Self-driving taxis are already available in parts of China and several US cities. More driverless journeys will occur as technology continues to be enhanced and refined. Global passenger EV sales grew 60% from 6.5 million units in 2021 to 10.5 million in 2022. EV sales are going to increase aggressively in 2025, providing a bright spot in the automotive industry. Governments are implementing innovative policies to encourage sales without increasing costs or benefiting high-income households.
Advanced Safety Features
Moreover, car connectivity transforms the driving experience by integrating with real-time systems and smart gadgets. These advancements guide the automotive sector toward a more intelligent, secure, and sustainable future. It includes journey replays, geofencing, and driver behavior monitoring to enhance fleet efficiency and safety. The startup also offers Leap EasyTrack, a vehicle tracking solution that allows for quick and easy self-installation, making it simple to transfer between vehicles without downtime. Indian startup Starkenn develops AI-powered ADAS to enhance vehicle safety and reduce road accidents.
There are already over 30 million vehicles on the road that meet the Level 1 standard. Some countries (and California) have even committed to phasing out all new sales of combustion engine vehicles over the next few decades. Even with this rapid growth, EV’s share of cars on the road is expected to remain at just 8% by 2030. Sales for BEV and PHEV in Europe increased by 137% in 2020 compared with the previous year (despite a 20% year-over-year decrease in the total car market). Espite growing inventory levels, new vehicle prices continue to rise, reaching a record average transaction price of $49,507 in December 2022.
Efforts to adopt circular economy practices are intensifying, with manufacturers exploring innovative ways to extend the lifecycle of materials and reduce waste. Michelin’s development of tyres composed of 45% sustainable materials is a noteworthy example of how companies are rethinking material usage to minimise their environmental footprint. As we reflect on 2024, it’s clear that this year was a turning point for automotive manufacturing. The strides made in EV battery innovation, renewable energy adoption, and sustainability are paving the way for a more resilient and forward-thinking industry.
Transparency rules such as the EU’s Corporate Sustainability Due Diligence Directive and the US Uyghur Forced Labor Act add pressure for stricter supplier oversight. This transition offers shorter lead times, reduced tariff exposure, and a stronger crisis response. The startup employs the Perceived Quality Index to eliminate engineering bias by translating customer insights into measurable quality improvements. Cost savings data driven starter car selection also play a role, as recycled aluminum or bioplastics often return their investment in just over a year.
Shared mobility
- In addition, it adapts to applications across fleets, workplaces, airports, and multi-housing units.
- The startup enables dealerships, fleet managers, and manufacturers to manage inventory strategically.
- However, their preferences changed after some time, Buyers are willing to spend an amount, while looking for the best vehicles available in the market.
- Autonomous driving demonstrates scalable deployment across passenger and freight use cases, and subscription models give consumers flexible access to vehicles.
- The solution captures millions of data points in real time and analyzes them to enable lenders to instantly assess and reduce risk.
- Companies like Huawei are allocating significant resources to developing EVs with cutting-edge ADAS and autonomous features.
- Volvo Cars has announced plans to adopt large aluminium castings for its next-generation electric vehicles, aiming to simplify production and enhance sustainability.
These tools equip dealerships to handle inquiries efficiently, thus freeing time for other important tasks. They further assist with management, maintenance, and repair appointments, as well as streamlining operations. Voice search assistants help optimize interfaces for advertisements and voice search queries.
🏁 Conclusion: Navigating the Future of Automotive
Connected cars are vehicles that use wireless means to connect to the Internet of Things. They offer a safe, comfortable, and convenient multimedia experience with on-demand features that allow users to browse the web while in their vehicle. They provide various features such as remote diagnostics, vehicle health reports, 4G LTE Wi-Fi hotspots, turn-by-turn directions, and warnings of car health issues. The technology has already processed over a billion customer requests and is set to grow in 2025 with predictive intelligence and maintenance technology. 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.
Connected, autonomous, shared, and electric (CASE) vehicle technologies remain a strong focus in automotive markets
- Quantum computing accelerates material discovery and crash simulation, and edge computing and 5G offer real-time responsiveness in vehicles.
- Further, through its smart management app, it enables users to schedule charging, monitor consumption, and manage fleets from one platform.
- Today, you can hear about renewable energy from every corner of the Internet, and it’s no wonder why.
- Automotive industry trends refer to changes in patterns within the automotive sector that influence vehicle design, production, marketing, and usage.
- This would mark a critical shift toward an era of personalized vehicle recommendations and optimized repair services.
- Apart from this, reduced access to EV charging points remains a significant challenge, according to consumer trends in the automotive industry.
The USMCA requires 75% of motor industry components to be produced in North America. And the US Inflation Reduction Act ties USD 7500 EV subsidies to regional sourcing. Cost efficiency strengthens the case, with Mexico offering a 35% landed-cost edge over China in 2022. And it is projected to widen to 45% by 2030 due to lower labor and freight costs. Also, advanced composites and recycled inputs reduce reliance on virgin resources.
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. Car dealerships are no exception, as recent auto trends reveal that customers prefer to experience a car or dealership before purchasing.
Can Car Color Really Affect Your Chances of a Speeding Ticket? 🚦
The truck’s design removes the internal combustion engine, advancing commercial vehicle safety standards, and protecting pedestrians and other road users. Volta Trucks also offers leasing or purchasing options, and integrates services like maintenance, charging infrastructure, and training through its truck-as-a-service model. This simplifies the transition to electric vehicles for fleets, reducing environmental impact and promoting safer urban transport. US-based startup FlxTran develops a new transportation system using self-driving vehicles on abandoned railroad tracks to provide fast regional transport to connect smaller communities.
Mechatnom applies Automotive Software Modules
The startup enables automakers to reduce waste, optimize design processes, and advance sustainable manufacturing strategies. The automotive industry is one of the most severely affected by supply chain disruptions. Currently, its greatest challenge is uncertainty and instability, which are expected to persist this year.
Explore the Top 10 Automotive Trends & Innovations in 2025
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. The law emphasises a cleaner and more efficient use of fossil fuels, placing a higher emphasis on sustainability and developing renewable energy infrastructures. This comes as China continues to make their presence known in the global EV scene, with ramped-up production and dominance in the international EV market. Moving further east, Thailand’s electric car sales quadrupled, aided by subsidies and Chinese carmaker investments, positioning the country as a potential EV manufacturing hub.
NuNami designs Vehicular Interface Systems
Moreover, automakers and tier-suppliers are increasingly focusing on sustainable steel production to lower emissions across their supply chains. Further, Jaguar Land Rover is pioneering a closed-loop recycling process for seat foam, turning waste from old vehicles into high-quality material for new ones. This innovative, circular production approach supports sustainability goals by reducing landfill waste and advancing circular economy practices in automotive manufacturing. ABB is investing in advanced software that simulates automotive painting processes, cutting costs by up to 30%. The simulations enhance precision and minimise waste in this energy-intensive stage of manufacturing.
- Software-defined vehicle (SDV) architectures are revolutionising automotive technology, with electric models often leading this digital transformation.
- These over-the-air updates are becoming essential for ensuring vehicle reliability, safety and security, and are opening new revenue streams for manufacturers.
- By 2025, V2X technology is expected to significantly create more innovative transportation networks and advance autonomous driving capabilities.
- Lithium-ion battery prices have fallen by 89% over the last decade, reaching a price of $137/kWh in 2020.
- Monitoring and understanding these trends are critical for automakers and other stakeholders to stay ahead of their competitors.
- Established in 2007, SG Analytics is a Great Place to Work® (GPTW) certified company with a team of over 1200 employees and a presence across the U.S.A., the UK, Switzerland, Poland, and India.
- 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.
Expected to produce batteries for up to 800,000 vehicles annually, the plant will be powered entirely by renewable energy, demonstrating a dual focus on production efficiency and sustainability. The SDVs market is set to reach 7.6 million units in 2025 from 6.2 million units in 2024. North America is commanding a 43% share as new-age OEMs focus on BEVs and software-driven architectures. Major technology providers are also solidifying their roles in key areas such as ADAS, electrical/electronic (E/E) architectures, and cloud computing solutions.
Autonomous vehicles are changing the face of the auto industry
The global ADAS market is projected to reach USD 36.6 billion by 2025, with a CAGR of 10.8% from 2025 to 2037. Level 3 (conditional automation) and Level 4 (high automation) systems are gaining traction, with broader availability expected in Europe and North America by 2025. The AV market is projected to reach USD 1.73 trillion by 2033, growing at a CAGR of 31.85% from 2025 to 2033. Tangram Vision allows perception teams to focus on product-specific features by handling complex sensor tasks and accelerating development and deployment processes. The platform features customizable work product templates, detailed instructions, and comprehensive checklists for self-assessment. It also provides streamlined audit management, structured frameworks for continuous improvement, and intuitive escalation processes.
The best-selling vehicle in the US, the Ford F-Series pickup, has an average price of $66,451, placing it in the luxury category. In this world where we are shifting to EVs, individuals usually prefer to shift to smaller vehicles which are much more affordable and environmentally friendly. They are much more convenient to use in these congested cities and parking these vehicles is much easier. Younger generations, especially Genz or millennials prefer these vehicles as they are much more attractive. The shortage may not be as bad as it was in the early 2020s; however, even with a larger output, a report has found that only 26% of organisations that are reliant on these chips have a sufficient supply. This leaves the vast majority of companies concerned with their supply and wanting for more.
Notably, China, Europe, and the US have established themselves as the leading EV markets, with other countries following suit. Norway set a record in the electric vehicle sector in August 2024, as the number of all-electric vehicles on the road surpassed that of gasoline-powered vehicles for the first time. In terms of new car sales, Norway boasts the highest percentage of battery-electric vehicles in Europe. It also leads Europe in new EV market activity, with just 9.61 percent of new passenger car sales in 2023 attributed to gasoline, diesel, and non-rechargeable hybrid vehicles. By 2025, V2X technology is expected to significantly create more innovative transportation networks and advance autonomous driving capabilities.
What Is Portfolio Rationalization? A Guide to Streamlining Your Business Portfolio
US-based startup MotionSafe provides AI-powered cybersecurity solutions that protect connected vehicles from data breaches and cyber threats. Vehicle cybersecurity drives one of the fastest-growing areas in the auto industry as connected vehicles multiply and cyber risks intensify. Analysts project the automotive cybersecurity market to increase from USD 5.24 billion in 2025 to approximately USD 18.88 billion by 2034, advancing at a CAGR of 15.3%. Geopolitical risks, regulatory frameworks, cost advantages, and compliance needs drive the auto industry toward supply chain resilience and nearshoring.
Sensor Fusion: Market to Reach USD 3.3 B by 2030
- The software integrates a one-shot multitask network capable of performing 2D detection, semantic segmentation, and monocular depth estimation.
- By leveraging these factors, Statevolt is positioning itself to meet the rising demand for EV batteries in an increasingly competitive market.
- These sensors measure distances, identify obstructions, and capture crucial traffic and road condition data.
- 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.
- As a car seller, dealer, or manufacturer, you must only build flexible yet solid automotive marketing strategies and create a strong sense of customer trust and loyalty.
- Its MotionSafe Privacy platform uses algorithms to monitor controller area network (CAN) traffic and detect anomalies.
- Significant investments in AI and Internet of Things (IoT) devices are crucial for fine-tuning self-driving algorithms, making them safer and more reliable.
- Automakers and technology companies are forming partnerships due to vehicles’ constantly evolving tech requirements.
- Specific components like silicon carbide (SiC) and gallium nitride (GaN) power devices are expected to see growth, offering up to 60% improved efficiency over traditional silicon components.
Software-defined vehicles redefine business models through centralized computing and OTA upgrades. The latest technology in automobile industry have revolutionized the way vehicles are designed, manufactured, and sold, and the vehicles themselves have become much more than a means of transport. 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.
From electrification to IoT connectivity, these shifts are changing the way cars are manufactured, sold, repaired, and driven. Shared micromobility vehicles are becoming a popular mode of transportation in cities where the pollution from cars and traffic congestion is particularly evident. Chip shortages have been causing myriad changes to trends that affect the automotive trends that are not all positive.
For the eighth time, we asked managers and decision-makers in the automotive industry which trends and developments they are currently focusing on. The automotive industry report of the Future Readiness Monitor 2025 provides differentiated insights into strategies, challenges and fields of action in the industry. The trends in automobile industry and startups outlined in this report only scratch the surface of automotive innovations that we identified during our in-depth research. Identifying new opportunities and emerging technologies to implement into your business early on goes a long way in gaining a competitive advantage.
Motoreto strengthens supply chain resilience in the auto industry and drives nearshoring by aligning distribution, procurement, and sales with regional market needs. The startup enables dealerships, fleet managers, and manufacturers to manage inventory strategically. It also supports this process by integrating buybacks, residual value calculations, and automated stock analysis.
The US-based startup Procon Analytics leverages big data to offer a solution for automotive finance. The solution captures millions of data points in real time and analyzes them to enable lenders to instantly assess and reduce risk. This allows Buy Here Pay Here (BHPH) dealers to expand their businesses and extend credit to high-risk customers.
Regenerative braking systems, crucial in EVs and hybrid cars (HEVs and PHEVs), contribute to energy recovery rates of 5% to 20%, depending on driving conditions. The platform includes geofencing, driver behavior monitoring, route mapping, and integrated or standalone camera options, accessible via a dashboard and mobile app. XCognition captures operator input or sensor data to generate execution-ready robotic programs to increase accuracy and reduce deployment time.
Download Free Industry Reports
This kind of adoption should lead to much-improved 5G infrastructure, which could support vehicle connectivity. And with about two-thirds of people saying they would rather drive than ride in an autonomous car, much of the near-term focus is on trucking. Large automakers like Tesla, Alphabet, Ford, GM, and Volvo have all entered the autonomous vehicle space. The AV industry itself is just in its infancy, as there are only 17,000 self-driving cars on the road in the US today.
Software-Defined Vehicles: Cars as the Ultimate Connected Devices
This is not just a European problem with Volkswagen and Stellantis, as Honda and Nissan merge, and Ford and General Motors struggle. Global economic slowdowns and fierce competition from Chinese manufacturers have slowed the growth of EVs. In 2025, the automotive industry’s digital marketing spending is predicted to keep growing. This rise in digital advertising spending is being steered by the growing usage of social media. Dealerships need to integrate strategic frameworks to capture potential buyers across different stages in the process with the use of social media marketing, click-to-call conversions, and messaging apps. UK-based startup Distributed Additive Manufacturing (DAM) offers 3D printing services including design, building, and finishing of parts.
KonnectShift provides IoT-based Fleet Optimization
Explore competitors’ website traffic stats, discover growth points, and expand your market share. The company already has 50 Level 4 autonomous trucks operating in the Southwestern United States. One of the most promising companies in the autonomous trucking ecosystem is TuSimple. The number of autonomous trucks on the road was expected to increase from roughly 150 in 2020 to over 2000 in 2021. It’s expected that the $800 billion trucking industry could benefit from a significant reduction in the 4900 trucking-related deaths that occur each year if only Level 3 or 4 autonomy would gain traction. As of the end of 2023, over 1 billion miles have been driven with Tesla Autopilot enables.
