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.
According to this regulation, starting from 2024, the following features become compulsory. 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.
Challenges Facing EV Manufacturers
Let’s have a closer look at the top automotive trends poised to dominate the landscape in 2025. Supplemented by the categorisation of our experts, a clear picture emerges of where the industry stands – and where it should develop in order to remain fit for the future. Automakers are also adopting hyper-personalized features to offer customized experiences through infotainment systems, user profiles, and real-time navigation updates. Many of these vehicles will feature over-the-air (OTA) upgrades and V2X communication. Xaba’s proprietary process and AI-driven large-scale 3D printer enable sustainable materials, such as fibers, fiber-reinforced polymers, and metals, to create functional car chassis.
- For instance, Texas Instruments‘ AWR2544 radar achieves sensing beyond 200 meters.
- The automobile seminar is utilized by a lot of experts working in the automotive industry, researchers, and people with an affinity for the carmaker as a forum for sharing knowledge and collaboration.
- LiDAR sensors enable precise 3D mapping, crucial for vehicle navigation and obstacle detection.
- Alongside established technologies like AI and big data analytics, the industry is also embracing the Internet of Things (IoT) and blockchain for diverse applications.
- 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.
- Companies focus on increasing energy density to improve range and reduce charging times.
🚦 Levels of Autonomy Explained: From Driver-Assist to Full Self-Driving
A major barrier to this relentless growth, however, is consumer and regulatory concerns. 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. Searches for “autonomous driving” have increased by over 1,029% over the past 10 years. However, it is estimated that over 60% of all Americans have garages that will allow for electric vehicle charging.
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.
Also, automotive Ethernet and time-sensitive networking (TSN) provide deterministic in-vehicle data highways that keep safety-critical communication reliable. In addition, SWYTCHD includes access to premium electric scooters and cars such as the Ola S1 Pro, Ather 450X, TVS iQube, and Nexon EV. This approach enhances road efficiency and reduces fuel consumption, thereby lowering emissions. 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. US-based startup TeraDAR designs its 4D imaging sensor that enhances sensor fusion by offering the Terahertz wavelength for vehicle perception. Moreover, redundancy across sensor types improves resilience in poor weather or low visibility.
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Automotive suppliers are renegotiating their vendor/supplier contracts to align with these new predictions. What lies ahead is not just a continuation of trends but the potential for transformation that pushes the boundaries of how we move, connect, and thrive. The recently proposed 25% tariffs on imports from Mexico and Canada, while temporarily delayed, may also have a drastic impact on the global automotive supply chain. 2025 is shaping up to be an interesting year for automotive with regards to global shifts in the market with a mixed bag of potential harmony and disruption. This agreement is expected to drastically enhance automotive trade between these regions.
Issues such as liability in the event of an accident, cybersecurity measures to prevent hacking, and how to deal with AVs in mixed-traffic environments (with human drivers) will need to be addressed. One critical challenge in transitioning to electric mobility is the availability and accessibility of charging infrastructure. By 2025, significant investments in fast-charging networks will be essential for EV adoption to reach mass-market penetration.
What is the scope of emerging auto trends?
- Big data and advanced analytics play a crucial role in decision-making throughout a vehicle’s lifecycle.
- Statevolt’s decision to build its gigafactory in the UAE rather than Europe has been a talking point this year.
- When demand for cars plummeted in the early days of the pandemic, auto manufacturers stopped ordering them and chip producers focused their attention elsewhere.
- However, although the Chinese EV market may take some time to adapt to the new subsidy-free scenario, the situation is optimistic.
- Data suggests a decline in car sales across most categories, particularly traditional fuel vehicles like petrol and diesel, which saw significant drops in market share and registrations.
- This rapid expansion reflects its role in reducing road accidents, enabling connected mobility, and smart city systems worldwide.
- This article offers an inside look at the facility and Xiaomi’s ambitious plans in the automotive sector.
- Meanwhile, environmental concerns will drive automakers to focus on sustainable manufacturing processes, alternative fuels, and circular economy principles.
EVs typically use 2-3 times more semiconductor content than internal combustion engine models, and in powertrain-specific components, that multiplier is possibly higher. Demand is rising, especially for power electronics, battery management systems, and more energy-efficient chips. Also, MotionSafe protects the auto industry by securing vehicle data, supporting supply chains, and ensuring a safe transition to connected mobility. South African startup Motomatix applies AI and custom software solutions to strengthen supply chain resilience in the automotive repair sector.
Top trends driving the automotive sector in 2025
This article dives into the company’s ambitious production targets, including the development of Gigafactory Mexico and its innovative approaches to battery cell technology. By streamlining its supply chain through vertical integration, Tesla is raising the bar for EV production efficiency and sustainability. As 2024 comes to a close, the automotive manufacturing industry continues to accelerate its transformation. From groundbreaking advancements in EV battery technologies to bold steps toward sustainable production, this year has marked a pivotal shift in how vehicles are designed, built, and powered.
c. Circular Economy in Automotive Manufacturing
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.
- The demand is highest for vehicles under four years old, which have the latest technologies but are less expensive than new cars.
- The study offers data-based insights and recommendations for action for decision-makers in the automotive sector.
- German startup CARNIQ Technologies enhances vehicle cybersecurity through web-based and AI-powered tools that ensure compliance with automotive standards.
- Indian startup RevitsOne offers AI-powered fleet-management software that is suitable for fleets of varying sizes.
- Automakers must balance traditional desires for performance and style with new expectations for tech integration and environmental responsibility.
- Let’s consider the recent trends in automobile industry related to the application of latest technologies.
- Further, high-speed automotive Ethernet, 5G networks, and V2X communication extend a car’s perception beyond its line of sight.
- Leading companies such as Volkswagen, General Motors, and Volvo have committed to producing zero-emission vehicles and achieving carbon-neutral operations by mid-century.
- The US market was worth $14 billion in 2021 and is expected to grow at a CAGR of 10.7% to reach more than $31 billion by 2028.
- This transformation has further streamlined the vehicle architecture, facilitating over-the-air software updates, more efficient management, and lowering overall complexity.
Optimizing mobile experiences & personalization
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.
Batteries are the heart of any electric vehicle, and improvements in battery technology will continue to shape the future of EVs. Companies focus on increasing energy density to improve range and reduce charging times. The trends shaping automotive manufacturing in 2025 emphasize innovation, sustainability, and connectivity. As electric vehicles become mainstream, digitalization reshapes production, and mobility services redefine car ownership, the industry is set to transform how vehicles are manufactured and used.
Increase in digital advertising spending
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. These cars offer numerous benefits, not just for drivers and manufacturers, but also for passengers and the environment.
What role does autonomous driving play in current automotive trends?
This process enables us to identify the most impactful and innovative trends in the automobile industry. The latest technology in automobile industry have revolutionized the way vehicles are designed, manufactured, and sold, and the vehicles themselves have become much more than a means of transport. A recent survey reveals automotive companies have product development and launch cycles shorter than 18 months. As per market and industry experts, these four trends represent the future of the automotive industry. It won’t take too long for the CASE to accelerate the transition of the automotive industry from the way it has been working for hundreds of years.
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.
- Fleet-as-a-Service (FaaS) solutions, particularly autonomous fleets, are set to transform how people navigate cities.
- Singapore’s adaptive traffic signal systems, along with real-time monitoring, ERP pricing, and predictive analytics, improve traffic efficiency.
- In 2024, EV sales reached 17 million units, accounting for over 20% of global new car sales.
- German startup Qumasoft offers a software-driven cybersecurity management solution for vehicles and components.
- The autonomous vehicle sector will advance as UN regulators lift their speed limit.
- Volkswagen’s Traton Group, recognising the urgency of addressing these bottlenecks, is planning a third battery assembly plant in Europe.
- In 2025, more dealerships are expected to offer online sales, vehicle inspection, and home delivery.
- In addition, more than half of all vehicles are expected to fall into the Level 1-5 range in 2024.
- Emerging companies are working to build the first fully autonomous vehicle for city roads, which in turn accelerates the advancements in-vehicle connectivity and IoT.
Move-X Autonomous Driving advances Level 4 Mobility Solutions
It also enables customers to schedule and monitor charging activity for improved efficiency. Australian startup V2Grid designs V2G technology that converts EVs into mobile energy resources for homes, businesses, and the national grid. Its bidirectional charging system enables EV batteries to both draw electricity and feed surplus power back, which balances demand during peak hours and reduces strain on infrastructure. In Europe, the new General Safety Regulation II (from July 2024) and related standards embed connectivity, advanced sensors, full article on 2025 U.S. car popularity and cybersecurity requirements into safety compliance frameworks. This increases the regulatory push toward connected and safety-enhanced vehicles.
Autonomous Vehicles (AVs)
- Its bidirectional charging system enables EV batteries to both draw electricity and feed surplus power back, which balances demand during peak hours and reduces strain on infrastructure.
- Indian startup ThinkSeed develops middleware solutions that enhance smartphone connectivity to vehicles for secure access and infotainment.
- This communication system is crucial for the safe deployment of autonomous vehicles, as it will enable them to “talk” to other vehicles and infrastructure, reducing the risk of accidents.
- Localized production and sourcing are gaining momentum as companies aim to mitigate risks and ensure a steady supply of components.
- Brands need to provide specific offers by analyzing their customer’s needs, preferences, and behavior.
- Personalising the IVX will drive the need for AI agents, which is one reason why EDA tool vendor Synopsys is working with Sima.ai.
- The integration of 5G networks is accelerating advancements in vehicle-to-infrastructure (V2I) and vehicle-to-vehicle (V2V) communication, supporting autonomous driving functionalities.
The startup also serves other industries, such as aerospace, construction, and biomedical. Indian startup RevitsOne offers AI-powered fleet-management software that is suitable for fleets of varying sizes. The startup’s vehicle management system provides insights into speed, running vitals, and health information. Drivers benefit from Voicera ID, a voice-based virtual assistant that helps them keep track of the information they need.
Auto brands that stay on top of these trends and continue to innovate will be able to build a resilient business, that will help nurture a more electrified, connected, and sustainable future. With EV makers in China engaging in a price war due to declining demand, Chinese brands with strong hybrid presently are gaining popularity. A few hybrid models are priced below their EV and ICE counterparts, attracting Chinese consumers to hybrids, especially plug-in hybrid (PHEV) and extended-range hybrid (EREV) models.
Google and Ford recently announced a connected car partnership called Team Upshift. This type of vehicle is defined by its ability to communicate with other software systems and collect data from its surroundings. And TuSimple is hoping to begin selling completely autonomous Level 4 trucks to fleet operators in 2024. In addition, more than half of all vehicles are expected to fall into the Level 1-5 range in 2024. There are already over 30 million vehicles on the road that meet the Level 1 standard.
Mobility
Governments also enforce stricter safety standards, pushing automakers to integrate advanced sensor systems. Further, sensor fusion systems incorporate AI and machine learning (ML) algorithms to enhance optimization, predictive maintenance, and decision-making. With a CAGR of 25.5% from 2025 to 2037, the global sensor fusion market is expected to reach USD 7.91 billion by 2025. The automotive cybersecurity market is projected to reach USD 5.11 billion in 2025, with a CAGR of 18.14% from 2024 to 2034. Specific components like silicon carbide (SiC) and gallium nitride (GaN) power devices are expected to see growth, offering up to 60% improved efficiency over traditional silicon components. Jaguar Land Rover’s “Reimagine” strategy has cemented its position as a sustainability leader.
ARK MOTORS builds Electric Vehicles
In 2024, EV sales reached 17 million units, accounting for over 20% of global new car sales. Also, the EV market is projected to reach USD 6.16 trillion by 2035 at a CAGR of 25.32%. Autonomous driving demonstrates scalable deployment across passenger and freight use cases, and subscription models give consumers flexible access to vehicles. Software-defined vehicles redefine business models through centralized computing and OTA upgrades.
- The US-based startup Procon Analytics leverages big data to offer a solution for automotive finance.
- Battery improvements reduce costs and increase range, making EVs more accessible.
- It also supports this process by integrating buybacks, residual value calculations, and automated stock analysis.
- 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).
- The U.S. and China trade war has also influenced the search for alternative sourcing options.
- The solution captures millions of data points in real time and analyzes them to enable lenders to instantly assess and reduce risk.
This digital transformation enhances scalability, a key driver in the competitive automotive sector. Companies like Huawei are allocating significant resources to developing EVs with cutting-edge ADAS and autonomous features. These technologies aim to reduce accidents and provide a safer driving experience.
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.
All of this puts the auto industry at the back of the line when it comes to receiving chips. Now, 94% of consumers check the manufacturer’s website for product information before purchasing a part. And Tesla had already decided to close all its stores in 2019, now selling all new cars online. This makes sense, as 83% of car customers already said they wish they could save time by shopping online. This number is expected to have risen in 2020 as dealers everywhere turned to digital channels. As of 2023, the two now equip Ford and Lincoln vehicles with a built-in Android operating system.