AI, IoT, 5G, ITS: the automotive sector focuses on digitization
The European automotive industry is under pressure. The Drive Forward conference discusses how Europe can take the lead again.
Published on March 11, 2025
Bart, co-founder of Media52 and Professor of Journalism oversees IO+, events, and Laio. A journalist at heart, he keeps writing as many stories as possible.
The automotive industry - good for 13 million jobs and 13 million cars per year - is one of Europe's leading industries. But the sector is struggling. Chinese car manufacturers are entering the market with cheap EVs. For example, the Chinese company MG has seen its European sales double in four years. The transition to emission-free vehicles, digitization and increasing international competition are putting Europe under pressure.
So while China and the US are investing heavily in battery technology, digitization and new production methods, Europe must accelerate to maintain its position. Linking mobility sectors is essential to regain a strong position. The Drive Forward Conference (April 8 and 9 at the Automotive Campus in Helmond) aims to provide an initial impetus in this very area. The event will focus on three crucial issues that determine the future of mobility: decarbonization, digitization, and improving competitiveness through innovation. In the run-up to Drive Forward, we will be looking at Europe's current position in the automotive industry in three episodes. Today: digitization. Read the first article here.
Regulation, CCS, charging infra: how EU moves to green mobility
The European car industry is under pressure. How can Europe maintain its lead? Today: the road to decarbonization.
Digitization plays a crucial role in the transformation of the European transportation sector. The EU actively supports the industry in using new technologies to become cleaner, safer and more efficient. Significant advances in digital technologies such as artificial intelligence (AI), the Internet of Things (IoT), cloud and edge computing, and 5G networks are driving the digital transformation of the mobility sector.
A specific example is the development of Intelligent Transportation Systems (ITS). ITS uses information and communication technologies to improve efficiency and safety in road transportation. This includes the use of electronic devices, sensors, telecommunications and satellites in infrastructure, vehicles, traffic management and mobility services. The implementation of ITS is encouraged by the TEN-T Regulation, which obliges member states to introduce and develop such systems.
In addition, the EU has encouraged the establishment of National Access Points (NAPs) in each member state. These NAPs serve as standard national interfaces for the exchange of ITS data and play a key role in the digital transformation of transportation. They facilitate the seamless exchange of data between different stakeholders, which is crucial for implementing advanced mobility solutions.
Public transportation
Digitization is used in public transportation to improve mobility and increase customer satisfaction. As traffic flows become increasingly dynamic, transportation companies seek digital and sustainable solutions based on multimodal transportation. Data-driven IT solutions play a crucial role in this, especially in shared mobility and smart connectivity.
In addition, advanced driver assistance systems (ADAS) play a crucial role in the digitization of the European transportation sector. These systems, which include technologies such as automatic emergency braking, lane departure warning and adaptive cruise control, improve traffic safety and lay the foundation for future autonomous vehicles. The European ADAS market is growing steadily. In 2023, the market was estimated at $5.3 billion, with an expected annual growth rate of 16% until 2025. This growth is driven by stricter safety regulations and an increasing demand for advanced safety systems in vehicles.
LiDAR
European car manufacturers are investing significantly in developing advanced sensor technologies for ADAS and autonomous driving functions. A trend is to integrate LiDAR as a primary sensor, in combination with cameras and imaging radar, to achieve accurate environmental detection. These sensor technologies are essential for realizing 'eyes-off' driving in premium vehicle models. NXP is one of the world's largest players in digital car intelligence.
Europe is thus making significant progress in the digitization of the transportation sector through the implementation of advanced technologies and systems such as ITS and NAPs. These developments contribute to a cleaner, safer and more efficient transportation system. Through continuous investment and support of digital innovations, Europe is strengthening its position as a leader in smart and sustainable mobility.
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