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. Younger buyers often prefer subscription models or shared mobility over ownership.
More automakers collaborating with tech companies
Sustainable manufacturing lowers emissions, which allows automakers to meet compliance requirements and reduce their environmental footprint. Cleaner production methods reduce operating costs and free resources for reinvestment in new technologies. In 2025, electrification and software integration will have an essential impact on the automotive industry. These tendencies are long-term and are expected to continue shaping the auto industry in the near future. In the next section, we’ll explore these and other automotive sector trends in more detail, and see how they will evolve in 2025. Environmental concerns and technological innovations are advancing faster than many anticipated.
Major Shifts in China’s Automotive Industry
This growth is driven by the increasing adoption of electronic control units (ECUs) in modern vehicles and the rising implementation of advanced safety systems. Semiconductors are, in essence, at the heart of modern car manufacturing, reshaping our understanding of mobility. Developing high-performance, long-lasting, and cost-effective batteries is a key area of focus for automakers in 2025. Batteries are the heart of any electric vehicle, and improvements in battery technology will continue to shape the future of EVs.
Sustainable Manufacturing
- This platform uses secured safety assurance and risk-mitigation principles to detect and address failures in assisted and self-driving systems.
- Following these trends helps greater penetration in the emerging market, like the growing adoption of electric vehicles in China and India.
- UK-based startup Distributed Additive Manufacturing (DAM) offers 3D printing services including design, building, and finishing of parts.
- Its bidirectional charging technology allows EV batteries to supply electricity to buildings during outages or peak demand.
- Meanwhile, tech companies such as Uber and Lyft continue to expand their digital-first transportation solutions, creating a more competitive and diverse mobility landscape.
- Connectivity also enables remote diagnostics, alerts the driver about necessary maintenance, and promotes both safety and cost-efficiency.
- This approach equips them to differentiate their offerings, with software being the key to creating compelling customer experiences.
- Now, 94% of consumers check the manufacturer’s website for product information before purchasing a part.
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. Moreover, redundancy across sensor types improves resilience in poor weather or low visibility.
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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.
Improve DH58GOH9.7: Top Tips to Boost Performance and Efficiency Today
The same report states that 68% of drivers believe car companies should collect personal data, but only 5% agree to unrestricted collection. Most favour an opt-in approach (63%), and many are willing to share data for benefits, with 67% open to lower insurance rates, 43% for personalised features, and 36% for improved safety options. As will be discussed later, with more data being collected for premium features, the inevitable concern for data security is raised, and cyber security threats loom overhead. Connected vehicles are entering a software-defined era where 5G, AI, and V2X convert cars into real-time data nodes that communicate smoothly with infrastructure, other vehicles, and the cloud. Our new report spotlights 10 connected vehicle trends to watch in 2026 that promise safer, smarter mobility and fresh revenue streams for automakers.
- Alongside established technologies like AI and big data analytics, the industry is also embracing the Internet of Things (IoT) and blockchain for diverse applications.
- The industry trends show a positive perspective for the times to come despite the expected global slowdown and supply chain disruptions.
- Many expected the auto industry to mount a post-pandemic rebound in 2021, but that didn’t happen.
- Moreover, the solution is customizable to any car model or specific OEM requirements.
- This assists the drivers in keeping lanes, prevents collisions, and enables autonomous driving options.
- Also, adoption rises quickly, with China reaching 50% EV penetration in 2024, and in India, over 18.8 lakh EVs are supported under FAME schemes till June 2025 by the government.
- These innovations collectively propel the industry towards safer, more efficient transportation.
AI to Impact All of the Automotive Trends
- It highlights workforce trends, leading investors, and key technologies driving adoption across vehicles, batteries, charging, and software.
- Shared mobility reduces individual car ownership, especially in urban areas, impacting vehicle sales volumes but increasing demand for fleet vehicles and mobility-as-a-service (MaaS) platforms.
- It is also integrated into fleet management dashboards and security operations centers (SOC).
- Its image-signal processor manages approximately 1 billion pixels per second from high dynamic range (HDR) sensor inputs.
- These advanced technologies are widely used across a great number of industries and the automotive domain is no exception.
- The World Health Organization links 1.35 million annual deaths to road accidents, creating urgency for autonomy.
- However, the demand for parts is also being diminished by the increasing quality of newly manufactured vehicle parts.
- By the second quarter of 2024, global cyber-attacks had surged, with organisations facing an average of 1,636 attacks per week—a 30% year-on-year increase.
Most consumers today are much more concerned with what the in-cabin experience is going to be, than the size and power of the engine. However there are huge opportunities for the industry in the shift to software-defined vehicles and autonomous driving. These shifts are beneficial to ARM, STMicroelectronics, NXP Semiconductors and Infineon Technologies. Contact us today to make critical data-driven decisions, prompting accelerated business expansion and breakthrough performance. GenAI offers potential for advanced applications like predictive maintenance, where AI could assist in analyzing vehicle data and forecast potential failures before they occur. This would mark a critical shift toward an era of personalized vehicle recommendations and optimized repair services.
Cube Intelligence builds Blockchains for Autonomous Vehicles
They also enable software updates, enhance entertainment, and facilitate smooth communication in connected and software-defined vehicles. The concept of Mobility as a Service (MaaS) is changing how people think about transportation. Instead of owning a car, consumers will increasingly use digital platforms to access transportation services on demand, whether through ride-sharing, car-sharing, or subscription models. MaaS is set to become a key focus for the automotive industry in 2025 as companies look to diversify their business models and create new revenue streams. Autonomous driving is one of the most prominent applications of AI in the industry.
Automotive Events Worldwide
These are the old and traditional methods that buyers use to contact dealers or check your products or information about the brand on search engines. Buyers check all the accessible platforms like your social media, website, videos, and more. Buyers would be shifting to a new modernized model and will directly deal with OEMs (original equipment manufacturers) and the dealer will play the role of an agent. By the second quarter of 2024, global cyber-attacks had surged, with organisations facing an average of 1,636 attacks per week—a 30% year-on-year increase. North America bore the brunt, accounting for 58% of publicly extorted ransomware victims. Manufacturing was not spared either, representing 29% of global ransomware targets, an alarming 56% rise over the previous year.
- 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).
- It highlights high startup activity in Western Europe and the USA, followed by India.
- The segment’s sales will rise in the first six months of fiscal 2025, while the industry’s revenue will increase at the same pace to $33.8 billion.
- It’s clear that a select subset of today’s consumers are willing to pay for high-end automobiles.
- For our trend reports, we leverage our proprietary StartUs Insights Discovery Platform, covering 7M+ global startups, 20K technologies & trends, plus 150M+ patents, news articles, and market reports.
- The adoption of pre-owned luxury cars is increasing due to easy access to financing and lower entry prices.
- Key players like Bosch, Continental AG, and ZF Friedrichshafen AG are investing in technological advancements.
- Car companies plan to integrate powertrain components in the next five to ten years by combining onboard chargers with batteries.
- As per market and industry experts, these four trends represent the future of the automotive industry.
- Bloomberg New Energy Finance expects EVs to account for 10% of all new car sales by 2025 and 58% by 2040.
Advanced Safety Features
Toyota’s North Carolina battery plant exemplifies this commitment, with operations fully powered by renewables. Recycling initiatives, such as reusing EV batteries, further emphasize the industry’s shift toward circular manufacturing. “Advanced sensors will make a significant impact on ADAS solutions by providing more accurate data and improving safety maneuvers, from lane-keep-assist to auto parking and braking,” added Lyons. The automotive industry was perhaps the saving grace of the European semiconductor industry in 2023, but reality has hit hard in 2024. 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.
On the bright side, partnerships between automakers and tech companies are fuelling innovation and accelerating development, bringing their vision of safer, smarter transportation closer to reality. In 2023, the global connected car market was valued at $80.87 billion and projecting remarkable growth. It is expected to expand from $95.14 billion in 2024 to $386.82 billion by 2032, reflecting a robust compound annual growth rate (CAGR) of 19.2% over the forecast period according to some figures. Discover trends, forecasts, and global developments shaping the future of mobility. These systems will become increasingly sophisticated, moving toward semi-autonomous driving capabilities and improving the overall driving experience. Environmental consciousness is driving the automotive industry toward more sustainable and eco-friendly solutions.
Vehicle Subscription Services: SIXT & Stellantis Partner on 250K Vehicle Subscription Deal
- This type of vehicle is defined by its ability to communicate with other software systems and collect data from its surroundings.
- The booming e-commerce industry is essential to the global online car buying demand.
- Read on to explore each trend in depth – uncover key drivers, current market stats, cutting-edge innovations, and the 20 leading innovators shaping the future.
- In this article, we’ll explore the significant focuses of the automotive industry in 2025, ranging from electric mobility to autonomous driving and sustainability initiatives.
- This article sheds light on how OEMs are embracing solar, wind, and hydrogen power to achieve sustainability goals.
- Solid-state batteries increase energy density, shorten charging times, and give EVs longer ranges and greater convenience.
- Following these trends will equip enterprises with greater penetration in the emerging market, such as the growing adoption of EVs across China and India.
The truck’s design removes the internal combustion engine, advancing commercial vehicle safety standards, and protecting pedestrians and other road users. Volta Trucks also offers leasing or purchasing options, and integrates services like maintenance, charging infrastructure, and training through its truck-as-a-service model. This simplifies the transition to electric vehicles for fleets, reducing environmental impact and promoting safer urban transport. US-based startup FlxTran develops a new transportation system using self-driving vehicles on abandoned railroad tracks to provide fast regional transport to connect smaller communities.
As 5G and the Internet of Things (IoT) continue their growth, vehicles are becoming more and more connected. And TuSimple is hoping to begin selling completely autonomous Level 4 trucks to fleet operators in 2024. A major barrier to this relentless othercars section on saabnet bulletin board growth, however, is consumer and regulatory concerns. In addition, more than half of all vehicles are expected to fall into the Level 1-5 range in 2024.
Toyota’s Legendary Hilux Is Going Electric
Due to these advancements, the global automotive IoT market is anticipated to reach USD 56 billion by 2026 at a CAGR of 19% during the period from 2021 to 2026. It also uses regenerative braking to capture and store energy in the car’s battery. The APH-01 incorporates flax fiber in its body shell, which reduces weight, increases impact resistance, and improves vibration damping. In addition to enhancing energy efficiency, regenerative braking systems reduce greenhouse gas emissions by recovering energy during braking to support global efforts to meet stricter emission norms. The automotive regenerative braking market is expected to reach USD 13.83 billion by 2029, growing at a CAGR of 15.8%. Keyvault raised USD 1 million in January 2025 to introduce smartphone-enabled car keys in the US, following the trend of incorporating smart device features into automobiles.
Increase in Digital Advertising Spending
The system uses an app to schedule rides on autonomous vehicles, cutting down trip times compared to the available commuting options. FlxTran’s approach improves connectivity and access to opportunities beyond major cities. This chiplet-based architecture integrates with automotive processors via PCIe Gen5 and UCIe interfaces, which allows customizable and cost-effective system enhancements.
The move highlights the scale of investment required to meet zero-emission vehicle targets and align with regulatory pressures for decarbonisation. 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. This article profiles the top five Chinese automotive original equipment manufacturers (OEMs) leading the industry in sales volume and market capitalization.
However, it raises privacy and cybersecurity concerns that OEMs must address to maintain consumer trust. The connected car market is a battleground for tech giants and traditional automakers alike. Automotive industry trends refer to changes in patterns within the automotive sector that influence vehicle design, production, marketing, and usage. Technological advancements, changes in consumer preferences, regulatory changes, and global economic conditions drive these trends. The automotive industry is highly dynamic, and trends are subject to change over time. Monitoring and understanding these trends is crucial for automakers, suppliers, and other stakeholders to stay competitive.
Conclusion: The Automotive Industry in 2025
The startup’s sensors provide consistent performance by transmitting and interpreting signals effectively. They also prevent crowding in frequency bands, which is essential for ADAS and autonomous driving. LiDAR provides high-resolution 3D mapping that allows vehicles to detect road geometry, obstacles, and pedestrians with centimeter-level accuracy. Also, radar ensures long-range detection of moving objects in all weather conditions, which is critical for adaptive cruise control and highway safety. Chinese startup Chipv offers automotive semiconductors that combine computing capabilities with motor control and power management.