The chip shortage is one-factor holding cars back from getting to the dealership lots. But, there are other various supply chain issues and factory closures that have led to low inventory, too. After demand started coming back, there simply wasn’t an adequate supply of chips, and the auto industry has been feeling the effects ever since. The parts industry is benefiting from the ever-increasing average age of vehicles on the road. The two purportedly plan to begin manufacturing an autonomous Apple electric car as of 2024.
Discover the Top 10 Auto Trends and Innovations
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.
Important Auto Industry Trends (2025-
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. 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. The solution recognizes the power requirements of every car and automatically controls the charging speed for each vehicle.
Integrated Powertrains will be Standard in EVs of the Future.
Megacasting, which involves producing large aluminium castings to replace multiple smaller components in why collectors care about detailed history vehicle structures, is gaining momentum in the automotive industry. 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. Autonomous driving is a key innovation driver but remains in a development and regulatory phase. It enhances safety via driver-assist features and promises to revolutionize mobility with robotaxis and freight automation. Its progress influences OEM investments, partnerships with tech firms, and consumer expectations.
Top 10 Emerging Automobile Trends 2025 and Beyond
It eliminates mandates that favour EVs, emphasising consumer choice and opposing regulations that make gasoline-powered vehicles less accessible. Subsidies and incentives for EVs are also under scrutiny, with plans to reconsider or eliminate government-imposed market advantages that favour them. Crucially, the order halts federal funding for EV infrastructure projects, such as charging station programs, until they align with the administration’s policy goals. Additionally, looking at supply chains, AI and machine learning are driving the rise of autonomous logistics systems that can self-optimise routing, scheduling, and inventory management.
Advanced Driver Assistance Systems (ADAS)
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.
Inside the architecture: How software-defined vehicle (SDV) platforms are built
In 2025, the future of mobility will take a new shape in ways that promise smarter, more efficient, and more sustainable vehicles. Central to this evolution is the growing demand for electric vehicles and software-defined vehicles. The automotive manufacturing sector is entering 2025 amidst seismic shifts driven by electrification, digital transformation, and the growing mandate for sustainability. Recent developments highlight how manufacturers are leveraging advanced technologies and evolving their strategies to meet these challenges. Connected cars create new revenue streams via subscription services, data monetization, and personalized experiences.
Mechatnom applies Automotive Software Modules
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. This process enables us to identify the most impactful and innovative trends in the automobile industry. Along with battery-powered electric vehicles, fuel cell electric vehicles (FCEV) are another alternative to internal combustion engines. Fewer new vehicle purchases mean consumers hold onto their vehicles longer, reducing the available used inventory and increasing prices.
- Additionally, autonomous driving technology is set to dominate the industry, creating a safer and more efficient transportation system.
- In 2024, EV sales reached 17 million units, accounting for over 20% of global new car sales.
- Sales of electric vehicles (EVs) are expected to grow, although governments may restructure their incentive programs.
- While BEVs and PHEVs showed some growth in September 2024, the year-to-date figures for BEVs are still lower than last year, and PHEVs also experienced a notable decline.
- A quick online search reveals that by 2040, 33 million autonomous cars are expected to be on the road.
- In addition, the solution works with any EV charger and enables new features to be shipped throughout the network.
Methodology: How We Created the Automobile Trend Report
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. Tesla reportedly rewrote the software it uses in its vehicles so they could run on a different type of chip. They’re so important that one analyst said, “semiconductors have moved ahead of oil as the world’s key commodity input for growth”. However, the demand for parts is also being diminished by the increasing quality of newly manufactured vehicle parts. In addition, the ecommerce automotive aftermarket market is worth an estimated $85.28 billion.
Vehicle Subscription Services: SIXT & Stellantis Partner on 250K Vehicle Subscription Deal
- They also prevent crowding in frequency bands, which is essential for ADAS and autonomous driving.
- As cities become more congested, shared mobility solutions are becoming increasingly popular.
- Nearshoring is becoming increasingly prevalent, particularly in North America, where manufacturers are shifting operations closer to key markets to mitigate supply chain risks and reduce logistical costs.
- This regulatory clarity will pave the way for broader AV adoption in cities, particularly in controlled environments like urban areas or designated autonomous vehicle lanes.
- Qumasoft’s solution enables companies to develop, produce, and operate cybersecure vehicles and components efficiently.
- Self-driving vehicles are becoming increasingly common and will continue to do so in 2025.
- The rise of such technologies reflects consumer demand for vehicles that are not just transportation tools but extensions of their digital ecosystems.
The expected reach in 2026 is expected to reach nearly $62 billion at a growth of CAGR 22.75%. Self-driving cars are considered safer since they can sense their environment and operate safely within it, eliminating factors such as human error and driver fatigue. Sustainability is a major driver reshaping vehicle design, manufacturing, and lifecycle management.
Blockchain secures supply chains and in-car data, and extended reality (XR) advances design, testing, and training. Additive manufacturing shortens prototyping cycles, and IoT-driven analytics improve predictive maintenance. Australian startup V2Grid designs V2G technology that converts EVs into mobile energy resources for homes, businesses, and the national grid.
- This technological evolution is reshaping the automotive landscape, driving innovation and efficiency.
- Automakers integrate these systems to offer more reliable vehicles across global markets.
- Also, cloud and edge computing balance fleet-scale analytics with millisecond in-car inference.
- This approach ensures our reports provide reliable, actionable insights into the automobile innovation ecosystem while highlighting startups driving technological advancements in the industry.
- On the other hand, personal vehicles are on the rise due to improving urban road infrastructure, and the popularity of pre-owned cars among young people is also driving the market growth.
- The semiconductors also enable infotainment, voice assistants, and AI-driven interfaces for a better user 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. By optimizing driving routes, connected cars help reduce emissions, contributing to a greener future. Using data from IoT technology, drivers receive real-time route suggestions to avoid traffic jams and ease congestion, ensuring faster, stress-free travel. Autonomous driving technology is one of the automotive industry’s most exciting and potentially disruptive developments.
We expect to see the concept of Mobility-as-a-Service (MaaS) develop through 2025. Initial deployments focus on simpler, grid-like cities such as Phoenix in the USA, Milton Keynes in the UK, and Singapore. Soon, this will expand to more complex urban environments as vehicle access becomes increasingly prioritised over ownership among the driving masses. In addition, it adapts to applications across fleets, workplaces, airports, and multi-housing units.
- This pushes automakers to invest heavily in electric drivetrains, recycled materials, and circular economy practices.
- Consumers research their preferred car on their mobile phones, looking for the best options, offers, and dealerships.
- Companies like Tesla, Waymo, and others are working tirelessly to refine the technology, which includes machine learning, computer vision, and lidar (light detection and ranging) systems.
- There will be continued demand for legacy process technology, with the construction and facilitation of the ESMC fab in Dresden progressing through 2025.
- 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.
- The technology has already processed over a billion customer requests and is set to grow in 2025 with predictive intelligence and maintenance technology.
Conclusion – Automotive Industry Trends
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. 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.
- We evaluate our own startup data and complement these insights with external research, including industry reports, news articles, and market analyses.
- Along with battery-powered electric vehicles, fuel cell electric vehicles (FCEV) are another alternative to internal combustion engines.
- Whilst the U.S. may be bucking it, there is certainly a global trend towards a more sustainability-forward manufacturing scene.
- The study offers data-based insights and recommendations for action for decision-makers in the automotive sector.
- Brazil is leading the way by a large margin, followed by Mexico, Costa Rica, Colombia and Chile, respectively.
- By 2025, we could see a broader adoption of fuel cell vehicles, especially in regions like Europe and Asia, where hydrogen infrastructure is beginning to grow.
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. EVs also enable new business models like vehicle-to-grid services and battery leasing. This tech shift is also accelerating the move toward software-defined vehicles and connected ecosystems. Moreover, high-performance computing platforms supply the processing power needed to run these systems in real time. NVIDIA’s DRIVE Thor, for instance, offers up to 2000 TOPS of AI inference performance.
The strong focus on technological advancements in the automotive sphere has also meant that cyber security is becoming a larger concern in a historically unconcerned industry. Threats like supply chain attacks, data breaches, ransomware, and state-sponsored intrusions are on the rise. Of course, the danger does not stop with vehicles as smart infrastructure is also at risk, potentially jeopardising safety and operational reliability. 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 are the current trends in the automotive industry?
EV sales grew from less than 1% of total vehicle sales a decade ago to more than 4% today. Rapid technological and environmental innovations have forced incumbents to adapt to new challenges. The auto industry is one of the largest and most influential markets on the planet. Overall, Auto News suggests that analysts expect the chip shortage will result in a loss of 3 million in vehicle production in 2025.