Governments worldwide are imposing stricter emissions standards and incentivizing zero-emission vehicles (ZEVs). This pushes automakers to invest heavily in electric drivetrains, recycled materials, and circular economy practices. Consumers increasingly demand eco-friendly options, influencing market offerings. Expect more biodegradable components, renewable energy-powered factories, and battery recycling programs. The trend is irreversible and will accelerate innovation while challenging legacy ICE-dependent supply chains.
- For instance, China has introduced policies encouraging automakers to procure up to 25% of their chips domestically by 2025, reducing reliance on foreign suppliers.
- 5G connectivity unlocks ultra-low latency communication, enabling real-time vehicle-to-everything (V2X) interactions.
- Chatbots and messaging solutions are key technology trends in the automotive industry.
- The global automotive parts market has been steadily growing for the past twenty years.
This data alerted drivers to pedestrians and cyclists before they became visible. Dedicated short-range communication (DSRC) based on IEEE 802.11p facilitates direct vehicle-to-vehicle and vehicle-to-infrastructure communication. For instance, Volkswagen integrated DSRC-based V2X technology into its Golf 8 and its ID electric series in Europe. Moreover, it enables companies to customize their fleet by choosing preferred brands, models, and service options, ranging from premium to ultra-luxury vehicles. Moreover, blockchain and digital contracts enhance security and automate billing.
Further, their drivers use out-of-the-box or white-labeled apps to manage reservations or remotely access vehicles. Factories equipped with IoT-enabled devices and machine learning capabilities are emerging as the backbone of next-generation automotive production. These facilities use data-driven insights to optimise processes, reduce energy consumption, and increase operational efficiency. This trend is reshaping how manufacturers think about scalability and flexibility, particularly as the demand for electric vehicles continues to grow, and will continue to make itself felt throughout 2025. EV technology is the catalyst for transformation—it’s forcing OEMs to rethink vehicle architecture, supply chains, and customer engagement. Battery improvements reduce costs and increase range, making EVs more accessible.
It uses AI-powered damage recognition, estimation, and work distribution to streamline repair processes. Also, its platform manages claims and mechanical breakdowns across vehicle models from manufacturers. Digital replicas and simulations allow manufacturers to test efficiency improvements before implementation. For example, BMW’s San Luis Potosí facility applies digital replicas to reconfigure layouts and minimize waste.
In 2025, many automakers will focus on creating vehicles that are easier to disassemble, repair, and recycle at the end of their lifecycle. This approach could significantly reduce waste and contribute to a more sustainable automotive industry. Leading companies such as Volkswagen, General Motors, and Volvo have committed to producing zero-emission vehicles and achieving carbon-neutral operations by mid-century. In line with this, automakers focus on sustainability in their manufacturing processes, energy sourcing, and material selection. The SDVs market is set to reach 7.6 million units in 2025 from 6.2 million units in 2024.
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THINKey operates through a secure architecture using enclaves in the phone, vehicle, and cloud, adhering to the car connectivity consortium’s digital key standard. Additionally, the startup offers infotainment solutions with plug-and-play importance of VIN decoding for buyers SDKs and certification-ready apps for phone mirroring and multimedia features. This facilitates the integration of Apple CarPlay, Google Android Auto, and media streaming into in-vehicle infotainment systems.
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By optimizing driving routes, connected cars help reduce emissions, contributing to a greener future. Using data from IoT technology, drivers receive real-time route suggestions to avoid traffic jams and ease congestion, ensuring faster, stress-free travel. From supply chain optimization and manufacturing to personalized driving experiences and smart routing, advanced AI systems and real-time data analysis enable it all. By 2027, the global automotive AI market is expected to grow from its 2022 valuation of USD 2.3 billion to USD 7.0 billion, with a compound annual growth rate (CAGR) of 24.1%.
Moreover, the startup offers fleet-grade protection through continuous monitoring and predictive alerts. Its intelligent asset tracking defends vehicles against spoofing, ransomware, and remote control attempts. Also, EV charging infrastructure requires strong cybersecurity, as attackers target charging stations for data theft or service disruption. The startup also operates PartSmart, a real-time parts ordering platform that connects insurers, workshops, fleet owners, and suppliers. The platform enables visibility across the entire claims cycle and supports both OEM and aftermarket sourcing. AI and predictive analytics enhance demand forecasting, risk detection, and sourcing optimization.
An Overview of the Latest Automotive Industry Trends
At the same time, governments and companies view subscriptions as a pathway to scale EV adoption without heavy upfront investments. Bosch demonstrates this through 77 GHz radar modules integrated into adaptive cruise control and collision avoidance systems. LiDAR enables high-resolution 3D mapping by emitting laser pulses to measure distances.
- Users discover the nearest Beam scooter on the app and park it in visible public spots after the ride.
- Even with this rapid growth, EV’s share of cars on the road is expected to remain at just 8% by 2030.
- Moi uses continuous fiber manufacturing (CFM) technology, robotic intelligence, and digital fabrication to deposit fibers.
- This decision also highlights a broader trend toward diversification in battery production hubs.
- German startup ChargeX offers a modular EV charging solution that converts parking spaces into charging stations.
- Information technology has become a crucial part of the recent trends in the automobile industry as priorities change over time.
- The inherent flexibility of electric powertrains is enabling automakers to reimagine vehicle design, resulting in lighter, more efficient vehicles.
These advanced technologies are widely used across a great number of industries and the automotive domain is no exception. They are used by the automotive industry for car manufacturing, employee training as well as vehicle sales and marketing. The main advantage of this digital technology is that it allows auto manufacturers to create complex and at the same time lightweight vehicle parts. 3D printing them is faster than traditional manufacturing and cheaper, which makes the whole process more efficient. Also, additive manufacturing makes prototyping more rapid, which enables faster design and testing periods for new vehicles. As the technology evolves and becomes more affordable for the industry, it opens more and more opportunities every year.
As more manufacturers roll out affordable and appealing EV models, the market is shifting towards sustainable alternatives which are becoming more accessible to a broader consumer base. One of the most in-demand connectivity solutions is in-vehicle infotainment—the systems that provide both information and entertainment for enhanced driving experience. The currently available infotainment systems can connect with smartphones, sensors, ADAS (advanced driver assistance systems) as well as other in-vehicle and external systems. In 2025, a great number of car manufacturers are planning to improve their infotainment systems providing them with more and more advanced capabilities. Vehicle connectivity has become a really game-changing innovation in automotive industry that will transform the future of driving. Cars are becoming unprecedentedly smarter, and this trend is here to stay in the future.
- Declining battery costs move EVs closer to price parity with combustion vehicles.
- By securing these systems, cybersecurity prevents hijacking of steering or braking functions, protects sensitive driver data, and shields automakers from costly recalls and reputational harm.
- Semiconductor chips are at the heart of almost every automotive trend, from connected technologies to autonomous driving and EVs.
- Their scooters use an aviation-grade aluminum frame and are customized for sharing, safety, reliability, and durability.
- The demand for sustainable and eco-friendly transportation, like electric luxury vehicles, also drives market growth.
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Also, applications extend from adaptive cruise control, lane-keeping, and traffic jam assistance to robotaxis and driverless trucking. Advanced cameras paired with computer vision enable vehicles to classify road users, read signs, and recognize traffic signals, directly supporting ADAS and autonomous navigation. Silicon carbide (SiC) semiconductors improve energy efficiency in high-voltage EV systems by reducing losses and enhancing thermal management. Moreover, Asia-Pacific leads the automotive semiconductor market with a 45% global share. In Europe, the EU’s Chips Act aims to raise the bloc’s share of global chip production from under 10% to about 20% by 2030.
Subsidies and incentives for EVs are also under scrutiny, with plans to reconsider or eliminate government-imposed market advantages that favour them. Crucially, the order halts federal funding for EV infrastructure projects, such as charging station programs, until they align with the administration’s policy goals. Additionally, looking at supply chains, AI and machine learning are driving the rise of autonomous logistics systems that can self-optimise routing, scheduling, and inventory management. These systems aim to minimise human intervention, improve decision-making, and enhance overall efficiency, paving the way for smarter supply chain operations. In Latin America, much like other regions, the electrified vehicle fleet is still only a small share of the total vehicle fleet; however, that share is growing. The Latin America Energy Organisation (Olade), released a report showing that with the increase in supply, lower prices and tax incentives, Latin America and the Caribbean have great potential for EV growth.
- Batteries are the heart of any electric vehicle, and improvements in battery technology will continue to shape the future of EVs.
- Labor costs are another factor in the rise of local sourcing, with countries such as Taiwan, Cambodia, and Laos providing a lower-cost labor alternative to China.
- In China, it was even reported that lithium-ion battery pack prices fell below $100/kWh for the first time.
- Also, automotive Ethernet and time-sensitive networking (TSN) provide deterministic in-vehicle data highways that keep safety-critical communication reliable.
- They also prevent crowding in frequency bands, which is essential for ADAS and autonomous driving.
What are the predicted future trends in the automotive industry regarding autonomous driving?
However, it’s estimated that there will be 33 million autonomous vehicles on the road by 2040. Virtual car shopping is the new norm and will remain a significant car industry trend for years. The booming e-commerce industry is essential to the global online car buying demand. This is further fueled by increasing awareness of convenience and supported by rising digital literacy, internet accessibility, urbanization, and disposable income levels. After the pandemic, we developed a habit of shifting all requirements to online methods, and so do goes with the automobile industry. Our new generation which is called millennials or Genz researches everything online before the actual purchase.
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5G connectivity unlocks ultra-low latency communication, enabling real-time vehicle-to-everything (V2X) interactions. This enhances autonomous driving capabilities, traffic management, and safety features. It also supports over-the-air (OTA) updates with larger data payloads and faster speeds, improving software reliability and feature rollout. For consumers, 5G means richer infotainment, seamless smartphone integration, and enhanced navigation services.
Still not the EV revolution once thought but still plenty of growth
The platform includes geofencing, driver behavior monitoring, route mapping, and integrated or standalone camera options, accessible via a dashboard and mobile app. For asset tracking, the startup provides small, discrete devices with long-life batteries lasting up to five years, waterproof ratings, and location monitoring alerts for reliability in outdoor conditions. XCognition captures operator input or sensor data to generate execution-ready robotic programs to increase accuracy and reduce deployment time. XTrude models the physics of FDM processes to optimize parameters like flow rate and extrusion temperature to ensure large-scale 3D printing.
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The US-based startup Udelv provides autonomous vehicles for last-mile deliveries. It combines advanced AI algorithms and hyper-speed teleoperations for human-assisted guidance in unique situations. The vans deliver groceries from nearby stores and send out a push notification when the order arrives.
UK-based startup Electric Car Converts changes classic Land Rovers into EVs by replacing combustion engines with modern electric motors and battery packs. Ultra-fast charging infrastructure minimizes downtime by offering hundreds of kilometers of range in just minutes. For example, BYD demonstrated a 1000 kW charging system that is capable of adding about 400 km of range in five minutes to its Han L and Tang L models under ideal conditions. Solid-state batteries increase energy density, shorten charging times, and give EVs longer ranges and greater convenience.
Autonomous Vehicles (Self-Driving Cars)
The scale established by these six stages is essential for comprehending and characterizing self-driving technologies, which span from complete human driving to complete vehicle autonomy. Through V2X, vehicles can share information about road conditions, accidents, and traffic patterns, allowing for real-time decision-making. This communication system is crucial for the safe deployment of autonomous vehicles, as it will enable them to “talk” to other vehicles and infrastructure, reducing the risk of accidents. The integration of Industry 4.0 technologies is revolutionizing automotive manufacturing. IoT, AI, and digital twins are becoming essential tools for improving efficiency, reducing downtime, and optimizing production processes.
- After a disappointing 2019 in terms of EV sales, 2020 sales surpassed expectations, growing over 40% year-over-year.
- This data alerted drivers to pedestrians and cyclists before they became visible.
- Advances in solid-state batteries promise higher energy density and faster charging times, while the expansion of ultra-fast chargers addresses key barriers to EV adoption.
- For this in-depth research on the Top Auto Trends & Startups, we analyzed a sample of 3836 global startups & scaleups.
- The Auto Industry Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation & startup scouting process.
Waymo highlights this in its robotaxi fleet, which processes multimodal data to complete over 250K paid rides weekly with high reliability. Tesla’s Full Self-Driving Computer processes high-rate image input, handling camera streams of up to approximately 2.5 billion pixels per second through its camera serial interface. Its image-signal processor manages approximately 1 billion pixels per second from high dynamic range (HDR) sensor inputs. The system combines this data with inputs from multiple cameras and sensors to enable AI-driven perception and decision-making in near-real-time driving scenarios.
Automotive’s 2025: Gearing Up for a Sustainable and Intelligent Future
Information technology has become a crucial part of the recent trends in the automobile industry as priorities change over time. The automotive industry stands at a thrilling crossroads, where innovation meets complexity and opportunity rides alongside challenge. The industry will continue to experience disruptions from geopolitical headwinds to regulatory and legislative developments, data security and economic challenges. Maximising the ROI to investors and stakeholders while remaining competitive will be priorities of the industry.
All of this puts the auto industry at the back of the line when it comes to receiving chips. Now, 94% of consumers check the manufacturer’s website for product information before purchasing a part. And Tesla had already decided to close all its stores in 2019, now selling all new cars online. This makes sense, as 83% of car customers already said they wish they could save time by shopping online. This number is expected to have risen in 2020 as dealers everywhere turned to digital channels. As of 2023, the two now equip Ford and Lincoln vehicles with a built-in Android operating system.
Safety concerns remain in the spotlight – this is leading to greater acceptance of incremental developments in advanced driver-assistance systems (ADAS) rather than pushing for immediate full autonomy. Major automotive manufacturers are responding by rethinking their revenue models and investing heavily in on-demand vehicle access services. Meanwhile, tech companies such as Uber and Lyft continue to expand their digital-first transportation solutions, creating a more competitive and diverse mobility landscape. Moreover, automakers offer features on demand as they are turning cars into service platforms.
The platform allows autonomous vehicles to discover AVs, service providers, or clients around them. The vehicle-to-vehicle (V2V) communication is either on-blockchain, with smart contracts or off-blockchain using DAV’s protocols. The startup develops protocols for drone charging networks, drone flight planning, and open mobility. Advanced manufacturing technologies, such as megacasting and giga-stamping, are playing a pivotal role in enabling the industry’s transformation. Megacasting, which involves producing large aluminium castings to replace multiple smaller components in vehicle structures, is gaining momentum in the automotive industry. Shared mobility reduces individual car ownership, especially in urban areas, impacting vehicle sales volumes but increasing demand for fleet vehicles and mobility-as-a-service (MaaS) platforms.
Major Shifts in China’s Automotive Industry
The automotive industry is highly dynamic, and these trends are subject to change over time. Monitoring and understanding these trends are critical for automakers and other stakeholders to stay ahead of their competitors. The US-based startup Apex AI enables automotive companies to implement complex AI solutions.
Vehicle subscriptions reduce financial barriers for consumers and offer bundled insurance, maintenance, and roadside assistance in predictable monthly fees. For businesses, the vehicle subscriptions lower capital requirements and simplify fleet management. The startup’s sensors provide consistent performance by transmitting and interpreting signals effectively. They also prevent crowding in frequency bands, which is essential for ADAS and autonomous driving.
The modernized vehicles available in the market have opened an opportunity for the firms that supply and also manufacture the parts. Modernized and upgraded vehicles with much more technology allow a thunder growth for the markets providing parts of the vehicles. Conversely, in Europe, regulations are scaling up in preparation for the EU ban on new ICE vehicles by 2035. Chinese EV automakers’ expansion into new markets, including Europe, other Asian countries, and Latin America as previously mentioned, could see a completely new global EV landscape. Perhaps the biggest shift here is in a new manufacturing landscape, with new decentralised hubs across the globe producing EVs for local markets. On the other side of the globe, in Asia, China has implemented a landmark energy policy, aptly named the ‘Energy Law’, as of January 2025.
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- Automakers integrate these systems to offer more reliable vehicles across global markets.
- BOS Semiconductors focuses on high-performance, energy-efficient AI solutions to drive innovation in autonomous driving and enhance in-cabin experiences.
- Autonomous driving technologies like AD and ADAS are only possible to implement with the adoption of AI.
- The chip shortage is proving to be costly for the industry with many auto manufacturers shutting down plants due to low supply.
- These practices not only meet regulatory demands but also resonate with consumers increasingly drawn to environmentally responsible brands.
As cities become more congested, shared mobility solutions are becoming increasingly popular. In 2025, we expect to see more automated and electric shared vehicles providing affordable, on-demand transportation. Autonomous driving is one of the most prominent applications of AI in the industry. It incorporates various AI-powered technologies like adaptive cruise control, automatic emergency braking, and lane-keeping assistance, allowing vehicles to navigate complex road conditions autonomously. These systems can detect objects, evaluate road environments, and make real-time decisions to further enhance safety and comfort.
Technology in automotive industry forges ahead—the latest technological advancements are more and more extensively used by the domain. Let’s consider the recent trends in automobile industry related to the application of latest technologies. Along with battery-powered electric vehicles, fuel cell electric vehicles (FCEV) are another alternative to internal combustion engines. By 2035, approximately 16% of all new LV (light vehicle) sales in the US are predicted to consist of advanced automated vehicles (L3, L4, and L5). Fewer new vehicle purchases mean consumers hold onto their vehicles longer, reducing the available used inventory and increasing prices.
EVs typically use 2-3 times more semiconductor content than internal combustion engine models, and in powertrain-specific components, that multiplier is possibly higher. Demand is rising, especially for power electronics, battery management systems, and more energy-efficient chips. Also, MotionSafe protects the auto industry by securing vehicle data, supporting supply chains, and ensuring a safe transition to connected mobility. South African startup Motomatix applies AI and custom software solutions to strengthen supply chain resilience in the automotive repair sector.