In 2024, hybrids saw a YoY growth of almost 19%, which is expected to grow to over 23% by 2025. Italian startup Moi combines thermosetting composite materials and 3D printing to manufacture high-performance how to decode your VIN for free parts for the automotive industry. Moi uses continuous fiber manufacturing (CFM) technology, robotic intelligence, and digital fabrication to deposit fibers. As a result, the solution is easily scalable for producing composites for panels, frames, and interior components. The startup also serves other industries, such as aerospace, construction, and biomedical. Additionally, blockchain is instrumental in verifying the supply chain of automotive parts, ensuring that materials and components are sourced from legal and trustworthy suppliers.
An Overview of the Latest Automotive Industry Trends
Moreover, the solution is customizable to any car model or specific OEM requirements. Hungarian startup V2ROADS offers a range of products and services tailored to the V2X ecosystem. They provide V2X applications, services, and communication stacks specifically designed for on-board units (OBUs) and road-side units (RSUs). Further, its V2X-cloud system implementation guarantees uninterrupted connectivity between vehicles and infrastructure. Finally, its V2AP (V2X Integration Platform) is a server-side software to amplify V2X services to elevate road safety and efficiency. These advancements are driving the future of connected vehicles, which are increasingly becoming a standard feature in new cars.
Cars become even more connected
- By 2025, significant investments in fast-charging networks will be essential for EV adoption to reach mass-market penetration.
- Sustainable manufacturing and EV expansion deliver cost savings, regulatory compliance, and reduced emissions, positioning automakers as leaders in green mobility.
- Manufacturers that successfully integrate these elements into their strategies will not only navigate the challenges of today but also position themselves as leaders in the future of mobility.
- Contact Avenga today to learn more about what industry experts have to say about these trends.
- This approach enhances road efficiency and reduces fuel consumption, thereby lowering emissions.
- Manufacturers are prioritizing robust security measures to protect sensitive consumer data and prevent malicious interference.
- Gallium nitride (GaN) chips enable high-frequency switching, compact designs, and fast charging.
- The future trends in the automobile industry suggest that 2025 can be the milestone year for connected cars.
- It is anticipated that used-vehicle sales will not return to pre-pandemic levels of around 40 million units per year until 2025, similar to new-vehicle sales.
Information technology has become a crucial part of the recent trends in the automobile industry as priorities change over time. Market leaders are adjusting their strategies to align with current trends, further emphasizing the shift towards EV-only vehicles. Just days ago, Jaguar unveiled their new concept car, the Jaguar Type 00, a fully electric, futuristic vehicle that marks a departure from every other car the brand has produced.
- While traditional OEMs are adapting to this shift, we are also witnessing newer market entrants are making significant strides in implementation, which is making for a more competitive automotive sector.
- Connected cars enable real-time navigation updates, remote diagnostics, and seamless smartphone integration.
- Autonomous tech will likely be bundled with subscription services, reshaping mobility economics.
- Demand for customizable, software-updatable vehicles is growing, as is interest in electric and hybrid powertrains.
- To maintain cost competitiveness, automotive procurement teams must be critical in managing supplier networks and supply chains for existing and upcoming vehicle models.
- Italian startup Moi combines thermosetting composite materials and 3D printing to manufacture high-performance parts for the automotive industry.
- We evaluate our own startup data and complement these insights with external research, including industry reports, news articles, and market analyses.
🛣️ Trend 3: The Autonomous Horizon – Self-Driving Cars on the Near Road
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. The current trends in the automotive industry seen in previous years will remain in 2025 and are likely to become automotive future trends. We hope this blog helps you understand the upcoming automotive industry trends in 2025.
Chip shortages remain a major thorn in automotive’s side
Companies like Huawei are allocating significant resources to developing EVs with cutting-edge ADAS and autonomous features. These technologies aim to reduce accidents and provide a safer driving experience. As we look ahead to 2025, these trends highlight the challenges and opportunities that manufacturers face. We explore eight most influential trends expected to define the automotive manufacturing landscape, offering insights into what lies ahead for the industry. The European Commission will start talks in the New Year on the future of the industry in the region as sales of electric vehicles stall.
Global Startup Heat Map covers 4859 Innovative Automotive Startups & Scaleups
- Consumer demand for eco-friendly products is rising, with 80% of US consumers concerned about the environmental impact of their purchases in April 2024, up from 68% in 2023.
- However, it’s estimated that there will be 33 million autonomous vehicles on the road by 2040.
- In 2025, the automotive industry’s digital marketing spending is predicted to keep growing.
- Automakers and technology giants like Google and Tesla are incorporating more digital technology into their cars.
- The data of all road users is streamed and processed in real-time to empower smart mobility.
- The APH-01 incorporates flax fiber in its body shell, which reduces weight, increases impact resistance, and improves vibration damping.
- Vietnamese startup Phenikaa-X creates autonomous electric vehicles with AI and multi-sensor technology for safe transportation.
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.
Nissans to Look For at Tokyo Auto Salon
- It also leads Europe in new EV market activity, with just 9.61 percent of new passenger car sales in 2023 attributed to gasoline, diesel, and non-rechargeable hybrid vehicles.
- As 2024 comes to a close, the automotive manufacturing industry continues to accelerate its transformation.
- Moreover, it ensures perception in challenging conditions such as night, rain, fog, and snow.
- The startup’s Ethernet products support precise timing synchronization with the 802.1AS Precision Time Protocol (gPTP) to ensure reliable communication for time-sensitive applications.
- The simulations improve thermal management, safety, and efficiency to meet the demands of future mobility.
- This approach enhances flexibility across its global operations, ensuring a rapid response to shifting market demands.
- Analysts project the automotive cybersecurity market to increase from USD 5.24 billion in 2025 to approximately USD 18.88 billion by 2034, advancing at a CAGR of 15.3%.
Perhaps the biggest shift here is in a new manufacturing landscape, with new decentralised hubs across the globe producing EVs for local markets. On the other side of the globe, in Asia, China has implemented a landmark energy policy, aptly named the ‘Energy Law’, as of January 2025. The law emphasises a cleaner and more efficient use of fossil fuels, placing a higher emphasis on sustainability and developing renewable energy infrastructures. This comes as China continues to make their presence known in the global EV scene, with ramped-up production and dominance in the international EV market. 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.
- In addition, the initiative will leverage the data collected by adding Google’s AI capabilities to Ford vehicles.
- Many of these vehicles will feature over-the-air (OTA) upgrades and V2X communication.
- However there are huge opportunities for the industry in the shift to software-defined vehicles and autonomous driving.
- Statevolt’s decision to build its gigafactory in the UAE rather than Europe has been a talking point this year.
- 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.
- It won’t take too long for the CASE to accelerate the transition of the automotive industry from the way it has been working for hundreds of years.
Lean Project Management: What It Is, Key Principles & How to Implement It
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. Conversely, in Europe, regulations are scaling up in preparation for the EU ban on new ICE vehicles by 2035. Chinese EV automakers’ expansion into new markets, including Europe, other Asian countries, and Latin America as previously mentioned, could see a completely new global EV landscape.
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The ongoing global semiconductor shortage continues to cast a shadow over manufacturing progress, particularly for industries such as automotive and electronics. While efforts are underway from many different automakers to expand fabrication capacity, lead times for chip production remain long with little sign of a solution in the near future. However, regulatory hurdles and the complexity of navigating diverse driving environments remain significant barriers.
Manufacturing
It also provides validation services that ensure resilience against potential risks. German startup CARNIQ Technologies enhances vehicle cybersecurity through web-based and AI-powered tools that ensure compliance with automotive standards. The rapid rollout of software-defined vehicles, vehicle-to-everything (V2X) networks, and electrification pushes automakers to secure digital systems as rigorously as physical components. Moreover, the startup’s marketplace connects professionals in a secure environment. It provides exclusive access to vehicles and optimizes purchase decisions based on supply and demand trends. Also, digital twin technology builds virtual replicas of supply chains to simulate disruptions and optimize performance.
Discover the Top 10 Auto Trends and Innovations
Solid-state batteries increase energy density, shorten charging times, and give EVs longer ranges and greater convenience. For example, Toyota plans a commercial rollout by 2027 to bring solid-state battery EVs into mass production. Moreover, automakers reduce tailpipe emissions, cities improve air quality, and governments reduce fossil fuel dependence.
Tree Map reveals the Impact of the Top 10 Auto Industry Trends
The final trend, and one which has been subject to a lot of attention (and hype), is driverless transportation. Its electronic control unit (ECU) platform combines AUTOSAR software modules with customizable hardware. It manages functions such as steer-by-wire, brake-by-wire, engine control, and ADAS. At the same time, governments and companies view subscriptions as a pathway to scale EV adoption without heavy upfront investments.
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.
By focusing on digital transformation, the company aims to integrate predictive analytics and process automation, creating production systems that are adaptable and resilient. 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. Norwegian startup Chargerly designs vehicle-to-building (V2B) solutions that integrate EVs with building energy systems to improve resilience, efficiency, and sustainability.
These advancements are critical as manufacturers aim to balance efficiency, durability, and safety. The automobile seminar is utilized by a lot of experts working in the automotive industry, researchers, and people with an affinity for the carmaker as a forum for sharing knowledge and collaboration. They are discussing the prospect of AI for driving systems, the implications of some regulatory changes for automotive innovation, and the potentials of renewable sources for energy for the automobiles. 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. This regulatory advancement, combined with growing environmental awareness, is accelerating the shift towards electric mobility.
For instance, Qualcomm states that C-V2X allows vehicles to communicate with other vehicles, with infrastructure (V2I), and with vulnerable road users. TeraDAR strengthens sensor fusion by providing high-resolution, all-weather imaging that improves vehicle perception and increases safety. Moreover, the startup leverages patented research and extensive radar expertise to deliver dependable detection in densely populated settings. Radar Reticence strengthens sensor fusion by supplying interference-free radar data that enhances vehicle perception and improves safety.