In 2024, asset-intensive industries, particularly in manufacturing and transportation, faced a significant downturn due to rising energy prices, increased difficulty in sourcing raw materials, and the heightened cost of borrowing for capital projects. These challenges compelled leaders to intensify their focus on managing costs and boosting efficiency. The mobility sector experienced a notable deceleration in the shift towards electrification as various countries grappled with declining government subsidies, elevated upfront costs of electric vehicles, insufficient charging infrastructure, and potential tariffs, leading to hesitance among buyers regarding the adoption of electric mobility solutions.
Looking ahead to 2025, while a substantial economic turnaround is not anticipated, there exists a range of opportunities for leaders in manufacturing and mobility to leverage technology in navigating the difficult conditions facing both their sectors and customers. Specifically, it is predicted that more than 25% of large last-mile delivery and service fleets in Europe will transition to electric. Despite the evident slump in electric vehicle sales across Europe during 2024—particularly in Germany—the situation varies within the broader mobility context. While passenger vehicle sales may have faltered, an optimistic narrative arises within the electrification of larger delivery fleets, showcasing the versatility and potential for cost management and reduced carbon emissions in urban settings.
Despite the excitement surrounding advancements in robotics, less than 5% of new robots entering factories and warehouses are expected to be capable of walking. While humanoid and quadrupedal robotic models, such as those from ANYbotics and Boston Dynamics, capture media interest, their practical application in industrial settings remains limited. The focus within industries should remain on successfully completing tasks, prioritizing function and effectiveness over the aesthetic appeal of highly engineered robotic designs. The deployment of robots must be driven by the specific needs of industries rather than a fascination with advanced technology for its own sake, as walking robots often struggle to address the typical dull, dirty, and dangerous tasks prevalent in manufacturing and logistics.
A significant consequence of the current automotive industry’s struggles with electrification, shifts in market dynamics, and the rise of software-defined vehicles is that major car manufacturers will likely resort to downsizing their digital teams. Established automakers have invested heavily in developing digital practices to transform their legacy operations, aiming to redefine excellence through improved digital capabilities. Unfortunately, many are finding these efforts challenging and have faced disappointing results. Notably, General Motors has announced cuts of approximately 1,000 employees from its software and services division, signaling broader trends throughout the automotive sector as firms begin to recognize the need to adapt to a digital ecosystem where they may not control the software experiences within their vehicles.
Moreover, the shifts observed in the automotive world highlight an important paradigm: as cars become increasingly connected and utilize over-the-air updates to add features, the focus must shift toward building effective ecosystems around vehicles. Autonomy and digital engagement will define the future of mobility, yet many traditional car manufacturers are struggling to keep up with new entrants that integrate software and hardware more seamlessly. This necessitates a reevaluation of strategies where automakers embrace a collaborative approach rather than an insular mindset in building consumer-oriented digital experiences.
2025 brings with it a host of opportunities to adapt and innovate amid challenging conditions. Industry leaders are urged to proactively embrace technological advancements while aligning their strategies with changing market demands, thereby effectively navigating the economic landscape. As predictions for the year unfold, the interplay between electrification and increased use of technology will define the trajectory of both manufacturing and mobility in Europe and beyond. By focusing on practical applications and collaborative innovations, stakeholders in these sectors can position themselves for resilience and success in a rapidly evolving environment.
