Automotive semiconductors and sensor fusion enhance safety, efficiency, and intelligence. This approach ensures our reports provide reliable, actionable insights into the automobile innovation ecosystem while highlighting startups driving technological advancements in the industry. This process enables us to identify the most impactful and innovative trends in the automobile industry. 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. A recent survey reveals automotive companies have product development and launch cycles shorter than 18 months.
Electric vehicle trends in 2025
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. Environmental consciousness is driving the automotive industry toward more sustainable and eco-friendly solutions. Manufacturers are prioritizing robust security measures to protect sensitive consumer data and prevent malicious interference. 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.
Automotive Manufacturing North America
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.
MotionSafe enables AI-powered Automotive Cybersecurity
- It won’t take too long for the CASE to accelerate the transition of the automotive industry from the way it has been working for hundreds of years.
- Automotive Manufacturing Solutions (AMS) is the essential resource for automotive manufacturing professionals and suppliers globally.
- Predictive maintenance powered by AI minimizes machine failures, while IoT networks provide detailed insights into factory operations.
- ADAS adoption enables lane-keeping, adaptive cruise control, and emergency braking to rely on AI-powered processors and sensor fusion chips.
- The market for micromobility sat at $40 billion in 2020 and is expected to grow to $195 billion by 2030.
- Its RC ONE driverless vehicle combines proprietary software and hardware with automotive-grade components to achieve low-speed autonomous operation.
- These technologies enhance safety, efficiency, and user experience across vehicles.
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. 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.
- Finally, its V2AP (V2X Integration Platform) is a server-side software to amplify V2X services to elevate road safety and efficiency.
- Autonomous vehicles (AVs) are advancing transportation by minimizing the need for human drivers and enhancing last-mile delivery efficiency.
- IoT creates more opportunities for manufacturers to market to consumers even after they’ve made a purchase.
- This platform uses secured safety assurance and risk-mitigation principles to detect and address failures in assisted and self-driving systems.
- Toyota intends to power its battery plant in North Carolina with renewable energy by 2025.
- Automakers are investing in cybersecurity technologies such as hardware security modules (HSMs), AI-based intrusion detection systems, and secure over-the-air (OTA) updates to address these challenges.
Electrified Vehicles Top 50% of Sales in China
Overlanding, a newer trend, combines off-roading with remote travel and camping, with products like mounted tents falling under this category. As per the traditional method, we used to visit the dealer and purchase vehicles from him, and the dealer used to make transactions with OEMs. However, as per the new Agency model, we will get to see that the people would directly be dealing with the OEMs and the dealer’s profit would be shared by OEMs. That will enhance in gaining the trust of society and the brand’s potential customers. Consumers thoroughly research their preferred car on their mobile phones, searching for the best offers and dealerships in their area. Therefore, websites must be easily readable and accessible on mobile devices, with clear calls to action.
- Recent auto trends show that customers prefer to experience a car or dealership before purchasing.
- Qumasoft’s solution enables companies to develop, produce, and operate cybersecure vehicles and components efficiently.
- Automakers integrate these systems to offer more reliable vehicles across global markets.
- Fleet-as-a-Service (FaaS) solutions, particularly autonomous fleets, are set to transform how people navigate cities.
- Asia, home to key production hubs, remains at the epicentre of attempts to address this crisis, with nations like Taiwan investing heavily in scaling chip production.
- Connectivity is one of the key trends in automotive industry, and 5G is what takes it to a more advanced level.
- Advanced manufacturing technologies, such as megacasting and giga-stamping, are playing a pivotal role in enabling the industry’s transformation.
a. Urban Mobility and Shared Vehicles
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. These systems can detect objects, evaluate road environments, and make real-time decisions to further enhance safety and comfort. Consumer trends in the automotive industry highlight that short videos are more effective in converting leads into customers. Dealerships can take advantage of different video formats, like how-to videos, car highlights, and customer testimonials. With more and more customers prioritizing environmental sustainability, the focus should be on promoting environmentally conscious manufacturing processes along with eco-friendly cars like electric vehicles.
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. 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.
Driving Into the Future: Top Automotive Innovations and Insights of 2024
- Blockchain secures supply chains and in-car data, and extended reality (XR) advances design, testing, and training.
- For example, Toyota plans a commercial rollout by 2027 to bring solid-state battery EVs into mass production.
- South African startup Motomatix applies AI and custom software solutions to strengthen supply chain resilience in the automotive repair sector.
- These examples point to AI enabling real-time decision-making and predictive maintenance, while improving quality control and minimising downtime, marking the technology ‘a no-brainer’ for production in 2025.
- Younger generations, especially Genz or millennials prefer these vehicles as they are much more attractive.
- The Global Startup Heat Map below highlights the global distribution of the 4800+ exemplary startups & scaleups that we analyzed for this research.
- Cleaner production methods reduce operating costs and free resources for reinvestment in new technologies.
- Contact Avenga today to learn more about what industry experts have to say about these trends.
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. 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.
Explore the Top 10 Automotive Trends & Innovations in 2025
Software-defined vehicle (SDV) architectures are revolutionising automotive technology, with electric models often leading this digital transformation. While traditional OEMs are adapting to this shift, we are also witnessing newer market entrants are making significant strides in implementation, guide to license plate numbers and lookup which is making for a more competitive automotive sector. Road safety, regulatory mandates, autonomous vehicle adoption, and smart city development drive this innovation.
Rise in autonomous self-driving cars
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. And Tesla had already decided to close all its stores in 2019, now selling all new cars online.
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 upcoming automotive industry trends refer to evolving changes in patterns within the sector that influence vehicle design, production, marketing, and usage. Technological advancements, along with changing consumer preferences, regulatory changes, and global economic conditions, are driving these trends.
Kemet Automotive manufactures All-terrain Electric Vehicles
- Changing consumer preferences, cost efficiency, technological progress, and sustainability targets drive this innovation.
- Apex.OS runs on automotive electronic control units (ECUs) and offers robust, reliable, and secure APIs to develop autonomous mobility solutions.
- They play pivotal roles in guiding self-driving cars, managing fleets, enhancing driver safety, and refining services such as vehicle inspections and insurance.
- The uptake in EVs is experiencing a surge, driven by rapid advances in battery technology, an expanding charging infrastructure and supportive government incentives.
- The future trends in the automobile industry suggest that 2025 can be the milestone year for connected cars.
- By focusing on digital transformation, the company aims to integrate predictive analytics and process automation, creating production systems that are adaptable and resilient.
The industry itself, however, has remained relatively stable over the last decade.
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%. This is fueled by increased vehicle production and sales in China, Japan, and South Korea.
Industry 4.0
In 2025, used passenger car registrations are forecast to hit 179 million globally and are predicted to grow by 1.4% year-on-year. The cost of new cars remains at an all-time high, and with higher interest rates, consumers are likely either to wait for rates to decrease or to turn to the used car market. 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.
AI is also transforming automotive manufacturing by speeding up production and cutting costs. In 2024, the automotive industry experienced significant transformations, with advancements in electric vehicles (EVs), autonomous driving technologies, and shifts in global markets. Moreover, high-performance computing platforms supply the processing power needed to run these systems in real time.
It highlights workforce trends, leading investors, and key technologies driving adoption across vehicles, batteries, charging, and software. However, the primary function of these cars is not just to entertain they can connect to other vehicles (V2V), pedestrians (V2P), infrastructure (V2I), and cloud (V2C). Lastly, there’s even a term “vehicle-to-everything” (V2X), which includes all types of vehicle communication. This infrastructure ensures the safety of drivers and passengers and can even send emergency SOS messages to respective services in case of an accident, sharing all the critical information. Connectivity also enables remote diagnostics, alerts the driver about necessary maintenance, and promotes both safety and cost-efficiency.
Lexus LS Coupe Concept Could Be the Future of… Something
By 2030, automotive industry trends 2030 will witness a significant shift towards electric and autonomous vehicles, driving sustainable growth in the car market. The infrastructure for EVs is expected to become more widespread and advanced, supporting the increasing number of electric vehicles on the road. Additionally, autonomous driving technology is set to dominate the industry, creating a safer and more efficient transportation system.
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.
Electric Vehicle (EV) Production Expansion
LiDAR enables high-resolution 3D mapping by emitting laser pulses to measure distances. 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.
Integrated Powertrains will be Standard in EVs of the Future.
This facilitates the integration of Apple CarPlay, Google Android Auto, and media streaming into in-vehicle infotainment systems. UK-based startup WF Telematics offers vehicle and asset tracking solutions for businesses seeking efficient fleet management and asset monitoring. 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.
The automotive industry is highly dynamic, and these trends are subject to change over time. 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.
Canadian startup KonnectShift provides IoT solutions to optimize fleet and asset management. The startup develops Konnect – GS01, an automatic electronic logging device (ELD) to continuously track vehicular health. Israeli startup DAV offers a decentralized autonomous vehicles platform based on blockchain technology.
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. The SDVs market is set to reach 7.6 million units in 2025 from 6.2 million units in 2024. North America is commanding a 43% share as new-age OEMs focus on BEVs and software-driven architectures. Major technology providers are also solidifying their roles in key areas such as ADAS, electrical/electronic (E/E) architectures, and cloud computing solutions. This will further usher the industry into a new era of smarter, more connected, and more efficient vehicles.