Meanwhile, environmental concerns will drive automakers to focus on sustainable manufacturing processes, alternative fuels, and circular economy principles. In 2024, the automotive industry is increasingly integrating cutting-edge technologies into its operations. Key automotive industry trends include a significant rise in electric vehicle production, a growing market for pre-owned vehicles, and an uptick in digital car sales. Alongside established technologies like AI and big data analytics, the industry is also embracing the Internet of Things (IoT) and blockchain for diverse applications. This technological evolution is reshaping the automotive landscape, driving innovation and efficiency.
Discover all Automotive Technologies & Startups
The US-based startup Udelv provides autonomous vehicles for last-mile deliveries. It combines advanced AI algorithms and hyper-speed teleoperations for human-assisted guidance in unique situations. The vans deliver groceries from nearby stores and send out a push notification when the order arrives.
Integrated Powertrains will be Standard in EVs of the Future.
They’re so important that one analyst said, “semiconductors have moved ahead of oil as the world’s key commodity input for growth”. Explore competitors’ website traffic stats, discover growth points, and expand your market share. In addition, the initiative will leverage the data collected by adding Google’s AI capabilities to Ford vehicles.
Transportation
Meanwhile, tech companies such as Uber and Lyft continue to expand their digital-first transportation solutions, creating a more competitive and diverse mobility landscape. Moreover, automakers offer features on demand as they are turning cars into service platforms. Likewise, projects USD billion in annual software and services revenue by 2030 from connected vehicles. 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.
Waymo’s Autonomous Cars: A Look at the Future of Transportation in Los Angeles
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. As incentives and projects pile up and resources remain limited, delivering everything on time,…
- Ultra-fast charging infrastructure minimizes downtime by offering hundreds of kilometers of range in just minutes.
- Hybrid vehicles are becoming increasingly popular—they combine electric power with the reliability of a combustion engine.
- China’s automotive sector underwent substantial changes, with battery electric vehicle (BEV) sales reaching 582,813 units in August 2024—a 20.8% increase from the previous month.
- IoT solutions can offer numerous benefits to end-users by utilizing interconnected systems, such as better safety, driving assistance, and predictive maintenance.
- 5G connectivity unlocks ultra-low latency communication, enabling real-time vehicle-to-everything (V2X) interactions.
- Self-driving vehicles are becoming increasingly common and will continue to do so in 2025.
- This agreement is expected to drastically enhance automotive trade between these regions.
💡 Related Insights: Diving Deeper into Specific Automotive Niches
Vehicle connectivity has become a really game-changing innovation in automotive industry that will transform the future of driving. Cars are becoming unprecedentedly smarter, and this trend is here to stay in the future. Seamless connectivity between automobiles, infrastructure, and pedestrians is expected to become commonplace and help increase traffic safety and improve driver experience. Since we’ve already explored the use of AI in the auto industry, it makes perfect sense to discuss connected cars, which are undoubtedly one of the top trends for the future. Connected cars are equipped with cutting-edge technology that allows them to connect to the Internet, other vehicles, and external software.
As of the end of 2023, over 1 billion miles have been driven with Tesla Autopilot enables. 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.
- Toyota unveiled its forward-thinking approach to electric vehicle design, focusing on sustainability, performance, and cutting-edge technology.
- ApexAutonomy offers modules to build 3D perception, localization, and control to enable autonomous vehicles.
- These vehicles use a re-assembly factory model, which allows upgrades and updates to extend their lifecycle.
- These technologies aim to reduce accidents and provide a safer driving experience.
- For this in-depth research on the Top Automotive Trends & Startups, we analyzed a sample of 6000+ global startups & scaleups.
- Continuous change detection triggers automatic cloud updates to ensure up-to-date navigation information.
Project portfolio management (PPM) has developed significantly over the past few years and is expected to evolve even faster in… Learn why it matters more than organic traffic and how to improve your rankings and visibility. Here’s how TikTok unboxings and gaming are driving one of 2025’s top retail trends. Data from the past 10 years shows the sale of luxury vehicles making a steep climb in 2022.
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Toyota’s Mirai and Hyundai’s Nexo have been the two major players in the market since sales launched in 2016. Along with an increase in refueling stations, look to see an increase in the variety of FCEVs available to consumers in the coming years. In addition, Hawaii passed a bill in 2022 that will create a hydrogen refueling system rebate for developers. Any infrastructure that’s built after January 1, 2023, and utilizes renewable hydrogen will be eligible for up to $200k.
Also, applications extend from adaptive cruise control, lane-keeping, and traffic jam assistance to robotaxis and driverless trucking. Advanced cameras paired with computer vision enable vehicles to classify road users, read signs, and recognize traffic signals, directly supporting ADAS and autonomous navigation. Silicon carbide (SiC) semiconductors improve energy efficiency in high-voltage EV systems by reducing losses and enhancing thermal management.
wrap up and 2025: EV batteries, gigafactories, sustainability and smart factories in auto manufacturing
Its RISC-V IP processors adopt 32/64-bit architectures supported by a nine-stage dual-issue pipeline. Connectivity also adds momentum, with 5G and V2X semiconductors enabling real-time data exchange and secure over-the-air updates. Also, regulatory frameworks such as ISO and Europe’s mandate for emergency braking systems encourage mission-critical chip integration across new vehicles.
Apostera specializes in Advanced Driver Assistance Systems (ADAS)
Automakers need to redesign their vehicles or should look for other chip options available. The AI in Automotive industry in 2026 is evolving as AI, autonomous technologies, and software-defined vehicles reshape global mobility systems. This AI in Automotive Market Report examines the trends and technologies driving vehicle intelligence, operational efficiency, safety advancement, and data-driven mobility innovation. What initially appeared to be a niche sector is now the foundation of the auto industry’s transition. While automakers spend billions developing electric cars, most governments worldwide have ambitious plans to phase out internal combustion engines.
How is technology improving the auto industry?
While regulatory hurdles remain, 2025 will likely see significant progress in integrating these services into urban infrastructure, offering consumers affordable, sustainable alternatives to owning a car. On top of all the 2025 automotive trends there will be the impact of tariffs set by the US and Europe. 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.
Launching of fuel cell EVs
These advancements guide the automotive sector toward a more intelligent, secure, and sustainable future. It includes journey replays, geofencing, and driver behavior monitoring to enhance fleet efficiency and safety. The startup also offers Leap EasyTrack, a vehicle tracking solution that allows for quick and easy self-installation, making it simple to transfer between vehicles without downtime. Car connectivity and telematics improve the driving experience with real-time data integration. Cybersecurity protects these connected systems, while regenerative braking and sustainable manufacturing practices reduce the environmental impact.
- The Tree Map below illustrates the top 10 automotive trends that will impact companies in 2024.
- The road to 2025 is set to bring even more dynamic changes, with global collaborations, technological breakthroughs, and bold strategies defining the future of manufacturing.
- It also aligns with ISO for cybersecurity and ensures reliability under demanding automotive standards.
- Indian startup RevitsOne offers AI-powered fleet-management software that is suitable for fleets of varying sizes.
- In the next section, we’ll explore these and other automotive sector trends in more detail, and see how they will evolve in 2025.
- For this in-depth research on the Top Auto Trends & Startups, we analyzed a sample of 3836 global startups & scaleups.
Consequently, the global autonomous vehicle market size is projected to reach USD 448.6 billion by 2035, growing at a CAGR of 22.2%. This chiplet-based architecture integrates with automotive processors via PCIe Gen5 and UCIe interfaces, which allows customizable and cost-effective system enhancements. BOS Semiconductors focuses on high-performance, energy-efficient AI solutions to drive innovation in autonomous driving and enhance in-cabin experiences. US-based startup Avvenire develops LEVs for efficient and eco-friendly urban transportation. Its products include the Leggera, an all-electric vehicle for on-road and off-road use, and the Spiritus, a three-wheel electric car with optional autonomous driving, Wi-Fi connectivity, and solar panels.
Car companies plan to integrate powertrain components in the next five to ten years by combining onboard chargers with batteries. Tesla already employs single inverter housings across its models, offering efficient integration of power electronics. 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.
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. Front-facing LiDAR scans the road to detect objects, track pedestrians, and respond to traffic to enhance safety. The startup uses automotive sensors and compute platforms to offer a scalable solution for cars to enable large-scale fleet learning. German startup SafeAD develops a vision-first perception and scene-understanding pipeline for autonomous driving. The charging infrastructure is more vulnerable as a result of the quick uptake of EVs, which hackers may attack to obtain customer information or interfere with services.
What is the scope of emerging auto trends?
We explore eight most influential trends expected to define the automotive manufacturing landscape, offering insights into what lies ahead for the industry. The European Commission will start talks in the New Year on the future of the industry in the region as sales of electric vehicles stall. This is not just a European problem with Volkswagen and Stellantis, as Honda and Nissan merge, and Ford and General Motors struggle. Software-defined vehicles (SDVs), where software manages essential functions like steering, braking, and infotainment, will see rapid growth over the next few years.
In addition, the startup strengthens automotive cybersecurity with features such as real-time intrusion detection and automated containment protocols. It is also integrated into fleet management dashboards and security operations centers (SOC). US-based startup MotionSafe provides AI-powered cybersecurity solutions that protect connected vehicles from data breaches and cyber threats.
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. The future trends in the automobile industry predict a roller-coaster ride for players. In 2025, the automotive industry will face global headwinds such as the energy crisis, slower global demand, and ongoing supply-chain issues. Despite these challenges, global new-vehicle sales are projected to remain flat, with new-car sales increasing.
However, their preferences changed after some time, Buyers are willing to spend an amount, while looking for the best vehicles available in the market. Businesses would start optimizing their search guides as per the consumer’s preferences. To address these threats, proactive cyber security is a must for automakers and their partners across the value chain. Robust IoT (Internet of Things) security, regular software updates, and well-prepared incident response plans are the essential building blocks of a strong cyber security strategy. In addition to EpicVIN leveraging AI on VIN datasets electrification, hydrogen fuel cell technology is gaining traction as a potential solution for zero-emission transportation. Hydrogen-powered vehicles produce only water vapor as a byproduct, making them a strong contender for sectors that are harder to electrify, such as long-haul trucking and commercial transportation.
Automotive Wire Harness & EDS Conference Returns to Detroit in 2025
Moreover, Avvenire has a strategic agreement with Daymak International Inc., Canada’s leading LEV distributor. Daymak will assemble Avvenire’s vehicles and distribute them through its network of over 200 dealers in 25 countries. Further, as part of larger decarbonization efforts, the Intergovernmental Panel on Climate Change (IPCC) emphasizes the contribution of EVs to the reduction of greenhouse gas emissions. Europe is projected to reach a 20.4% market share, while the US is likely to reach 11.2%.
