As 5G and the Internet of Things (IoT) continue their growth, vehicles are becoming more and more connected. And TuSimple is hoping to begin selling all the secrets hidden in a VIN completely autonomous Level 4 trucks to fleet operators in 2024. A major barrier to this relentless growth, however, is consumer and regulatory concerns. In addition, more than half of all vehicles are expected to fall into the Level 1-5 range in 2024.
For instance, India’s eBus Sewa scheme deploys 10K electric buses to curb urban pollution. Further, it establishes local manufacturing facilities, which reduce supply chain dependency and generate employment and stimulate economic growth. Read on to explore each trend in depth – uncover key drivers, current market stats, cutting-edge innovations, and the 20 leading innovators shaping the future.
Evolving video marketing & environmental sustainability
- People are shifting to EVs because of their design and their being environmentally friendly.
- For businesses, the vehicle subscriptions lower capital requirements and simplify fleet management.
- South Korean startup BOS Semiconductors builds Eagle-N, an AI accelerator for in-vehicle infotainment (IVI) and ADAS.
- This facilitates the integration of Apple CarPlay, Google Android Auto, and media streaming into in-vehicle infotainment systems.
- Toyota unveiled its forward-thinking approach to electric vehicle design, focusing on sustainability, performance, and cutting-edge technology.
- These solutions decrease fleet wait times and cut pollution from petrol or diesel vehicles.
- In the next section, we’ll explore these and other automotive sector trends in more detail, and see how they will evolve in 2025.
- Meanwhile, environmental concerns will drive automakers to focus on sustainable manufacturing processes, alternative fuels, and circular economy principles.
- It also aligns with ISO for cybersecurity and ensures reliability under demanding automotive standards.
These over-the-air updates are becoming essential for ensuring vehicle reliability, safety and security, and are opening new revenue streams for manufacturers. Moreover, its software platform manages real-time energy flows and integrates with solar systems to optimize renewable energy usage. It also enables customers to schedule and monitor charging activity for improved efficiency. In Europe, the new General Safety Regulation II (from July 2024) and related standards embed connectivity, advanced sensors, and cybersecurity requirements into safety compliance frameworks.
Driverless Vehicles- The Future of Connected Cars
Moreover, it ensures perception in challenging conditions such as night, rain, fog, and snow. Also, cloud and edge computing balance fleet-scale analytics with millisecond in-car inference. Digital twins validate updates virtually, with Stellantis using virtual engineering workbenches to test thousands of scenarios before rollout. 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.
Urban Traffic Continues, but Some US Cities Spared
For instance, AI-driven intrusion detection systems adapt to new attack patterns and block breaches before they spread. It uses AI-powered damage recognition, estimation, and work distribution to streamline repair processes. Also, its platform manages claims and mechanical breakdowns across vehicle models from manufacturers. Further, through its smart management app, it enables users to schedule charging, monitor consumption, and manage fleets from one platform. UK-based startup Electric Car Converts changes classic Land Rovers into EVs by replacing combustion engines with modern electric motors and battery packs.
Rise in the Adoption of VR Tech
- And Tesla had already decided to close all its stores in 2019, now selling all new cars online.
- This shift is driven by the growing need for more efficient power management in electric vehicles, resulting in smarter and more streamlined EV designs.
- Moreover, blockchain and digital contracts enhance security and automate billing.
- Along with an increase in refueling stations, look to see an increase in the variety of FCEVs available to consumers in the coming years.
- 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.
- This may also see American automakers finding more challenges in exporting vehicles to regions in which regulations are more stringent.
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.
Shortage of chips will complicate the automotive industry
This is not just a European problem with Volkswagen and Stellantis, as Honda and Nissan merge, and Ford and General Motors struggle. Global economic slowdowns and fierce competition from Chinese manufacturers have slowed the growth of EVs. In 2025, the automotive industry’s digital marketing spending is predicted to keep growing. This rise in digital advertising spending is being steered by the growing usage of social media. Dealerships need to integrate strategic frameworks to capture potential buyers across different stages in the process with the use of social media marketing, click-to-call conversions, and messaging apps. UK-based startup Distributed Additive Manufacturing (DAM) offers 3D printing services including design, building, and finishing of parts.
How is the automotive industry adapting to the shift towards electric vehicles?
- It also provides validation services that ensure resilience against potential risks.
- However, it raises privacy and cybersecurity concerns that OEMs must address to maintain consumer trust.
- Regenerative braking systems, crucial in EVs and hybrid cars (HEVs and PHEVs), contribute to energy recovery rates of 5% to 20%, depending on driving conditions.
- The SAE, originally the Society of Automotive Engineers, has identified six levels of automation on the path to completely autonomous vehicles.
- Developing high-performance, long-lasting, and cost-effective batteries is a key area of focus for automakers in 2025.
- 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.
While fully autonomous vehicles have the potential to revolutionise how society moves from A to B, the industry is taking a more measured approach to implementation. Safety concerns remain in the spotlight – this is leading to greater acceptance of incremental developments in advanced driver-assistance systems (ADAS) rather than pushing for immediate full autonomy. Major automotive manufacturers are responding by rethinking their revenue models and investing heavily in on-demand vehicle access services. Meanwhile, tech companies such as Uber and Lyft continue to expand their digital-first transportation solutions, creating a more competitive and diverse mobility landscape. The startup strengthens autonomous driving by providing reliable and production-ready Level 4 vehicles that expand commercial mobility solutions. Semiconductors enhance safety by enabling faster decisions and reducing accident risks.
Vehicle Subscription Services: SIXT & Stellantis Partner on 250K Vehicle Subscription Deal
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.
Mechatnom applies Automotive Software Modules
To understand AI’s impact on the automotive industry, it is important to consider the ongoing shifts across the automotive landscape, especially the transition toward software-defined vehicles. Modern vehicles have transitioned from distributed architecture to a centralized, high-performance computing model. This transformation has further streamlined the vehicle architecture, facilitating over-the-air software updates, more efficient management, and lowering overall complexity. EloyMessage broadcasts fixed or dynamic visual and audio messages directly into vehicles, reducing driver distraction with patented technology. EloySignals utilizes AI to optimize traffic flow, advising drivers on stopping or proceeding, and prioritizing emergency vehicles and vulnerable road users.
Automotive Semiconductors: Asia-Pacific Leads with 45% Global Share
It offers ready-to-use workflows across system, software, and project management processes. Its MotionSafe Privacy platform uses algorithms to monitor controller area network (CAN) traffic and detect anomalies. The platform also erases personally identifiable information (PII) from vehicle systems to maintain privacy. For example, over-the-air (OTA) updates depend on secure encryption and authentication to block malicious code injection. Likewise, fleet operators strengthen defenses for telematics, routing data, and driver information against manipulation. AI and machine learning (ML) support cyber defenses by enabling real-time anomaly detection and predictive monitoring.
🚧 Pitfalls to Avoid: Common Missteps in the Evolving Automotive Landscape
This is especially necessary for electric, connected, and autonomous vehicles, which require specialized software and advanced technology to function safely. Manufacturers are partnering with tech companies to design and produce the new operating systems necessary for the next generation of technologically advanced vehicles. Automakers and technology giants like Google and Tesla are incorporating more digital technology into their cars. The automotive industry stands at a thrilling crossroads, where innovation meets complexity and opportunity rides alongside challenge.
- The startup develops Konnect – GS01, an automatic electronic logging device (ELD) to continuously track vehicular health.
- The rapid rollout of software-defined vehicles, vehicle-to-everything (V2X) networks, and electrification pushes automakers to secure digital systems as rigorously as physical components.
- They also facilitate the management of maintenance and repair appointments, streamlining dealership operations.
- The global ADAS market is projected to reach USD 36.6 billion by 2025, with a CAGR of 10.8% from 2025 to 2037.
- Overall, Auto News suggests that analysts expect the chip shortage will result in a loss of 3 million in vehicle production in 2025.
- The region’s substantial market share results from government incentives and the growth of the automobile industry.
Expect more biodegradable components, renewable energy-powered factories, and battery recycling programs. The trend is irreversible and will accelerate innovation while challenging legacy ICE-dependent supply chains. British startup Cube Intelligence develops a blockchain-based security platform for autonomous vehicles. The startup’s technology utilizes hash codes to block malicious attacks or hacking attempts on autonomous cars and connected cars. Additionally, Cube Intelligence offers ride-hailing and valet parking services for AVs, as well as smart parking management systems.
The Auto Industry Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation & startup scouting process. Automotive drivers now expect vehicles to behave like smartphones, gaining features through over-the-air (OTA) updates. Regulations also support adoption, as safety and emissions standards require continuous updates and smarter architectures. Indian startup SWYTCHD manages vehicle subscription services that focus on electric two-wheelers and cars. This enables an all-inclusive model that replaces ownership with monthly flexibility.
Eloy provides Connected Car Solutions
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.
Regenerative braking systems, crucial in EVs and hybrid cars (HEVs and PHEVs), contribute to energy recovery rates of 5% to 20%, depending on driving conditions. The platform includes geofencing, driver behavior monitoring, route mapping, and integrated or standalone camera options, accessible via a dashboard and mobile app. XCognition captures operator input or sensor data to generate execution-ready robotic programs to increase accuracy and reduce deployment time.
Its technology transports ultra-high-bandwidth video and data from sensors to processors with ultra-low latency. For this, it uses advanced system-on-chips (SoCs) that integrate mixed-signal analog and digital signal processing (DSP) algorithms. This includes driver monitoring systems, adaptive cruise control, and collision avoidance systems.
- Additionally, the startup offers infotainment solutions with plug-and-play SDKs and certification-ready apps for phone mirroring and multimedia features.
- Additionally, several trucking companies have tested self-driving technology, and it will soon become commonplace, with fleets of autonomous trucks sharing the road with traditional vehicles.
- Moreover, the technology combines EV chargers, a DC bus, smart inverters, and an energy management platform.
- Did you know that EVs are projected to make up nearly 20% of global vehicle sales in 2026?
- The platform includes geofencing, driver behavior monitoring, route mapping, and integrated or standalone camera options, accessible via a dashboard and mobile app.
- XTrude models the physics of FDM processes to optimize parameters like flow rate and extrusion temperature to ensure large-scale 3D printing.
- 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 electronic control unit (ECU) platform combines AUTOSAR software modules with customizable hardware.
- 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.
- These systems will become increasingly sophisticated, moving toward semi-autonomous driving capabilities and improving the overall driving experience.
- Despite these challenges, global new-vehicle sales are projected to remain flat, with new-car sales increasing.
- Cross-industry collaboration is emerging as a key enabler, with automotive companies forming partnerships to develop and implement innovative material solutions.
This kind of adoption should lead to much-improved 5G infrastructure, which could support vehicle connectivity. 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. Large automakers like Tesla, Alphabet, Ford, GM, and Volvo have all entered the autonomous vehicle space. 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.
It integrates templates, examples, and practices aligned with ISO/SAE 21434, Automotive SPICE for Cybersecurity, and VDA guidelines. 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. It also manufactures direct current (DC) fast chargers with capacities of up to 240 kW. Vehicle-to-grid solutions convert EVs into mobile energy storage units by allowing bidirectional energy flow with the grid.
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.
In Latin America, much like other regions, the electrified vehicle fleet is still only a small share of the total vehicle fleet; however, that share is growing. The fleet of light-duty EVs has grown in the last four years by more than 14 times with a very significant, 17-times increase in the fleet of plug-in hybrid vehicles (PHEVs). Brazil is leading the way by a large margin, followed by Mexico, Costa Rica, Colombia and Chile, respectively. This Electric Vehicles Market Report 2026 examines industry growth, investment flows, patent activity, and global hubs shaping the EV ecosystem. It highlights workforce trends, leading investors, and key technologies driving adoption across vehicles, batteries, charging, and software. Several leading OEMs have already announced plans to adopt the chipset for their automotive solutions, including BYD, Nuro, XPENG, Volvo and Zeekr.
Hybrid vehicles are becoming increasingly popular—they combine electric power with the reliability of a combustion engine. Compared to EVs, they don’t require charging, but at the same time reduce carbon emissions. However, it’s estimated that there will be 33 million autonomous vehicles on the road by 2040. Consumer trends in the automotive industry reveal that short videos are more effective than text in converting leads into customers in the automotive industry. Dealerships can take advantage of various videos, such as how-to videos, car highlights, and customer testimonials. The modernized vehicles available in the market have opened an opportunity for the firms that supply and also manufacture the parts.
