Digital automotive engineering firm ESG Mobility has strengths in electrical and electronic systems, connected vehicle applications and emerging capabilities for autonomous and EV
Cognizant made an announcement about acquiring a Munich, Germany-based digital automotive engineering R&D firm, ESG Mobility, which works in the autonomous and electric vehicles (EV) space.
Cognizant’s automotive engineering capabilities in the connected vehicles segment will get an expansion by acquiring digital automotive engineering company, as once the acquisition is closed, 1,000 engineering R&D specialists will join Cognizant in Germany, the US and China. As a result of the acquisition, the two companies intend to serve eight of the world’s top 10 automotive original equipment manufacturers (OEM).
The global connected car market is projected to reach more than $225 billion by 2027 from a valuation of approximately $63 billion in 2019, according to Allied Market Research. Among the growth drivers is the European Commission’s Third Mobility Package, which requires development of safe, clean, connected cars and autonomous and EV, as well as all new vehicles to be connected to the internet by 2022.
The digital automotive engineering firm ESG Mobility, a wholly-owned subsidiary of ESG Elektroniksystem and Logistik GmbH, a privately-held technology consultancy, has strengths in electrical and electronic systems, connected vehicle applications and emerging capabilities for autonomous and EV.
“The automotive industry is undergoing a fundamental shift, embracing new mobility concepts that rely heavily on software, connectivity and artificial intelligence,” said Malcolm Frank, President of Digital Business and Technology, Cognizant. “Our priority is providing clients with the capabilities they need to compete as modern digital businesses, and ESG Mobility is a natural complement to our existing connected mobility offerings and global delivery model. This acquisition will empower our clients to innovate more quickly in shaping the future of transportation. We look forward to welcoming ESG Mobility’s talented team to Cognizant”.
Acquiring the digital automotive engineering firm marks Cognizant’s fourth acquisition in 2021, and 13th acquisition since January 2020 expanding its capabilities in areas of cloud, data and artificial intelligence, digital engineering and IoT.