Automotive trends for 2025 ..

Automotive trends for 2025 ..

Instead of owning a car, consumers will increasingly use digital platforms to access transportation services on demand, whether through ride-sharing, car-sharing, or subscription models. MaaS is set to become a key focus for the automotive industry in 2025 as companies look to diversify their business models and create new revenue streams. The drive towards electric and autonomous vehicles is further bolstered by progress in machine learning and IoT. Volvo has adopted megacasting techniques to simplify EV production, reducing the number of components required and streamlining assembly processes. This both lowers costs and improves vehicle performance, addressing both market demands and sustainability goals. Autonomous driving will continue progressing from Level 2+ driver-assist to Level 3 conditional autonomy in geo-fenced areas.

• With established automakers facing nimble startups in the mobility race, building new businesses should be a priority for auto executives.
• 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.
• Its electronic control unit (ECU) platform combines AUTOSAR software modules with customizable hardware.
• Electrification and autonomous vehicles will remain megatrends, transforming the sector and forcing automakers, suppliers, and dealers to adapt to new technologies and business methods.
• Sales of the most expensive cars are predicted to drive the most market growth through 2031.
• Its platform automates the cybersecurity management system (CSMS) and product cybersecurity evidence (PCSE) to ensure compliance with UNECE R 155 and ISO/SAE 21434.
• Demand may decelerate due to the end of Chinese subsidies for EVs, but it should not lead to a decrease.
• Governments worldwide are imposing stricter emissions standards and incentivizing zero-emission vehicles (ZEVs).
• Additionally, it uses the Future Trends Index to identify and prioritize relevant design directions across different markets.

What are the Top 10 Trends & Innovations in Automotive ( ?

• It also works with Ethernet and LIN, enabling integration across passenger cars, buses, trucks, and autonomous vehicles.
• Artificial intelligence (AI), the Internet of Things (IoT), blockchain, and advanced semiconductors allow autonomous driving, predictive maintenance, and secure connectivity.
• These tools equip dealerships to handle inquiries efficiently, thus freeing time for other important tasks.
• China’s automotive sector underwent substantial changes, with battery electric vehicle (BEV) sales reaching 582,813 units in August 2024—a 20.8% increase from the previous month.
• One of the most promising companies in the autonomous trucking ecosystem is TuSimple.

From electrification to IoT connectivity, these shifts are changing the way cars are manufactured, sold, repaired, and driven. Shared micromobility vehicles are becoming a popular mode of transportation in cities where the pollution from cars and traffic congestion is particularly evident. Chip shortages have been causing myriad changes to trends that affect the automotive trends that are not all positive.

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

MotionSafe enables AI-powered Automotive Cybersecurity

In addition, TuSimple has partnered with Navistar and UPS to test its software under supervised driving conditions. This could allow drivers to retain their jobs, but avoid the injuries and deaths that result from exhaustion. Additionally, Chevrolet, Hyundai, Kia, Nissan, and Jaguar have all released more affordable EVs that have a range of anywhere from 200 miles to 250 miles. Right now, there are only about 73,215 public EV charging stations across the US. Lithium-ion battery prices have fallen by 89% over the last decade, reaching a price of $137/kWh in 2020.

Self-Driving Vehicles.

Its vehicle control system processes passenger comfort thresholds related to acceleration, deceleration, and jerk rate. It then adjusts driving decisions to minimize motion sickness and maintain smooth operation. The global automotive sensor fusion market is projected to reach USD 3.3 billion by 2030 at a 42.4% CAGR.

Apache Automotive develops Hybrid Cars

• More than half of pickup owners purchase off-road parts and engage in outdoor activities with their vehicles.
• This number is expected to have risen in 2020 as dealers everywhere turned to digital channels.
• Bloomberg New Energy Finance expects EVs to account for 10% of all new car sales by 2025 and 58% by 2040.
• These tendencies are long-term and are expected to continue shaping the auto industry in the near future.
• For example, Mercedes-Benz is using Chat-GPT for intelligent virtual assistants within its vehicles.
• Legacy brands like Ford, GM, and Volkswagen are launching dedicated EV lines, while startups like Rivian and Lucid push luxury and performance boundaries.

Norway set a record in the electric vehicle sector in August 2024, as the number of all-electric vehicles on the road surpassed that of gasoline-powered vehicles for the first time. In terms of new car sales, Norway boasts the highest percentage of battery-electric vehicles in Europe. 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. The idea behind a circular economy is to create a closed-loop system where materials are reused, refurbished, and recycled rather than disposed of.

ThinkSeed transforms In-car Experience

The startup also serves other industries, such as aerospace, construction, and biomedical. Indian startup RevitsOne offers AI-powered fleet-management software that is suitable for fleets of varying sizes. The startup’s vehicle management system provides insights into speed, running vitals, and health information. Drivers benefit from Voicera ID, a voice-based virtual assistant that helps them keep track of the information they need.

APIs conversion growth

In 2024, hybrids saw a YoY growth of almost 19%, which is expected to grow to over 23% by 2025. In 2025, used passenger car registrations are forecast to hit 179 million globally and are predicted to grow by 1.4% year-on-year. The cost of new cars remains at an all-time high, and with higher interest rates, consumers are likely either to wait for rates to decrease or to turn to the used car market. 2025 is predicted to be a big year for self-driving taxi services, as companies look to re-imagine the future of the automotive and taxi-hailing industry.

Cube Intelligence builds Blockchains for Autonomous Vehicles

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. Its technology transports ultra-high-bandwidth video and data from sensors to processors with ultra-low latency.

is set to be a big year for automotive production

Semiconductors ensure energy efficiency, consistent power distribution, and power the battery systems in EVs. They also enable software updates, enhance entertainment, and facilitate smooth communication in connected and software-defined vehicles. Let’s embark on this journey together, where ‘driving the future’ is more than just empty rhetoric. In 2025, consumers may opt for flexible ownership models that allow them to pay a monthly fee to access a range of vehicles, including electric cars, luxury models, and even autonomous vehicles. This approach offers more convenience and flexibility than traditional car ownership and allows consumers to change vehicles based on their needs.

Shift Toward Mobility Services

The Global Startup Heat Map showcases the distribution of 3836 exemplary startups and scaleups analyzed using the StartUs Insights Discovery Platform. It highlights high startup activity in Western Europe and the USA, followed by India. Unless otherwise noted, this page’s content was written by either an employee or a paid contractor of Semrush Inc.

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. US-based startup Aeluma using data to nudge buyers into cleaner cars develops semiconductor technology for mobile devices, AI, AR/VR, autonomous systems, and other applications.

How is electric vehicle technology shaping the automotive industry?

It enables secure data sharing for connected and shared mobility solutions, including ride-hailing, urban transportation, and delivery services. The evolution of self-driving and connected cars is simplifying driver-vehicle interaction. Human-machine interfaces (HMIs), including voice-based and haptic feedback systems, are expanding control over various car functions. For this in-depth research on the Top Automotive Industry Trends and startups, we analyzed a sample of 4859 innovative automotive startups & scaleups worldwide.

Electric Vehicle (EV) Production Expansion

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.

• In this article, we’ll explore the significant focuses of the automotive industry in 2025, ranging from electric mobility to autonomous driving and sustainability initiatives.
• Volvo has adopted megacasting techniques to simplify EV production, reducing the number of components required and streamlining assembly processes.
• 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.
• Automakers are responding by integrating carbon-neutral initiatives across their value chains.
• This chiplet-based architecture integrates with automotive processors via PCIe Gen5 and UCIe interfaces, which allows customizable and cost-effective system enhancements.
• 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.

Autonomous vehicles are changing the face of the auto industry

• Dedicated short-range communication (DSRC) based on IEEE 802.11p facilitates direct vehicle-to-vehicle and vehicle-to-infrastructure communication.
• However, the primary function of these cars is not just to entertain they can connect to other vehicles (V2V), pedestrians (V2P), infrastructure (V2I), and cloud (V2C).
• While full autonomy is still on the horizon, advanced driver assistance systems (ADAS) are already transforming how we drive.
• 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.
• Daymak will assemble Avvenire’s vehicles and distribute them through its network of over 200 dealers in 25 countries.
• As battery technology and charging infrastructure progress, EVs lead the push toward sustainability.

In 2024, the automotive industry is increasingly integrating cutting-edge technologies into its operations. Key automotive industry trends include a significant rise in electric vehicle production, a growing market for pre-owned vehicles, and an uptick in digital car sales. Alongside established technologies like AI and big data analytics, the industry is also embracing the Internet of Things (IoT) and blockchain for diverse applications. This technological evolution is reshaping the automotive landscape, driving innovation and efficiency.

Avvenire designs Light Electric Vehicles (LEVs)

The automotive industry is highly dynamic, and these trends are subject to change over time. Monitoring and understanding these trends are critical for automakers and other stakeholders to stay ahead of their competitors. The US-based startup Apex AI enables automotive companies to implement complex AI solutions.

Here’s how TikTok unboxings and gaming are driving one of 2025’s top retail trends. Data from the past 10 years shows the sale of luxury vehicles making a steep climb in 2022. Toyota’s Mirai and Hyundai’s Nexo have been the two major players in the market since sales launched in 2016. Along with an increase in refueling stations, look to see an increase in the variety of FCEVs available to consumers in the coming years. In addition, Hawaii passed a bill in 2022 that will create a hydrogen refueling system rebate for developers. Any infrastructure that’s built after January 1, 2023, and utilizes renewable hydrogen will be eligible for up to $200k.

Cyber security in the automotive industry

Consumers research their preferred car on their mobile phones, looking for the best options, offers, and dealerships. Therefore, websites need to be easily readable and accessible across mobile devices, with clear calls to action. Brands need to provide specific offers by analyzing their customer’s needs, preferences, and behavior. OEMs like Toyota, Hyundai-Kia, Renault-Nissan Mitsubishi, and Stellantis already have a large portfolio of hybrid variants, including mild and full hybrids.