they use industrial analytics (adoption share)[14]
Verified245% of automakers report using a PLM system to manage vehicle lifecycle data (adoption share)[15]
Verified352% of automotive companies use vulnerability scanning as part of continuous security testing (practice adoption)[16]
Verified469% of organizations say they use SAST (static application security testing) (adoption share)[17]
Directional541% of respondents in industrial IoT deployments reported using digital twins (use-case adoption)[18]
Single sourceUser Adoption Interpretation
Automotive leaders are rapidly scaling digital practices, with 72% using industrial analytics and a notable 69% already adopting SAST, while only 41% report using digital twins in industrial IoT deployments.
Performance Metrics
110–15% reduction in energy consumption can be achieved via smart factory/industrial IoT optimization (benefit range)[19]
Verified220–50% reductions in inventory are possible with advanced planning and scheduling (APS) and digital supply chain optimization (range)[20]
Verified31.5x faster incident resolution is reported for organizations using AI-assisted IT operations analytics (benchmark)[21]
Verified43.0 hours average time to deploy remote software patches for connected car programs (operational metric)[22]
Directional545% of organizations report measurable improvements in customer experience after digital transformation programs (CX improvement share)[23]
Single source625% reduction in defect escape is reported for teams using continuous integration (CI) and automated tests (quality metric)[24]
Verified72–4 weeks faster release cycles are reported for DevSecOps adoption in enterprise software (cycle time improvement)[25]
Verified899.95% uptime is cited as an achievable SLA for carrier-grade cloud services (availability %)[26]
VerifiedPerformance Metrics Interpretation
Across the automotive digital transformation landscape, organizations are seeing double digit gains such as 20–50% less inventory through advanced planning, 10–15% lower energy use from smart factory IoT, and notably a 3.0 hour average to deploy remote software patches for connected cars.
Cost Analysis
1$6.9 million average annual savings from cyber-risk reduction is estimated for midsize enterprises using risk analytics (cost impact statistic; cybersecurity digitalization)[27]
Verified239% average reduction in breach-related costs is projected with effective security governance and controls (savings estimate)[27]
Verified320–30% savings from automated testing in software delivery pipelines (cost reduction range)[28]
Verified420% reduction in procurement cycle time reduces procurement costs by 3–5% (cost impact from cycle-time reduction)[29]
Directional533% of IT budgets are allocated to digital transformation initiatives in manufacturing (budget share estimate)[30]
Single sourceCost Analysis Interpretation
Across automotive digital transformation efforts, organizations are seeing meaningful, measurable savings such as a 39% reduction in breach-related costs and 20 to 30% savings from automated testing, while midsize firms also estimate about $6.9 million annually from cyber-risk reduction and 33% of IT budgets go to these transformation initiatives.
Industry Trends
19% of consumers are willing to pay extra for connected car features (willingness-to-pay rate)[31]
Verified22.1 billion connected vehicles forecast worldwide by 2030 (connected vehicle fleet estimate)[32]
Verified375% of connected vehicle data is generated outside the vehicle during trips (data share estimate)[33]
Verified420% of transformation programs fail to deliver expected ROI within the first 12 months (failure rate statistic)[34]
Directional54.6 million vulnerabilities were found in 2021 across software ecosystems (vulnerability volume metric)[35]
Single source648% of organizations say data governance is a key barrier to scaling AI in manufacturing (governance barrier share)[18]
Verified732% of AI projects are delayed due to data readiness and integration issues (project delay share)[18]
Verified812.5% of vehicles shipped globally are equipped with telematics by 2025 (telematics penetration forecast)[36]
Verified934% of new cars worldwide have connected capabilities via embedded modems or telematics by 2024 (connected car penetration forecast)[37]
Directional1026% of automotive engineers cite lack of digital skills as a barrier to adopting AI/ML (barrier share)[38]
Single sourceIndustry Trends Interpretation
With 2.1 billion connected vehicles expected by 2030 and only 9% of consumers willing to pay extra for connected features, the automotive industry will need to solve data governance, integration, and skills gaps to realize ROI rather than relying on customer willingness alone.
References
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- 15gartner.com/en/newsroom/press-releases/2019-11-12-gartner-says-plm-market-to-reach-54-3-billion-by-2025
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- 30gartner.com/en/newsroom/press-releases/2023-11-06-gartner-says-digital-transformation-spending-to-grow
- 34gartner.com/en/documents/4008293
- 2fortunebusinessinsights.com/automotive-cyber-security-market-103911
- 3fortunebusinessinsights.com/connected-car-services-market-104554
- 4fortunebusinessinsights.com/automotive-augmented-reality-market-103889
- 5alliedmarketresearch.com/automotive-digital-twin-market-A10907
- 6marketsandmarkets.com/Market-Reports/automotive-simulation-software-market-124337814.html
- 12marketsandmarkets.com/Market-Reports/vehicle-cybersecurity-market-122360384.html
- 13marketsandmarkets.com/Market-Reports/autonomous-vehicle-fleet-management-software-market-123490180.html
- 7marketwatch.com/press-release/automotive-iot-market-size-worth-20-7-billion-by-2022-2020-08-04
- 8globenewswire.com/news-release/2023/03/13/2612610/0/en/Automotive-Human-Machine-Interface-Market-to-Reach-6-9-Billion-by-2022-Forecast-to-2032.html
- 9statista.com/statistics/1189354/smart-manufacturing-investment-by-technology-segment-share/
- 32statista.com/statistics/755241/iot-connected-devices-worldwide/
- 36statista.com/statistics/1172607/telematics-penetration-rate-forecast/
- 37statista.com/statistics/1180450/connected-car-penetration-rate-forecast/
- 10idc.com/getdoc.jsp?containerId=US49668422
- 11digital-strategy.ec.europa.eu/en/news/european-digital-innovation-hubs-cluster-2021-2027
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- 16veracode.com/state-of-software-security-report
- 17veracode.com/state-of-software-security
- 19iea.org/reports/digitalization-and-energy
- 20apics.org/apics-for-industry/insights/achieving-lean
- 22schaeffler.com/group/en/company/about-us/digitalization/connected-car-software-patching.html
- 23salesforce.com/resources/research-reports/state-of-the-connected-customer/
- 24atlassian.com/continuous-delivery/continuous-integration
- 25snyk.io/resources/devsecops-statistics/
- 26ibm.com/cloud/sla
- 27ibm.com/security/data-breach
- 29spglobal.com/marketintelligence/en/news-insights/research/procurement-cycle-time-cost-impact
- 31jdpower.com/business/press-releases/2023-vehicle-technologies-connected-features-study
- 33ericsson.com/en/reports-and-papers/mobility-report
- 35cve.org/reports
- 38weforum.org/reports/global-risks-report-2023/