European manufacturers are leading the charge with plans for affordable EV models, such as Citroën and Renault. These budget-friendly models aim to stimulate adoption following a dip in EV sales. Consumers research their preferred car on their mobile phones, looking for the best options, offers, and dealerships.
Launch Mobility streamlines Shared Mobility
The used car market is also expected to become more important for consumers looking for cheaper EVs, which typically face greater levels of depreciation than internal combustion engine vehicles. However, used electric powertrain vehicles are still few and far between, with the Society of Motor Manufacturers and Traders, in the UK, suggesting EVs make up 2.7% of the total used car market. These solutions decrease fleet wait times and cut pollution from petrol or diesel vehicles.
- Sales for BEV and PHEV in Europe increased by 137% in 2020 compared with the previous year (despite a 20% year-over-year decrease in the total car market).
- These tools enable dealerships to handle inquiries efficiently, freeing time for other tasks.
- It highlights high startup activity in Western Europe and the USA, followed by India.
- 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.
- In 2024, the automotive industry is increasingly integrating cutting-edge technologies into its operations.
- Learn why it matters more than organic traffic and how to improve your rankings and visibility.
- In China, it was even reported that lithium-ion battery pack prices fell below $100/kWh for the first time.
- 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.
- The industry is also innovating in battery chemistry, thermal management, and vehicle-to-grid (V2G) tech to improve EV usability.
Conclusion: The Automotive Industry in 2025
The industry trends show a positive perspective for the times to come despite the expected global slowdown and supply chain disruptions. As a car seller, dealer, or manufacturer, you must only build flexible yet solid automotive marketing strategies and create a strong sense of customer trust and loyalty. Make sure you stand out from your peers by focusing on every intricate detail through marketing and staying at the top of buyers’ minds. The future of automotive industry trends suggests that the automotive parts market will grow aggressively due to a growing demand for replacement parts and an increase in vehicle production.
- In the Electric Vehicle Market, 2025 Will Be the Year of More – More Models, More Incentives, More Discounting, More Advertising, and More Sales Muscle.
- This makes sense, as 83% of car customers already said they wish they could save time by shopping online.
- This report explores the top 10 electric vehicle trends shaping the industry in 2026.
- It builds connected EV models that operate reliably on diverse terrains and promotes sustainable mobility solutions for the region.
- 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 move highlights the scale of investment required to meet zero-emission vehicle targets and align with regulatory pressures for decarbonisation.
- This reduces development costs and time while enhancing quality and analytical capabilities.
- However, used electric powertrain vehicles are still few and far between, with the Society of Motor Manufacturers and Traders, in the UK, suggesting EVs make up 2.7% of the total used car market.
- These sensors measure distances, identify obstructions, and capture crucial traffic and road condition data.
Autonomous Driving: The Road to a Self-Driving Future
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.
Driverless Vehicles- The Future of Connected Cars
The Tree Map below illustrates the top 10 automotive trends that will impact companies in 2024. Emerging companies are working to build the first fully autonomous vehicle for city roads, which in turn accelerates the advancements in-vehicle connectivity and IoT. Major automakers, such as General Motors, are expanding telematics offerings by integrating subscription-based services like OnStar as standard features across models. Partnerships between telecom providers and automakers, like Targa Telematics’ collaboration with Renault, are enhancing connectivity solutions, particularly for fleet management. Miniaturization trends in automotive electronics enable the integration of multiple sensors into compact systems to improve vehicle performance while reducing costs.
🇨🇳 Increasing Competitiveness and Influence of Chinese Automakers
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.
Q) What are the predictions for the automotive industry?
Automotive semiconductors and sensor fusion enhance safety, efficiency, and intelligence. This approach ensures our reports provide reliable, actionable insights into the automobile innovation ecosystem while highlighting startups driving technological advancements in the industry. This process enables us to identify the most impactful and innovative trends in the automobile industry. The latest technology in automobile industry have revolutionized the way vehicles are designed, manufactured, and sold, and the vehicles themselves have become much more than a means of transport. A recent survey reveals automotive companies have product development and launch cycles shorter than 18 months.
The rising role of renewable energy supply in automotive production
While fully autonomous vehicles (AVs) are not yet standard on the roads, significant advancements are being made in 2025 toward realizing the vision of driverless cars. Companies like Tesla, Waymo, and others are working tirelessly to refine the technology, which includes machine learning, computer vision, and lidar (light detection and ranging) systems. The upcoming automotive industry trends refer to evolving changes in patterns within the sector that influence vehicle design, production, marketing, and usage. Technological advancements, along with changing consumer preferences, regulatory changes, and global economic conditions, are driving these trends.
Micromobility Presents a Potential Shift Among Consumers
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. Also, applications extend from adaptive cruise control, lane-keeping, and traffic jam assistance to robotaxis and driverless trucking. Advanced cameras paired with computer vision enable vehicles to classify road users, read signs, and recognize traffic signals, directly supporting ADAS and autonomous navigation.
Automotive Wire Harness & EDS Conference Returns to Detroit in 2025
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. 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. Companies like Toyota and Hyundai are investing in hydrogen fuel cell technology.
- This is fueled by increased vehicle production and sales in China, Japan, and South Korea.
- OEMs are investing billions in EV platforms, battery R&D, and charging infrastructure partnerships.
- In addition, the IoT’s potential in the automotive industry presents a significant chance for manufacturers to revamp their marketing strategies.
- Automotive industry trends refer to changes in patterns within the automotive sector that influence vehicle design, production, marketing, and usage.
Leading companies such as Volkswagen, General Motors, and Volvo have committed to producing zero-emission vehicles and achieving carbon-neutral operations by mid-century. In line with this, automakers focus on sustainability in their manufacturing processes, energy sourcing, and material selection. The SDVs market is set to reach 7.6 million units in 2025 from 6.2 million units in 2024. North America is commanding a 43% share as new-age OEMs focus on BEVs and software-driven architectures. Major technology providers are also solidifying their roles in key areas such as ADAS, electrical/electronic (E/E) architectures, and cloud computing solutions. This will further usher the industry into a new era of smarter, more connected, and more efficient vehicles.
Predictive maintenance powered by AI minimizes machine failures, while IoT networks provide detailed insights into factory operations. These practices not only meet regulatory demands but also resonate with consumers increasingly drawn to environmentally responsible brands. 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.
WF Telematics improves Fleet and Asset Management
In addition, the IoT’s potential in the automotive industry presents a significant chance for manufacturers to revamp their marketing strategies. IoT solutions can offer numerous benefits to end-users by utilizing interconnected systems, such as better safety, driving assistance, and predictive maintenance. Collecting user data through these sensors creates ample opportunities for marketers to promote upselling. Automakers and technology companies are forming partnerships due to vehicles’ constantly evolving tech requirements.
Inside the architecture: How software-defined vehicle (SDV) platforms are built
Cost efficiency strengthens the case, with Mexico offering a 35% landed-cost edge over China in 2022. And it is projected to widen to 45% by 2030 due to lower labor and freight costs. The startup enables automakers to reduce waste, optimize design processes, and advance sustainable manufacturing strategies.
- As the technology evolves and becomes more affordable for the industry, it opens more and more opportunities every year.
- The next decade will undoubtedly see dramatic changes in how we drive, how we share vehicles, and how we engage with the technology that powers our transportation systems.
- Information technology has become a crucial part of the recent trends in the automobile industry as priorities change over time.
- The future trends in the automobile industry predict a roller-coaster ride for players.
- Dealerships can take advantage of different video formats, like how-to videos, car highlights, and customer testimonials.
- GenAI offers potential for advanced applications like predictive maintenance, where AI could assist in analyzing vehicle data and forecast potential failures before they occur.
- 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.
- With consumers increasingly prioritizing environmental performance when purchasing vehicles, automakers must focus on reducing emissions and developing more sustainable transportation options.
- The industry itself, however, has remained relatively stable over the last decade.
- 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.
- Cross-industry collaboration is emerging as a key enabler, with automotive companies forming partnerships to develop and implement innovative material solutions.
The U.S. and China trade war has also influenced the search for alternative sourcing options. Labor costs are another factor in the rise of local sourcing, with countries such as Taiwan, Cambodia, and Laos providing a lower-cost labor alternative to China. Given the opportunity to significantly disrupt private transport and shape the future of the automotive industry, companies are expected to continue investing in autonomous vehicles in 2025. At the same time, a limited EV infrastructure and uneven policy application dampen the smart monitoring tools for modern vehicles pace of meaningful progress throughout the region.
🔌 Trend 1: The Electric Revolution Accelerates – EVs Taking Charge
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 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.
Cars become even more connected
The shortage may not be as bad as it was in the early 2020s; however, even with a larger output, a report has found that only 26% of organisations that are reliant on these chips have a sufficient supply. This leaves the vast majority of companies concerned with their supply and wanting for more. With 2024 now firmly in the rearview mirror, let us dive into how those trends have developed into 2025 and what that means for middle-market organisations for the year ahead.
Leap Business Solutions advances Fleet Management
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.
