The accelerating pace of digital modernization across the global energy, chemical, and utility sectors is set to redefine the operating environment for the automotive industry, according to data from KPMG's Global Tech Report 2026: Energy, Natural Resources and Chemicals.
As automotive manufacturers scale up electric vehicle production and invest heavily in autonomous driving architectures, their primary upstream suppliers are undergoing parallel tech transformations. The report, which surveyed over 250 technology leaders, indicates that 41 percent of energy and chemical enterprises have fully funded AI strategies on track to scale up, while 47 percent are prioritizing advanced data and analytics.
This synchronization of data structures is particularly critical for the automotive sector’s raw material procurement, where petrochemical and chemical firms provide foundational polymers, synthetic rubber, and lightweight composites. The research notes that 42 percent of executive respondents prioritize improving data flows to enhance operational decision-making agility.
For automotive supply chain planners, real-time data transparency from chemical suppliers translates into more predictable inventory cycles and mitigated component shortages. However, the report cautions that systemic challenges remain, with 60 percent of surveyed upstream executives identifying legacy systems as a persistent barrier to unlocking full digital return on investment.
Beyond material supply chains, the digitalization of the power and utilities sector is emerging as a critical prerequisite for the expansion of public electric vehicle charging networks. Utility companies are actively shifting from pilot phases to enterprise-wide AI deployments, with the share of firms stuck in initial testing stages projected to drop from 29 percent to just 2 percent over the coming year.
This rapid deployment supports real-time smart grid management, enabling utility operators to balance localized spikes in electricity demand driven by high-density EV charging infrastructure. Furthermore, the report notes that 17 percent of energy organizations have deployed edge computing, with adoption expected to hit 57 percent to fulfill the low-latency processing requirements essential for decentralized internet-of-things ecosystems and future autonomous transport networks.
The report also highlights an escalating focus on industrial risk mitigation, identifying cybersecurity as a top funding priority for 42 percent of sector leaders. Anish De, Global Head of Energy, Natural Resources and Chemicals at KPMG International, noted that as these essential utility and material networks become more tightly integrated, maintaining a robust security posture is vital to protect core assets and data pipelines from geopolitical or malicious digital disruptions.