What lies ahead is not just a continuation of trends but the potential for transformation that pushes the boundaries of how we move, connect, and thrive. The recently proposed 25% tariffs on imports from Mexico and Canada, while temporarily delayed, may also have a drastic impact on the global automotive supply chain. 2025 is shaping up to be an interesting year for automotive with regards to global shifts in the market with a mixed bag of potential harmony and disruption.
However, sales of robotaxi vehicles will remain a minority, as safety concerns, legislative bottlenecks and the high cost of operations restrict growth. The current trends in the automotive industry seen in previous years will remain in 2025 and are likely to become automotive future trends. The auto manufacturers who rely on the older versions of chips which are not advanced and powerful will disrupt the growth of the automotive industry.
Important Auto Industry Trends (2025-
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.
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. 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.
Of course, the danger does not stop with vehicles as smart infrastructure is also at risk, potentially jeopardising safety and operational reliability. By 2025, V2X technology is expected to significantly create more innovative transportation networks and advance autonomous driving capabilities. 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. While most of these concerns can be overcome, it will take some time, and this time will be the most challenging for the industry.
Apostera specializes in Advanced Driver Assistance Systems (ADAS)
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. EVs typically use 2-3 times more semiconductor content than internal combustion engine models, and in powertrain-specific components, that multiplier is possibly higher.
Discover all Automotive Technologies & Startups
In the Electric Vehicle Market, 2025 Will Be the Year of More – More Models, More Incentives, More Discounting, More Advertising, and More Sales Muscle. 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.
- Volta Trucks also offers leasing or purchasing options, and integrates services like maintenance, charging infrastructure, and training through its truck-as-a-service model.
- And TuSimple is hoping to begin selling completely autonomous Level 4 trucks to fleet operators in 2024.
- 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 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.
- Simultaneously, many automakers embrace vertical integration strategies, taking control of the software stack from chip development to application integration.
- These 20 automotive companies are hand-picked based on criteria such as founding year, location, funding raised & more.
This has led to a shift away from traditional automotive infrastructure, which focused on powertrains, interiors, electrical systems, and safety systems. Information technology has become a crucial part of the recent trends in the automobile industry as priorities change over time. The automotive industry stands at a thrilling crossroads, where innovation meets complexity and opportunity rides alongside challenge. The industry will continue to experience disruptions from geopolitical headwinds to regulatory and legislative developments, data security and economic challenges.
- Car connectivity and telematics improve the driving experience with real-time data integration.
- 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.
- These batteries can provide longer driving ranges and faster charging times, which have historically been limitations for EV adoption.
- The two purportedly plan to begin manufacturing an autonomous Apple electric car as of 2024.
- However, automotive executives need help as they focus on new technology that meets consumer and regulatory demands.
- Unless otherwise noted, this page’s content was written by either an employee or a paid contractor of Semrush Inc.
EcoG builds an Electric Vehicle Charging Platform
Brands provide specific offers by analyzing your needs, preferences, and behavior. Paul Marinelli gets straight to the point—exploring key trends and innovations shaping tomorrow’s mobility in just five minutes. Long journeys are no longer exhausting and tedious, as everyone on board can watch movies, stream their favorite music, and play games through pre-loaded entertainment services. These cars even come equipped with Wi-Fi hotspots, ensuring easy Internet access for all passengers.
Also, its platform manages claims and mechanical breakdowns across vehicle models from manufacturers. Digital replicas and simulations allow manufacturers to test efficiency improvements before implementation. For example, BMW’s San Luis Potosí facility applies digital replicas to reconfigure layouts and minimize waste.
Innovation Map outlines the Top 10 Automotive Trends & 20 Promising Startups
- The AI in Automotive industry in 2026 is evolving as AI, autonomous technologies, and software-defined vehicles reshape global mobility systems.
- By addressing issues proactively, manufacturers and service providers can further reduce breakdowns, enhance vehicle reliability, and improve overall customer satisfaction.
- Meanwhile, tech companies such as Uber and Lyft continue to expand their digital-first transportation solutions, creating a more competitive and diverse mobility landscape.
- By 2030, automotive industry trends 2030 will witness a significant shift towards electric and autonomous vehicles, driving sustainable growth in the car market.
- The need for high-performance processors is also growing as a result of software-defined vehicles (SDVs), which rely on semiconductors for ongoing updates and subscription-based services.
- This includes driver monitoring systems, adaptive cruise control, and collision avoidance systems.
- Major car, truck, and SUV manufacturers are investing in fuel-cell electric vehicle development, with the support of countries like China, Germany, Japan, South Korea, and the United States.
The World Health Organization links 1.36 million annual deaths to road accidents. 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 running a license plate lookup before buying used Future utilizes data-driven design benchmarking tools for the automotive industry.
Chargerly develops Vehicle-to-Building Solutions
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.
Motomatix develops Auto Parts Ordering Platform
- Its solution, carSECURITY, provides organizations with a complete cybersecurity process landscape.
- For instance, Audi and BMW vehicles exchanged sensor data, including camera feeds, during 5G-V2X Direct demonstrations in Berlin.
- As 5G and the Internet of Things (IoT) continue their growth, vehicles are becoming more and more connected.
- One critical challenge in transitioning to electric mobility is the availability and accessibility of charging infrastructure.
- Factories equipped with IoT-enabled devices and machine learning capabilities are emerging as the backbone of next-generation automotive production.
- The integrated powertrain segment is likely to hold ~60-65% of the total e-powertrain market in 2025.
- Moreover, the technology combines EV chargers, a DC bus, smart inverters, and an energy management platform.
In addition, TuSimple has partnered with Navistar and UPS to test its software under supervised driving conditions. 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. Lithium-ion battery prices have fallen by 89% over the last decade, reaching a price of $137/kWh in 2020.
This EV Just Set an Efficiency Record
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. At the same time, governments and companies view subscriptions as a pathway to scale EV adoption without heavy upfront investments. Bosch demonstrates this through 77 GHz radar modules integrated into adaptive cruise control and collision avoidance systems.
Shared mobility
This article offers an inside look at the facility and Xiaomi’s ambitious plans in the automotive sector. Meanwhile, we are seeing the economic case for sustainable materials strengthen as manufacturers realise operational efficiency gains and reduce their long-term costs. Cross-industry collaboration is emerging as a key enabler, with automotive companies forming partnerships to develop and implement innovative material solutions.
- Moreover, V2X communication systems allow vehicles to interact with each other and infrastructure, improving traffic flow and reducing accidents.
- Power say that sales of cars worth more than $100k were outselling lower-priced cars 3 to 1 in the first quarter of 2022.
- Its vehicle control system processes passenger comfort thresholds related to acceleration, deceleration, and jerk rate.
- Additionally, blockchain is instrumental in verifying the supply chain of automotive parts, ensuring that materials and components are sourced from legal and trustworthy suppliers.
- Therefore, these were the five trends transforming the automotive industry this year and beyond.
Discover the Top 10 Auto Trends and Innovations
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.
In parallel, the startup offers carAISuite, an AI-driven tool that automates engineering and compliance activities. It enables systematic results in cybersecurity, functional safety, and process conformance. In addition, the startup strengthens automotive cybersecurity with features such as real-time intrusion detection and automated containment protocols.
Toyota’s Legendary Hilux Is Going Electric
- Further, their drivers use out-of-the-box or white-labeled apps to manage reservations or remotely access vehicles.
- Software-defined vehicles (SDVs), where software manages essential functions like steering, braking, and infotainment, will see rapid growth over the next few years.
- Paul Marinelli gets straight to the point—exploring key trends and innovations shaping tomorrow’s mobility in just five minutes.
- Current automotive trends are encouraging automotive manufacturers to offer consumers much more than a metal box on four wheels.
- Brands need to provide specific offers by analyzing their customer’s needs, preferences, and behavior.
- Further, Jaguar Land Rover is pioneering a closed-loop recycling process for seat foam, turning waste from old vehicles into high-quality material for new ones.
- 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.
- 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.
The inherent flexibility of electric powertrains is enabling automakers to reimagine vehicle design, resulting in lighter, more efficient vehicles. Improved range, faster charging times and enhanced performance are making EVs not just environmentally conscious choices, but compelling alternatives for everyday use. The global vehicle subscription market is projected to reach as high as USD 791.0 billion by 2032 at growth rates of up to 74.6% annually. This rapid expansion reflects how automakers and mobility providers are shifting from ownership models toward flexible, access-based mobility solutions. Sensor fusion drives the automotive industry’s shift to autonomy by integrating data from cameras, light detection and ranging (LiDAR), radar, and ultrasonic sensors into a unified perception system. Mercedes-Benz’s Drive Pilot showcases this with over 35 sensors, including LiDAR and radar, working together to achieve certified Level 3 autonomy.
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.
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.
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.
With EV makers in China engaging in a price war due to declining demand, Chinese brands with strong hybrid presently are gaining popularity. A few hybrid models are priced below their EV and ICE counterparts, attracting Chinese consumers to hybrids, especially plug-in hybrid (PHEV) and extended-range hybrid (EREV) models. Further, its Craidlr ATX-G gateways are integral to the surface temperature & vibration monitoring solution, catering to diverse automotive testing needs. These gateways, combined with advanced transducers, facilitate real-time data collection. The Global Startup Heat Map below highlights the global distribution of the 4800+ exemplary startups & scaleups that we analyzed for this research. Created through the StartUs Insights Discovery Platform, the Heat Map reveals high startup activity in the US, Europe, and India.
Digital Twins and Simulation technologies take centre-stage
It offers more sustainable 3D printing by developing its own large-scale printing hardware and using fully recycled composite materials. DAM can print parts as large as 1000x3000x1000mm using engineering-grade recycled plastics. Firstly, it accelerates the design and testing process through rapid prototyping.