Gartner - Automotive Trends For 2023

Top Automotive Trends for 2023
Published 16 January 2023 - ID G00781869 - 23 min read
By Analyst(s): Pedro Pacheco, Mike Ramsey, Jonathan Davenport, Bill Ray, Gaurav Gupta,
Lillian Oyen-Ustad
Initiatives: Manufacturing Digital Transformation and Innovation
The auto industry will see more turmoil in 2023. Besides

disruptions and economic fears, the transformation areas of
connected, autonomous, shared and electric will face major
headwinds. CIOs can be decisive in mitigating these issues if they
overcome the cultural barriers of their organization.
Additional Perspectives
■ Summary Translation + Localization: Top Automotive Trends for 2023

(17 February 2023)
Overview
Opportunities
■ The impending economic crisis is an opportunity for companies focused on the
automotive sector with vision and dynamism to seize market share from rivals.
■ Forward-thinking automotive companies adopting a corporate mindset that

prioritizes advanced digital maturity have an opportunity to put distance between
themselves and their more conservative, less agile peers.
■ Many automotive players stick to the minimum in compliance areas like

electrification, sustainability or cybersecurity. Instead, companies going above and
beyond in these areas will be rewarded by customers, employees, public opinion and
investors.
Recommendations
For CIOs overseeing manufacturing digital transformation and innovation in the
automotive industry:
Gartner, Inc. | G00781869 Page 1 of 20
This research note is restricted to the personal use of pierre-louis.besombes@thalesgroup.com.

■ Turn the impending economic crisis into an opportunity to sharpen your company’s
capabilities in vehicle software, connected car, online retail and autonomy as a way
to reduce costs and conquer market share. Address capability gaps by forging
alliances with technology providers.
■ Make long-term investments in supply chain resilience. Start with short-term

measures to reduce possible incoming losses, and use this success as a
springboard for a more ambitious long-term plan.
■ Build a new, digitally native corporate culture, and adopt a corporate mission that is
truthful and inspiring. This will attract new talent and investors, enabling a more
successful digital transformation.
■ Step up your sustainability targets, going beyond pure compliance and cost. This
will be rewarded by investors, public opinion and your own current and future
employees. Sustainability is something a company cannot achieve by itself, so work
with your external partners (suppliers, tech providers and distributors) to set and
achieve ambitious sustainability goals.
■ Turn cybersecurity from a compliance burden to a major selling point. Go above and
beyond in this area to show customers and shareholders that your products and
company are the best protected against cybercrime and cyberterrorism.
What You Need to Know

The automotive industry will see in 2023 the continuation of the turmoil experienced in the
previous year. Supply chain disruption adds to economic fears while, at the same time,
incumbents are pressured to move forward with transforming their value chain on par
with vehicle technology.
This year’s automotive trends cover eight different critical areas that are aligned under the
following umbrella themes:
■ Prepare for economic impact. Automakers and retailers experienced supply

shortages that, on one hand, have been trying to mitigate but, on the other, delivered
greater margins per vehicle sold. This has changed priorities, like less focus on retail
technology. However, a potentially impending economic crisis asks for automotive
companies to, more than ever, use digital technology to boost their competitiveness
in a market that will see growing cannibalization.

■ Focus on the corporate mindset. Automakers have been investing immensely in
software, electrification and others. However, the transformation demanded from
them entails a lot more than budget and headcount. They must start by changing
the corporate mindset in order to avoid realizing further down the road their
transformation is too slow and unsuccessful.
■ Strive beyond compliance. A lot of changes in the auto sector are today driven by
current or future regulation: electrification, cybersecurity, sustainability. The
temptation of sticking to compliance is big as this is the most financially viable way
to achieve it — but only in the short term. Instead, automotive companies must set
the bar way above regulatory demands — failing to do so will impact, sooner or later,
their sales performance and market value.
If you keep doing something as you did 10 years ago, in an industry undergoing as
profound a transformation as automotive, then most likely you need to change it — and
fast.

Figure 1. Top Automotive Trend Topics and Calls for Action in 2023

Table 1: Trend Profiles
Prepare for Focus on Corporate Strive Beyond

Economic Impact Mindset Compliance
Supply Chain Shortages Are 2023 Is the Moment of Tech Complexity and High
Here to Stay Truth for BEVs Costs Swing the Autonomy
Pendulum From L4 Back to
ADAS Offerings
Legacy Makers Push for Online Retail Investment in Cybersecurity

FaaS Sales, but Must First Transformation Slows Climbs, but Mostly Due to
Convince Customers Down Compliance
Automotive Connectivity Focus on Sustainability

Points Multiply Grows Due to Regulation
and Financial Pressure
Source: Gartner
Prepare for Economic Impact

Trend 1: Supply Chain Shortages Are Here to Stay
Back to top
Analysis by Mike Ramsey
Description:
Shortages of key parts, materials and labor caused by surging demand as well as war,
politics and the COVID-19 pandemic have shaken the automotive supply chain. More than
two years after the pandemic began, carmakers still cannot forecast an end to shortages
of semiconductor chips or the subsequent shortage of vehicles they can produce. In
addition, key materials for battery-electric vehicle (BEV) batteries are in short supply,
causing the prices of commodities to surge. 1,2,3 However, shortages expand to even more
components. The vehicle shortage is likely to continue in 2023, though it may ease
slightly.
Why Trending:

The cause of the semiconductor shortage is a combination of surging demand generally
for electronics and limited supply of critical machinery to make chips for automobiles.
BEVs also see a steep increase in demand, and require more chips than internal
combustion engine vehicles as well as large batteries. There have been multibillion
investments in new plants, but output from those efforts could be years away.
In the meantime, manufacturing shutdowns in China caused by COVID-19 have

contributed to more supply chain uncertainty. Adding to the mixture of issues is the
Russian invasion of Ukraine and trade tensions between western nations and Russia. In
addition, upcoming regulation in the U.S. and EU aims to further localize the battery
supply chain. Inflation and possible energy shortages will add to the instability factors
that will hamper automotive supply chains.
Implications:
The first result of the shortage has been for automakers to invest in their own chipmaking
capabilities. In addition, car companies are studying reshoring some manufacturing
capacity or building separate supply chains for certain markets. 4 Automakers already try
to make as much as they can in the markets where they sell products, but that trend may
accelerate in 2023.
Actions:
OEMs:
■ Build a true collaboration with suppliers, as opposed to putting more burden on

them. This will make them more open to work with you in implementing
technologies that enable greater visibility, predictability and more precise inventory
management commitments.
■ Support collaborative actions for enabling open data exchange across the supply
chain, like Catena-X.
■ Build strong supply chain visibility, then use this data to develop a precise digital
twin of it. Together with AI and simulation capabilities, this will allow you to test
different scenarios to help your company respond more efficiently to future
disruptions.
Trend 2: Legacy Makers Push for Functions-as-a-Service Sales, but Must First Convince
Customers

Back to top
Analysis by Jonathan Davenport
Description:
Functions as a service (FaaS) refers to the ability to enable new vehicle capabilities after a
vehicle has left the factory, throughout its lifetime. For automakers, this is an opportunity
to generate an ongoing revenue stream beyond the purchase of the vehicle. However,
many consumers do not yet understand the concept, something that hampers their
willingness to pay for FaaS.
Why Trending:
Using the connected (and increasingly software-defined) vehicle platform, automakers

such as BMW are trying to transition from a revenue stream based on selling low-margin
capital items to selling software-enabled services from which much higher gross margins
can be derived. For example, Stellantis targets ~€20 billion in incremental annual revenue,
with 40% gross margin by 2030 driven by software-enabled vehicles.
BMW has led in the space of FaaS with 14 different applications that can be consumed
on either a trial, monthly, yearly, three-yearly or unlimited basis. Aurora Lab’s 2022
Automotive Software Survey shows that 44% of consumers are willing to pay $20 a
month for vehicle services, and 14% would pay up to $50 a month. 5 However, Mercedes
Benz is limiting its $1,200 charge to add 100 horsepower to its EQE and EQS models to
the U.S. due to perceived legal issues of doing so in the EU. 6 Plus, BMW had to calm
concerns that customers voiced after the company announced offering drivers the ability
to pay for heated seats on a monthly basis. 7
One of the biggest hurdles that will need to be overcome relates to customer realization
that the vehicle they bought has hardware capable of delivering certain functionality (for
example, heated seats, engine power, battery range), but that paywalls restrict
functionality. This may become a major reason for customer dissatisfaction.
Implications:

2023 will be a key year to manage the required change in customer mindset. Many
customers still see FaaS as an unfair practice. Automakers have a limited window of
opportunity to deliver value and to carefully prove this value to consumers. Failing to do
so may lead to consumers permanently rejecting the model of FaaS. In turn, this could
mean the end of connected cars as a monetization opportunity, given that the traditional
model of connected service subscriptions has proved a failure for most automakers.
Actions:
OEMs:
■ Work with your marketing and PR departments to develop a communication strategy

that explains to customers and press the value of FaaS.
■ Avoid deploying FaaS use cases that completely lock access to hardware for
nonpaying customers in order to avoid customer frustration.
■ Leverage customer value drivers like personalization, convenience and security to

develop new FaaS use cases.
■ Push forward with modernizing your vehicles’ electronic architecture in order to

expand the number of functions/features that can be provided “as a service.”
Suppliers/tech vendors:
■ Enable new FaaS use cases as part of the hardware and software you supply to
automakers, as these will be crucial for their future profitability model.
Focus on the Corporate Mindset

Trend 3: 2023 Is the Moment of Truth for BEVs
Back to top
Analysis by Jonathan Davenport, Pedro Pacheco, Mike Ramsey
Description:
Several factors will make 2023 a true test to the resolve of governments and the industry
in driving full electrification forward:

■ BEV incentives in a number of large European countries are being reduced, like in the
case of Germany.
■ Charging infrastructure still has many coverage gaps and the quality of service is
poor. 8
■ Some countries, like the U.K. and Switzerland, are starting to introduce EV taxation. 9
■ Spike in electricity prices in Europe make BEV running costs less attractive.
■ The increase continues in the price of critical raw materials like nickel and lithium. 10
■ Inflation and the threat of economic crisis make consumers less likely to buy BEVs
as they are, on average, more expensive than a conventional combustion vehicle.
Why Trending:
Current political and economic instability will make some governments less generous
toward BEVs. This comes at a bad time, as BEV user experience still needs considerable
improvement — namely, in terms of driving range and EV charging network. The sharp
increase in raw materials like lithium that shot up exponentially since 2021 will inherently
drive BEV cost higher, which will make it hard for OEMs to close the price gap with internal
combustion.
Implications:
BEV sales may grow at considerably lower pace or stall in some markets. This means that
investments related to BEVs may take longer to achieve break even. In addition, the
impending scenario may affect the confidence of several companies that see the BEV
market as a business opportunity.
Actions:
OEMs:
■ Strengthen your investment in digital technology as a way to improve your product

performance and, through that, capture a higher BEV market share.
■ Venture into the energy market as a way to create new business opportunities and
expand your profit potential.

BEV infrastructure companies:
■ Determine and occupy the best location for EV charging by using technology
solutions from companies like Neura or Citi Logik, for instance.
■ Adopt future-ready technology in relation to EV charging hardware and software in

what comes to customer centricity. Cutting corners on this matter will later reflect on
the performance of your EV charging business.
■ Use the most advanced EV charging management software as a way to reduce

charger downtime as well as maintenance costs through the use of AI technologies.
Trend 4: Online Retail Transformation Slows Down

Back to top
Analysis by Pedro Pacheco
Description:
After the online sales success of Tesla and the pandemic-driven move to digital, several
automakers have pledged to sell a major part of their volume online by 2025. However,
2023 will be a deceptive year for automotive online sales. Automakers and retailers will
keep investing in this area, but the sense of urgency is less than what it was in 2020,
leading to a slower pace of transformation.
Why Trending:
The current supply chain shortages will continue into 2023, consequently keeping supply
constraints for new and used vehicles. This means automakers will feel less pressure to
transition into heavily digital retail processes. The plans are still there, but the timeline is
now expanded. Moreover, the difficulties experienced by digital-only used car retailers like
Carvana or Cazoo works as a breath of relief for traditional players in this space, who now
have fewer incentives to transform their operations. 11,12
Implications:

The digital transformation of automotive retail has not stalled, simply reduced speed.
However, this transformation will pick up pace again soon. The challenging economic
environment will slowly move the automotive market from supply-constraint to demand-
constrained — which means automakers and retailers will again put emphasis on
improving sales effectiveness. In addition, the same challenging economy, together with
the investments in electrification, will drive the need for further cost reduction. This is
where online sales come back into the agenda, as a major driver of cost of sales
reduction. For instance, Ford CEO Jim Farley claims online sales can bring a cost
reduction of up to $1,300 per vehicle. 13
Actions:
OEMs:
■ Keep the focus on online sales and other digital retail tech without extending
timelines, as the need will be there in the new future.
■ Use the current situation as a way to get ahead of your competition as they become
more complacent concerning new retail investments.
Tech providers:
■ Continue developing automotive retail technology. Don’t be discouraged if, at the

moment, you find your target customers less receptive, as this will change.
■ Prioritize China and Europe as markets; the former presents more consumer
openness to technology and the latter is more likely to experience the effects of an
economic slowdown first.
Trend 5: Automotive Connectivity Points Multiply

Back to top
Analysis by Jonathan Davenport, Bill Ray
Description:

Connected cars exchange data with remote servers providing infotainment, safety
updates and other services. These different applications often use different cellular
connections — and this approach is expected to proliferate further. In the long term, these
applications may share a connection, but for the next decade we expect that multiple
connections — using different modems — will be used to provide resilience and separated
accounting.
Why Trending:
Connections are multiplying as car vendors start to leverage the shared experience of
every driver, to learn more about how components (and cars) wear and to provide options
for preemptive maintenance and servicing. Connectivity is also perceived as an enabler of
new revenue streams, while mobile network operators are keen to promote automotive
connectivity as an additional revenue stream.
Multiple applications could, in theory, be delivered over the same connection, with some
services taking priority. However, it may be desirable for the vehicle owner to pay for
infotainment data, while the vehicle vendor pays for telematic tracking. Automated
emergency systems, such as Europe’s eCall, often require isolation for resilience. Vehicle-
to-vehicle (V2V) and vehicle-to-infrastructure (V2I) applications use a different frequency
band, and are very intolerant to latency. We have even seen some automotive vendors,
notably Geely, look to satellite connectivity to bypass existing mobile operators. 14
This combination of factors is multiplying the modems, and will keep the networks
separate for a decade.
Implications:
The overall impact will be increased complexity of automotive communications, with

vertically integrated services stretching from onboard sensors, to dedicated network
connections, to application-specific cloud services. This will reduce the onboard
capabilities, as applications will only be able to exchange data through their respective
clouds. It will also increase the semiconductor content, as well as providing revenue
streams for mobile operators, which will be able to count each modem as a separate data
customer.
Actions:
OEMs:

■ Increase resilience by separating services across network connections, accepting
that the number of connections will not decrease for a decade.
■ Anticipate the growth of streamed infotainment services, enabled by reliable

connectivity, by incorporating client applications for streamed entertainment services
(such as Spotify and Amazon Music) into the vehicle’s infotainment system.
■ Avoid being locked into a specific mobile operator or network technology by utilizing
eSIM technology for cellular connections and monitoring developments in LEO
constellations.
Suppliers/tech vendors:
■ Develop solutions providing more connectivity endpoint integration as a way to

enable a cost reduction for automakers.
Strive Beyond Compliance

Trend 6: Tech Complexity and High Costs Swing the Autonomy Pendulum From L4 Back
to ADAS Offerings
Back to top
Analysis by Gaurav Gupta
Description:
Robotaxi rollout expectations have deflated across the industry. The CEO of Luminar (one
of the leading lidar companies) recently said in an interview that robotaxis at any
appreciable scale won’t be seen before 2035 and it won’t be before 2050 when they are
more widespread. 15 There still remain major challenges in launching L4 autonomous
vehicles (AVs), and their proliferation has been slowed down by various obstacles:
■ Technology complexity — As discussed in Emerging Tech Impact Radar:

Autonomous Vehicles, 2022, most critical technologies (software and hardware) to
enable L4 AVs are still years from maturity.
■ Negative public opinion — Recent incidents and following investigations by

regulatory authorities on some of the accidents involving self-driving vehicles have
only dented public confidence further.

■ Regulatory issues — There are still no established standards for approval of L4 AVs
with variations not only across countries, but also within states and cities.
■ Scalability roadblocks — Current robotaxi operations are limited to a few cities

where companies have been testing and running pilots for a while, and which have
relatively good weather.
■ High investment with uncertain long periods of return — Currently, robotaxi

operations are constantly monitored and scrutinized, requiring heavy investments for
running these operations.
Why Trending:
Despite delays in robotaxi deployments, OEMs and Tier 1s have continued to invest in
fully self-driving technology. But with calls around recession becoming more pronounced,
companies face headwinds and pressure from investors on revenue and profits.
Ford recently announced that it is shifting its strategy from development of fully
autonomous driving technology (L4 and beyond) to partially automated features that it
and other automakers already offer. Ford and VW decided to shut down Argo AI, the AV
technology company that both companies were backing.
Implications:
The Argo AI announcement can potentially have a rippling impact on the industry. Even
after years of research and investment, only Waymo and Cruise operate commercial
robotaxi operations in the U.S., and that, too, is confined to specific geographies. Both
companies are still not profitable with their robotaxi operations and continue to incur
annual losses, implying that only those with very deep pockets will survive this market.
Advanced driver-assistance system (ADAS) offers near-term business opportunities and

more visible returns — it isn’t plagued by public opinion or regulatory issues. L2 and L3
vehicle penetration is still low and would be the prime driver of growth for the decade.
Actions:
OEMs, suppliers and tech providers:

■ Lower the hurdles for implementing your products and services for the AV ecosystem
by prioritizing deployment scenarios in which implementation doesn’t require
overcoming extremely complex technical challenges and investment barriers are
lower. Examples include AVs for mining, warehouses, agriculture and ports.
■ Tailor your products and services for the AV ecosystem toward generating revenue
now by renewing focus on L2+/L3 vehicles as discussed in Tech CEOs Should
Reprioritize Their Strategies as Robotaxi Deployment Expectations Cool.
Trend 7: Investment in Cybersecurity Climbs, but Mostly Due to Compliance

Back to top
Analysis by Pedro Pacheco
Description:
2022 has been the major turning point for vehicle cybersecurity, with the enforcement of
the UN R155, the world’s first vehicle cybersecurity regulation (see How Automotive CIOs
Can Lead a Successful Cybersecurity Implementation and Comply With WP.29 UN R155).
So far, its application is restricted to newly homologated vehicles launched in the EU,
Japan, South Korea and a few other countries. Meanwhile, UN R155 has yet to attract
automakers in other markets. Moreover, a lot of work is yet to be done at the enterprise
side. Automotive companies are still holding on to a lot of legacy architecture that
constitutes several vulnerabilities.
Why Trending:
Automotive companies are trying to transform themselves into software companies but
their corporate mindset is, in many cases, lacking — and this is the main obstacle. A
company that doesn’t truly understand the value of software will struggle not only to be
good at it but also to understand the major risk it could represent. This means the
leadership of automotive companies must understand that cybersecurity is a major
business risk mitigation factor, especially when faulty vehicle operation can threaten
human lives. Security services from several western nations have warned about an
impending increase in cyberattacks led by foreign powers or criminal groups. 16 These will
also affect automotive companies, which will see their many vulnerabilities being more
frequently exploited.
Implications:

2023 will be a turning point for some automotive companies in terms of cybersecurity —
especially those that have been recently hacked and, therefore, start understanding the
size of the problem. Such companies will be able to look beyond the compliance aspect,
hence classifying cybersecurity as a major business risk. However, there will still be
several automotive companies that don’t understand the true value of cybersecurity
beyond what’s demanded by law. These companies will have to undergo a process of
digital maturing in order to achieve this awareness — or, alternatively, suffer a major
cyberattack that will open leadership’s eyes for the major importance of cybersecurity.
Actions:
OEMs:
■ Keep sensitizing your leadership team to the problem of cybersecurity.
■ Share intelligence on what other automotive companies are experiencing at this

level.
■ Use this perspective to formulate a cybersecurity overhaul in your organization.

Associate that with an ROI in relation to the business risk mitigation that a top
vehicle cybersecurity management system (CSMS) can achieve.
Suppliers/tech providers:
■ Leverage the current wave of cyberattacks as an argument to get the attention of

automotive companies. Give examples of major losses suffered by other
organizations due to cyberattacks.
■ Focus on automotive companies that recently experienced cyberattacks or that are

known to be stepping up their CSMS.
■ Help automakers understand how much they need to improve their vehicle CSMS in
order to be future-ready and avoid more costly short-term improvements.
Trend 8: Focus on Sustainability Grows Due to Regulation and Financial Pressure

Back to top
Analysis by Lillian Oyen-Ustad, Mike Ramsey
Description:

The automotive industry is implementing sustainability goals across its value chain in
order to comply with new regulations and meet shareholder demands. These efforts are
most visible in response to near-future tailpipe emission regulations and definition of
distant dates for carbon net-zero targets, often aligned with governmental targets of the
region where the company is based. 17,18,19
Regulation also starts targeting multiple aspects of sustainability across the supply chain.
For instance, Germany’s new Supply Chain Due Diligence Act, in effect as of 1 January
2023, forces companies to take responsibility for the actions of all their supply chain
partners — from suppliers of components to the businesses that further process or sell the
products manufactured. Pleading ignorance will no longer be an option for automotive
companies based in Germany.
The transition to BEVs also brings a growing interest in battery recycling, driven mostly as
a way to counter the rise in cost and scarcity of battery raw materials. Battery recycling
will become even more important in Europe due to new regulations such as EU carbon
border taxes and mandatory digital product passports. 20 See Quick Answer: How Will
Proposed European Legislation Impact Circular Economy for Batteries?
Why Trending:
Global regulations are tightening around climate impacts, human rights and corporate
governance. Investors also reward companies who unequivocally go above and beyond in
sustainability. One of the best examples comes from Tesla — today the most valuable
automaker in the world, as investors saw its no-compromise approach to BEVs as a game-
changer for future value creation. In addition, more recent drivers like the energy crisis and
raw material scarcity provided an extra incentive for sustainability measures.
Implications:
Automotive companies who become complacent toward sustainability will find

themselves in a difficult position at the turn of the decade. First, investors will flee, making
it quite hard to secure funding needed to overcome the major transformation these
companies must operate to survive. Second, sustainability regulations will keep
tightening. The temptation for many companies will be to raise the sustainability bar at
the last moment before regulations are enforced. However, this approach will only be
costlier and entails a major risk of noncompliance and public opinion backlash.
Actions:

OEMs and suppliers:
■ Protect the business from greenwashing risks by ensuring authentic messaging,

effective communication and use of accurate and governed data.
■ Create a strong sustainability culture by connecting the sustainability journey to the

company mission and linking sustainability goals to performance metrics.
Sustainability must not be the exclusive responsibility of the ESG department —
every internal stakeholder must bear accountability.
■ Accelerate sustainability targets to clearly raise the bar above all your competitors —
this will grant you the support from the investor community.
Evidence
1
Toyota Profit to Rise but Eyes Will Be on Its Shaky Supply Chain, EV Strategy, Reuters.
2
Volkswagen: Supply Chain Problems Now the Rule, Not Exception, Reuters.
3
Ford’s October Sales Slide 10% Amid Supply Chain Issues, CNBC.
4
Why Honda Could Try to Decouple Its Supply Chain From China, Automotive News.
5
The State of Automotive Software, Aurora Labs
6
Europe Won’t Allow Mercedes’ EV Performance Subscription Fee, for Now: Report, The
Drive
7
Statement of Clarification Regarding BMW Functions on Demand in the U.S. Market,
BMW of North America
8
Growing Electric Vehicle Market Threatens to Short-Circuit Public Charging Experience,
J.D. Power.
9
Swiss Plan Tax on EVs to Help Finance Roads, Automotive News Europe.
10
Lithium — 2023 Data, Trading Economics.
11
Carvana Stock Rout Hits 97% This Year With Used-Car Prices Crumble, Bloomberg.

12
Cazoo to Abandon Business Operations in EU and Cut 750 Jobs, The Guardian.
13
Ford CEO Offers More Clues About Automaker’s Ambitious Electric Vehicle Plans,
CNBC.
14
China’s Geely Launches First Nine Low-Orbit Satellites for Autonomous Cars, Reuters.
15
Robotaxis Are More Than a Decade Away, Says Luminar’s CEO Austin Russell, Time.
16
U.S. Warns of ‘Increased’ Threats From Russian Hacking Groups, TechTarget.
17
General Motors, the Largest U.S. Automaker, Plans to Be Carbon Neutral by 2040, GM.
18
Way to Zero: Volkswagen Presents Roadmap for Climate-Neutral Mobility, VW.
19
BMW to Reduce Carbon Emissions in Car Life Cycle 40% by 2030, Reuters.
20
Ecodesign for Sustainable Products, European Commission.
Document Revision History

Top 5 Automotive Technology Trends for 2022 - 27 January 2022
Top 2021 Automotive Market Trends for CIOs - 12 January 2021
Toolkit: Top 10 Trends in Automotive and Smart Mobility for 2020 - 31 January 2020
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Table 1: Trend Profiles
Prepare for Economic Impact Focus on Corporate Mindset Strive Beyond Compliance
Supply Chain Shortages Are Here to Stay 2023 Is the Moment of Truth for BEVs Tech Complexity and High Costs Swing the
Autonomy Pendulum From L4 Back to ADAS
Offerings
Legacy Makers Push for FaaS Sales, but Must First Online Retail Transformation Slows Down Investment in Cybersecurity Climbs, but Mostly
Convince Customers Due to Compliance
Automotive Connectivity Points Multiply Focus on Sustainability Grows Due to Regulation

and Financial Pressure
Source: Gartner
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Top Automotive Trends for 2023

Published 16 January 2023 - ID G00781869 - 23 min read

Initiatives: Manufacturing Digital Transformation and Innovation

The auto industry will see more turmoil in 2023. Besides

■ Summary Translation + Localization: Top Automotive Trends for 2023

■ Forward-thinking automotive companies adopting a corporate mindset that

■ Many automotive players stick to the minimum in compliance areas like

Gartner, Inc. | G00781869 Page 1 of 20

This research note is restricted to the personal use of pierre-louis.besombes@thalesgroup.com.

■ Make long-term investments in supply chain resilience. Start with short-term

What You Need to Know

■ Prepare for economic impact. Automakers and retailers experienced supply

Gartner, Inc. | G00781869 Page 2 of 20

This research note is restricted to the personal use of pierre-louis.besombes@thalesgroup.com.

Gartner, Inc. | G00781869 Page 3 of 20

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Prepare for Focus on Corporate Strive Beyond

Legacy Makers Push for Online Retail Investment in Cybersecurity

Automotive Connectivity Focus on Sustainability

Prepare for Economic Impact

Analysis by Mike Ramsey

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In the meantime, manufacturing shutdowns in China caused by COVID-19 have

■ Build a true collaboration with suppliers, as opposed to putting more burden on

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Analysis by Jonathan Davenport

Using the connected (and increasingly software-deﬁned) vehicle platform, automakers

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■ Work with your marketing and PR departments to develop a communication strategy

■ Leverage customer value drivers like personalization, convenience and security to

■ Push forward with modernizing your vehicles’ electronic architecture in order to

Focus on the Corporate Mindset

Analysis by Jonathan Davenport, Pedro Pacheco, Mike Ramsey

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■ Strengthen your investment in digital technology as a way to improve your product

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■ Adopt future-ready technology in relation to EV charging hardware and software in

■ Use the most advanced EV charging management software as a way to reduce

Trend 4: Online Retail Transformation Slows Down

Analysis by Pedro Pacheco

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■ Continue developing automotive retail technology. Don’t be discouraged if, at the

Trend 5: Automotive Connectivity Points Multiply

Analysis by Jonathan Davenport, Bill Ray

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The overall impact will be increased complexity of automotive communications, with

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■ Anticipate the growth of streamed infotainment services, enabled by reliable

■ Develop solutions providing more connectivity endpoint integration as a way to

Strive Beyond Compliance

Analysis by Gaurav Gupta

■ Technology complexity — As discussed in Emerging Tech Impact Radar: