Therefore, websites need to be easily readable and accessible across mobile devices, with clear calls to action. Brands need to provide specific offers by analyzing their customer’s needs, preferences, and behavior. OEMs like Toyota, Hyundai-Kia, Renault-Nissan Mitsubishi, and Stellantis already have a large portfolio of hybrid variants, including mild and full hybrids. At the same time, BYD, Stellantis, and Volkswagen are focused on designing a stronger PHEV portfolio. Hyundai plans to ramp up its hybrid offerings under its ‘Hyundai Way’ strategy from seven to 14 models by 2030.
Shared mobility
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. The main issue holding back the popularity of these vehicles is a lack of hydrogen fueling stations. Instead, they get power from a fuel-cell stack that’s fed hydrogen and oxygen to create electricity through a chemical reaction.
How is electric vehicle technology shaping the automotive industry?
Toyota unveiled its forward-thinking approach to electric vehicle design, focusing on sustainability, performance, and cutting-edge technology. Peugeot introduced groundbreaking technologies like the Hypersquare control system and steer-by-wire, marking a significant leap in electric vehicle design and user experience. These innovations represent the brand’s commitment to redefining driving dynamics in the EV era.
🚗 Top 7 Automotive Industry Trends Shaping 2026
- Some countries (and California) have even committed to phasing out all new sales of combustion engine vehicles over the next few decades.
- Moreover, automakers reduce tailpipe emissions, cities improve air quality, and governments reduce fossil fuel dependence.
- Searches for “autonomous driving” have increased by over 1,029% over the past 10 years.
- The U.S. and China trade war has also influenced the search for alternative sourcing options.
Many enterprises are moving ahead to create autonomous vehicles with all the multi-faceted benefits. To meet these new requirements and realize this long-term vision, approaches are required to push against the status quo. To understand AI’s impact on the automotive industry, it is important to consider the ongoing shifts across the automotive landscape, especially the transition toward software-defined vehicles. Modern vehicles have transitioned from distributed architecture to a centralized, high-performance computing model. This transformation has further streamlined the vehicle architecture, facilitating over-the-air software updates, more efficient management, and lowering overall complexity.
- We evaluate our own startup data and complement these insights with external research, including industry reports, news articles, and market analyses.
- 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.
- Moreover, the startup offers fleet-grade protection through continuous monitoring and predictive alerts.
- There will be continued demand for legacy process technology, with the construction and facilitation of the ESMC fab in Dresden progressing through 2025.
- Legacy brands like Ford, GM, and Volkswagen are launching dedicated EV lines, while startups like Rivian and Lucid push luxury and performance boundaries.
How is technology improving the auto industry?
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. Further, its Craidlr ATX-G gateways are integral to the surface temperature & vibration monitoring solution, catering to diverse automotive testing needs. These gateways, combined with advanced transducers, facilitate real-time data collection. The Global Startup Heat Map below highlights the global distribution of the 4800+ exemplary startups & scaleups that we analyzed for this research. Created through the StartUs Insights Discovery Platform, the Heat Map reveals high startup activity in the US, Europe, and India.
Major transportation industry trends in 2026
When demand for cars plummeted in the early days of the pandemic, auto manufacturers stopped ordering them and chip producers focused their attention elsewhere. The global automotive parts market has been steadily growing for the past twenty years. Europe now is the largest market for new plug-in electric vehicles, overtaking China’s first spot.
Discover all Auto Trends, Technologies & Startups
By incorporating AI tools, the company has reduced production costs while accelerating vehicle launch timelines. This approach enhances flexibility across its global operations, ensuring a rapid response to shifting market demands. Similarly, Skoda has embraced AI to navigate the complexities of modern manufacturing. Senegal-based startup Kemet Automotive manufactures all-terrain electric vehicles (EVs) designed for the road conditions.
Self-Driving Vehicles.
For example, its StellarAi data intelligence platform offers templates to quickly identify engineering variables, trends, and vulnerabilities. AI technologies like machine learning, deep learning, and computer vision are advancing robotic automation. They play pivotal roles in guiding self-driving cars, managing fleets, enhancing driver safety, and refining services such as vehicle inspections and insurance. Autonomous vehicles (AVs) are advancing transportation by minimizing the need for human drivers and enhancing last-mile delivery efficiency. These vehicles improve public transport safety by reducing accidents caused by human error.
- The USMCA requires 75% of motor industry components to be produced in North America.
- Semiconductors are, in essence, at the heart of modern car manufacturing, reshaping our understanding of mobility.
- Many of these vehicles will feature over-the-air (OTA) upgrades and V2X communication.
- Bloomberg New Energy Finance expects EVs to account for 10% of all new car sales by 2025 and 58% by 2040.
- They provide V2X applications, services, and communication stacks specifically designed for on-board units (OBUs) and road-side units (RSUs).
- For instance, AI-driven intrusion detection systems adapt to new attack patterns and block breaches before they spread.
Charge Your Porsche Cayenne Electric Like an iPhone
While the past two years have been a challenge for most auto manufacturers, high-end luxury brands have experienced unexpected success. As for those who already use micromobility vehicles, 32% say they often or very often use it instead of a private car. The market for micromobility sat at $40 billion in 2020 and is expected to grow to $195 billion by 2030. 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. Cox Automotive Industry Insights predicted total new-vehicle sales in 2022 of only 14.4 million units, a number that doesn’t even surpass 2020 sales volume.
Key Technology Trends in the Automotive Industry in 2025
This article highlights the company’s strides in electrification, material innovation, and circular economy practices. Notable achievements in 2024 include significant progress in reducing emissions and advancing transparent ESG reporting. As net-zero targets become the norm, the reliance on renewable energy is only set to grow. Exciting developments in energy storage and green hydrogen technologies promise to redefine production processes further. Moreover, the technology combines EV chargers, a DC bus, smart inverters, and an energy management platform.
Discover the Top 10 Auto Trends and Innovations
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. BMW’s Neue Klasse illustrates this shift with four superbrains that reduce wiring by 600 meters and reduce vehicle weight. This centralization allows faster product cycles, OTA updates, and cross-domain features.
Electric vehicle trends in 2025
Below, you get to meet 20 out of these 4859 promising startups & scaleups as well as the solutions they develop. These 20 automotive companies are uncover hidden problems in imports hand-picked based on criteria such as founding year, location, funding raised & more. As battery technology and charging infrastructure progress, EVs lead the push toward sustainability.
SWYTCHD offers EV Subscription
In 2025, new registrations of electric vehicles – BEVs (battery electric vehicles) and PHEVs (plug-in hybrid electric vehicles) – are anticipated to reach a record 18.1 million – up from 16.3 million in 2024. However, growth EV adoption is predicted to slow, with year-on-year growth falling from 15% in 2024 to 11% in 2025. This continues a trend in the EV industry, which has been challenged by the high cost of vehicles and a lack of charging stations.
- It enables secure data sharing for connected and shared mobility solutions, including ride-hailing, urban transportation, and delivery services.
- The system uses an app to schedule rides on autonomous vehicles, cutting down trip times compared to the available commuting options.
- The market reflects its role in meeting strict safety rules and consumer demand for smarter vehicles.
- Manufacturers are partnering with tech companies to design and produce the new operating systems necessary for the next generation of technologically advanced vehicles.
- This decision also highlights a broader trend toward diversification in battery production hubs.
- For instance, India’s eBus Sewa scheme deploys 10K electric buses to curb urban pollution.
- Its technology transports ultra-high-bandwidth video and data from sensors to processors with ultra-low latency.
🚗 Top 15 Car Drifting Games to Master the Art of Slide (
Similarly, hardware security modules (HSMs) protect encryption keys and authenticate critical functions, with secure microcontrollers embedded into electronic control units (ECUs). Additionally, Motoreto streamlines operations with features such as multi-channel publishing, branded digital tools, and integrated logistics and financing. 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.
Summary – Automotive Industry
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. As autonomous vehicles become more mainstream, governments and regulatory bodies will need to create new laws to ensure their safe deployment. 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.
Lexus LS Coupe Concept Could Be the Future of… Something
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.