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. Moving further east, Thailand’s electric car sales quadrupled, aided by subsidies and Chinese carmaker investments, positioning the country as a potential EV manufacturing hub.
Apache Automotive develops Hybrid Cars
Even with this rapid growth, EV’s share of cars on the road is expected to remain at just 8% by 2030. If you want to learn more about 10 of the most important auto industry trends for the next months, read on. The specialty equipment industry recognizes the potential in off-road products and accessories, mainly for pickups and SUVs such as the Jeep Wrangler. More than half of pickup owners purchase off-road parts and engage in outdoor activities with their vehicles.
Motoreto simplifies Automobile Distribution for Used Vehicles
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. Sustainability is a major driver reshaping vehicle design, manufacturing, and lifecycle management. Governments worldwide are imposing stricter emissions standards and incentivizing zero-emission vehicles (ZEVs).
Cars have become even more connected
Supply chains are being restructured to secure critical minerals and diversify chip sources. The industry is also innovating in battery chemistry, thermal management, and vehicle-to-grid (V2G) tech to improve EV usability. As we progress through 2025, these trends will continue to reshape the automotive landscape. Success will depend on manufacturers’ ability to balance technological advancement with practical implementation while meeting evolving consumer expectations. The transformation of the automotive sector is far from complete, but the direction is clear – towards a more sustainable, connected and intelligent future of mobility. Traditional internal combustion engine (ICE) vehicles are steadily losing ground as governments worldwide implement stricter regulations, including the EU’s upcoming ban on new ICE vehicle sales by 2035.
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Probably the most important trend in the automotive industry is the worldwide shift to electric vehicles (EVs). New vehicle inventory levels till December 2022 were 52% below December 2019 but 56% above January 2022. 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. Fuel-cell electric vehicles will emerge worldwide in 2025 due to their faster recharge, extended range, and zero emissions.
Discover all Auto Trends, Technologies & Startups
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. From enhancing in-vehicle safety solutions to enabling semi-autonomous driving features, AI is redefining innovations in vehicle functionality and unprecedentedly shaping the driving experience. 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. The system uses an app to schedule rides on autonomous vehicles, cutting down trip times compared to the available commuting options.
Autonomous vehicles are changing the face of the auto industry
One of the most significant shifts in the automotive industry is the widespread adoption of electric vehicles (EVs). 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.
Toyota’s Legendary Hilux Is Going Electric
German OEMs already have a full roadmap from L2 to L3, with Mercedes Benz commercializing their DrivePilot system, and BMW is likely to follow soon. Emerging companies are developing advanced sensing technologies to collect extensive vehicle data and enable vehicles to better understand their surroundings. Blockchain technology is increasingly being utilized in the automotive industry for various applications. It enables secure data sharing for connected and shared mobility solutions, including ride-hailing, urban transportation, and delivery services.
Technology Challenges Yield Growth Opportunities
Dealerships can take advantage of various videos, such as how-to videos, car highlights, and customer testimonials. The demand is highest for vehicles under four years old, which have the latest technologies but are less expensive than new cars. This includes pre-owned electric and hybrid vehicles, and dealerships now offer certified pre-owned cars that look and function like new ones at a lower cost. As we look forward to 2025, RSM’s automotive professionals predict a slowdown overall in the growth of the industry as well as a reduction in overall margins and profitability. Many OEM’s are already revisiting original forecasts and realigning through-put and production schedules accordingly. Automotive suppliers are renegotiating their vendor/supplier contracts to align with these new predictions.
🤔 Uncertain Market Acceptance and Consumer Adoption of New EV Tech
EloyMessage broadcasts fixed or dynamic visual and audio messages directly into vehicles, reducing driver distraction with patented technology. EloySignals utilizes AI to optimize traffic flow, advising drivers on stopping or proceeding, and prioritizing emergency vehicles and vulnerable road users. India-based startup DriveTech-AI builds solutions centered around optimizing the vehicle testing process through smart solutions. Its suite of platforms and solutions allows automotive OEMs to accelerate testing data analysis and enhance automation and team collaboration.
Canadian startup Xaba develops intelligent automation solutions, materials, and processes for sustainable manufacturing. Its AI-driven control systems, xCognition and xTrude, enhance industrial robotics and additive manufacturing by automating programming and improving precision. US-based startup Aviva Links builds in-vehicle connectivity solutions that include multi-gigabit Ethernet and ASA Motion Link (ASA-ML) semiconductor products for ADAS systems.
The automotive V2X market reached USD 2.87 billion in 2025 and is expected to expand to USD 18.67 billion by 2030 at a CAGR of 45.43%. This rapid expansion reflects its role in reducing road accidents, enabling connected mobility, and smart city systems worldwide. Moreover, the startup engineers the ECU platform with compliance to ISO for functional safety.
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Connected cars are vehicles that use wireless means to connect to the Internet of Things. They offer a safe, comfortable, and convenient multimedia experience with on-demand features that allow users to browse the web while in their vehicle. They provide various features such as remote diagnostics, vehicle health reports, 4G LTE Wi-Fi hotspots, turn-by-turn directions, and warnings of car health issues. The technology has already processed over a billion customer requests and is set to grow in 2025 with predictive intelligence and maintenance technology. North American and European automakers offer consumers the option to buy vehicles online without visiting dealerships.
Increase in Digital Advertising Spending
- The automotive industry is set to witness huge growth in integrated drive ePowertain systems that reduce weight and cost and offer improvements like enhanced vehicle range and efficiency.
- Consumer trends in the automotive industry highlight that short videos are more effective in converting leads into customers.
- Last year, the European Union updated the General Safety Regulation (GSR) and establishes mandatory safety requirements for cars sold in the EU.
- Bosch demonstrates this through 77 GHz radar modules integrated into adaptive cruise control and collision avoidance systems.
- In 2024, hybrids saw a YoY growth of almost 19%, which is expected to grow to over 23% by 2025.
- Fewer new vehicle purchases mean consumers hold onto their vehicles longer, reducing the available used inventory and increasing prices.
- 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.
Despite initial scepticism, the automotive industry is embracing enhanced connectivity by enabling real-time updates and post-production feature additions. Through our work with automotive innovators, we witness first-hand how rapidly this sector is evolving. From electrification and software integration to new mobility models, the industry faces unprecedented change.
- 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.
- While most of these concerns can be overcome, it will take some time, and this time will be the most challenging for the industry.
- Luxury car brands are experiencing growth due to increased tangible luxury offerings and rising disposable incomes.
- Moreover, economic efficiency improves adoption, as autonomous vehicles reduce transport costs by up to 40% and maximize logistics utilization.
- Whilst the U.S. may be bucking it, there is certainly a global trend towards a more sustainability-forward manufacturing scene.
- The strides made in EV battery innovation, renewable energy adoption, and sustainability are paving the way for a more resilient and forward-thinking industry.
Autonomous tech will likely be bundled with subscription services, reshaping mobility economics. From electric vehicles zipping past gas guzzlers to cars that update themselves like your smartphone, the industry is in the middle of a revolution. Did you know that EVs are projected to make up nearly 20% of global vehicle sales in 2026? That’s no longer a distant future — it’s happening now, and it’s transforming everything from manufacturing floors to your driveway. Connectivity is one of the key trends in automotive industry, and 5G is what takes it to a more advanced level.
The high prices and increasing interest rates are causing sales to decline for dealers and automakers nationwide. Prices are expected to decrease as full article on green family cars supply-chain issues improve, and sales continue to soften. However, interest rates may remain high as the Federal Reserve works to lower inflation.
The Future of Automobiles
Cars are becoming unprecedentedly smarter, and this trend is here to stay in the future. 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.
- Consumers increasingly demand eco-friendly options, influencing market offerings.
- Avvenire focuses on sustainable mobility to contribute to a cleaner environment and meet the demand for green transportation.
- Increased government focus on charging networks will be needed to support the expanding EV fleet.
- For instance, Qualcomm states that C-V2X allows vehicles to communicate with other vehicles, with infrastructure (V2I), and with vulnerable road users.
- Regulatory frameworks like UNECE WP.29, effective from last year, mandate stringent cybersecurity measures to drive compliance-related investments.
- From electrification to IoT connectivity, these shifts are changing the way cars are manufactured, sold, repaired, and driven.
- This vehicle’s design prioritizes driver safety and comfort, featuring a central driving position and panoramic vision for enhanced visibility.
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. 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. Mercedes-Benz is also using generative AI to include conversational assistants for improving user experiences and redefining in-car interactions. The number of connected cars worldwide will likely reach 400 million by 2025 up from 237 million in 2021.
- The EU enforces a 2035 zero-emission mandate, and the US Inflation Reduction Act channels subsidies into domestic EV production and attracts international manufacturers.
- It also aligns with ISO for cybersecurity and ensures reliability under demanding automotive standards.
- Further, as part of larger decarbonization efforts, the Intergovernmental Panel on Climate Change (IPCC) emphasizes the contribution of EVs to the reduction of greenhouse gas emissions.
- Examples are bikes, scooters, and mopeds, as well as the electric versions of these vehicles.
- This number is expected to have risen in 2020 as dealers everywhere turned to digital channels.
- It incorporates an intuitive infotainment system for efficient power management while minimizing driver distractions.
- Did you know that EVs are projected to make up nearly 20% of global vehicle sales in 2026?
- Connected cars are equipped with cutting-edge technology that allows them to connect to the Internet, other vehicles, and external software.
- The number of connected cars worldwide will likely reach 400 million by 2025 up from 237 million in 2021.
These advancements are driving the future of connected vehicles, which are increasingly becoming a standard feature in new cars. Modern vehicles are now equipped with a unique digital identity, making it easier to track and share data for applications like insurance, driver safety, predictive maintenance, and fleet management. Nigerian startup Revive Earth develops the Revive Kit, to convert petrol vehicles into efficient EVs.
Wireless and ultra-fast charging stations are also emerging as promising solutions to ease the transition to EVs further. Wireless charging could eliminate the need for physical connectors, offering a more seamless user experience. Digital twins—virtual replicas of physical systems—are gaining traction, enabling manufacturers to simulate scenarios and predict outcomes in real-time.
Last year, the European Union updated the General Safety Regulation (GSR) and establishes mandatory safety requirements for cars sold in the EU. 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.
Israeli startup NoTraffic develops an AI-powered traffic signal platform that digitizes road infrastructure management and connects drivers to the city roadways to manage various traffic-related challenges. The data of all road users is streamed and processed in real-time to empower smart mobility. The solution also serves as the base for additional services such as micropayments and micro-mobility. Moreover, car connectivity transforms the driving experience by integrating with real-time systems and smart gadgets. These advancements guide the automotive sector toward a more intelligent, secure, and sustainable future.