The market reflects its role in meeting strict safety rules and consumer demand for smarter vehicles. 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.
Increase in Digital Advertising Spending
EloySignals utilizes AI to optimize traffic flow, advising drivers on stopping or proceeding, and prioritizing emergency vehicles and vulnerable road users. India-based startup DriveTech-AI builds solutions centered around optimizing the vehicle testing process through smart solutions. Its suite of platforms and solutions allows automotive OEMs to accelerate testing data analysis and enhance automation and team collaboration. For example, its StellarAi data intelligence platform offers templates to quickly identify engineering variables, trends, and vulnerabilities. AI technologies like machine learning, deep learning, and computer vision are advancing robotic automation.
Qumasoft automates Automotive Cybersecurity Management
- The platform features customizable work product templates, detailed instructions, and comprehensive checklists for self-assessment.
- One critical challenge in transitioning to electric mobility is the availability and accessibility of charging infrastructure.
- The Latin America Energy Organisation (Olade), released a report showing that with the increase in supply, lower prices and tax incentives, Latin America and the Caribbean have great potential for EV growth.
- Its solution, carSECURITY, provides organizations with a complete cybersecurity process landscape.
- 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.
- The chip shortage is one-factor holding cars back from getting to the dealership lots.
- Technological advancements, changes in consumer preferences, regulatory changes, and global economic conditions drive these trends.
Similarly, hardware security modules (HSMs) protect encryption keys and authenticate critical functions, with secure microcontrollers embedded into electronic control units (ECUs). Additionally, Motoreto streamlines operations with features such as multi-channel publishing, branded digital tools, and integrated logistics and financing. It produces alternating current (AC) wallboxes for residential charging up to 22 kW and AC column stations for companies and municipalities.
Peugeot introduced groundbreaking technologies like the Hypersquare control system and steer-by-wire, marking a significant leap in electric vehicle design and user experience. These innovations represent the brand’s commitment to redefining driving dynamics in the EV era. Despite initial scepticism, the automotive industry is embracing enhanced connectivity by enabling real-time updates and post-production feature additions. Through our work with automotive innovators, we witness first-hand how rapidly this sector is evolving. From electrification and software integration to new mobility models, the industry faces unprecedented change.
Top 10 Global Automotive Industry Trends in 2025
The study offers data-based insights and recommendations for action for decision-makers in the automotive sector. Gain in-depth insights into the key developments that characterise the automotive industry. UK-based startup Distributed Additive Manufacturing (DAM) offers 3D printing services including design, building, and finishing of parts. It offers more sustainable 3D printing by developing its own large-scale printing hardware and using fully recycled composite materials.
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.
What is the scope of emerging auto trends?
- This regulatory advancement, combined with growing environmental awareness, is accelerating the shift towards electric mobility.
- It combines compound semiconductor nanomaterials with scalable silicon manufacturing for mass-market microelectronics.
- It provides exclusive access to vehicles and optimizes purchase decisions based on supply and demand trends.
- By 2027, the global automotive AI market is expected to grow from its 2022 valuation of USD 2.3 billion to USD 7.0 billion, with a compound annual growth rate (CAGR) of 24.1%.
- Adding to the challenge, measures such as stricter Euro 7 tailpipe standards and updated rules on battery recycling demand deeper innovation within supply chains and operations.
- Large automakers like Tesla, Alphabet, Ford, GM, and Volvo have all entered the autonomous vehicle space.
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. Maximising the ROI to investors and stakeholders while remaining competitive will be priorities of the industry.
CARNIQ Technologies specializes in Car Security & Compliance
- In addition, the initiative will leverage the data collected by adding Google’s AI capabilities to Ford vehicles.
- Henkel is using digital simulation tools to co-develop EV battery designs with automotive partners.
- The rise of electric vehicles, autonomous driving, and innovative mobility solutions will redefine how we think about transportation.
- Toyota intends to power its battery plant in North Carolina with renewable energy by 2025.
- OEMs like Toyota, Hyundai-Kia, Renault-Nissan Mitsubishi, and Stellantis already have a large portfolio of hybrid variants, including mild and full hybrids.
- These tools enable dealerships to handle inquiries efficiently, freeing time for other tasks.
- For example, Qualcomm released reports and white papers highlighting C-V2X as a critical capability for intelligent transportation systems.
- This data-driven research provides innovation intelligence that helps you improve strategic decision-making by giving you an overview of emerging technologies in the automotive industry.
- The scale established by these six stages is essential for comprehending and characterizing self-driving technologies, which span from complete human driving to complete vehicle autonomy.
Sustainable manufacturing and EV expansion deliver cost savings, regulatory compliance, and reduced emissions, positioning automakers as leaders in green mobility. For this in-depth research on the Top Auto Trends & Startups, we analyzed a sample of 3836 global startups & scaleups. The car market trends are shifting towards regional suppliers to diversify their supply chains and mitigate risks.
Advances in solid-state batteries promise higher energy density and faster charging times, while the expansion of ultra-fast chargers addresses key barriers to EV adoption. With the growing popularity of bidirectional charging (V2G) technology, EVs now contribute energy to the grid to improve stability. By focusing on digital transformation, the company aims to integrate predictive analytics and process automation, creating production systems that are adaptable and resilient. 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. Toyota unveiled its forward-thinking approach to electric vehicle design, focusing on sustainability, performance, and cutting-edge technology.
The Global Startup Heat Map showcases the distribution of 3836 exemplary startups and scaleups analyzed using the StartUs Insights Discovery Platform. It highlights high startup activity in Western Europe and the USA, followed by India. Unless otherwise noted, this page’s content was written by either an employee or a paid contractor of Semrush Inc.
Q) What are the predictions for the automotive industry?
It processes these tasks in real time at over 120 frames per second on consumer-grade graphics processing units (GPUs). Indian startup General Intelligence creates self-driving intelligence software that supports software-defined vehicles in adapting to diverse driving environments. Owing to these advancements, the global SDV market is set to reach USD 3.3 trillion by 2034, growing at 31.2% annually. Also, GPS and V2X connectivity improve fleet distribution and service reliability.
Further, their drivers use out-of-the-box or white-labeled apps to manage reservations or remotely access vehicles. Factories equipped with IoT-enabled devices and machine learning capabilities are emerging as the backbone of next-generation automotive production. These facilities use data-driven insights to optimise processes, reduce energy consumption, and increase operational efficiency. 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.
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. Its technology transports ultra-high-bandwidth video and data from sensors to processors with ultra-low latency.
consumer trends
They play pivotal roles in guiding self-driving cars, managing fleets, enhancing driver safety, and refining services such as vehicle inspections and insurance. Autonomous vehicles (AVs) are advancing transportation by minimizing the need for human drivers and enhancing last-mile delivery efficiency. 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.
Supply chain resilience and nearshoring strengthen operational stability, while vehicle cybersecurity ensures trust in connected ecosystems. 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.
Success will depend on manufacturers’ ability to balance technological advancement with practical implementation while meeting evolving consumer expectations. The transformation of the automotive sector is far from complete, but the direction is clear – towards a more sustainable, connected and intelligent future of mobility. Traditional internal combustion engine (ICE) vehicles are steadily losing ground as governments worldwide implement stricter regulations, including the EU’s upcoming ban on new ICE vehicle sales by 2035. This regulatory advancement, combined with growing environmental awareness, is accelerating the shift towards electric mobility. Canadian startup Aadhya Navik designs software solutions that improve safety, comfort, and traffic efficiency in autonomous driving.
The strides made in EV battery innovation, renewable energy adoption, and sustainability are paving the way for a more resilient and forward-thinking industry. These articles highlight not just the progress made but also the opportunities and challenges that lie ahead. Xiaomi’s foray into the electric vehicle market is exemplified by its state-of-the-art factory, capable of producing an electric car every 76 seconds. 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.
Additionally, the onboard speed recorder limits the speed to discourage dangerous driving behaviors. 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. German startup ChargeX offers a modular EV charging solution that converts parking spaces into charging stations. The startup’s platform, Aqueduct, is easy to install, has 4 charging modules with up to 22kW, provides monthly reports, and uses a Typ2 charging cable.
🤔 Uncertain Market Acceptance and Consumer Adoption of New EV Tech
This assists the drivers in keeping lanes, prevents collisions, and enables autonomous driving options. Moreover, the solution is customizable to any car model or specific OEM requirements. Additionally, smart virtual assistants are emerging as a key HMI feature, aiding drivers and passengers in interacting with vehicles and external services. The global Automotive Human Machine Interface market, valued at USD 70.41 billion in 2022, is expected to grow significantly, reflecting these advancements in automotive technology. Big data and advanced analytics play a crucial role in decision-making throughout a vehicle’s lifecycle. Vehicle-generated data facilitates predictive maintenance, fleet management, and accident response.
Procter & Gamble in Beauty and Personal Care
This shift is driven by the growing need for more efficient power management in electric vehicles, resulting in smarter and more streamlined EV designs. 2025 will witness the automotive industry transitioning from Level 2 autonomy to Levels 2.5 and 3, representing a substantial evolution in automotive technology and enhancing vehicle automation and safety. Almost 40% of all autonomous vehicles sold in 2025 are predicted to have L2 ADAS features. German OEMs already have a full roadmap from L2 to L3, with Mercedes Benz commercializing their DrivePilot system, and BMW is likely to follow soon. Emerging companies are developing advanced sensing technologies to collect extensive vehicle data and enable vehicles to better understand their surroundings. Blockchain technology is increasingly being utilized in the automotive industry for various applications.
Luxury Car Brands See Growth
Additive manufacturing shortens prototyping cycles, and IoT-driven analytics improve predictive maintenance. Changing consumer preferences, cost efficiency, technological progress, and sustainability targets drive this innovation. A Deloitte UK study found that 52% of all consumers show no interest in car subscription models; interest is higher among younger people (age 18-34). These all-inclusive options reduce the financial burdens of ownership, especially for urban users.
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. It integrates templates, examples, and practices aligned with ISO/SAE 21434, Automotive SPICE for Cybersecurity, and VDA guidelines.
The main issue holding back the popularity of these vehicles is a lack of hydrogen fueling stations. Instead, they get power from a fuel-cell stack that’s fed hydrogen and oxygen to create electricity through a chemical reaction. 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. Even six months into 2022, vehicle manufacturers haven’t been able to correct the issue of low inventory.
🌐 Trend 4: Global Supply Chain Resilience and Geopolitical Shifts
Governments are implementing innovative policies to encourage sales without increasing costs or benefiting high-income households. Car dealerships are no exception, as recent auto trends reveal that customers prefer to experience a car or dealership before purchasing. Top car brands and dealerships are embracing VR as part of their dealership photography strategies to improve the customer experience.
🔌 Trend 1: The Electric Revolution Accelerates – EVs Taking Charge
Sensor fusion and autonomous vehicle technologies enhance safety and enable intelligent driving solutions while ADAS bridges the gap to full autonomy. Moreover, automakers and tier-suppliers are increasingly focusing on sustainable steel production to lower emissions across their supply chains. 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. This innovative, circular production approach supports sustainability goals by reducing landfill waste and advancing circular economy practices in automotive manufacturing. The UK’s automotive sector offers a compelling illustration of the progress being made.
Discover all Automotive Trends, Technologies & Startups
This data-driven research provides innovation intelligence that helps you improve strategic decision-making by giving you an overview of emerging technologies in the automotive industry. In the Automotive Innovation Map below, you get a comprehensive overview of the innovation trends & startups that impact your company. Vietnamese startup Phenikaa-X creates autonomous electric vehicles with AI and multi-sensor technology for safe transportation. Its system uses functional modules, combining LiDAR, radar, cameras, and organizing with zones for car care ultrasonic sensors to perceive surroundings, analyze traffic, and navigate efficiently.
For the eighth time, we asked managers and decision-makers in the automotive industry which trends and developments they are currently focusing on. The automotive industry report of the Future Readiness Monitor 2025 provides differentiated insights into strategies, challenges and fields of action in the industry. The trends in automobile industry and startups outlined in this report only scratch the surface of automotive innovations that we identified during our in-depth research. Identifying new opportunities and emerging technologies to implement into your business early on goes a long way in gaining a competitive advantage. Get in touch to easily and exhaustively scout relevant technologies & startups that matter to you. Operating from Germany and the US, EcoG is a startup offering an IoT-based operating system and platform for EV charging.
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. As technology progresses, expect these trends to influence every facet of the automotive sector. When demand for cars plummeted in the early days of the pandemic, auto manufacturers stopped ordering them and chip producers focused their attention elsewhere. The global automotive parts market has been steadily growing for the past twenty years. Europe now is the largest market for new plug-in electric vehicles, overtaking China’s first spot.
Technology in automotive industry forges ahead—the latest technological advancements are more and more extensively used by the domain. Let’s consider the recent trends in automobile industry related to the application of latest technologies. Along with battery-powered electric vehicles, fuel cell electric vehicles (FCEV) are another alternative to internal combustion engines. 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). Fewer new vehicle purchases mean consumers hold onto their vehicles longer, reducing the available used inventory and increasing prices.