Investments in Latin America shall grow above average over the next ten years
By Redação AutoIndústria | 11/16/23 | Translated by Jorge Meditsch
Vehicle manufacturers will spend US$ 83.3 billion on digital technologies in 2023. The amount was obtained by the global technological intelligence company ABI Research.
According to ABI, the fleet electrification demand and the simultaneous continuity of sales of combustion vehicles for a large period will require even greater investments in the next years.
The study reveals that, up to 2033, manufacturers’ investments in such technologies should go over US$ 188 billion, an average 8.5% yearly growth.
“The transference into electric vehicles is pushing the demand for software, as the manufacturers need to create new vehicles and their production lines”, says Michael Larner, ABI Research’s director of Industrial Markets and Manufacture Research.
ABI’s information shows that Latin America shall be the region with the highest average growth over one decade, about 9% yearly. The explanation is that vehicle manufacturers shall direct digital investments toward their facilities in Mexico and Brazil.
Nonetheless, in North America, Europe, the Middle East and Africa, the investments will be pushed by the transition from combustion products to electric and by the competition among manufacturers to produce new vehicle lineups.
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