For the eighth time, we asked managers and decision-makers in the automotive industry which trends and developments they are currently focusing on. The automotive industry report of the Future Readiness Monitor 2025 provides differentiated insights into strategies, challenges and fields of action in the industry. The trends in automobile industry and startups outlined in this report only scratch the surface of automotive innovations that we identified during our in-depth research. Identifying new opportunities and emerging technologies to implement into your business early on goes a long way in gaining a competitive advantage.
- Initial deployments focus on simpler, grid-like cities such as Phoenix in the USA, Milton Keynes in the UK, and Singapore.
- These 20 automotive companies are hand-picked based on criteria such as founding year, location, funding raised & more.
- Its suite of platforms and solutions allows automotive OEMs to accelerate testing data analysis and enhance automation and team collaboration.
- It provides grants, loans, and incentives to expand domestic fabs, semiconductor R&D, and the broader supply chain.
- The Asia-Pacific region currently controls the majority of the market due to the strong uptake of electric cars (EVs) in countries like China, India, and Japan.
- Prices are expected to decrease as supply-chain issues improve, and sales continue to soften.
- This both lowers costs and improves vehicle performance, addressing both market demands and sustainability goals.
Chip Shortage Continues to Plague Auto Manufacturers
The US-based startup Procon Analytics leverages big data to offer a solution for automotive finance. The solution captures millions of data points in real time and analyzes them to enable lenders to instantly assess and reduce risk. This allows Buy Here Pay Here (BHPH) dealers to expand their businesses and extend credit to high-risk customers.
- While fully autonomous vehicles (AVs) are not yet standard on the roads, significant advancements are being made in 2025 toward realizing the vision of driverless cars.
- This decision also highlights a broader trend toward diversification in battery production hubs.
- Looking ahead, JLR’s focus on carbon-neutral manufacturing and environmentally responsible practices sets a powerful example for the industry.
- By addressing issues proactively, manufacturers and service providers can further reduce breakdowns, enhance vehicle reliability, and improve overall customer satisfaction.
- In addition, the unit supports multiple communication protocols, including CAN and FlexRay.
- By 2030, automotive industry trends 2030 will witness a significant shift towards electric and autonomous vehicles, driving sustainable growth in the car market.
Driverless Vehicles- The Future of Connected Cars
Software-defined vehicles redefine business models through centralized computing and OTA upgrades. 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. Technology in automotive industry forges ahead—the latest technological advancements are more and more extensively used by the domain. Let’s consider the recent trends in automobile industry related to the application of latest technologies.
Top 10 Emerging Automobile Trends 2025 and Beyond
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. In addition, TuSimple has partnered with Navistar and UPS to test its software under supervised driving conditions.
China remains dominant but new players are also making noise on the EV scene
The startup’s product range includes residential wallboxes from 7 to 22 kW and commercial chargers up to 132 kW. These units support CCS2 and CHAdeMO standards, ensuring broad adaptability across EV models. For example, Qualcomm released reports and white papers highlighting C-V2X as a critical capability for intelligent transportation systems. They also emphasize that regulatory support and infrastructure readiness are essential for large-scale deployment.
Sustainable Manufacturing
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.
🇨🇳 Increasing Competitiveness and Influence of Chinese Automakers
The chip shortage is proving to be costly for the industry with many auto manufacturers shutting down plants due to low supply. The global automotive parts market has been steadily growing for the past twenty years. Increasing battery efficiency as well as EV charging infrastructure can speed up adoption. As climate change concerns intensify, automakers are increasingly pressured to reduce emissions, lower their environmental footprint, and embrace green technologies. Digital twins—virtual replicas of physical systems—are gaining traction, enabling manufacturers to simulate scenarios and predict outcomes in real-time. Predictive maintenance powered by AI minimizes machine failures, while IoT networks provide detailed insights into factory operations.
The Ford Mustang GTD Is the Best Muscle Car Ever
- This approach offers more convenience and flexibility than traditional car ownership and allows consumers to change vehicles based on their needs.
- The next wave of auto trends is shaped by enabling technologies that extend beyond electrification and connectivity.
- Big data and advanced analytics play a crucial role in decision-making throughout a vehicle’s lifecycle.
- These cars offer numerous benefits, not just for drivers and manufacturers, but also for passengers and the environment.
- It also works with Ethernet and LIN, enabling integration across passenger cars, buses, trucks, and autonomous vehicles.
- By incorporating AI tools, the company has reduced production costs while accelerating vehicle launch timelines.
- German startup SafeAD develops a vision-first perception and scene-understanding pipeline for autonomous driving.
- Whether this central compute is a monolithic chip such as Nvidia Thor, which will be detailed in 2025, it will also be constructed from chiplets.
Transparency rules such as the EU’s Corporate Sustainability Due Diligence Directive and the US Uyghur Forced Labor Act add pressure for stricter supplier oversight. This transition offers shorter lead times, reduced tariff exposure, and a stronger crisis response. The startup employs the Perceived Quality Index to eliminate engineering bias by translating customer insights into measurable quality improvements. Cost savings also play a role, as recycled aluminum or bioplastics often return their investment in just over a year.
Overview – Automotive Industry
Jaguar Land Rover’s REALCAR project established a closed-loop recycling system that reclaims over 50K tonnes of aluminum scrap. The project avoids more than 500K tonnes of CO2 emissions by reducing the need for primary aluminum. Another instance is that of Michelin, which made a road-approved car tire with 45% sustainable materials. While the market for cars valued below $80k is expected to remain flat through 2031, the luxury car market is predicted to grow at up to 14% CAGR. While the past two years have been a challenge for most auto manufacturers, high-end luxury brands have experienced unexpected success.
Rise in autonomous self-driving cars
The global automotive industry, responsible for 10% of the world’s carbon dioxide emissions, faces ongoing pressure to overhaul its practices. However, the landscape is proving difficult to steady with an intricate maze of regulations that differ by country or region and lack a unified benchmarking process for sustainability. In these regions, shared mobility options like vans, minibuses, and two- and three-wheelers are more common and often electrified due to their affordability.
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.
Evolving video marketing & environmental sustainability
It’s clear that a select subset of today’s consumers are willing to pay for high-end automobiles. Power say that sales of cars worth more than $100k were outselling lower-priced cars 3 to 1 in the first quarter of 2022. Instead, they get power from a fuel-cell stack that’s fed hydrogen and oxygen to create electricity through a chemical reaction. According to a study completed by INRIX Transportation, Honolulu, New Orleans, and Nashville are the three US cities that stand to gain the most from micromobility vehicles. The market for micromobility sat at $40 billion in 2020 and is expected to grow to $195 billion by 2030.
Safety and Security in Automobiles
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.
Conclusion: The Automotive Industry in 2025
The integrated powertrain segment is likely to hold ~60-65% of the total e-powertrain market in 2025. The upcoming automotive industry trends refer to evolving changes in patterns within the sector that influence vehicle design, production, marketing, and usage. Technological advancements, along with changing consumer preferences, regulatory changes, and global economic conditions, are driving these trends. The automotive industry is highly dynamic, and these trends are subject to change over time. Monitoring and understanding these trends are critical for automakers and other stakeholders to stay ahead of their competitors. The automotive industry is transforming, fueled by evolving consumer demands, rapid technological advancements, and the urgency of addressing climate change.
Its product range includes an electric modular chassis, the standard autonomous shuttle pod, and pods for other applications. The need for high-performance processors is also growing as a result of software-defined vehicles (SDVs), which rely on semiconductors for ongoing updates and subscription-based services. The global automotive semiconductor market is projected to grow from USD 53.57 billion in 2025 to USD 86.81 billion by 2033, with a CAGR of 6.22%. Join us today and access AMS’s wealth of global news, insights, intelligence and content, and to make valuable connections with your peers from across the automotive industry. Volkswagen is using digital twin technology at its Wolfsburg plant to simulate and optimise production processes for the Tayron SUV.
- All of this puts the auto industry at the back of the line when it comes to receiving chips.
- Through our work with automotive innovators, we witness first-hand how rapidly this sector is evolving.
- The automotive industry is being altered by the integration of Artificial Intelligence (AI), which is powering a new wave of smarter and more personalized innovations.
- Notable achievements in 2024 include significant progress in reducing emissions and advancing transparent ESG reporting.
- NVIDIA’s DRIVE Thor, for instance, offers up to 2000 TOPS of AI inference performance.
- The company already has 50 Level 4 autonomous trucks operating in the Southwestern United States.
- Automotive semiconductors and sensor fusion enhance safety, efficiency, and intelligence.
- Its RISC-V IP processors adopt 32/64-bit architectures supported by a nine-stage dual-issue pipeline.
It also provides lane-change algorithms that ensure comfortable lateral movement and personalized passenger comfort profiles refined with each journey. The World Health Organization links 1.35 million annual deaths to road accidents, creating urgency for autonomy. AI, ML, and computing allow vehicles to process data points per second with split-second precision. Further, Chipv creates power control chips equipped with triple RISC-V cores, extensive on-chip memory, and robust hardware security modules. In the US, the CHIPS and Science Act allocates USD 52.7 billion in funding and offers a 25% investment tax credit. It provides grants, loans, and incentives to expand domestic fabs, semiconductor R&D, and the broader supply chain.
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 foundation of autonomous vehicle architecture lies in a set of sensors, including match logbook data with decoded VIN specs LiDAR, radar, and ultrasonic systems, providing cars with a 360-degree panoramic view.