Autonomous tech will likely be bundled with subscription services, reshaping mobility economics. From electric vehicles zipping past gas guzzlers to cars that update themselves like your smartphone, the industry is in the middle of a revolution. 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. The current trends in the automotive industry seen in previous years will remain in 2025 and are likely to become automotive future trends. We hope this blog helps you understand the upcoming automotive industry trends in 2025.
Procon Analytics builds Automotive Finance
As a result of this partnership, Ford is expected to launch its own self-driving car business. The standard ranges from SAE Level 0 (no automation) to SAE Level 5 (full automation). The Society of Automotive Engineers (SAE) “Levels of Driving Automation” standard shows how stages of vehicle automation progress. In China, it was even reported that lithium-ion battery pack prices fell below $100/kWh for the first time. It’s estimated that to meet many of these net-zero emission goals, EVs will have to climb to at least half of all new car sales by 2050.
Motomatix develops Auto Parts Ordering Platform
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.
What are the Current Trends in Automotive Industry ( ?
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.
Electric Mobility
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. This chiplet-based architecture integrates with automotive processors via PCIe Gen5 and UCIe interfaces, which allows customizable and cost-effective system enhancements.
b. Charging Infrastructure Expansion
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. Displays will also be a key driver of automotive technologies in 2025, from microLEDs to the production of holographic windscreens and smart glass. Belgian startup Apache Automotive develops the APH-01, a T3 prototype for extreme terrain. It combines a gasoline engine with an electric motor to enhance fuel efficiency and reduce emissions.
Automotive industry: Where companies stand today – and what is missing
One of the most significant shifts in the automotive industry is the widespread adoption of electric vehicles (EVs). 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.
- Explore competitors’ website traffic stats, discover growth points, and expand your market share.
- 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.
- Moreover, economic efficiency improves adoption, as autonomous vehicles reduce transport costs by up to 40% and maximize logistics utilization.
- It combines compound semiconductor nanomaterials with scalable silicon manufacturing for mass-market microelectronics.
- Identifying new opportunities & emerging technologies to implement into your business goes a long way in gaining a competitive advantage.
- Moreover, Avvenire has a strategic agreement with Daymak International Inc., Canada’s leading LEV distributor.
- It produces alternating current (AC) wallboxes for residential charging up to 22 kW and AC column stations for companies and municipalities.
Nissans to Look For at Tokyo Auto Salon
Continuous change detection triggers automatic cloud updates to ensure up-to-date navigation information. South Korean startup BOS Semiconductors builds Eagle-N, an AI accelerator for in-vehicle infotainment (IVI) and ADAS. It uses Tenstorrent’s Tensix NPU core to deliver up to 250 tera operations per second (TOPS) for efficient AI processing. The Global Startup Heat Map showcases the distribution of 6000+ exemplary startups and scaleups analyzed using the StartUs Insights Discovery Platform.
China remains dominant but new players are also making noise on the EV scene
Explore the most important trade fairs and conferences to boost your business success. Contact Avenga today to learn more about what industry experts have to say about these trends. avoid surprise repairs with VIN data For instance, China has introduced policies encouraging automakers to procure up to 25% of their chips domestically by 2025, reducing reliance on foreign suppliers. There will be continued demand for legacy process technology, with the construction and facilitation of the ESMC fab in Dresden progressing through 2025. Whether this central compute is a monolithic chip such as Nvidia Thor, which will be detailed in 2025, it will also be constructed from chiplets.
Vehicle-to-Everything (V2X): V2X Prevents 80% of Non-impaired Driver Crashes
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.
- India-based startup DriveTech-AI builds solutions centered around optimizing the vehicle testing process through smart solutions.
- Manufacturers are investing in innovative mobility technologies, such as personal voice assistance, autonomous driving, and AI and ML, creating a positive market outlook.
- 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.
- The platform features customizable work product templates, detailed instructions, and comprehensive checklists for self-assessment.
- Also, radar ensures long-range detection of moving objects in all weather conditions, which is critical for adaptive cruise control and highway safety.
- Semiconductors are, in essence, at the heart of modern car manufacturing, reshaping our understanding of mobility.
- 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).
- People are shifting to EVs because of their design and their being environmentally friendly.
Tree Map reveals the Impact of the Top 10 Automotive Trends
This will further usher the industry into a new era of smarter, more connected, and more efficient vehicles. The startup’s platform combines augmented reality (AR), smart camera, and surround-view monitoring to illuminate the route on turns, curves, slopes as well as complex junctions. This assists the drivers in keeping lanes, prevents collisions, and enables autonomous driving options.
🚗 Subscription Models and Car-Sharing Services
The uptake in EVs is experiencing a surge, driven by rapid advances in battery technology, an expanding charging infrastructure and supportive government incentives. 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 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.
c. Circular Economy in Automotive Manufacturing
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. 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.
- 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.
- However, it is estimated that over 60% of all Americans have garages that will allow for electric vehicle charging.
- 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 kit maintains original vehicle features to ensure a seamless transition and familiar driving experience.
Bosch demonstrates this through 77 GHz radar modules integrated into adaptive cruise control and collision avoidance systems. 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.
THINKey operates through a secure architecture using enclaves in the phone, vehicle, and cloud, adhering to the car connectivity consortium’s digital key standard. Additionally, the startup offers infotainment solutions with plug-and-play SDKs and certification-ready apps for phone mirroring and multimedia features. 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.
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. This allows Buy Here Pay Here (BHPH) dealers to expand their businesses and extend credit to high-risk customers.
- Moreover, the technology combines EV chargers, a DC bus, smart inverters, and an energy management platform.
- These tendencies are long-term and are expected to continue shaping the auto industry in the near future.
- The platform includes geofencing, driver behavior monitoring, route mapping, and integrated or standalone camera options, accessible via a dashboard and mobile app.
- Did you know that EVs are projected to make up nearly 20% of global vehicle sales in 2026?
- By 2025, we will see increased investments in EV production as automakers cater to evolving consumer demands and regulatory pressures.
- It re-engineers proven EV technology and applies it to Land Rover Defenders, Range Rover Classics, and Series models from 1949 to 2016.
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. Sales of the most expensive cars are predicted to drive the most market growth through 2031.
However, there are yet to be more autonomous vehicles on the road due to the technological and safety challenges that must be overcome. Driverless cars have sometimes struggled with unexpected incidents on the road and in poor weather conditions. The future trends in the automobile industry suggest that 2025 can be the milestone year for connected cars. The expansion will stem from the speedy spread of data that can be capitalized upon to lower expenses, streamline research and development, enhance products and services, and restrict emissions.
What impact will 5G connectivity have on the automotive industry and its trends?
It highlights high startup activity in Western Europe and the United States, followed by India. From these, 20 promising startups are featured below, selected based on factors like founding year, location, and funding. We don’t just regurgitate press releases—we road-trip, wrench, code, and occasionally sleep in dealership parking lots to bring you unfiltered truth. Our proprietary data blends EPA fuel-economy dumps, NHTSA complaint logs, insurance quote engines, and Reddit sentiment (yes, really).
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.
The final trend, and one which has been subject to a lot of attention (and hype), is driverless transportation. 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.
- Automakers are also adopting hyper-personalized features to offer customized experiences through infotainment systems, user profiles, and real-time navigation updates.
- Advanced Driver Assistance Systems (ADAS) and autonomous driving technologies continue to evolve, bringing unprecedented changes to vehicle safety and functionality.
- The global automotive semiconductor market is expected to grow at a rate of 8.1% between 2023 and 2030.
- The Starkenn Brake Safe, a collision mitigation system features automatic emergency braking in critical scenarios.
- This decision also highlights a broader trend toward diversification in battery production hubs.
- Looking ahead, JLR’s focus on carbon-neutral manufacturing and environmentally responsible practices sets a powerful example for the industry.
- By 2030, automotive industry trends 2030 will witness a significant shift towards electric and autonomous vehicles, driving sustainable growth in the car market.
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.