However, it’s estimated that there will be 33 million autonomous vehicles on the road by 2040. Virtual car shopping is the new norm and will remain a significant car industry trend for years. The booming e-commerce industry is essential to the global online car buying demand. This is further fueled by increasing awareness of convenience and supported by rising digital literacy, internet accessibility, urbanization, and disposable income levels. After the pandemic, we developed a habit of shifting all requirements to online methods, and so do goes with the automobile industry. Our new generation which is called millennials or Genz researches everything online before the actual purchase.
Electric Vehicle (EV) Production Expansion
DAM can print parts as large as 1000x3000x1000mm using engineering-grade recycled plastics. Firstly, it accelerates the design and testing process through rapid prototyping. The Automotive Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation & startup scouting process. Identifying new opportunities & emerging technologies to implement into your business goes a long way in gaining a competitive advantage. The vehicle’s architecture includes a 3D mapping system that merges GPS and IMU data with digital maps to determine precise positioning and plan optimal routes.
Procter & Gamble in Beauty and Personal Care
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.
Conclusion – Automotive Industry Trends
- Increasing battery efficiency as well as EV charging infrastructure can speed up adoption.
- It offers ready-to-use workflows across system, software, and project management processes.
- In addition, TuSimple has partnered with Navistar and UPS to test its software under supervised driving conditions.
- Connected vehicles are entering a software-defined era where 5G, AI, and V2X convert cars into real-time data nodes that communicate smoothly with infrastructure, other vehicles, and the cloud.
- They offer a safe, comfortable, and convenient multimedia experience with on-demand features that allow users to browse the web while in their vehicle.
- Moreover, the startup’s marketplace connects professionals in a secure environment.
- ABB is investing in advanced software that simulates automotive painting processes, cutting costs by up to 30%.
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.
Transportation
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.
wrap up and 2025: EV batteries, gigafactories, sustainability and smart factories in auto manufacturing
The integrated powertrain segment is likely to hold ~60-65% of the total e-powertrain market in 2025. Connected cars create new revenue streams via subscription services, data monetization, and personalized experiences. However, it raises privacy and cybersecurity concerns that OEMs must address to maintain consumer trust. The connected car market is a battleground for tech giants and traditional automakers alike. Sustainability is a major driver reshaping vehicle design, manufacturing, and lifecycle management.
🚦 Levels of Autonomy Explained: From Driver-Assist to Full Self-Driving
The continued global expansion of various players will require a strategic focus on supply chain efficiencies and may bring transformation and consolidation in the industry. Figures from the last few years show that the EV adoption rate is still slow at a global level. However, the share of cars that are electric (hybrid and full electric) continues to rise. Also, despite the slowing adoption rate, data has shown that the number of electric and hybrid vehicles actually on the road has dramatically increased (from 26 million in 2022 to 40 million in 2023).
Q) What is the trend of automotive industry in India?
- Our proprietary data blends EPA fuel-economy dumps, NHTSA complaint logs, insurance quote engines, and Reddit sentiment (yes, really).
- Emerging automotive industry trends include the increased adoption of electric vehicles (EVs), advanced semiconductors, and the growing focus on vehicle cybersecurity.
- Automakers reduce reliance on distant suppliers as trade tensions and conflicts expose the fragility of global networks.
- Every year brings with it new shifts in technology, consumer behaviour, and market dynamics, all of which shape and build automotive as a cornerstone industry of the world.
- Lastly, MARV.Automotive is a configurable and extensible data management platform that reliably transmits data from the vehicle to the cloud.
Its platform automates the cybersecurity management system (CSMS) and product cybersecurity evidence (PCSE) to ensure compliance with UNECE R 155 and ISO/SAE 21434. We evaluate our own startup data and complement these insights with external research, including industry reports, news articles, and market analyses. This process enables us to identify the most impactful and innovative trends in the automotive industry. Volvo Cars has announced plans to adopt large aluminium castings for its next-generation electric vehicles, aiming to simplify production and enhance sustainability.
- For instance, Volkswagen integrated DSRC-based V2X technology into its Golf 8 and its ID electric series in Europe.
- Connected cars create new revenue streams via subscription services, data monetization, and personalized experiences.
- The segment’s sales will rise in the first six months of fiscal 2025, while the industry’s revenue will increase at the same pace to $33.8 billion.
- Tesla reportedly rewrote the software it uses in its vehicles so they could run on a different type of chip.
- Notable achievements in 2024 include significant progress in reducing emissions and advancing transparent ESG reporting.
- Automakers move from fleets of electronic control units (ECUs) toward centralized computing platforms that run multiple domains on Systems on Chip (SoCs).
- As the technology evolves and becomes more affordable for the industry, it opens more and more opportunities every year.
Top 10 Automobile Industry Trends & Innovations (
Whilst the U.S. may be bucking it, there is certainly a global trend towards a more sustainability-forward manufacturing scene. However, as with all complex bodies of rulesets, differing rules and regulatory mandates across the globe make it easier for international automakers to fall foul of compliance. Ransomware-related costs in the automotive industry skyrocketed from $74.7 million to $209.6 million in just the first half of 2023. System downtime caused by these attacks reached $1.99 billion, compared to $1.3 billion in 2021. AI, automation, and an ‘electric-first’ mindset are impacting every industry, and automotive is no exception.
OEMs are juggling more regulations with fluctuating demands and ongoing chip shortages
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.
The rise of such technologies reflects consumer demand for vehicles that are not just transportation tools but extensions of their digital ecosystems. Connected cars enable real-time navigation updates, remote diagnostics, and seamless smartphone integration. They also support smart city initiatives by offering data for traffic management and logistics automation. Established in 2007, SG Analytics is a Great Place to Work® (GPTW) certified company with a team of over 1200 employees and a presence across the U.S.A., the UK, Switzerland, Poland, and India.
The shortages have forced manufacturers to delay product launches and reduce outputs, among other issues. 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. Additionally, Europe and the U.S. have sought to bolster their chip and semiconductor production with the ‘European Chips Act’ and the ‘CHIPS and Science Act’, respectively. Whilst these acts have been active for some years now, the landscape has not changed drastically. Until these efforts bear fruit, the industry will need to focus on mitigating risks and prioritising demand effectively.
Automotive trends in 2025 impacting middle-market organisations
Singapore’s adaptive traffic signal systems, along with real-time monitoring, ERP pricing, and predictive analytics, improve traffic efficiency. The automotive V2X market reached USD 2.87 billion in 2025 and is expected to expand to USD 18.67 billion by 2030 at a CAGR of 45.43%. This rapid expansion reflects its role in reducing road accidents, enabling connected mobility, and smart city systems worldwide. Moreover, the startup engineers the ECU platform with compliance to ISO for functional safety. It also aligns with ISO for cybersecurity and ensures reliability under demanding automotive standards.
Tree Map reveals the Impact of the Top 10 Automotive Trends
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.
- Automakers will continue to incorporate these systems into even more affordable models, making safety technologies more accessible to a broader range of consumers.
- After a disappointing 2019 in terms of EV sales, 2020 sales surpassed expectations, growing over 40% year-over-year.
- This data alerted drivers to pedestrians and cyclists before they became visible.
- 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.
- Further, its Craidlr ATX-G gateways are integral to the surface temperature & vibration monitoring solution, catering to diverse automotive testing needs.
- Sales of passenger cars were down 25% in the first half of 2022 compared to the same period in 2021.
- For this in-depth research on the Top Auto Trends & Startups, we analyzed a sample of 3836 global startups & scaleups.
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. Norwegian startup Chargerly designs vehicle-to-building (V2B) solutions that integrate EVs with building energy systems to improve resilience, efficiency, and sustainability. 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.
Autonomous Driving: Waymo Offers 250K Paid Rides Weekly Across US Cities
The modernized vehicles available in the market have opened an opportunity for the firms that supply and also manufacture the parts. Modernized and upgraded vehicles with much more technology allow a thunder growth for the markets providing parts of the vehicles. Conversely, in Europe, regulations are scaling up in preparation for the EU ban on new ICE vehicles by 2035. Chinese EV automakers’ expansion into new markets, including Europe, other Asian countries, and Latin America as previously mentioned, could see a completely new global EV landscape. Perhaps the biggest shift here is in a new manufacturing landscape, with new decentralised hubs across the globe producing EVs for local markets. On the other side of the globe, in Asia, China has implemented a landmark energy policy, aptly named the ‘Energy Law’, as of January 2025.
How is electric vehicle technology shaping the automotive industry?
This data-driven research provides innovation intelligence that helps expanded data coverage in EpicVIN reports 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 ultrasonic sensors to perceive surroundings, analyze traffic, and navigate efficiently.
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