For instance, Audi and BMW vehicles exchanged sensor data, including camera feeds, during 5G-V2X Direct demonstrations in Berlin. 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.

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.

Companies like Toyota and Hyundai are investing in hydrogen fuel cell technology. By 2025, we could see a broader adoption of fuel cell vehicles, especially in regions like Europe and Asia, where hydrogen infrastructure is beginning to grow. In addition to electrification, hydrogen fuel cell technology is gaining traction as a potential solution for zero-emission transportation. Hydrogen-powered vehicles produce only water vapor as a byproduct, making them a strong contender for sectors that are harder to electrify, such as long-haul trucking and commercial transportation. While regulatory hurdles remain, 2025 will likely see significant progress in integrating these services into urban infrastructure, offering consumers affordable, sustainable alternatives to owning a car. On top of all the 2025 automotive trends there will be the impact of tariffs set by the US and Europe.

Related insights

• However, as with all complex bodies of rulesets, differing rules and regulatory mandates across the globe make it easier for international automakers to fall foul of compliance.
• From these, 20 promising startups are featured below, selected based on factors like founding year, location, and funding.
• 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.
• Lastly, there’s even a term “vehicle-to-everything” (V2X), which includes all types of vehicle communication.
• Localized production and sourcing are gaining momentum as companies aim to mitigate risks and ensure a steady supply of components.
• The road to 2025 is set to bring even more dynamic changes, with global collaborations, technological breakthroughs, and bold strategies defining the future of manufacturing.

Its RC ONE driverless vehicle combines proprietary software and hardware with automotive-grade components to achieve low-speed autonomous operation. US-based startup TeraDAR designs its 4D imaging sensor that enhances sensor fusion by offering the Terahertz wavelength for vehicle perception. Connectivity also adds momentum, with 5G and V2X semiconductors enabling real-time data exchange and secure over-the-air updates. Also, regulatory frameworks such as ISO and Europe’s mandate for emergency braking systems encourage mission-critical chip integration across new vehicles. ADAS adoption enables lane-keeping, adaptive cruise control, and emergency braking to rely on AI-powered processors and sensor fusion chips. Additionally, CARNIQ Technologies supports the automotive sector with threat analysis, cybersecurity management, and secure system development.

Classic and Historical Cars

By the end of that decade, it’s predicted that over 30% of the cars on the road will be EVs. The massive rotation in the global vehicle fleet is predicted to take place in the 2030s. Bloomberg New Energy Finance expects EVs to account for 10% of all new car sales by 2025 and 58% by 2040.

Chargerly develops Vehicle-to-Building Solutions

Discover how these shifts improve charging, safety, and sustainability and what they mean for your business. The AI systems also learn about the driver’s preferences in music and temperature, making the driving experiences as enjoyable as possible. Many auto manufacturers are considering integrating in-car payments to ease refueling, paying for parking or tolls, and even grocery shopping.

Latest Trends in the Automotive Industry (2025-

Internet of Things (IoT) and real-time monitoring solutions improve shipment tracking, warehouse oversight, and production visibility. In addition, it offers charging solutions for e-bikes, including wallboxes and mass-charging systems for hotels and public spaces, thereby broadening blending storytelling and vehicle data insights access to sustainable transport. Czech Republic-based startup IONT tech manufactures EV charging stations that support home, business, and public use.

What role will artificial intelligence play in the future of the automotive industry and its trends?

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.

Eloy provides Connected Car Solutions

Investors support companies with strong sustainability commitments, channeling funding toward greener production. The Global Startup Heat Map showcases the distribution of 3836 exemplary startups and scaleups analyzed using the StartUs Insights Discovery Platform. It highlights high startup activity in Western Europe and the USA, followed by India. Today, you can hear about renewable energy from every corner of the Internet, and it’s no wonder why. Unless otherwise noted, this page’s content was written by either an employee or a paid contractor of Semrush Inc. More than 12% of consumers who financed a new car in June of 2022 had a monthly payment of $1,000 or more.

Automotive Industry Trends 2025: Future & Growth of Automotive

Integrating vehicle-to-everything (V2X) communication further improves connectivity and safety. German startup Qumasoft offers a software-driven cybersecurity management solution for vehicles and components. Its platform automates the cybersecurity management system (CSMS) and product cybersecurity evidence (PCSE) to ensure compliance with UNECE R 155 and ISO/SAE 21434. We evaluate our own startup data and complement these insights with external research, including industry reports, news articles, and market analyses.

Automotive trends in 2025 impacting middle-market organisations

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. Given the opportunity to significantly disrupt private transport and shape the future of the automotive industry, companies are expected to continue investing in autonomous vehicles in 2025. Without subsidies, demand for EVs on the consumer end could also drastically decrease as was recently seen in Germany after government incentives ended. This may also see American automakers finding more challenges in exporting vehicles to regions in which regulations are more stringent. At the same time, a limited EV infrastructure and uneven policy application dampen the pace of meaningful progress throughout the region. When it comes to the benefits of connected cars, it seems that drivers are more willing to allow for data collection, too.

This process enables us to identify the most impactful and innovative trends in the automotive industry. Volvo Cars has announced plans to adopt large aluminium castings for its next-generation electric vehicles, aiming to simplify production and enhance sustainability. Meanwhile, Toyota is reported to be cautiously evaluating the technology, balancing its benefits against potential risks. Sustainability has evolved from a competitive advantage to an existential necessity for the automotive industry.

• The two purportedly plan to begin manufacturing an autonomous Apple electric car as of 2024.
• The infrastructure for EVs is expected to become more widespread and advanced, supporting the increasing number of electric vehicles on the road.
• While full autonomy is still on the horizon, advanced driver assistance systems (ADAS) are already transforming how we drive.
• Gain in-depth insights into the key developments that characterise the automotive industry.
• 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.
• For example, Hyundai partners with Revv in India to expand subscription offerings through a mobile-first platform.

Q) What are the new trends in the automotive industry?

This could allow drivers to retain their jobs, but avoid the injuries and deaths that result from exhaustion. Additionally, Chevrolet, Hyundai, Kia, Nissan, and Jaguar have all released more affordable EVs that have a range of anywhere from 200 miles to 250 miles. Right now, there are only about 73,215 public EV charging stations across the US.

CARNIQ Technologies specializes in Car Security & Compliance

As a result, vehicles become even more connected with each other and the infrastructure and provide drivers with more advanced opportunities. The future of automotive industry trends suggests that the automotive parts market will grow aggressively due to a growing demand for replacement parts and an increase in vehicle production. The segment’s sales will rise in the first six months of fiscal 2025, while the industry’s revenue will increase at the same pace to $33.8 billion. According to Globe News Wire, the entire market will grow at a CAGR of 5.5% from 2025 to 2033, logging USD 984 billion. Automakers and technology companies are forming partnerships due to vehicles’ constantly evolving tech requirements.

Apex AI offers an Automotive Data Management Platform

Autonomous vehicles are reshaping mobility, from AI‑powered perception to intelligent infrastructure and generative simulation. This report explores how breakthrough technologies are accelerating the shift toward safer, smarter, and more sustainable transportation systems worldwide. The SAE, originally the Society of Automotive Engineers, has identified six levels of automation on the path to completely autonomous vehicles. 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.

It also provides validation services that ensure resilience against potential risks. German startup CARNIQ Technologies enhances vehicle cybersecurity through web-based and AI-powered tools that ensure compliance with automotive standards. The rapid rollout of software-defined vehicles, vehicle-to-everything (V2X) networks, and electrification pushes automakers to secure digital systems as rigorously as physical components. Moreover, the startup’s marketplace connects professionals in a secure environment. It provides exclusive access to vehicles and optimizes purchase decisions based on supply and demand trends. Also, digital twin technology builds virtual replicas of supply chains to simulate disruptions and optimize performance.

In India, for example, electric car sales rose by 70%, driven by government incentives and new models, though future growth may be impacted if it sees subsidy reductions. 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. Solid-state batteries, which promise to offer higher energy density and improved safety over traditional lithium-ion batteries, are on the horizon. These batteries can provide longer driving ranges and faster charging times, which have historically been limitations for EV adoption.

This data-driven research provides innovation intelligence that helps you improve strategic decision-making by giving you an overview of emerging technologies in the automotive industry. In the Automotive Innovation Map below, you get a comprehensive overview of the innovation trends & startups that impact your company. Vietnamese startup Phenikaa-X creates autonomous electric vehicles with AI and multi-sensor technology for safe transportation. Its system uses functional modules, combining LiDAR, radar, cameras, and ultrasonic sensors to perceive surroundings, analyze traffic, and navigate efficiently. A 5G connection transmits data to a remote control station, which allows operators to monitor and intervene when needed. As the industry advances, 2025 will be a defining year in the automotive manufacturing sector.

Advanced Driver Assistance Systems (ADAS)

The global automotive blockchain market is experiencing significant growth — it is projected to reach USD 6.11 billion by 2032. Connected vehicles are fostering new business models centered on shared mobility, offering an alternative to traditional vehicle ownership. This shift supports mobility-as-a-service (MaaS), reducing the number of idle vehicles and addressing urban transportation needs without adding more cars. The increasing adoption of EVs globally drives the optimization of energy usage and enhances features like regenerative braking systems through sensor fusion technologies. To accommodate the rising demand for EVs and autonomous vehicles, major automakers such as BMW, Hyundai, and Stellantis are investing in EV battery plants and semiconductor-related facilities.

By addressing issues proactively, manufacturers and service providers can further reduce breakdowns, enhance vehicle reliability, and improve overall customer satisfaction. A simple yet impactful example would be the replacement of vehicle manuals with voice-activated AI assistants. The AI system answers the driver’s query by cross-referencing data from the car’s diagnostics. It instantly generates a detailed explanation of the issue along with potential solutions.

Volta Trucks manufactures Electric Trucks

Autonomous driving technologies like AD and ADAS are only possible to implement with the adoption of AI. Driver assistance technology, in particular, can go as far as detecting driver fatigue by monitoring their eyes and taking measures to avoid car accidents. The systems that come together to implement such technologies are sensor fusion, computer vision, and real-time decisions to enable the vehicle to take all complex traffic scenarios easily. Significant investments in AI and Internet of Things (IoT) devices are crucial for fine-tuning self-driving algorithms, making them safer and more reliable. This also presents an emerging opportunity to connect the vehicle ecosystem, creating a dynamic adaptation of data for road and weather conditions, assisted by IoT-enabled devices. Almost 40% of all autonomous vehicles sold in 2025 are predicted to have L2 ADAS features.

Toyota’s North Carolina battery plant exemplifies this commitment, with operations fully powered by renewables. Recycling initiatives, such as reusing EV batteries, further emphasize the industry’s shift toward circular manufacturing. “Advanced sensors will make a significant impact on ADAS solutions by providing more accurate data and improving safety maneuvers, from lane-keep-assist to auto parking and braking,” added Lyons. The automotive industry was perhaps the saving grace of the European semiconductor industry in 2023, but reality has hit hard in 2024. Auto brands that stay on top of these trends and continue to innovate will be able to build a resilient business, that will help nurture a more electrified, connected, and sustainable future. With EV makers in China engaging in a price war due to declining demand, Chinese brands with strong hybrid presently are gaining popularity.

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 fleet of light-duty EVs has grown in the last four years by more than 14 times with a very significant, 17-times increase in the fleet of plug-in hybrid vehicles (PHEVs). Brazil is leading the way by a large margin, followed by Mexico, Costa Rica, Colombia and Chile, respectively. This Electric Vehicles Market Report 2026 examines industry growth, investment flows, patent activity, and global hubs shaping the EV ecosystem. It highlights workforce trends, leading investors, and key technologies driving adoption across vehicles, batteries, charging, and software. Several leading OEMs have already announced plans to adopt the chipset for their automotive solutions, including BYD, Nuro, XPENG, Volvo and Zeekr.

These over-the-air updates are becoming essential for ensuring vehicle reliability, safety and security, and are opening new revenue streams for manufacturers. Moreover, its software platform manages real-time energy flows and integrates with solar systems to optimize renewable energy usage. It also enables customers to schedule and monitor charging activity for improved efficiency. In Europe, the new General Safety Regulation II (from July 2024) and related standards embed connectivity, advanced sensors, and cybersecurity requirements into safety compliance frameworks.

Therefore, these were the five trends transforming the automotive industry this year and beyond. However, overcoming supply chain challenges takes time, so they are likely to remain in 2025. Examples are bikes, scooters, and mopeds, as well as the electric versions of these vehicles.

Connected Vehicle Technologies

For this in-depth research on the Top Auto Trends & Startups, we analyzed a sample of 3836 global startups & scaleups. The car market trends are shifting towards regional suppliers to diversify their supply chains and mitigate risks. OEMs seek alternative sources to improve sourcing flexibility and bring products to market faster. The U.S. and China trade war has also influenced the search for alternative sourcing options.

Safety and Security in Automobiles

According to Statista’s report, global sales of electric vehicles are expected to reach an astounding US$786.2 billion by the end of 2024. 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. Self-driving vehicles rely on artificial intelligence (AI) and machine learning algorithms to process real-time data from cameras, sensors, and radars. The goal is to enable cars to make decisions and navigate without human intervention. In 2025, automakers will continue improving AI systems’ reliability, reducing the likelihood of accidents, and enabling safer autonomous driving experiences.

EcoG builds an Electric Vehicle Charging Platform

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.

Tree Map reveals the Impact of the Top 10 Automotive Trends

Here’s how TikTok unboxings and gaming are driving one of 2025’s top retail trends. Data from the past 10 years shows the sale of luxury vehicles making a steep climb in 2022. Toyota’s Mirai and Hyundai’s Nexo have been the two major players in the market since sales launched in 2016.

What Is Portfolio Rationalization? A Guide to Streamlining Your Business Portfolio

• The global automotive blockchain market is experiencing significant growth — it is projected to reach USD 6.11 billion by 2032.
• From supply chain optimization and manufacturing to personalized driving experiences and smart routing, advanced AI systems and real-time data analysis enable it all.
• The simulations enhance precision and minimise waste in this energy-intensive stage of manufacturing.
• The demand is highest for vehicles under four years old, which have the latest technologies but are less expensive than new cars.
• US-based startup MotionSafe provides AI-powered cybersecurity solutions that protect connected vehicles from data breaches and cyber threats.
• In 2025, we expect to see more automated and electric shared vehicles providing affordable, on-demand transportation.
• They are much more convenient to use in these congested cities and parking these vehicles is much easier.
• The startup emphasizes comfort with electric doors, extended safety features, and panoramic views from all seats.
• The Global Startup Heat Map showcases the distribution of 3836 exemplary startups and scaleups analyzed using the StartUs Insights Discovery Platform.

It integrates templates, examples, and practices aligned with ISO/SAE 21434, Automotive SPICE for Cybersecurity, and VDA guidelines. Similarly, hardware security modules (HSMs) protect encryption keys and authenticate critical functions, with secure microcontrollers embedded into electronic control units (ECUs). Additionally, Motoreto streamlines operations with features such as multi-channel publishing, branded digital tools, and integrated logistics and financing. It produces alternating current (AC) wallboxes for residential charging up to 22 kW and AC column stations for companies and municipalities. It also manufactures direct current (DC) fast chargers with capacities of up to 240 kW. Vehicle-to-grid solutions convert EVs into mobile energy storage units by allowing bidirectional energy flow with the grid.

• What initially appeared to be a niche sector is now the foundation of the auto industry’s transition.
• Software-defined vehicles redefine business models through centralized computing and OTA upgrades.
• Ransomware-related costs in the automotive industry skyrocketed from $74.7 million to $209.6 million in just the first half of 2023.
• In addition, Move-X supports over-the-air updates, ensures continuous improvement of system performance, and allows customization across diverse use cases.
• Large automakers like Tesla, Alphabet, Ford, GM, and Volvo have all entered the autonomous vehicle space.
• This ensures precise planning, reduces downtime, and enhances efficiency in assembly operations.
• Predictive maintenance powered by AI minimizes machine failures, while IoT networks provide detailed insights into factory operations.

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. While some regions already allow limited AV testing and deployment, 2025 will likely see a more transparent legal framework surrounding autonomous driving technology. This regulatory clarity will pave the way for broader AV adoption in cities, particularly in controlled environments like urban areas or designated autonomous vehicle lanes. Additionally, infrastructure developments like Toyota‘s new battery plant in North Carolina underscore the industry’s dedication to scaling EV output.

German OEMs already have a full roadmap from L2 to L3, with Mercedes Benz commercializing their DrivePilot system, and BMW is likely to follow soon. Emerging companies are developing advanced sensing technologies to collect extensive vehicle data and enable vehicles to better understand their surroundings. Blockchain technology is increasingly being utilized in the automotive industry for various applications. It enables secure data sharing for connected and shared mobility solutions, including ride-hailing, urban transportation, and delivery services.

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). New vehicle inventory levels till December 2022 were 52% below December 2019 but 56% above January 2022. On the other hand, personal vehicles are on the rise due to improving urban road infrastructure, and the popularity of pre-owned cars among young people is also driving the market growth. North American and European automakers offer consumers the option to buy vehicles online without visiting dealerships. With a computer or smartphone, buyers can choose desired features, secure financing, and even take virtual walk-around and test drives. In 2025, more dealerships are expected to offer online sales, vehicle inspection, and home delivery.

Key Technology Trends in the Automotive Industry in 2025

The global automotive industry, responsible for 10% of the world’s carbon dioxide emissions, faces ongoing pressure to overhaul its practices. However, the landscape is proving difficult to steady with an intricate maze of regulations that differ by country or region and lack a unified benchmarking process for sustainability. In these regions, shared mobility options like vans, minibuses, and two- and three-wheelers are more common and often electrified due to their affordability.

Top 10 Automobile Industry Trends & Innovations (

As for those who already use micromobility vehicles, 32% say they often or very often use it instead of a private car. Cox Automotive Industry Insights predicted total new-vehicle sales in 2022 of only 14.4 million units, a number that doesn’t even surpass 2020 sales volume. Semiconductor experts say manufacturers won’t see a return on investment if they build new foundries to meet the auto industry’s demand. In addition, the initiative will leverage the data collected by adding Google’s AI capabilities to Ford vehicles. Google and Ford recently announced a connected car partnership called Team Upshift. This type of vehicle is defined by its ability to communicate with other software systems and collect data from its surroundings.

OEMs are advancing and navigating regulatory challenges to introduce and test L3 and L4 automation, setting the background for augmented adoption of autonomous vehicles. Additionally, smart virtual assistants are emerging as a key HMI feature, aiding drivers and passengers in interacting with vehicles and external services. The global Automotive Human Machine Interface market, valued at USD 70.41 billion in 2022, is expected to grow significantly, reflecting these advancements in automotive technology. These solutions decrease fleet wait times and cut pollution from petrol or diesel vehicles. Modern vehicles are now equipped with a unique digital identity, making it easier to track and share data for applications like insurance, driver safety, predictive maintenance, and fleet management.

Dodge Unleashes the Durango Hellcat, Everywhere

Users discover the nearest Beam scooter on the app and park it in visible public spots after the ride. Further, the micro-mobility platform offers a sustainable alternative to short-distance rides and helps regulate traffic flow in cities. German startup ChargeX offers a modular EV charging solution that converts parking spaces into charging stations. The startup’s platform, Aqueduct, is easy to install, has 4 charging modules with up to 22kW, provides monthly reports, and uses a Typ2 charging cable. The solution recognizes the power requirements of every car and automatically controls the charging speed for each vehicle.

• The European Union’s Vehicle General Safety Regulation (GSR2), effective July 2024, mandates several ADAS features in new vehicles.
• CARNIQ Technologies secures the auto industry by embedding compliance-driven cybersecurity into development lifecycles.
• Human-machine interfaces (HMIs), including voice-based and haptic feedback systems, are expanding control over various car functions.
• Automakers will continue to incorporate these systems into even more affordable models, making safety technologies more accessible to a broader range of consumers.
• 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.

Mobility

People are shifting to EVs because of their design and their being environmentally friendly. 50% of buyers are willing to opt for EVs, so businesses should surely focus on marketing electric vehicles to make their brands more broader. Increased government focus on charging networks will be needed to support the AI license plate lookup expanding EV fleet. The autonomous vehicle sector will advance as UN regulators lift their speed limit. In the United States, the newly appointed administration has issued several executive orders that will likely have drastic impacts on both global and national automotive markets. One such order significantly impacts the future of EVs and EV infrastructure by rolling back policies that once supported their growth.

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. In addition, TuSimple has partnered with Navistar and UPS to test its software under supervised driving conditions.

Leap Business Solutions advances Fleet Management

The industry trends show a positive perspective for the times to come despite the expected global slowdown and supply chain disruptions. 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. Make sure you stand out from your peers by focusing on every intricate detail through marketing and staying at the top of buyers’ minds. However, automotive executives need help as they focus on new technology that meets consumer and regulatory demands. This has led to a shift away from traditional automotive infrastructure, which focused on powertrains, interiors, electrical systems, and safety systems.

• It integrates templates, examples, and practices aligned with ISO/SAE 21434, Automotive SPICE for Cybersecurity, and VDA guidelines.
• Companies like Nvidia innovate in AI-powered chips for AVs, partnering with automakers like Toyota, Tesla, and Aurora Innovation to enhance autonomous capabilities.
• For example, Toyota plans a commercial rollout by 2027 to bring solid-state battery EVs into mass production.
• Due to the pandemic, the automotive sector is undoubtedly facing one of the most challenging periods and a massive slowdown for the last couple of years.
• Artificial intelligence (AI), the Internet of Things (IoT), blockchain, and advanced semiconductors allow autonomous driving, predictive maintenance, and secure connectivity.
• Discover trends, forecasts, and global developments shaping the future of mobility.
• Its vehicle control system processes passenger comfort thresholds related to acceleration, deceleration, and jerk rate.
• It combines a gasoline engine with an electric motor to enhance fuel efficiency and reduce emissions.

Companies focus on increasing energy density to improve range and reduce charging times. The trends shaping automotive manufacturing in 2025 emphasize innovation, sustainability, and connectivity. As electric vehicles become mainstream, digitalization reshapes production, and mobility services redefine car ownership, the industry is set to transform how vehicles are manufactured and used.

As technology progresses, expect these trends to influence every facet of the automotive sector. When demand for cars plummeted in the early days of the pandemic, auto manufacturers stopped ordering them and chip producers focused their attention elsewhere. Europe now is the largest market for new plug-in electric vehicles, overtaking China’s first spot.

Methodology: How We Created the Automotive Trend Report

The study offers data-based insights and recommendations for action for decision-makers in the automotive sector. Gain in-depth insights into the key developments that characterise the automotive industry. The big data market in automotive is growing, with a projected market size of USD 5.92 billion in 2024, expanding at a CAGR of 16.78% to reach USD 12.86 billion by 2029. Startups are developing big data solutions to help manufacturers and related industries streamline operations and maximize profits. The Automotive Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation & startup scouting process.

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.

Its vehicle tracking system provides 24/7 real-time visibility, supported by self-install and engineer-fitted options, with no minimum fleet size required. With the introduction of 5G networks, advanced telematics features like real-time diagnostics, autonomous driving, and improved safety systems are becoming even more feasible. Canadian startup Xaba develops intelligent automation solutions, materials, and processes for sustainable manufacturing. Its AI-driven control systems, xCognition and xTrude, enhance industrial robotics and additive manufacturing by automating programming and improving precision. US-based startup Aviva Links builds in-vehicle connectivity solutions that include multi-gigabit Ethernet and ASA Motion Link (ASA-ML) semiconductor products for ADAS systems.

The future trends in the automobile industry predict a roller-coaster ride for players. In 2025, the automotive industry will face global headwinds such as the energy crisis, slower global demand, and ongoing supply-chain issues. Despite these challenges, global new-vehicle sales are projected to remain flat, with new-car sales increasing. Sales of electric vehicles (EVs) are expected to grow, although governments may restructure their incentive programs. The automotive industry is set to witness huge growth in integrated drive ePowertain systems that reduce weight and cost and offer improvements like enhanced vehicle range and efficiency. In the future, advanced integrated solutions will dominate, leading to lighter and more efficient electric powertrains and driving the next generation of high-performance and mass-market EVs.

US-based startup Aviva Links builds in-vehicle connectivity solutions that include multi-gigabit Ethernet and ASA Motion Link (ASA-ML) semiconductor products for ADAS systems. Its technology transports ultra-high-bandwidth video and data from sensors to processors with ultra-low latency. For this, it uses advanced system-on-chips (SoCs) that integrate mixed-signal analog and digital signal processing (DSP) algorithms. The European Union’s Vehicle General Safety Regulation (GSR2), effective July 2024, mandates several ADAS features in new vehicles. The U.S. National Highway Traffic Safety Administration (NHTSA) plans to require automatic emergency braking (AEB) systems in all new light-duty vehicles by 2026.

For example, Valeo, with its SCALA LiDAR, which scans the surroundings 25 times per second at ranges beyond 200 meters. Further, high-speed automotive Ethernet, 5G networks, and V2X communication extend a car’s perception beyond its line of sight. Gallium nitride (GaN) chips enable high-frequency switching, compact designs, and fast charging. 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.

Rise in autonomous self-driving cars

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. Car connectivity and telematics improve the driving experience with real-time data integration. Cybersecurity protects these connected systems, while regenerative braking and sustainable manufacturing practices reduce the environmental impact.

ARK MOTORS builds Electric Vehicles

Connected vehicles are entering a software-defined era where 5G, AI, and V2X convert cars into real-time data nodes that communicate smoothly with infrastructure, other vehicles, and the cloud. Our new report spotlights 10 connected vehicle trends to watch in 2026 that promise safer, smarter mobility and fresh revenue streams for automakers. Curious how electric vehicle trends like solar integration, AI-powered systems, and modular design are innovating mobility?

Mercedes-Benz is also using generative AI to include conversational assistants for improving user experiences and redefining in-car interactions. The number of connected cars worldwide will likely reach 400 million by 2025 up from 237 million in 2021. The startup also offers META, a compact shuttle for urban mobility; and SPACE for passenger transportation. These vehicles use a re-assembly factory model, which allows upgrades and updates to extend their lifecycle. Moreover, lightweight and bio-based materials are used to reduce vehicle weight and improve fuel efficiency, which aligns with sustainability goals. These pods use AI and machine learning algorithms for real-time perception and adaptive decision-making.

• Buyers would be shifting to a new modernized model and will directly deal with OEMs (original equipment manufacturers) and the dealer will play the role of an agent.
• General Intelligence strengthens the evolution of software-defined vehicles by aligning human-inspired learning with safety.
• The truck’s design removes the internal combustion engine, advancing commercial vehicle safety standards, and protecting pedestrians and other road users.
• What initially appeared to be a niche sector is now the foundation of the auto industry’s transition.
• Also, adoption rises quickly, with China reaching 50% EV penetration in 2024, and in India, over 18.8 lakh EVs are supported under FAME schemes till June 2025 by the government.
• EloyMessage broadcasts fixed or dynamic visual and audio messages directly into vehicles, reducing driver distraction with patented technology.
• Instead of owning a car, consumers will increasingly use digital platforms to access transportation services on demand, whether through ride-sharing, car-sharing, or subscription models.

Connected Vehicle Technologies

According to Globe News Wire, the entire market will grow at a CAGR of 5.5% from 2025 to 2033, logging USD 984 billion. Semiconductor chips are at the heart of almost every automotive trend, from connected technologies to autonomous driving and EVs. Advanced systems that power, control, and optimize automobiles are increasingly being built around tiny chips. Semiconductors ensure energy efficiency, consistent power distribution, and power the battery systems in EVs. They also enable software updates, enhance entertainment, and facilitate smooth communication in connected and software-defined vehicles. Let’s embark on this journey together, where ‘driving the future’ is more than just empty rhetoric.

Vehicle-to-Everything (V2X): V2X Prevents 80% of Non-impaired Driver Crashes

These cars offer numerous benefits, not just for drivers and manufacturers, but also for passengers and the environment. 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%.

Top 10 Emerging Automotive Industry Trends 2025 and Beyond

They improve energy efficiency through wide-bandgap devices that extend EV complete VIN decoding and spec reference range and minimize charging times. The semiconductors also enable infotainment, voice assistants, and AI-driven interfaces for a better user experience. 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.

Procter & Gamble in Beauty and Personal Care

Moreover, it ensures perception in challenging conditions such as night, rain, fog, and snow. Also, cloud and edge computing balance fleet-scale analytics with millisecond in-car inference. Digital twins validate updates virtually, with Stellantis using virtual engineering workbenches to test thousands of scenarios before rollout. In addition, Move-X supports over-the-air updates, ensures continuous improvement of system performance, and allows customization across diverse use cases. Moreover, its NuPort solution extends reliability by enabling connections between automotive components that support both diagnostics and long-term endurance.

🚦 Levels of Autonomy Explained: From Driver-Assist to Full Self-Driving

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. 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.

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. Searches for “autonomous driving” have increased by over 1,029% over the past 10 years. However, it is estimated that over 60% of all Americans have garages that will allow for electric vehicle charging. Some countries (and California) have even committed to phasing out all new sales of combustion engine vehicles over the next few decades.

Countries and states that have committed to phasing out the sale of internal combustion engines. By the end of that decade, it’s predicted that over 30% of the cars on the road will be EVs. The massive rotation in the global vehicle fleet is predicted to take place in the 2030s. Bloomberg New Energy Finance expects EVs to account for 10% of all new car sales by 2025 and 58% by 2040. After a disappointing 2019 in terms of EV sales, 2020 sales surpassed expectations, growing over 40% year-over-year.

How is the rise of shared mobility changing the automotive industry?

The automotive industry leads in technological innovation that will reshape vehicle design, construction, and user experience in 2025. Emerging automotive industry trends include the increased adoption of electric vehicles (EVs), advanced semiconductors, and the growing focus on vehicle cybersecurity. The future trends in the automobile industry predict a roller-coaster ride for players. In 2025, the automotive industry will face global headwinds such as the energy crisis, slower global demand, and ongoing supply-chain issues. Despite these challenges, global new-vehicle sales are projected to remain flat, with new-car sales increasing.

Automotive trends in 2025 impacting middle-market organisations

In addition, the startup strengthens automotive cybersecurity with features such as real-time intrusion detection and automated containment protocols. It is also integrated into fleet management dashboards and security operations centers (SOC). US-based startup MotionSafe provides AI-powered cybersecurity solutions that protect connected vehicles from data breaches and cyber threats.

They are discussing the prospect of AI for driving systems, the implications of some regulatory changes for automotive innovation, and the potentials of renewable sources for energy for the automobiles. Blockchain secures supply chains and in-car data, and extended reality (XR) advances design, testing, and training. Additive manufacturing shortens prototyping cycles, and IoT-driven analytics improve predictive maintenance. Changing consumer preferences, cost efficiency, technological progress, and sustainability targets drive this innovation. A Deloitte UK study found that 52% of all consumers show no interest in car subscription models; interest is higher among younger people (age 18-34). These all-inclusive options reduce the financial burdens of ownership, especially for urban users.

The EU’s Green Deal and its accompanying “Fit for 55” initiative aim to cut carbon emissions drastically by 2030, piling new expectations on manufacturers to reduce their environmental impact. Adding to the challenge, measures such as stricter Euro 7 tailpipe standards and updated rules on battery recycling demand deeper innovation within supply chains and operations. The global automotive industry, responsible for 10% of the world’s carbon dioxide emissions, faces ongoing pressure to overhaul its practices. However, the landscape is proving difficult to steady with an intricate maze of regulations that differ by country or region and lack a unified benchmarking process for sustainability.

Still not the EV revolution once thought but still plenty of growth

German startup ChargeX offers a modular EV charging solution that converts parking spaces into charging stations. The startup’s platform, Aqueduct, is easy to install, has 4 charging modules with up to 22kW, provides monthly reports, and uses a Typ2 charging cable. The solution recognizes the power requirements of every car and automatically controls the charging speed for each vehicle. Swedish startup Volta Trucks makes Volta Zero, an electric truck for urban deliveries. This vehicle’s design prioritizes driver safety and comfort, featuring a central driving position and panoramic vision for enhanced visibility.

Every year brings with it new shifts in technology, consumer behaviour, and market dynamics, all of which shape and build automotive as a cornerstone industry of the world. The AI systems also learn about the driver’s preferences in music and temperature, making the driving experiences as enjoyable as possible. Many auto manufacturers are considering integrating in-car payments to ease refueling, paying for parking or tolls, and even grocery shopping. Autonomous driving technologies like AD and ADAS are only possible to implement with the adoption of AI. Driver assistance technology, in particular, can go as far as detecting driver fatigue by monitoring their eyes and taking measures to avoid car accidents.

• As battery technology and charging infrastructure progress, EVs lead the push toward sustainability.
• Younger generations, especially Genz or millennials prefer these vehicles as they are much more attractive.
• Subsidies and incentives for EVs are also under scrutiny, with plans to reconsider or eliminate government-imposed market advantages that favour them.
• With EV makers in China engaging in a price war due to declining demand, Chinese brands with strong hybrid presently are gaining popularity.
• Battery technology has taken centre stage in the EV revolution, and this article provides a deep dive into the leading chemistries and formats that defined 2024.
• The AI system answers the driver’s query by cross-referencing data from the car’s diagnostics.

Issues such as liability in the event of an accident, cybersecurity measures to prevent hacking, and how to deal with AVs in mixed-traffic environments (with human drivers) will need to be addressed. One critical challenge in transitioning to electric mobility is the availability and accessibility of charging infrastructure. By 2025, significant investments in fast-charging networks will be essential for EV adoption to reach mass-market penetration.

Overview – Automotive Industry

Current automotive trends are encouraging automotive manufacturers to offer consumers much more than a metal box on four wheels. In addition, the IoT’s potential in the automotive industry presents a significant chance for manufacturers to revamp their marketing strategies. IoT solutions can offer numerous benefits to end-users by utilizing interconnected systems, such as better safety, driving assistance, and predictive maintenance. Collecting user data through these sensors creates ample opportunities for marketers to promote upselling.

Shift to an “Agency model”

These sensors measure distances, identify obstructions, and capture crucial traffic and road condition data. When paired with high-resolution cameras, these tools allow self-driving cars to identify objects, lane markers, and even pedestrians with unprecedented precision. While full autonomy is still on the horizon, advanced driver assistance systems (ADAS) are already transforming how we drive. In 2025, the focus will be enhancing ADAS features, such as adaptive cruise control, lane-keeping assistance, automatic emergency braking, and more.

• Volvo has adopted megacasting techniques to simplify EV production, reducing the number of components required and streamlining assembly processes.
• Front-facing LiDAR scans the road to detect objects, track pedestrians, and respond to traffic to enhance safety.
• With the new administration of Donald Trump in January, the trade war with China will have a major impact on the automotive industry in 2025.
• Due to these advancements, the global automotive IoT market is anticipated to reach USD 56 billion by 2026 at a CAGR of 19% during the period from 2021 to 2026.
• Toyota’s Mirai and Hyundai’s Nexo have been the two major players in the market since sales launched in 2016.
• 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%.
• With a computer or smartphone, buyers can choose desired features, secure financing, and even take virtual walk-around and test drives.
• The main advantage of this digital technology is that it allows auto manufacturers to create complex and at the same time lightweight vehicle parts.

Norwegian startup Chargerly designs vehicle-to-building (V2B) solutions that integrate EVs with building energy systems to improve resilience, efficiency, and sustainability. Automotive drivers now expect vehicles to behave like smartphones, gaining features through over-the-air (OTA) updates. Regulations also support adoption, as safety and emissions standards require continuous updates and smarter architectures. Indian startup SWYTCHD manages vehicle subscription services that focus on electric two-wheelers and cars. This enables an all-inclusive model that replaces ownership with monthly flexibility.

The global automotive semiconductor market is expected to grow at a rate of 8.1% between 2023 and 2030. This growth is driven by the increasing adoption of electronic control units (ECUs) in modern vehicles and the rising implementation of advanced safety systems. Semiconductors are, in essence, at the heart of modern car manufacturing, reshaping our understanding of mobility. 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.

Sustainable manufacturing lowers emissions, which allows automakers to meet compliance requirements and reduce their environmental footprint. Cleaner production methods reduce operating costs and free resources for reinvestment in new technologies. In 2025, electrification and software integration will have an essential impact on the automotive industry. These tendencies are long-term and are expected to continue shaping the auto industry in the near future. In the next section, we’ll explore these and other automotive sector trends in more detail, and see how they will evolve in 2025.

Additionally, customer data drives sales, optimizes supply chains and informs new vehicle designs. Israeli startup NoTraffic develops an AI-powered traffic signal platform that digitizes road infrastructure management and connects drivers to the city roadways to manage various traffic-related challenges. The data of all road users is streamed and processed in real-time to empower smart mobility. The solution also serves as the base for additional services such as micropayments and micro-mobility. Moreover, car connectivity transforms the driving experience by integrating with real-time systems and smart gadgets.

Below, you get to meet 20 out of these 4859 promising startups & scaleups as well as the solutions they develop. These 20 automotive companies are hand-picked based on criteria such as founding year, location, funding raised & more. As battery technology and charging infrastructure progress, EVs lead the push toward sustainability. Sensor fusion that combines information from various sources improves safety and autonomy by enabling accurate decision-making. Indian startup ThinkSeed develops middleware solutions that enhance smartphone connectivity to vehicles for secure access and infotainment.

The Wall Street Journal reports that dealerships have been known to charge $40k above MSRP on luxury cars. In some cases, car dealerships are charging huge markups on the inventory they do have. Even six months into 2022, vehicle manufacturers haven’t been able to correct the issue of low inventory. Reports from 2022 showed vehicle inventory was stagnant, sitting between 1 million and 1.1 million vehicles, for the first six months of the year. Sales of passenger cars were down 25% in the first half of 2022 compared to the same period in 2021.

The World Health Organization links 1.35 million annual deaths to road accidents, creating urgency for autonomy. AI, ML, and computing allow vehicles to process data points per second with split-second precision. This ensures cybersecurity and reliability for engine control, powertrain management, and other mission-critical automotive applications.

Electric Vehicle (EV) Production Expansion

With increasing political uncertainty and a cooling economy, responding to the top three trends will be key to traversing a difficult year ahead. Circular economy initiatives are also gaining momentum, exemplified by Jaguar Land Rover’s closed-loop recycling for seat foam and Michelin’s production of tires using 45% sustainable materials. The startup’s Ethernet products support precise timing synchronization with the 802.1AS Precision Time Protocol (gPTP) to ensure reliable communication for time-sensitive applications. In the US, the AV market is expected to expand, rising from USD 22.6 billion in 2024 to USD 222.8 billion by 2033, with a CAGR of 28.92% starting in 2025. Regulatory frameworks like UNECE WP.29, effective from last year, mandate stringent cybersecurity measures to drive compliance-related investments.

🛍️ Trend 6: Evolving Consumer Preferences and New Mobility Solutions

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. North American and European automakers offer consumers the option to buy vehicles online without visiting dealerships. With a computer or smartphone, buyers can choose desired features, secure financing, and even take virtual walk-around and test drives. In 2025, more dealerships are expected to offer online sales, vehicle inspection, and home delivery. Solid-state batteries, which promise to offer higher energy density and improved safety over traditional lithium-ion batteries, are on the horizon.

Top Automotive Marketing Trends in 2025

Innovations like solid-state batteries are set to revolutionise manufacturing priorities and reshape the EV supply chain. These over-the-air updates are becoming essential for ensuring vehicle reliability, safety and security, and are opening new revenue streams for manufacturers. Moreover, its software platform manages real-time energy flows and integrates with solar systems to optimize renewable energy usage. It also enables customers to schedule and monitor charging activity for improved efficiency. Australian startup V2Grid designs V2G technology that converts EVs into mobile energy resources for homes, businesses, and the national grid. Its bidirectional charging system enables EV batteries to both draw electricity and feed surplus power back, which balances demand during peak hours and reduces strain on infrastructure.

a. Battery Technology and Range Improvements

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 ethical AI in automotive decision making 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.

What are the predicted future trends in the automotive industry regarding autonomous driving?

This move highlights the industry’s broader trend of building resilient supply chains to safeguard against geopolitical and economic uncertainties. Global supply chain disruptions over recent years have prompted manufacturers to rethink strategies. Localized production and sourcing are gaining momentum as companies aim to mitigate risks and ensure a steady supply of components. Automakers are adopting greener processes, from sourcing eco-friendly materials to utilizing renewable energy in manufacturing plants.

Bring the studio to your cars.

• It then adjusts driving decisions to minimize motion sickness and maintain smooth operation.
• The current trends in the automotive industry seen in previous years will remain in 2025 and are likely to become automotive future trends.
• As 5G and the Internet of Things (IoT) continue their growth, vehicles are becoming more and more connected.
• OEMs like Toyota, Hyundai-Kia, Renault-Nissan Mitsubishi, and Stellantis already have a large portfolio of hybrid variants, including mild and full hybrids.
• These cars offer numerous benefits, not just for drivers and manufacturers, but also for passengers and the environment.
• Shared mobility also influences vehicle design toward durability, modularity, and connectivity.
• They offer a safe, comfortable, and convenient multimedia experience with on-demand features that allow users to browse the web while in their vehicle.
• Bloomberg New Energy Finance expects EVs to account for 10% of all new car sales by 2025 and 58% by 2040.

ADAS adoption enables lane-keeping, adaptive cruise control, and emergency braking to rely on AI-powered processors and sensor fusion chips. CARNIQ Technologies secures the auto industry by embedding compliance-driven cybersecurity into development lifecycles. German startup CARNIQ Technologies enhances vehicle cybersecurity through web-based and AI-powered tools that ensure compliance with automotive standards. Further, it establishes local manufacturing facilities, which reduce supply chain dependency and generate employment and stimulate economic growth. For our trend reports, we leverage our proprietary StartUs Insights Discovery Platform, covering 7M+ global startups, 20K technologies & trends, plus 150M+ patents, news articles, and market reports. As technology progresses, expect these trends to influence every facet of the automotive sector.

The fleet of light-duty EVs has grown in the last four years by more than 14 times with a very significant, 17-times increase in the fleet of plug-in hybrid vehicles (PHEVs). Brazil is leading the way by a large margin, followed by Mexico, Costa Rica, Colombia and Chile, respectively. This Electric Vehicles Market Report 2026 examines industry growth, investment flows, patent activity, and global hubs shaping the EV ecosystem. It highlights workforce trends, leading investors, and key technologies driving adoption across vehicles, batteries, charging, and software.

• The EU enforces a 2035 zero-emission mandate, and the US Inflation Reduction Act channels subsidies into domestic EV production and attracts international manufacturers.
• This is fueled by increased vehicle production and sales in China, Japan, and South Korea.
• Following these trends will equip enterprises with greater penetration in the emerging market, such as the growing adoption of EVs across China and India.
• Most car buyers now consider a vehicle’s environmental impact before purchasing, with many willing to pay a premium of over £2,000 for greener emissions.
• Curious how electric vehicle trends like solar integration, AI-powered systems, and modular design are innovating mobility?
• From these, 20 promising startups are featured below, selected based on factors like founding year, location, and funding.
• As incentives and projects pile up and resources remain limited, delivering everything on time,…

Mercedes-Benz CLA EV Feels Lighter Than It Is

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.

The new year will also witness L4 implementation, with companies like Baidu, Pony.ai, and WeRide conducting extensive road tests across various cities. Initiatives and support from the Chinese government, such as pilot zones and regulatory frameworks, are further accelerating the process. OEMs are advancing and navigating regulatory challenges to introduce and test L3 and L4 automation, setting the background for augmented adoption of autonomous vehicles. The used car market is also expected to become more important for consumers looking for cheaper EVs, which typically face greater levels of depreciation than internal combustion engine vehicles.

Future Readiness Monitor: Automotive Industry Report

• This shift is driven by the growing need for more efficient power management in electric vehicles, resulting in smarter and more streamlined EV designs.
• North America bore the brunt, accounting for 58% of publicly extorted ransomware victims.
• Legacy brands like Ford, GM, and Volkswagen are launching dedicated EV lines, while startups like Rivian and Lucid push luxury and performance boundaries.
• 2025 is no exception—automotive manufacturers are expected to continue implementing more and more advanced safety features in their vehicles.
• In addition, it offers charging solutions for e-bikes, including wallboxes and mass-charging systems for hotels and public spaces, thereby broadening access to sustainable transport.
• ABB is investing in advanced software that simulates automotive painting processes, cutting costs by up to 30%.
• AI technologies like machine learning, deep learning, and computer vision are advancing robotic automation.

The systems optimize the performance of electric power steering, vehicle pumps, cooling fans, and HVAC modules. 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.

Toyota’s Vision for the Future of EV Design

The systems that come together to implement such technologies are sensor fusion, computer vision, and real-time decisions to enable the vehicle to take all complex traffic scenarios easily. Significant investments in AI and Internet of Things (IoT) devices are crucial for fine-tuning self-driving algorithms, making them safer and more reliable. This also presents an emerging opportunity to connect the vehicle ecosystem, creating a dynamic adaptation of data for road and weather conditions, assisted by IoT-enabled devices.

Software-Defined Vehicles (SDVs) will Witness High Demand

Environmental concerns and technological innovations are advancing faster than many anticipated. 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. Meanwhile, Carlos Tarves, CEO of automaker Stellantis, has said the chip shortages will continue to plague his industry next year. Self-driving taxis are already available in parts of China and several US cities.

• The main advantage of this digital technology is that it allows auto manufacturers to create complex and at the same time lightweight vehicle parts.
• Due to these advancements, the global automotive IoT market is anticipated to reach USD 56 billion by 2026 at a CAGR of 19% during the period from 2021 to 2026.
• Until these efforts bear fruit, the industry will need to focus on mitigating risks and prioritising demand effectively.
• With the new administration of Donald Trump in January, the trade war with China will have a major impact on the automotive industry in 2025.
• Volvo has adopted megacasting techniques to simplify EV production, reducing the number of components required and streamlining assembly processes.
• With a computer or smartphone, buyers can choose desired features, secure financing, and even take virtual walk-around and test drives.
• Toyota’s Mirai and Hyundai’s Nexo have been the two major players in the market since sales launched in 2016.
• 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%.

2025 is predicted to be a big year for self-driving taxi services, as companies look to re-imagine the future of the automotive and taxi-hailing industry. In 2025, Uber and GM Cruise will partner, allowing users of the Uber ride-hailing platform to book fully self-driving vehicles from the app in selected US cities. Italian startup Moi combines thermosetting composite materials and 3D printing to manufacture high-performance parts for the automotive industry.

🛣️ Trend 3: The Autonomous Horizon – Self-Driving Cars on the Near Road

Younger buyers often prefer subscription models or shared mobility over ownership. The rise of online car buying and digital retail experiences is forcing dealerships and OEMs to innovate. Demand for customizable, software-updatable vehicles is growing, as is interest in electric and hybrid powertrains. Automakers must balance traditional desires for performance and style with new expectations for tech integration and environmental responsibility. The present-day automotive industry is affected by innovative ideas and is ready to transform and evolve rapidly.

Further, Chipv creates power control chips equipped with triple RISC-V cores, extensive on-chip memory, and robust hardware security modules. In the US, the CHIPS and Science Act allocates USD 52.7 billion in funding and offers a 25% investment tax credit. It provides grants, loans, and incentives to expand domestic fabs, semiconductor R&D, and the broader supply chain. It offers ready-to-use workflows across system, software, and project management processes. Its MotionSafe Privacy platform uses algorithms to monitor controller area network (CAN) traffic and detect anomalies. The platform also erases personally identifiable information (PII) from vehicle systems to maintain privacy.

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. Apex.OS runs on automotive electronic control units (ECUs) and offers robust, reliable, and secure APIs to develop autonomous mobility solutions. ApexAutonomy offers modules to build 3D perception, localization, and control to enable autonomous vehicles. Lastly, MARV.Automotive is a configurable and extensible data management platform that reliably transmits data from the vehicle to the cloud. The US-based startup Launch Mobility develops a platform for a range of shared mobility solutions.

Digital Twins and Simulation technologies take centre-stage

Many expected the auto industry to mount a post-pandemic rebound in 2021, but that didn’t happen. Search volume for “Infineon Technologies” has seen modest growth over the past 5 years. Infineon, the largest manufacturer of auto chips, is increasing its investment in production by nearly $1 billion euros in 2022. 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.

Sustainable manufacturing lowers emissions, which allows automakers to meet compliance requirements and reduce their environmental footprint. Cleaner production methods reduce operating costs and free resources for reinvestment in new technologies. In 2025, electrification and software integration will have an essential impact on the automotive industry. These tendencies are long-term and are expected to continue shaping the auto industry in the near future. In the next section, we’ll explore these and other automotive sector trends in more detail, and see how they will evolve in 2025.

The automotive industry is gearing up for a transformation as fast and furious as the iconic franchise suggests. The latest technological advancements and evolving consumer preferences are seriously revamping vehicle production as we know it, remodeling the auto market for good. A quick online search reveals that by 2040, 33 million autonomous cars are expected to be on the road.

Toyota’s Vision for the Future of EV Design

• AI and ML solutions process multimodal sensor data to power autonomy, predictive maintenance, and personalization.
• It incorporates an intuitive infotainment system for efficient power management while minimizing driver distractions.
• Modern vehicles are now equipped with a unique digital identity, making it easier to track and share data for applications like insurance, driver safety, predictive maintenance, and fleet management.
• THINKey operates through a secure architecture using enclaves in the phone, vehicle, and cloud, adhering to the car connectivity consortium’s digital key standard.
• When paired with high-resolution cameras, these tools allow self-driving cars to identify objects, lane markers, and even pedestrians with unprecedented precision.
• Daymak will assemble Avvenire’s vehicles and distribute them through its network of over 200 dealers in 25 countries.

2025 is predicted to be a big year for self-driving taxi services, as companies look to re-imagine the future of the automotive and taxi-hailing industry. In 2025, Uber and GM Cruise will partner, allowing users of the Uber ride-hailing platform to book fully self-driving vehicles from the app in selected US cities. Italian startup Moi combines thermosetting composite materials and 3D printing to manufacture high-performance parts for the automotive industry.

Autonomous Driving: Waymo Offers 250K Paid Rides Weekly Across US Cities

Countries and states that have committed to phasing out the sale of internal combustion engines. By the end of that decade, it’s predicted that over 30% of the cars on the road will be EVs. The massive rotation in the global vehicle fleet is predicted to take place in the 2030s. Bloomberg New Energy Finance expects EVs to account for 10% of all new car sales by 2025 and 58% by 2040. After a disappointing 2019 in terms of EV sales, 2020 sales surpassed expectations, growing over 40% year-over-year.

We explore eight most influential trends expected to define the automotive manufacturing landscape, offering insights into what lies ahead for the industry. The European Commission will start talks in the New Year on the future of the industry in the region as sales of electric vehicles stall. This is not just a European problem with Volkswagen and Stellantis, as Honda and Nissan merge, and Ford and General Motors struggle. Software-defined vehicles (SDVs), where software manages essential functions like steering, braking, and infotainment, will see rapid growth over the next few years.

Motomatix develops Auto Parts Ordering Platform

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. Consumer trends in the automotive industry reveal that short videos are more effective than text in converting leads into customers in the automotive industry. Dealerships can take advantage of various videos, such as how-to videos, car highlights, and customer testimonials. The demand is highest for vehicles under four years old, which have the latest technologies but are less expensive than new cars. This includes pre-owned electric and hybrid vehicles, and dealerships now offer certified pre-owned cars that look and function like new ones at a lower cost.

KonnectShift provides IoT-based Fleet Optimization

The main issue holding back the popularity of these vehicles is a lack of hydrogen fueling stations. Instead, they get power from a fuel-cell stack that’s fed hydrogen and oxygen to create electricity through a chemical reaction. However, that number is smaller than it was in 2019 when more than 80% of people commuted by car.

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From encrypted communications to intrusion detection systems, cybersecurity advancements will ensure consumer trust as vehicles become smarter and more networked. The rise of such technologies reflects consumer demand for vehicles that are not just transportation tools but extensions of their digital ecosystems. Connected cars enable real-time navigation updates, remote diagnostics, and seamless smartphone integration. They also support smart city initiatives by offering data for traffic management and logistics automation. 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.

Artificial intelligence (AI), the Internet of Things (IoT), blockchain, and advanced semiconductors allow autonomous driving, predictive maintenance, and secure connectivity. These technologies enhance safety, efficiency, and user experience across vehicles. 2025 is no exception—automotive manufacturers are expected to continue implementing more and more advanced safety features in their vehicles.

Top 10 Emerging Automotive Industry Trends 2025 and Beyond

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.

• Dedicated short-range communication (DSRC) based on IEEE 802.11p facilitates direct vehicle-to-vehicle and vehicle-to-infrastructure communication.
• However, as with all complex bodies of rulesets, differing rules and regulatory mandates across the globe make it easier for international automakers to fall foul of compliance.
• We don’t just regurgitate press releases—we road-trip, wrench, code, and occasionally sleep in dealership parking lots to bring you unfiltered truth.
• Its technology transports ultra-high-bandwidth video and data from sensors to processors with ultra-low latency.
• This technology will be further developed through 2025, with the end results showing up in the following years.
• It also enables customers to schedule and monitor charging activity for improved efficiency.

Avvenire designs Light Electric Vehicles (LEVs)

Car companies plan to integrate powertrain components in the next five to ten years by combining onboard chargers with batteries. Tesla already employs single inverter housings across its models, offering efficient integration of power electronics. expert tips for family car travel This shift is driven by the growing need for more efficient power management in electric vehicles, resulting in smarter and more streamlined EV designs. 2025 will witness the automotive industry transitioning from Level 2 autonomy to Levels 2.5 and 3, representing a substantial evolution in automotive technology and enhancing vehicle automation and safety.

• Similarly, hardware security modules (HSMs) protect encryption keys and authenticate critical functions, with secure microcontrollers embedded into electronic control units (ECUs).
• This rapid expansion reflects how automakers and mobility providers are shifting from ownership models toward flexible, access-based mobility solutions.
• This transformation has further streamlined the vehicle architecture, facilitating over-the-air software updates, more efficient management, and lowering overall complexity.
• Consequently, the global autonomous vehicle market size is projected to reach USD 448.6 billion by 2035, growing at a CAGR of 22.2%.
• More driverless journeys will occur as technology continues to be enhanced and refined.
• This vehicle’s design prioritizes driver safety and comfort, featuring a central driving position and panoramic vision for enhanced visibility.
• It enables systematic results in cybersecurity, functional safety, and process conformance.

Procter & Gamble in Beauty and Personal Care

Autonomous vehicles (AVs) are advancing transportation by minimizing the need for human drivers and enhancing last-mile delivery efficiency. These vehicles improve public transport safety by reducing accidents caused by human error. LiDAR sensors enable precise 3D mapping, crucial for vehicle navigation and obstacle detection. AI algorithms process vast data from sensors and cameras, enhancing decision-making for safe, efficient driving.

Cyber security in the automotive industry

The automotive industry leads in technological innovation that will reshape vehicle design, construction, and user experience in 2025. Emerging automotive industry trends include the increased adoption of electric vehicles (EVs), advanced semiconductors, and the growing focus on vehicle cybersecurity. The future trends in the automobile industry predict a roller-coaster ride for players. In 2025, the automotive industry will face global headwinds such as the energy crisis, slower global demand, and ongoing supply-chain issues. Despite these challenges, global new-vehicle sales are projected to remain flat, with new-car sales increasing.

Project vs Program vs Portfolio Management: What’s the Difference?

This ensures precise planning, reduces downtime, and enhances efficiency in assembly operations. This decision also highlights a broader trend toward diversification in battery production hubs. With the Middle East emerging as a significant player in the EV supply chain, manufacturers must adapt their strategies to seize these new opportunities.

Jaguar Land Rover’s REALCAR project established a closed-loop recycling system that reclaims over 50K tonnes of aluminum scrap. The project avoids more than 500K tonnes of CO2 emissions by reducing the need for primary aluminum. Another instance is that of Michelin, which made a road-approved car tire with 45% sustainable materials.

Udelv manufactures Self Driving Last Mile Delivery Vehicles

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. EVs also enable new business models like vehicle-to-grid services and battery leasing. This tech shift is also accelerating the move toward software-defined vehicles and connected ecosystems. Trends span sustainable manufacturing, EV expansion, supply chain nearshoring, vehicle cybersecurity, automotive semiconductors, sensor fusion, autonomous driving, subscription models, SDVs, and V2X.

Major Shifts in China’s Automotive Industry

These batteries can provide longer driving ranges and faster charging times, which have historically been limitations for EV adoption. Automakers like Toyota and QuantumScape are heavily investing in this technology, and we can expect breakthroughs in battery chemistry and design in the coming years. As urban areas grow more congested, the focus is shifting from traditional car ownership to mobility-as-a-service (MaaS) models. Fleet-as-a-Service (FaaS) solutions, particularly autonomous fleets, are set to transform how people navigate cities. By 2025, nearly all new vehicles are expected to feature advanced connectivity options, integrating aspects of digital life directly into driving experiences.

• From supply chain optimization and manufacturing to personalized driving experiences and smart routing, advanced AI systems and real-time data analysis enable it all.
• Telematics and IoT sensors monitor vehicle condition and enable predictive maintenance.
• Whilst these acts have been active for some years now, the landscape has not changed drastically.
• Get in touch to easily and exhaustively scout relevant technologies & startups that matter to you.
• In 2025, new registrations of electric vehicles – BEVs (battery electric vehicles) and PHEVs (plug-in hybrid electric vehicles) – are anticipated to reach a record 18.1 million – up from 16.3 million in 2024.
• Volvo Cars has announced plans to adopt large aluminium castings for its next-generation electric vehicles, aiming to simplify production and enhance sustainability.
• Regulations such as Europe’s General Safety Regulation 2 (GSR2), US mandates for automatic emergency braking, and China’s target of 70% Level 2-3 adoption by 2025 compel automakers to improve deployment.
• Changing consumer preferences, cost efficiency, technological progress, and sustainability targets drive this innovation.

Key Technology Trends in the Automotive Industry in 2025

The automotive regenerative braking market is expected to reach USD 13.83 billion by 2029, growing at a CAGR of 15.8%. Usage-based insurance (UBI) models use driving behavior data to provide customized premiums and are gaining popularity. From 2024 to 2029, the insurance telematics industry is projected to grow at a CAGR of 17.6%.

The Tree Map below illustrates the top 10 automotive trends that will impact companies in 2024. Emerging companies are working to build the first fully autonomous vehicle for city roads, which in turn accelerates the advancements in-vehicle connectivity and IoT. Major automakers, such as General Motors, are expanding telematics offerings by integrating subscription-based services like OnStar as standard features across models.

Digital platforms enable smooth access and allow users to book, swap, and unlock vehicles through mobile apps. For example, Hyundai partners with Revv in India to expand subscription offerings through a mobile-first platform. AI and ML processors support object recognition, path planning, and decision-making. For instance, Texas Instruments‘ AWR2544 radar achieves sensing beyond 200 meters.

Indian startup Starkenn develops AI-powered ADAS to enhance vehicle safety and reduce road accidents. Its product suite includes a collision warning system, Starkenn Safe which uses radar to detect obstacles and alert drivers of potential collisions. The Starkenn Brake Safe, a collision mitigation system features automatic emergency braking in critical scenarios.

Project portfolio management (PPM) has developed significantly over the past few years and is expected to evolve even faster in… Learn why it matters more than organic traffic and how to improve your rankings and visibility. Here’s how TikTok unboxings and gaming are driving one of 2025’s top retail trends. Data from the past 10 years shows the sale of luxury vehicles making a steep climb in 2022.

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However, used electric powertrain vehicles are still few and far between, with the Society of Motor Manufacturers and Traders, in the UK, suggesting EVs make up 2.7% of the total used car market. These solutions decrease fleet wait times and cut pollution from petrol or diesel vehicles. Hungarian startup V2ROADS offers a range of products and services tailored to the V2X ecosystem. They provide V2X applications, services, and communication stacks specifically designed for on-board units (OBUs) and road-side units (RSUs).

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. Automakers are responding by integrating carbon-neutral initiatives across their value chains. This includes upstream supply chains and downstream life cycle phases like recycling. Moreover, Asia-Pacific is the fastest-growing region, with a projected CAGR of 14.8%.

Success will depend on manufacturers’ ability to balance technological advancement with practical implementation while meeting evolving consumer expectations. The transformation of the automotive sector is far from complete, but the direction is clear – towards a more sustainable, connected and intelligent future of mobility. Traditional internal combustion engine (ICE) vehicles are steadily losing ground as governments worldwide implement stricter regulations, including the EU’s upcoming ban on new ICE vehicle sales by 2035. This regulatory advancement, combined with growing environmental awareness, is accelerating the shift towards electric mobility. Canadian startup Aadhya Navik designs software solutions that improve safety, comfort, and traffic efficiency in autonomous driving.

Meanwhile, Carlos Tarves, CEO of automaker Stellantis, has said the chip shortages will continue to plague his industry next year. 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.

Did you know that EVs are projected to make up nearly 20% of global vehicle sales in 2026? That’s no longer a distant future — it’s happening now, and it’s transforming everything from manufacturing floors to your driveway. Connectivity is one of the key trends in automotive industry, and 5G is what takes it to a more advanced level.

The Future of Automobiles

In addition, it adapts to applications across fleets, workplaces, airports, and multi-housing units. Its electronic control unit (ECU) platform combines AUTOSAR software modules with customizable hardware. It manages functions such as steer-by-wire, brake-by-wire, engine control, and ADAS.

In these regions, shared mobility options like vans, minibuses, and two- and three-wheelers are more common and often electrified due to their affordability. In India, for example, electric car sales rose by 70%, driven by government incentives and new models, though future growth may be impacted if it sees subsidy reductions. The automotive manufacturing industry is evolving rapidly as manufacturers respond to technological advancements, consumer preferences, and regulatory changes. Several leading OEMs have already announced plans to adopt the chipset for their automotive solutions, including BYD, Nuro, XPENG, Volvo and Zeekr. Contact us today to make critical data-driven decisions, prompting accelerated business expansion and breakthrough performance. With customers becoming more demanding, rules and regulations are becoming stricter, and competition is stronger and faster.

Increase in digital advertising spending

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.

Toyota’s Legendary Hilux Is Going Electric

The automobile seminar is utilized by a lot of experts working in the automotive industry, researchers, and people with an affinity for the carmaker as a forum for sharing knowledge and collaboration. They are discussing the prospect of AI for driving systems, the implications of some regulatory changes for automotive innovation, and the potentials of renewable sources for energy for the automobiles. Blockchain secures supply chains and in-car data, and extended reality (XR) advances design, testing, and training.

While automakers spend billions developing electric cars, most governments worldwide have ambitious plans to phase out internal combustion engines. According to Statista’s report, global sales of electric vehicles are expected to reach an astounding US$786.2 billion by the end of 2024. The concept of Mobility as a Service (MaaS) is changing how people think about transportation.

Likewise, projects USD billion in annual software and services revenue by 2030 from connected vehicles. The startup strengthens autonomous driving by providing reliable and production-ready Level 4 vehicles that expand commercial mobility solutions. Semiconductors enhance safety by enabling faster decisions and reducing accident risks. They improve energy efficiency through wide-bandgap devices that extend EV range and minimize charging times. The semiconductors also enable infotainment, voice assistants, and AI-driven interfaces for a better user experience.

Batteries are the heart of any electric EpicVIN road trip safety insights vehicle, and improvements in battery technology will continue to shape the future of EVs. Companies focus on increasing energy density to improve range and reduce charging times. The trends shaping automotive manufacturing in 2025 emphasize innovation, sustainability, and connectivity. As electric vehicles become mainstream, digitalization reshapes production, and mobility services redefine car ownership, the industry is set to transform how vehicles are manufactured and used.

It enables secure data sharing for connected and shared mobility solutions, including ride-hailing, urban transportation, and delivery services. The evolution of self-driving and connected cars is simplifying driver-vehicle interaction. Human-machine interfaces (HMIs), including voice-based and haptic feedback systems, are expanding control over various car functions. For this in-depth research on the Top Automotive Industry Trends and startups, we analyzed a sample of 4859 innovative automotive startups & scaleups worldwide.

❓ FAQ: Your Burning Questions About Automotive Trends Answered

Discover trends, forecasts, and global developments shaping the future of mobility. These systems will become increasingly sophisticated, moving toward semi-autonomous driving capabilities and improving the overall driving experience. Companies like Toyota and Hyundai are investing in hydrogen fuel cell technology.

Discover all Automotive Technologies & Startups

• In addition, assembling a car involves a massive number of parts (30,000 on average), with materials accounting for a significant portion (40-50 percent) of the manufacturing cost.
• However, there are yet to be more autonomous vehicles on the road due to the technological and safety challenges that must be overcome.
• Demand for customizable, software-updatable vehicles is growing, as is interest in electric and hybrid powertrains.
• Sales of electric vehicles (EVs) are expected to grow, although governments may restructure their incentive programs.
• The continued global expansion of various players will require a strategic focus on supply chain efficiencies and may bring transformation and consolidation in the industry.
• Read on to explore each trend in depth – uncover key drivers, current market stats, cutting-edge innovations, and the 20 leading innovators shaping the future.
• Because of this growth, it’s estimated that there are more than 40 million electric cars on the road.
• As we reflect on 2024, it’s clear that this year was a turning point for automotive manufacturing.

Their scooters use an aviation-grade aluminum frame and are customized for sharing, safety, reliability, and durability. Users discover the nearest Beam scooter on the app and park it in visible public spots after the ride. Further, the micro-mobility platform offers a sustainable alternative to short-distance rides and helps regulate traffic flow in cities.

Electric Vehicle (EV) Production Expansion

Statevolt’s decision to build its gigafactory in the UAE rather than Europe has been a talking point this year. This article explores the strategic reasons behind the move, including the UAE’s favourable energy policies, market accessibility, and logistical advantages. By leveraging these factors, Statevolt is positioning itself to meet the rising demand for EV batteries in an increasingly competitive market.

In 2024, the automotive industry is increasingly integrating cutting-edge technologies into its operations. Key automotive industry trends include a significant rise in electric vehicle production, a growing market for pre-owned vehicles, and an uptick in digital car sales. Alongside established technologies like AI and big data analytics, the industry is also embracing the Internet of Things (IoT) and blockchain for diverse applications. This technological evolution is reshaping the automotive landscape, driving innovation and efficiency.

• Semiconductor experts say manufacturers won’t see a return on investment if they build new foundries to meet the auto industry’s demand.
• Discover trends, forecasts, and global developments shaping the future of mobility.
• This facilitates the integration of Apple CarPlay, Google Android Auto, and media streaming into in-vehicle infotainment systems.
• Environmental consciousness is driving the automotive industry toward more sustainable and eco-friendly solutions.
• Tesla’s relentless drive to expand its global gigafactory network has been a defining feature of 2024.
• Human-machine interfaces (HMIs), including voice-based and haptic feedback systems, are expanding control over various car functions.
• Central to this evolution is the growing demand for electric vehicles and software-defined vehicles.
• Demand is rising, especially for power electronics, battery management systems, and more energy-efficient chips.
• By optimizing driving routes, connected cars help reduce emissions, contributing to a greener future.

Udelv manufactures Self Driving Last Mile Delivery Vehicles

Also, automotive Ethernet and time-sensitive networking (TSN) provide deterministic in-vehicle data highways that keep safety-critical communication reliable. In addition, SWYTCHD includes access to premium electric scooters and cars such as the Ola S1 Pro, Ather 450X, TVS iQube, and Nexon EV. This approach enhances road efficiency and reduces fuel consumption, thereby lowering emissions. Regulations such as Europe’s General Safety Regulation 2 (GSR2), US mandates for automatic emergency braking, and China’s target of 70% Level 2-3 adoption by 2025 compel automakers to improve deployment. US-based startup TeraDAR designs its 4D imaging sensor that enhances sensor fusion by offering the Terahertz wavelength for vehicle perception. Moreover, redundancy across sensor types improves resilience in poor weather or low visibility.

Driverless Vehicles- The Future of Connected Cars

Digital platforms enable smooth access and allow users to book, swap, and unlock vehicles through mobile apps. For example, Hyundai partners with Revv in India to expand subscription offerings through a mobile-first platform. AI and ML processors support object recognition, path planning, and decision-making. For instance, Texas Instruments‘ AWR2544 radar achieves sensing beyond 200 meters.

Hydrogen-powered vehicles produce only water vapor as a byproduct, making them a strong contender for sectors that are harder to electrify, such as long-haul trucking and commercial transportation. This move highlights the industry’s broader trend of building resilient supply chains to safeguard against geopolitical and economic uncertainties. Global supply chain disruptions over recent years have prompted manufacturers to rethink strategies.

Procon Analytics builds Automotive Finance

For our trend reports, we leverage our proprietary StartUs Insights Discovery Platform, covering 7M+ global startups, 20K technologies & trends, plus 150M+ patents, news articles, and market reports. As technology progresses, expect these trends to influence every facet of the automotive sector. When demand for cars plummeted in the early days of the pandemic, auto manufacturers stopped ordering them and chip producers focused their attention elsewhere. The global automotive parts market has been steadily growing for the past twenty years. Europe now is the largest market for new plug-in electric vehicles, overtaking China’s first spot.

Project vs Program vs Portfolio Management: What’s the Difference?

• 50% of buyers are willing to opt for EVs, so businesses should surely focus on marketing electric vehicles to make their brands more broader.
• Improved range, faster charging times and enhanced performance are making EVs not just environmentally conscious choices, but compelling alternatives for everyday use.
• The global automotive semiconductor market is expected to grow at a rate of 8.1% between 2023 and 2030.
• The industry itself, however, has remained relatively stable over the last decade.
• Explore the most important trade fairs and conferences to boost your business success.
• They are much more convenient to use in these congested cities and parking these vehicles is much easier.
• The industry is also innovating in battery chemistry, thermal management, and vehicle-to-grid (V2G) tech to improve EV usability.
• Google and Ford recently announced a connected car partnership called Team Upshift.
• This has led to a shift away from traditional automotive infrastructure, which focused on powertrains, interiors, electrical systems, and safety systems.

The rise of such technologies reflects consumer demand for vehicles that are not just transportation tools but extensions of their digital ecosystems. Connected cars enable real-time navigation updates, remote diagnostics, and seamless smartphone integration. They also support smart city initiatives by offering data for traffic management and logistics automation. 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.

OEMs are juggling more regulations with fluctuating demands and ongoing chip shortages

The autonomous vehicle (AV) market is on an impressive growth trajectory, expected to surge from a market value of $1,921.1 billion in 2023 to a staggering $13,632.4 billion by 2030, with a CAGR of 32.3%. A major driver of this growth is the increasing focus on commercial applications, such as logistics and ride-sharing services. Advances in AI, sensor technology, and connectivity are also playing a key role in improving the safety and adoption of autonomous vehicles. The global automotive semiconductor market is expected to grow at a rate of 8.1% between 2023 and 2030. This growth is driven by the increasing adoption of electronic control units (ECUs) in modern vehicles and the rising implementation of advanced safety systems.

Xaba builds Industrial AI-driven Control Systems

Advanced Driver Assistance Systems (ADAS) and autonomous driving technologies continue to evolve, bringing unprecedented changes to vehicle safety and functionality. Additionally, infrastructure developments like Toyota‘s new battery plant in North Carolina underscore the industry’s dedication to scaling EV output. 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. With established automakers facing nimble startups in the mobility race, building new businesses should be a priority for auto executives.

Toyota Launches the Urban Cruiser EV—Just Not Here

The main issue holding back the popularity of these vehicles is a lack of hydrogen fueling stations. Instead, they get power from a fuel-cell stack that’s fed hydrogen and oxygen to create electricity through a chemical reaction. However, that number is smaller than it was in 2019 when more than 80% of people commuted by car. The Wall Street Journal reports that dealerships have been known to charge $40k above MSRP on luxury cars. In some cases, car dealerships are charging huge markups on the inventory they do have. Even six months into 2022, vehicle manufacturers haven’t been able to correct the issue of low inventory.

The ongoing global semiconductor shortage continues to cast a shadow over manufacturing progress, particularly for industries such as automotive and electronics. While efforts are underway from many different automakers to expand fabrication capacity, lead times for chip production remain long with little sign of a solution in the near future. However, regulatory hurdles and the complexity of navigating diverse driving environments remain significant barriers. On the bright side, partnerships between automakers and tech companies are fuelling innovation and accelerating development, bringing their vision of safer, smarter transportation closer to reality.

Automotive Industry Trends 2025: Shifting Gears Toward Innovation

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. The system uses an app to schedule rides on autonomous vehicles, cutting down trip times compared to the available commuting options. FlxTran’s approach improves connectivity and access to opportunities beyond major cities. Moreover, V2X communication systems allow vehicles to interact with each other and infrastructure, improving traffic flow and reducing accidents. These innovations collectively propel the industry towards safer, more efficient transportation. Consequently, the global autonomous vehicle market size is projected to reach USD 448.6 billion by 2035, growing at a CAGR of 22.2%.

The rising preference for pre-owned/used cars

We expect to see the concept of Mobility-as-a-Service (MaaS) develop through 2025. Initial deployments focus on simpler, grid-like cities such as Phoenix in the USA, Milton Keynes in the UK, and Singapore. Soon, this will expand to more complex urban environments as vehicle access becomes increasingly prioritised over ownership among the driving masses. The startup’s product range includes residential wallboxes from 7 to 22 kW and commercial chargers up to 132 kW. These units support CCS2 and CHAdeMO standards, ensuring broad adaptability across EV models. For example, Qualcomm released reports and white papers highlighting C-V2X as a critical capability for intelligent transportation systems.

No Surprise: Q4 Auto Sales Fell, EVs Fell Further

Also, radar ensures long-range detection of moving objects in all weather conditions, which is critical for adaptive cruise control and highway safety. US-based startup NuNami designs automotive semiconductors that provide reliable connectivity and safety-critical interfaces. Its modules integrate high-voltage isolation, digital error correction, and built-in self-testing to ensure secure data transfer and fault-tolerant operation in automotive systems. They also incorporate floating-point units that improve computational accuracy and performance. The startup provides single-chip motor control solutions that integrate RISC-V processor cores with programmable MOSFET drivers, FD-CAN and LIN interfaces, and dedicated PWM modules. The systems optimize the performance of electric power steering, vehicle pumps, cooling fans, and HVAC modules.

It also enables customers to schedule and monitor charging activity for improved efficiency. Australian startup V2Grid designs V2G technology that converts EVs into mobile energy resources for homes, businesses, and the national grid. Its bidirectional charging system enables EV batteries to both draw electricity and feed surplus power back, which balances demand during peak hours and reduces strain on infrastructure. In Europe, the new General Safety Regulation II (from July 2024) and related standards embed connectivity, advanced sensors, and cybersecurity requirements into safety compliance frameworks. This increases the regulatory push toward connected and safety-enhanced vehicles.

This ensures cybersecurity and reliability for engine control, powertrain management, and other mission-critical automotive applications. Further, Chipv creates power control chips equipped with triple RISC-V cores, extensive on-chip memory, and robust hardware security modules. In the US, the CHIPS and Science Act allocates USD 52.7 billion in funding and offers a 25% investment tax credit.

By 2025, the sector is expected to experience continued technological advances, heightened sustainability efforts, and shifting market dynamics. In this article, we’ll explore the significant focuses of the automotive industry in 2025, ranging from electric mobility to autonomous driving and sustainability initiatives. One of the most significant shifts in the automotive industry is the widespread adoption of electric vehicles (EVs).

Driverless Vehicles- The Future of Connected Cars

It enables secure data sharing for connected and shared mobility solutions, including ride-hailing, urban transportation, and delivery services. The evolution of self-driving and connected cars is simplifying driver-vehicle interaction. Human-machine interfaces (HMIs), including voice-based and haptic feedback systems, are expanding control over various car functions. For this in-depth research on the Top Automotive Industry Trends and startups, we analyzed a sample of 4859 innovative automotive startups & scaleups worldwide.

Key players like Bosch, Continental AG, and ZF Friedrichshafen AG are investing in technological advancements. They are focusing on lightweight materials and improved energy recovery efficiency. The automotive regenerative braking market is expected to reach USD 13.83 billion by 2029, growing at a CAGR of 15.8%. Usage-based insurance (UBI) models use driving behavior data to provide customized premiums and are gaining popularity. From 2024 to 2029, the insurance telematics industry is projected to grow at a CAGR of 17.6%.

Apache Automotive develops Hybrid Cars

The future trends in the automobile industry predict a roller-coaster ride for players. In 2025, the automotive industry will face global headwinds such as the energy crisis, slower global demand, and ongoing supply-chain issues. Despite these challenges, global new-vehicle sales are projected to remain flat, with new-car sales increasing. Sales of electric vehicles (EVs) are expected to grow, although governments may restructure their incentive programs. The automotive industry is transforming, fueled by evolving consumer demands, rapid technological advancements, and the urgency of addressing climate change. In 2025, the future of mobility will take a new shape in ways that promise smarter, more efficient, and more sustainable vehicles.

Sustainable manufacturing lowers emissions, which allows automakers to meet compliance requirements and reduce their environmental footprint. Cleaner production methods reduce operating costs and free resources for reinvestment in new technologies. In 2025, electrification and software integration will have an essential impact on the automotive industry. These tendencies are long-term and are expected to continue shaping the auto industry in the near future. In the next section, we’ll explore these and other automotive sector trends in more detail, and see how they will evolve in 2025. Environmental concerns and technological innovations are advancing faster than many anticipated.

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. Companies like BYD are collaborating with TSMC and MediaTek to develop advanced chips for vehicle controllers and smart cockpits.

consumer trends

AI and machine learning (ML) support cyber defenses by enabling real-time anomaly detection and predictive monitoring. For instance, AI-driven intrusion detection systems adapt to new attack patterns and block breaches before they spread. Further, through its smart management app, it enables users to schedule charging, monitor consumption, and manage fleets from one platform. Moreover, the startup installs Tesla motors and Fellten battery systems, which provide up to 295 horsepower, enable flexible range options, and ensure authenticity through fully reversible conversions. Also, adoption rises quickly, with China reaching 50% EV penetration in 2024, and in India, over 18.8 lakh EVs are supported under FAME schemes till June 2025 by the government. Declining battery costs move EVs closer to price parity with combustion vehicles.

Best of 2025 How Generative AI Is Transforming Industry

This continues a trend in the EV industry, which has been challenged by the high cost of vehicles and a lack of charging stations. They have downgraded their EV targets and scaled back production of fully electric vehicles, suggesting that the transition to EVs will take longer than previously expected. The automotive industry leads in technological innovation that will reshape vehicle design, construction, and user experience in 2025. Emerging automotive industry trends include the increased adoption of electric vehicles (EVs), advanced semiconductors, and the growing focus on vehicle cybersecurity.

Driving Into the Future: Top Automotive Innovations and Insights of 2024

The US National Highway Traffic Safety Administration (NHTSA) estimates that V2X addresses up to 80% of crashes involving non-impaired drivers. Moreover, economic efficiency improves adoption, as autonomous vehicles reduce transport costs by up to 40% and maximize logistics utilization. Swedish startup Intended Future utilizes data-driven design benchmarking tools for the automotive industry. Probably the most important trend in the automotive industry is the worldwide shift to electric vehicles (EVs).

What are the Top 10 Trends & Innovations in Automotive ( ?

However, it’s estimated that there will be 33 million autonomous vehicles on the road by 2040. Virtual car shopping is the new cross country trips with trusted vehicles 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.

No Surprise: Q4 Auto Sales Fell, EVs Fell Further

Front-facing LiDAR scans the road to detect objects, track pedestrians, and respond to traffic to enhance safety. The startup uses automotive sensors and compute platforms to offer a scalable solution for cars to enable large-scale fleet learning. German startup SafeAD develops a vision-first perception and scene-understanding pipeline for autonomous driving. The charging infrastructure is more vulnerable as a result of the quick uptake of EVs, which hackers may attack to obtain customer information or interfere with services.

Printing: Revolution in Automotive Manufacturing

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 automotive industry is one of the most severely affected by supply chain disruptions.

• In addition, it offers insurance-approved vehicle tracking systems with Thatcham S5 and S7 certification to meet insurer requirements and offers nationwide installation with priority police response.
• Looking ahead, JLR’s focus on carbon-neutral manufacturing and environmentally responsible practices sets a powerful example for the industry.
• Circular economy initiatives are also gaining momentum, exemplified by Jaguar Land Rover’s closed-loop recycling for seat foam and Michelin’s production of tires using 45% sustainable materials.
• Automakers and technology companies are forming partnerships due to vehicles’ constantly evolving tech requirements.
• Also, MotionSafe protects the auto industry by securing vehicle data, supporting supply chains, and ensuring a safe transition to connected mobility.
• Moreover, its software platform manages real-time energy flows and integrates with solar systems to optimize renewable energy usage.
• Autonomous driving will continue progressing from Level 2+ driver-assist to Level 3 conditional autonomy in geo-fenced areas.

North America bore the brunt, accounting for 58% of publicly extorted ransomware victims. Manufacturing was not spared either, representing 29% of global ransomware targets, an alarming 56% rise over the previous year. Explore the most important trade fairs and conferences to boost your business success.

Shared mobility

Hydrogen-powered vehicles produce only water vapor as a byproduct, making them a strong contender for sectors that are harder to electrify, such as long-haul trucking and commercial transportation. This move highlights the industry’s broader trend of building resilient supply chains to safeguard against geopolitical and economic uncertainties. Global supply chain disruptions over recent years have prompted manufacturers to rethink strategies.

Aadhya Navik designs Ride Safety Software

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.

While the market for cars valued below $80k is expected to remain flat through 2031, the luxury car market is predicted to grow at up to 14% CAGR. The chip shortage is one-factor holding cars back from getting to the dealership lots. But, there are other various supply chain issues and factory closures that have led to low inventory, too. After demand started coming back, there simply wasn’t an adequate supply of chips, and the auto industry has been feeling the effects ever since. The parts industry is benefiting from the ever-increasing average age of vehicles on the road.

Procter & Gamble in Beauty and Personal Care

By the end of that decade, it’s predicted that over 30% of the cars on the road will be EVs. The massive rotation in the global vehicle fleet is predicted to take place in the 2030s. Bloomberg New Energy Finance expects EVs to account for 10% of all new car sales by 2025 and 58% by 2040. After a disappointing 2019 in terms of EV sales, 2020 sales surpassed expectations, growing over 40% year-over-year. EV sales grew from less than 1% of total vehicle sales a decade ago to more than 4% today. Rapid technological and environmental innovations have forced incumbents to adapt to new challenges.

Apostera specializes in Advanced Driver Assistance Systems (ADAS)

In 2025, Uber and GM Cruise will partner, allowing users of the Uber ride-hailing platform to book fully self-driving vehicles from the app in selected US cities. Italian startup Moi combines thermosetting composite materials and 3D printing to manufacture high-performance parts for the automotive industry. Moi uses continuous fiber manufacturing (CFM) technology, robotic intelligence, and digital fabrication to deposit fibers. As a result, the solution is easily scalable for producing composites for panels, frames, and interior components.

Keyvault raised USD 1 million in January 2025 to introduce smartphone-enabled car keys in the US, following the trend of incorporating smart device features into automobiles. Mercedes-Benz is also using generative AI to include conversational assistants for improving user experiences and redefining in-car interactions. The number of connected cars worldwide will likely reach 400 million by 2025 up from 237 million in 2021.

• For this in-depth research on the Top Automotive Industry Trends and startups, we analyzed a sample of 4859 innovative automotive startups & scaleups worldwide.
• Maximising the ROI to investors and stakeholders while remaining competitive will be priorities of the industry.
• Vehicle-to-grid solutions convert EVs into mobile energy storage units by allowing bidirectional energy flow with the grid.
• The startup provides manufacturers with tools that make the development and maintenance of EV charging infrastructure simple, fast, and scalable.
• This enhances autonomous driving capabilities, traffic management, and safety features.
• Moreover, the startup engineers the ECU platform with compliance to ISO for functional safety.
• The ongoing global semiconductor shortage continues to cast a shadow over manufacturing progress, particularly for industries such as automotive and electronics.

Did you know that EVs are projected to make up nearly 20% of global vehicle sales in 2026? That’s no longer a distant future — it’s happening now, and it’s transforming everything from manufacturing floors to your driveway. Connectivity is one of the key trends in automotive industry, and 5G is what takes it to a more advanced level.

Software-Defined Vehicles: Cars as the Ultimate Connected Devices

In addition, the startup integrates regional infrastructure knowledge into vehicle design to ensure durability, accessibility, and energy efficiency. Additionally, it uses the Future Trends Index to identify and prioritize relevant design directions across different markets. Read on to explore each trend in depth – uncover key drivers, current market stats, cutting-edge innovations, and the 20 leading innovators shaping the future. Therefore, these were the five trends transforming the automotive industry this year and beyond. However, overcoming supply chain challenges takes time, so they are likely to remain in 2025. Sales of the most expensive cars are predicted to drive the most market growth through 2031.

SafeAD enables Large-scale Fleet Learning

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. Henkel is using digital simulation tools to co-develop EV battery designs with automotive partners. The simulations improve thermal management, safety, and efficiency to meet the demands of future mobility. As we reflect on 2024, it’s clear that this year was a turning point for automotive manufacturing.

Automotive industry trends refer to changes in patterns within the automotive sector that influence vehicle design, production, marketing, and usage. Technological advancements, changes in consumer preferences, regulatory changes, and global economic conditions drive these trends. The automotive industry is highly dynamic, and trends are subject to change over time. Monitoring and understanding these trends is crucial for automakers, suppliers, and other stakeholders to stay competitive. Due to the pandemic, the automotive sector is undoubtedly facing one of the most challenging periods and a massive slowdown for the last couple of years. This calls for a thorough analysis of recent trends in the automotive industry, So this blog brings you some of the significant car market trends in 2025 that you must know.

Telematics and IoT sensors monitor vehicle condition and enable predictive maintenance. For instance, Planet42 extends access to underbanked consumers in South Africa and Mexico. Additionally, the startup offers features such as platooning algorithms for safe and efficient vehicle grouping. It also provides lane-change algorithms that ensure comfortable lateral movement and personalized passenger comfort profiles refined with each journey. The World Health Organization links 1.35 million annual deaths to road accidents, creating urgency for autonomy. AI, ML, and computing allow vehicles to process data points per second with split-second precision.