The emergence of CASE (Connected, Autonomous, Shared, and Electrified) technologies is changing the industry like never before. This will drive growth opportunities for automakers in the years to come and shape the automotive industry outlook in the future. However, although the Chinese EV market may take some time to adapt to the new subsidy-free scenario, the situation is optimistic.
Volta Trucks manufactures Electric Trucks
The push toward electrification is reshaping the automotive manufacturing landscape. By 2025, we will see increased investments in EV production as automakers cater to evolving consumer demands and regulatory pressures. 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. While there are a lot of opportunities ahead for the industry, there will be plenty of challenges like cost pressures, growing competition, and globalization. The growing shared mobility trend also looms as more people are using shared transportation methods instead of owning cars.
The Automotive Industry in 2025: Key Focus Areas and Trends
Top car brands are embracing VR as part of their dealership photography strategies to further enhance the customer experience. 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.
🚀 Go Way Beyond Traditional Industry Expertise: Our Unique Perspective
- 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.
- Apart from this, reduced access to EV charging points remains a significant challenge, according to consumer trends in the automotive industry.
- XCognition captures operator input or sensor data to generate execution-ready robotic programs to increase accuracy and reduce deployment time.
- That will enhance in gaining the trust of society and the brand’s potential customers.
- Looking ahead, Tesla’s strategies are likely to influence industry standards and inspire localisation efforts across the sector.
- 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.
- In these regions, shared mobility options like vans, minibuses, and two- and three-wheelers are more common and often electrified due to their affordability.
- 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.
Following these trends will equip enterprises with greater penetration in the emerging market, such as the growing adoption of EVs across China and India. A combination of technological advancements, sustainability initiatives, and new business models will shape the automotive industry in 2025. The rise of electric vehicles, autonomous driving, and innovative mobility solutions will redefine how we think about transportation. Meanwhile, environmental concerns will drive automakers to focus on sustainable manufacturing processes, alternative fuels, and circular economy principles.
Important Auto Industry Trends (2025-
Subsidies and incentives for EVs are also under scrutiny, with plans to reconsider or eliminate government-imposed market advantages that favour them. Crucially, the order halts federal funding for EV infrastructure projects, such as charging station programs, until they align with the administration’s policy goals. Additionally, looking at supply chains, AI and machine learning are driving the rise of autonomous logistics systems that can self-optimise routing, scheduling, and inventory management. These systems aim to minimise human intervention, improve decision-making, and enhance overall efficiency, paving the way for smarter supply chain operations. In Latin America, much like other regions, the electrified vehicle fleet is still only a small share of the total vehicle fleet; however, that share is growing. The Latin America Energy Organisation (Olade), released a report showing that with the increase in supply, lower prices and tax incentives, Latin America and the Caribbean have great potential for EV growth.
Sustainable manufacturing and EV expansion deliver cost savings, regulatory compliance, and reduced emissions, positioning automakers as leaders in green mobility. For this in-depth research on the Top Auto Trends & Startups, we analyzed a sample of 3836 global startups & scaleups. The car market trends are shifting towards regional suppliers to diversify their supply chains and mitigate risks.
Project vs Program vs Portfolio Management: What’s the Difference?
As we look ahead to 2025, these trends highlight the challenges and opportunities that manufacturers face. verify maintenance history before trip 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. This is not just a European problem with Volkswagen and Stellantis, as Honda and Nissan merge, and Ford and General Motors struggle. Software-defined vehicles (SDVs), where software manages essential functions like steering, braking, and infotainment, will see rapid growth over the next few years.
Electric Vehicle (EV) Production Expansion
The platform features customizable work product templates, detailed instructions, and comprehensive checklists for self-assessment. It also provides streamlined audit management, structured frameworks for continuous improvement, and intuitive escalation processes. Companies like BYD are collaborating with TSMC and MediaTek to develop advanced chips for vehicle controllers and smart cockpits.
- This includes aligning new technologies and business models with the company’s vision.
- These pods use AI and machine learning algorithms for real-time perception and adaptive decision-making.
- Front-facing LiDAR scans the road to detect objects, track pedestrians, and respond to traffic to enhance safety.
- Compared to EVs, they don’t require charging, but at the same time reduce carbon emissions.
- Canadian startup Aadhya Navik designs software solutions that improve safety, comfort, and traffic efficiency in autonomous driving.
- The uptake in EVs is experiencing a surge, driven by rapid advances in battery technology, an expanding charging infrastructure and supportive government incentives.
Hyundai Crater Concept Teases the Next XRT Models
This data alerted drivers to pedestrians and cyclists before they became visible. Dedicated short-range communication (DSRC) based on IEEE 802.11p facilitates direct vehicle-to-vehicle and vehicle-to-infrastructure communication. For instance, Volkswagen integrated DSRC-based V2X technology into its Golf 8 and its ID electric series in Europe. Moreover, it enables companies to customize their fleet by choosing preferred brands, models, and service options, ranging from premium to ultra-luxury vehicles. Moreover, blockchain and digital contracts enhance security and automate billing.
Self-driving to gain traction, but semi-autonomous cars will reign
- One of the most significant shifts in the automotive industry is the widespread adoption of electric vehicles (EVs).
- The APH-01 incorporates flax fiber in its body shell, which reduces weight, increases impact resistance, and improves vibration damping.
- 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.
- FlxTran’s approach improves connectivity and access to opportunities beyond major cities.
- The main issue holding back the popularity of these vehicles is a lack of hydrogen fueling stations.
- The Tree Map below illustrates the top 10 automotive trends that will impact companies in 2024.
The startup also offers Leap EasyTrack, a vehicle tracking solution that allows for quick and easy self-installation, making it simple to transfer between vehicles without downtime. Car connectivity and telematics improve the driving experience with real-time data integration. Cybersecurity protects these connected systems, while regenerative braking and sustainable manufacturing practices reduce the environmental impact. EVs drive the shift to greener mobility and it is aided by advancements in semiconductors for smarter and efficient vehicles. OEMs are investing billions in EV platforms, battery R&D, and charging infrastructure partnerships.
- This communication system is crucial for the safe deployment of autonomous vehicles, as it will enable them to “talk” to other vehicles and infrastructure, reducing the risk of accidents.
- Its bidirectional charging system enables EV batteries to both draw electricity and feed surplus power back, which balances demand during peak hours and reduces strain on infrastructure.
- The integration of 5G networks is accelerating advancements in vehicle-to-infrastructure (V2I) and vehicle-to-vehicle (V2V) communication, supporting autonomous driving functionalities.
- Indian startup ThinkSeed develops middleware solutions that enhance smartphone connectivity to vehicles for secure access and infotainment.
- Brands need to provide specific offers by analyzing their customer’s needs, preferences, and behavior.
- Localized production and sourcing are gaining momentum as companies aim to mitigate risks and ensure a steady supply of components.
🔌 Trend 1: The Electric Revolution Accelerates – EVs Taking Charge
Reports from 2022 showed vehicle inventory was stagnant, sitting between 1 million and 1.1 million vehicles, for the first six months of the year. Sales of passenger cars were down 25% in the first half of 2022 compared to the same period in 2021. Many expected the auto industry to mount a post-pandemic rebound in 2021, but that didn’t happen. Search volume for “Infineon Technologies” has seen modest growth over the past 5 years. Infineon, the largest manufacturer of auto chips, is increasing its investment in production by nearly $1 billion euros in 2022.
Innovation Map outlines the Top 10 Auto Trends & 20 Promising Startups
The auto industry is one of the largest and most influential markets on the planet. Overall, Auto News suggests that analysts expect the chip shortage will result in a loss of 3 million in vehicle production in 2025. 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.
EVs also enable new business models like vehicle-to-grid services and battery leasing. This tech shift is also accelerating the move toward software-defined vehicles and connected ecosystems. Trends span sustainable manufacturing, EV expansion, supply chain nearshoring, vehicle cybersecurity, automotive semiconductors, sensor fusion, autonomous driving, subscription models, SDVs, and V2X. They shift the industry toward electrification, digitalization, and connected mobility.
These advanced technologies are widely used across a great number of industries and the automotive domain is no exception. They are used by the automotive industry for car manufacturing, employee training as well as vehicle sales and marketing. The main advantage of this digital technology is that it allows auto manufacturers to create complex and at the same time lightweight vehicle parts. 3D printing them is faster than traditional manufacturing and cheaper, which makes the whole process more efficient. Also, additive manufacturing makes prototyping more rapid, which enables faster design and testing periods for new vehicles. As the technology evolves and becomes more affordable for the industry, it opens more and more opportunities every year.
Electric Mobility
Despite this, 2025 is guaranteed to be pivotal, with potential breakthroughs in autonomous driving technology along with a stronger push toward hybridization and sustainability. Simultaneously, many automakers embrace vertical integration strategies, taking control of the software stack from chip development to application integration. This approach equips them to differentiate their offerings, with software being the key to creating compelling customer experiences.
Launch Mobility streamlines Shared Mobility
By 2025, we could see a broader adoption of fuel cell vehicles, especially in regions like Europe and Asia, where hydrogen infrastructure is beginning to grow. Environmental consciousness is driving the automotive industry toward more sustainable and eco-friendly solutions. Manufacturers are prioritizing robust security measures to protect sensitive consumer data and prevent malicious interference. From encrypted communications to intrusion detection systems, cybersecurity advancements will ensure consumer trust as vehicles become smarter and more networked.
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. FlxTran’s approach improves connectivity and access to opportunities beyond major cities. Moreover, V2X communication systems allow vehicles to interact with each other and infrastructure, improving traffic flow and reducing accidents. These innovations collectively propel the industry towards safer, more efficient transportation. Consequently, the global autonomous vehicle market size is projected to reach USD 448.6 billion by 2035, growing at a CAGR of 22.2%.
A 5G connection transmits data to a remote control station, which allows operators to monitor and intervene when needed. As the industry advances, 2025 will be a defining year in the automotive manufacturing sector. The convergence of AI-driven production systems, the scaling of EV capabilities, and the adoption of sustainable practices will reshape the competitive landscape. 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.
Their scooters use an aviation-grade aluminum frame and are customized for sharing, safety, reliability, and durability. Users discover the nearest Beam scooter on the app and park it in visible public spots after the ride. Further, the micro-mobility platform offers a sustainable alternative to short-distance rides and helps regulate traffic flow in cities.
