Automotive Topics and Trends

It processes these tasks in real time at over 120 frames per second on consumer-grade graphics processing units (GPUs). Indian startup General Intelligence creates self-driving intelligence software that supports software-defined vehicles in adapting to diverse driving environments. Owing to these advancements, the global SDV market is set to reach USD 3.3 trillion by 2034, growing at 31.2% annually. Also, GPS and V2X connectivity improve fleet distribution and service reliability.

Automotive Topics and Trends

Future Readiness Monitor: Automotive Industry Report

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.

a. Urban Mobility and Shared Vehicles

Advances in solid-state batteries promise higher energy density and faster charging times, while the expansion of ultra-fast chargers addresses key barriers to EV adoption. With the growing popularity of bidirectional charging (V2G) technology, EVs now contribute energy to the grid to improve stability. By focusing on digital transformation, the company aims to integrate predictive analytics and process automation, creating production systems that are adaptable and resilient. These examples point to AI enabling real-time decision-making and predictive maintenance, while improving quality control and minimising downtime, marking the technology ‘a no-brainer’ for production in 2025. Toyota unveiled its forward-thinking approach to electric vehicle design, focusing on sustainability, performance, and cutting-edge technology.

  • Whilst these acts have been active for some years now, the landscape has not changed drastically.
  • Modern vehicles have transitioned from distributed architecture to a centralized, high-performance computing model.
  • Also, additive manufacturing makes prototyping more rapid, which enables faster design and testing periods for new vehicles.
  • As of 2023, the two now equip Ford and Lincoln vehicles with a built-in Android operating system.
  • AI is also transforming automotive manufacturing by speeding up production and cutting costs.
  • 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.
  • In 2024, hybrids saw a YoY growth of almost 19%, which is expected to grow to over 23% by 2025.

Motomatix develops Auto Parts Ordering Platform

As cities become more congested, shared mobility solutions are becoming increasingly popular. In 2025, we expect to see more automated and electric shared vehicles providing affordable, on-demand transportation. Autonomous driving is one of the most prominent applications of AI in the industry. It incorporates various AI-powered technologies like adaptive cruise control, automatic emergency braking, and lane-keeping assistance, allowing vehicles to navigate complex road conditions autonomously. These systems can detect objects, evaluate road environments, and make real-time decisions to further enhance safety and comfort.

  • 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.
  • Cost efficiency strengthens the case, with Mexico offering a 35% landed-cost edge over China in 2022.
  • 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.
  • Sensor fusion drives the automotive industry’s shift to autonomy by integrating data from cameras, light detection and ranging (LiDAR), radar, and ultrasonic sensors into a unified perception system.
  • To maintain cost competitiveness, automotive procurement teams must be critical in managing supplier networks and supply chains for existing and upcoming vehicle models.
  • It also provides validation services that ensure resilience against potential risks.

⚖️ Regulatory Hurdles and Ethical Dilemmas in Autonomous Tech

  • Therefore, you should focus on environmentally conscious manufacturing processes and eco-friendly cars like electric vehicles.
  • Data from the past 10 years shows the sale of luxury vehicles making a steep climb in 2022.
  • AI and ML processors support object recognition, path planning, and decision-making.
  • The industry trends show a positive perspective for the times to come despite the expected global slowdown and supply chain disruptions.
  • As autonomous vehicles become more mainstream, governments and regulatory bodies will need to create new laws to ensure their safe deployment.
  • Also, advanced composites and recycled inputs reduce reliance on virgin resources.

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.

🤔 Uncertain Market Acceptance and Consumer Adoption of New EV Tech

Let’s have a closer look at the top automotive trends poised to dominate the landscape in 2025. Supplemented by the categorisation of our experts, a clear picture emerges of where the industry stands – and where it should develop in order to remain fit for the future. Automakers are also adopting hyper-personalized features to offer customized experiences through infotainment systems, user profiles, and real-time navigation updates. Many of these vehicles will feature over-the-air (OTA) upgrades and V2X communication. Xaba’s proprietary process and AI-driven large-scale 3D printer enable sustainable materials, such as fibers, fiber-reinforced polymers, and metals, to create functional car chassis.

Udelv manufactures Self Driving Last Mile Delivery Vehicles

Therefore, you should focus on environmentally conscious manufacturing processes and eco-friendly cars like electric vehicles. This deal comes at a time when car sales in the EU have seen a noticeable dip as consumer preferences shift. Data suggests a decline in car sales across most categories, particularly traditional fuel vehicles like petrol and diesel, which saw significant drops in market share and registrations. While BEVs and PHEVs showed some growth in September 2024, the year-to-date figures for BEVs are still lower than last year, and PHEVs also experienced a notable decline.

MotionSafe enables AI-powered Automotive Cybersecurity

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.

e.Volution manufactures Sustainable Vehicles

Also, digital twin technology builds virtual replicas of supply chains to simulate disruptions and optimize performance. The USMCA requires 75% of motor industry components to be produced in North America. And the US Inflation Reduction Act ties USD 7500 EV subsidies to regional sourcing. Cost efficiency strengthens the case, with Mexico offering a 35% landed-cost edge over China in 2022.

Automobile Engineering Seminar Topics For Students

  • However, overcoming supply chain challenges takes time, so they are likely to remain in 2025.
  • Manufacturers are investing in innovative mobility technologies, such as personal voice assistance, autonomous driving, and AI and ML, creating a positive market outlook.
  • Some countries (and California) have even committed to phasing out all new sales of combustion engine vehicles over the next few decades.
  • The automotive industry is gearing up for a transformation as fast and furious as the iconic franchise suggests.
  • Further, through its smart management app, it enables users to schedule charging, monitor consumption, and manage fleets from one platform.
  • Using data from IoT technology, drivers receive real-time route suggestions to avoid traffic jams and ease congestion, ensuring faster, stress-free travel.

Some countries (and California) have even committed to phasing out all new sales of combustion engine vehicles over the next few decades. 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. Overlanding, a newer trend, combines off-roading with remote travel and camping, with products like mounted tents falling under this category.

Stellantis, for instance, has demonstrated how AI can transform production efficiency. By incorporating AI tools, the company has reduced production costs while accelerating vehicle launch timelines. This approach enhances flexibility across its global operations, ensuring a rapid response to shifting market demands. Similarly, Skoda has embraced AI to navigate the complexities of modern manufacturing. Senegal-based startup Kemet Automotive manufactures all-terrain electric vehicles (EVs) designed for the road conditions.

  • The simulations enhance precision and minimise waste in this energy-intensive stage of manufacturing.
  • Searches for “autonomous driving” have increased by over 1,029% over the past 10 years.
  • As 5G and the Internet of Things (IoT) continue their growth, vehicles are becoming more and more connected.
  • Regenerative braking systems, crucial in EVs and hybrid cars (HEVs and PHEVs), contribute to energy recovery rates of 5% to 20%, depending on driving conditions.
  • 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.
  • Our new generation which is called millennials or Genz researches everything online before the actual purchase.
  • Further, this also offers software solutions for fleet and asset tracking as well as connected cars.
  • Governments also enforce stricter safety standards, pushing automakers to integrate advanced sensor systems.

💡 Related Insights: Diving Deeper into Specific Automotive Niches

Information technology has become a crucial part of the recent trends in the automobile industry as priorities change over time. The automotive industry stands at a thrilling crossroads, where innovation meets complexity and how data and cars are changing driving opportunity rides alongside challenge. The industry will continue to experience disruptions from geopolitical headwinds to regulatory and legislative developments, data security and economic challenges. Maximising the ROI to investors and stakeholders while remaining competitive will be priorities of the industry.

As more manufacturers roll out affordable and appealing EV models, the market is shifting towards sustainable alternatives which are becoming more accessible to a broader consumer base. One of the most in-demand connectivity solutions is in-vehicle infotainment—the systems that provide both information and entertainment for enhanced driving experience. The currently available infotainment systems can connect with smartphones, sensors, ADAS (advanced driver assistance systems) as well as other in-vehicle and external systems. In 2025, a great number of car manufacturers are planning to improve their infotainment systems providing them with more and more advanced capabilities. Vehicle connectivity has become a really game-changing innovation in automotive industry that will transform the future of driving. Cars are becoming unprecedentedly smarter, and this trend is here to stay in the future.

Chatbots and messaging solutions are key technology trends in the automotive industry. These tools enable dealerships to handle inquiries efficiently, freeing time for other tasks. They also facilitate the management of maintenance and repair appointments, streamlining dealership operations. Voice search assistants also optimize their interface for advertisements and voice search queries.

Industry 4.0 and Digitalization in Manufacturing

THINKey operates through a secure architecture using enclaves in the phone, vehicle, and cloud, adhering to the car connectivity consortium’s digital key standard. Additionally, the startup offers infotainment solutions with plug-and-play SDKs and certification-ready apps for phone mirroring and multimedia features. This facilitates the integration of Apple CarPlay, Google Android Auto, and media streaming into in-vehicle infotainment systems.

What impact will 5G connectivity have on the automotive industry and its trends?

The Auto Industry Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation & startup scouting process. Norwegian startup Chargerly designs vehicle-to-building (V2B) solutions that integrate EVs with building energy systems to improve resilience, efficiency, and sustainability. Automotive drivers now expect vehicles to behave like smartphones, gaining features through over-the-air (OTA) updates. Regulations also support adoption, as safety and emissions standards require continuous updates and smarter architectures.

Evolving video marketing & environmental sustainability

The industry itself, however, has remained relatively stable over the last decade.