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. The two purportedly plan to begin manufacturing an autonomous Apple electric car as of 2024.
c. Circular Economy in Automotive Manufacturing
This increases the regulatory push toward connected and safety-enhanced vehicles. General Intelligence strengthens the evolution of software-defined vehicles by aligning human-inspired learning with safety. It also advances autonomous driving by enabling adaptability across vehicle types and conditions. In addition, the unit supports multiple communication protocols, including CAN and FlexRay. It also works with Ethernet and LIN, enabling integration across passenger cars, buses, trucks, and autonomous vehicles. AI and ML solutions process multimodal sensor data to power autonomy, predictive maintenance, and personalization.
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- The massive rotation in the global vehicle fleet is predicted to take place in the 2030s.
- Paul Marinelli gets straight to the point—exploring key trends and innovations shaping tomorrow’s mobility in just five minutes.
- Stellantis, for instance, has demonstrated how AI can transform production efficiency.
- The US National Highway Traffic Safety Administration (NHTSA) estimates that V2X addresses up to 80% of crashes involving non-impaired drivers.
- Also, applications extend from adaptive cruise control, lane-keeping, and traffic jam assistance to robotaxis and driverless trucking.
- Data-driven connectivity services and on-demand mobility will add up to $1.5 trillion to the automotive revenue pool by the year 2030.
- These advancements are driving the future of connected vehicles, which are increasingly becoming a standard feature in new cars.
- In some cases, car dealerships are charging huge markups on the inventory they do have.
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. Australian startup V2Grid designs V2G technology that converts EVs into mobile energy resources for homes, businesses, and the national grid.
a. Battery Technology and Range Improvements
Self-driving taxis are already available in parts of China and several US cities. More driverless journeys will occur as technology continues to be enhanced and refined. Global passenger EV sales grew 60% from 6.5 million units in 2021 to 10.5 million in 2022. EV sales are going to increase aggressively in 2025, providing a bright spot in the automotive industry. Governments are implementing innovative policies to encourage sales without increasing costs or benefiting high-income households.
⚡️ Navigating the EV Charging Infrastructure Challenge
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.
Top 10 Emerging Automobile Trends 2025 and Beyond
Motoreto strengthens supply chain resilience in the auto industry and drives nearshoring by aligning distribution, procurement, and sales with regional market needs. The auto sector adopting new tools 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.
Future Readiness Monitor: Automotive Industry Report
Sensor fusion that combines information from various sources improves safety and autonomy by enabling accurate decision-making. The Asia-Pacific region currently controls the majority of the market due to the strong uptake of electric cars (EVs) in countries like China, India, and Japan. The region’s substantial market share results from government incentives and the growth of the automobile industry. Indian startup ThinkSeed develops middleware solutions that enhance smartphone connectivity to vehicles for secure access and infotainment.
Also, the Customer Acceptance Index improves design validation by offering instant customer feedback. As incentives and projects pile up and resources remain limited, delivering everything on time,… Learn why it matters more than organic traffic and how to improve your rankings and visibility.
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. Ultra-fast charging infrastructure minimizes downtime by offering hundreds of kilometers of range in just minutes. For example, BYD demonstrated a 1000 kW charging system that is capable of adding about 400 km of range in five minutes to its Han L and Tang L models under ideal conditions.
Apache Automotive develops Hybrid Cars
- In the Automotive Innovation Map below, you get a comprehensive overview of the innovation trends & startups that impact your company.
- Its platform automates the cybersecurity management system (CSMS) and product cybersecurity evidence (PCSE) to ensure compliance with UNECE R 155 and ISO/SAE 21434.
- Developing high-performance, long-lasting, and cost-effective batteries is a key area of focus for automakers in 2025.
- The startup employs the Perceived Quality Index to eliminate engineering bias by translating customer insights into measurable quality improvements.
- Automakers are adopting greener processes, from sourcing eco-friendly materials to utilizing renewable energy in manufacturing plants.
It combines compound semiconductor nanomaterials with scalable silicon manufacturing for mass-market microelectronics. This approach ensures our reports provide reliable, actionable insights into the automotive innovation ecosystem while highlighting startups driving technological advancements in the industry. 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. From LFP to cutting-edge solid-state batteries, it examines the trade-offs between cost, performance, and sustainability while uncovering key regional trends.
Moreover, Asia-Pacific is the fastest-growing region, with a projected CAGR of 14.8%. This is fueled by increased vehicle production and sales in China, Japan, and South Korea. The adoption of augmented reality (AR) in head-up displays and automated parking systems is expanding, which is advancing ADAS technologies.
Mobility
Governments also enforce stricter safety standards, pushing automakers to integrate advanced sensor systems. Further, sensor fusion systems incorporate AI and machine learning (ML) algorithms to enhance optimization, predictive maintenance, and decision-making. With a CAGR of 25.5% from 2025 to 2037, the global sensor fusion market is expected to reach USD 7.91 billion by 2025. The automotive cybersecurity market is projected to reach USD 5.11 billion in 2025, with a CAGR of 18.14% from 2024 to 2034.
This approach enhances flexibility across its global operations, ensuring a rapid response to shifting market demands. Similarly, Skoda has embraced AI to navigate the complexities of modern manufacturing. Shared mobility reduces individual car ownership, especially in urban areas, impacting vehicle sales volumes but increasing demand for fleet vehicles and mobility-as-a-service (MaaS) platforms.
Q) How Will Adapting to Evolving Tech Landscape Help Automakers?
The automotive industry is many things, but it is never idle; it thrives on the pulse of innovation, resilience in hard times, and mobility transformation. 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. Curious how electric vehicle trends like solar integration, AI-powered systems, and modular design are innovating mobility? This report explores the top 10 electric vehicle trends shaping the industry in 2026.
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.
- Also, the EV market is projected to reach USD 6.16 trillion by 2035 at a CAGR of 25.32%.
- Further, its V2X-cloud system implementation guarantees uninterrupted connectivity between vehicles and infrastructure.
- This chiplet-based architecture integrates with automotive processors via PCIe Gen5 and UCIe interfaces, which allows customizable and cost-effective system enhancements.
- Megacasting, which involves producing large aluminium castings to replace multiple smaller components in vehicle structures, is gaining momentum in the automotive 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.
- It uses AI-powered damage recognition, estimation, and work distribution to streamline repair processes.
- Wireless charging could eliminate the need for physical connectors, offering a more seamless user experience.
While fully autonomous vehicles (AVs) are not yet standard on the roads, significant advancements are being made in 2025 toward realizing the vision of driverless cars. 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. 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.
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. In addition, it adapts to applications across fleets, workplaces, airports, and multi-housing units.
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.
- Some countries (and California) have even committed to phasing out all new sales of combustion engine vehicles over the next few decades.
- Singaporean startup EVIE Autonomous designs electric, autonomous shuttles for last-mile delivery, passenger transport, agriculture, and cargo movement.
- Level 3 (conditional automation) and Level 4 (high automation) systems are gaining traction, with broader availability expected in Europe and North America by 2025.
- As battery technology and charging infrastructure progress, EVs lead the push toward sustainability.
- Drivers benefit from Voicera ID, a voice-based virtual assistant that helps them keep track of the information they need.
- Its technology applies signal processing algorithms to eliminate interference and ensure radar units operate reliably within the same environment.
- Additionally, looking at supply chains, AI and machine learning are driving the rise of autonomous logistics systems that can self-optimise routing, scheduling, and inventory management.
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. In 2023, the global connected car market was valued at $80.87 billion and projecting remarkable growth. It is expected to expand from $95.14 billion in 2024 to $386.82 billion by 2032, reflecting a robust compound annual growth rate (CAGR) of 19.2% over the forecast period according to some figures. 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. Environmental consciousness is driving the automotive industry toward more sustainable and eco-friendly solutions.
Demand may decelerate due to the end of Chinese subsidies for EVs, but it should not lead to a decrease. Apart from this, reduced access to EV charging points remains a significant challenge, according to consumer trends in the automotive industry. In 2022, the automotive industry’s automotive digital marketing spending increased to $17 billion and is predicted to keep growing in 2025. Experts anticipate a rise in digital advertising spending, driven by the growing mobile and social media usage rates. Chatbots and messaging solutions are key technology trends in the automotive industry. These tools enable dealerships to handle inquiries efficiently, freeing time for other tasks.
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.
As the technology evolves and becomes more affordable for the industry, it opens more and more opportunities every year. AI, additive manufacturing, the Internet of Things, and 5G have become sources of product innovation and manufacturing efficiency, which in turn has led to revolutionary changes in customer experience. Finally, automotive manufacturers are increasingly adopting PMO software to standardize the execution of complex projects with globally distributed teams and ensure compliance with industry standards.
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.
Software-Defined Vehicles (SDVs) will Witness High Demand
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.
ChargeX specializes in Modular Electric Vehicle Charging Solutions
Despite this, 2025 is guaranteed to be pivotal, with potential breakthroughs in autonomous driving technology along with a stronger push toward hybridization and sustainability. Simultaneously, many automakers embrace vertical integration strategies, taking control of the software stack from chip development to application integration. This approach equips them to differentiate their offerings, with software being the key to creating compelling customer experiences. Software-defined vehicles (SDVs), where software manages essential functions like steering, braking, and infotainment, will see rapid growth over the next few years. SDVs are more efficient and safer and can be updated with the latest technologies through software, keeping them up to date in a constantly evolving industry.
Luxury Car Brands See Growth
The convergence of AI-driven production systems, the scaling of EV capabilities, and the adoption of sustainable practices will reshape the competitive landscape. Manufacturers that successfully integrate these elements into their strategies will not only navigate the challenges of today but also position themselves as leaders in the future of mobility. Artificial Intelligence and Smart Factory technologies are no longer aspirational but integral to modern automotive manufacturing. Stellantis, for instance, has demonstrated how AI can transform production efficiency. By incorporating AI tools, the company has reduced production costs while accelerating vehicle launch timelines.
💡 Related Insights: Diving Deeper into Specific Automotive Niches
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.