Automotive trends in 2025 impacting middle-market organisations RSM Global

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

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

Solid-state batteries increase energy density, shorten charging times, and give EVs longer ranges and greater convenience. For example, Toyota plans a commercial rollout by 2027 to bring solid-state battery EVs into mass production. Moreover, automakers reduce tailpipe emissions, cities improve air quality, and governments reduce fossil fuel dependence.

• Chip shortages have been causing myriad changes to trends that affect the automotive trends that are not all positive.
• The efficiency of electric power fused with the reliability of traditional engines has contributed to the rise of hybrid vehicles.
• From electrification and software integration to new mobility models, the industry faces unprecedented change.
• Solid-state batteries increase energy density, shorten charging times, and give EVs longer ranges and greater convenience.
• Companies like Toyota and Hyundai are investing in hydrogen fuel cell technology.
• Technological advancements, changes in consumer preferences, regulatory changes, and global economic conditions drive these trends.
• Brands provide specific offers by analyzing your needs, preferences, and behavior.

Revive Earth retrofits Vehicles with the Electric Drivetrain

The main issue holding back the popularity of these vehicles is a lack of hydrogen fueling stations. The market for FCEVs is expected to grow at a remarkable CAGR of nearly 70%, through 2026. 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.

Distributed Additive Manufacturing enables Large Scale Sustainable Parts Production

Let’s have a closer look at the top automotive trends poised to dominate the landscape in 2025. Supplemented by the categorisation of our experts, a clear picture emerges of where the industry stands – and where it should develop in order to remain fit for the future. Automakers are also adopting hyper-personalized features to offer customized experiences through infotainment systems, user profiles, and real-time navigation updates. Many of these vehicles will feature over-the-air (OTA) upgrades and V2X communication. Xaba’s proprietary process and AI-driven large-scale 3D printer enable sustainable materials, such as fibers, fiber-reinforced polymers, and metals, to create functional car chassis. Toyota intends to power its battery plant in North Carolina with renewable energy by 2025.

While full autonomy is still years away, incremental advances are reshaping vehicle capabilities and market offerings today. These material innovations are also crucial to meeting evolving regulations, particularly the EU’s stringent emission standards. For EVs specifically, weight reduction translates directly into extended range and improved battery performance.

Sustainable Manufacturing

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. French startup Airnity provides a cellular connectivity platform for the automotive industry to enhance connected car operations.

Electric Vehicle (EV) Production Expansion

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. 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%. For this in-depth research on the Top Automotive Industry Trends and startups, we analyzed a sample of 4859 innovative automotive startups & scaleups worldwide.

• 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.
• This increases the regulatory push toward connected and safety-enhanced vehicles.
• Full Level 4 and 5 autonomy remain years away due to regulatory, ethical, and technical challenges.
• 50% of buyers are willing to opt for EVs, so businesses should surely focus on marketing electric vehicles to make their brands more broader.
• IoT solutions can offer numerous benefits to end-users by utilizing interconnected systems, such as better safety, driving assistance, and predictive maintenance.
• Looking ahead, there is no doubt that the automotive industry is on the brink of a paradigm shift driven by unprecedented technological advancements and a commitment to sustainability.
• For instance, China has introduced policies encouraging automakers to procure up to 25% of their chips domestically by 2025, reducing reliance on foreign suppliers.

Increase in digital advertising spending

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. Its solution, carSECURITY, provides organizations with a complete cybersecurity process landscape.

Integrated Powertrains will be Standard in EVs of the Future.

Top car brands and dealerships are embracing VR as part of their dealership photography strategies to improve the customer experience. As we look forward to 2025, RSM’s automotive professionals predict a slowdown overall in the growth of the industry as well as a reduction in overall margins and profitability. Many OEM’s are already revisiting original forecasts and realigning through-put and production schedules accordingly.

Qumasoft automates Automotive Cybersecurity Management

• Consumers thoroughly research their preferred car on their mobile phones, searching for the best offers and dealerships in their area.
• From enhancing in-vehicle safety solutions to enabling semi-autonomous driving features, AI is redefining innovations in vehicle functionality and unprecedentedly shaping the driving experience.
• Consumers research their preferred car on their mobile phones, looking for the best options, offers, and dealerships.
• The industry itself, however, has remained relatively stable over the last decade.
• This data alerted drivers to pedestrians and cyclists before they became visible.
• Companies like Tesla, Waymo, and others are working tirelessly to refine the technology, which includes machine learning, computer vision, and lidar (light detection and ranging) systems.
• Consistent brand messaging across all channels, including in-car infotainment systems and websites, can help foster long-term customer relationships, promoting brand loyalty and advocacy.
• 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.

By 2025, nearly all new vehicles are expected to feature advanced connectivity options, integrating aspects of digital life directly into driving experiences. Such advancements align with global trends favoring autonomous fleet deployment in urban areas, positioning automakers to meet future demand for self-driving capabilities. While there are a lot of opportunities ahead for the industry, there will be plenty of challenges like cost pressures, growing competition, and globalization.

• India-based startup DriveTech-AI builds solutions centered around optimizing the vehicle testing process through smart solutions.
• In the next section, we’ll explore these and other automotive sector trends in more detail, and see how they will evolve in 2025.
• Also, advanced battery management systems improve safety, extend battery life, and optimize performance.
• These solutions decrease fleet wait times and cut pollution from petrol or diesel vehicles.
• People are shifting to EVs because of their design and their being environmentally friendly.
• The platform features customizable work product templates, detailed instructions, and comprehensive checklists for self-assessment.
• Manufacturers are investing in innovative mobility technologies, such as personal voice assistance, autonomous driving, and AI and ML, creating a positive market outlook.
• It also aligns with ISO for cybersecurity and ensures reliability under demanding automotive standards.

Methodology: How We Created the Automobile Trend Report

Along with an increase in refueling stations, learn the real cost of a used car look to see an increase in the variety of FCEVs available to consumers in the coming years. In addition, Hawaii passed a bill in 2022 that will create a hydrogen refueling system rebate for developers. Any infrastructure that’s built after January 1, 2023, and utilizes renewable hydrogen will be eligible for up to $200k.

• Telematics adoption in logistics and transportation industries is driven by features such as real-time tracking, driver behavior analysis, and fuel consumption reduction.
• We explore eight most influential trends expected to define the automotive manufacturing landscape, offering insights into what lies ahead for the industry.
• Also, MotionSafe protects the auto industry by securing vehicle data, supporting supply chains, and ensuring a safe transition to connected mobility.
• Legacy brands like Ford, GM, and Volkswagen are launching dedicated EV lines, while startups like Rivian and Lucid push luxury and performance boundaries.
• The global automotive sensor fusion market is projected to reach USD 3.3 billion by 2030 at a 42.4% CAGR.
• As net-zero targets become the norm, the reliance on renewable energy is only set to grow.

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

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.

Automakers will continue to incorporate these systems into even more affordable models, making safety technologies more accessible to a broader range of consumers. By leveraging tech and sustainable practices, the automotive sector can meet the challenges of tomorrow while delivering exceptional value to consumers. 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. This digital transformation enhances scalability, a key driver in the competitive automotive sector.

• These advancements guide the automotive sector toward a more intelligent, secure, and sustainable future.
• Also, advanced composites and recycled inputs reduce reliance on virgin resources.
• And with about two-thirds of people saying they would rather drive than ride in an autonomous car, much of the near-term focus is on trucking.
• The transition to electric vehicles has moved beyond early adoption and is now something of a global imperative.
• 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.

Innovation Map outlines the Top 10 Auto Trends & 20 Promising Startups

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.

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. They also emphasize that regulatory support and infrastructure readiness are essential for large-scale deployment.

Ransomware-related costs in the automotive industry skyrocketed from $74.7 million to $209.6 million in just the first half of 2023. System downtime caused by these attacks reached $1.99 billion, compared to $1.3 billion in 2021. AI, automation, and an ‘electric-first’ mindset are impacting every industry, and automotive is no exception.

Government incentives, environmental imperatives, technological advances, and shifting consumer preferences drive this expansion. The EU enforces a 2035 zero-emission mandate, and the US Inflation Reduction Act channels subsidies into domestic EV production and attracts international manufacturers. 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. 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.

Industry 4.0 and Digitalization in Manufacturing

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. The startup’s technology allows these pods to adapt across industries, enhancing efficiency and safety in transporting people and goods.

The AI in Automotive industry in 2026 is evolving as AI, autonomous technologies, and software-defined vehicles reshape global mobility systems. This AI in Automotive Market Report examines the trends and technologies driving vehicle intelligence, operational efficiency, safety advancement, and data-driven mobility innovation. 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.

Lithium-ion battery prices have fallen by 89% over the last decade, reaching a price of $137/kWh in 2020. After a disappointing 2019 in terms of EV sales, 2020 sales surpassed expectations, growing over 40% year-over-year. The industry itself, however, has remained relatively stable over the last decade.