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.
Sustainability, regulations, and supply chain challenges in automotive manufacturing
However, it raises privacy and cybersecurity concerns that OEMs must address to maintain consumer trust. The connected car market is a battleground for tech giants and traditional automakers alike. Sustainability is a major driver reshaping vehicle design, manufacturing, and lifecycle management. Governments worldwide are imposing stricter emissions standards and incentivizing zero-emission vehicles (ZEVs).
APIs conversion growth
Without subsidies, demand for EVs on the consumer end could also drastically decrease as was recently seen in Germany after government incentives ended. This may also see American automakers finding more challenges in exporting vehicles to regions in which regulations are more stringent. The market share with EVs specifically is even greater, manufacturing 58% of the world’s electric vehicles.
Automotive Supply Chain Issues.
With the new administration of Donald Trump in January, the trade war with China will have a major impact on the automotive industry in 2025. Displays will also be a key driver of automotive technologies in 2025, from microLEDs to the production of holographic windscreens and smart glass. Belgian startup Apache Automotive develops the APH-01, a T3 prototype for extreme terrain. It combines a gasoline engine with an electric motor to enhance fuel efficiency and reduce emissions.
Classic and Historical Cars
Along with battery-powered electric vehicles, fuel cell electric vehicles (FCEV) are another alternative to internal combustion engines. By 2035, approximately 16% of all new LV (light vehicle) sales in the US are predicted to consist of advanced automated vehicles (L3, L4, and L5). Fewer new vehicle purchases mean consumers hold onto their vehicles longer, reducing the available used inventory and increasing prices. Additionally, interest rates for used vehicle loans are higher than those for new 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.
Artificial Intelligence in the Automotive Industry
There will be continued demand for legacy process technology, with the construction and facilitation of the ESMC fab in Dresden progressing through 2025. Whether this central compute is a monolithic chip such as Nvidia Thor, which will be detailed in 2025, it will also be constructed from chiplets. This technology will be further developed through 2025, with the end results showing up in the following years. With increasing political uncertainty and a cooling economy, responding to the top three trends will be key to traversing a difficult year ahead.
- Its vehicle tracking system provides 24/7 real-time visibility, supported by self-install and engineer-fitted options, with no minimum fleet size required.
- As for those who already use micromobility vehicles, 32% say they often or very often use it instead of a private car.
- 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 automotive industry stands at a thrilling crossroads, where innovation meets complexity and opportunity rides alongside challenge.
- The SAE, originally the Society of Automotive Engineers, has identified six levels of automation on the path to completely autonomous vehicles.
Increase in digital advertising spending
The fleet of light-duty EVs has grown in the last four years by more than 14 times with a very significant, 17-times increase in the fleet of plug-in hybrid vehicles (PHEVs). Brazil is leading the way by a large margin, followed by Mexico, Costa Rica, Colombia and Chile, respectively. This Electric Vehicles Market Report 2026 examines industry growth, investment flows, patent activity, and global hubs shaping the EV ecosystem.
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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.
Chip Shortage Continues to Plague Auto Manufacturers
- Currently, its greatest challenge is uncertainty and instability, which are expected to persist this year.
- The goal is to enable cars to make decisions and navigate without human intervention.
- The platform allows autonomous vehicles to discover AVs, service providers, or clients around them.
- DAM can print parts as large as 1000x3000x1000mm using engineering-grade recycled plastics.
- The foundation of autonomous vehicle architecture lies in a set of sensors, including LiDAR, radar, and ultrasonic systems, providing cars with a 360-degree panoramic view.
- The vans deliver groceries from nearby stores and send out a push notification when the order arrives.
- 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 systems optimize the performance of electric power steering, vehicle pumps, cooling fans, and HVAC modules.
- The Volta Zero addresses sustainability by enabling zero tailpipe emissions, contributing to cleaner city environments.
The US-based startup Procon Analytics leverages big data to offer a solution for automotive finance. The solution captures millions of data points in real time and analyzes them to enable lenders to instantly assess and reduce risk. This allows Buy Here Pay Here (BHPH) dealers to expand their businesses and extend credit to high-risk customers. Further, this also offers software solutions for fleet and asset tracking as well as connected cars.
Avvenire designs Light Electric Vehicles (LEVs)
This trend is reshaping how manufacturers think about scalability and flexibility, particularly as the demand for electric vehicles continues to grow, and will continue to make itself felt throughout 2025. EV technology is the catalyst for transformation—it’s forcing OEMs to rethink vehicle architecture, supply chains, and customer engagement. Battery improvements reduce costs and increase range, making EVs more accessible. EVs also enable new business models like vehicle-to-grid services and battery leasing.
- This includes driver monitoring systems, adaptive cruise control, and collision avoidance systems.
- The AI in Automotive industry in 2026 is evolving as AI, autonomous technologies, and software-defined vehicles reshape global mobility systems.
- By 2030, automotive industry trends 2030 will witness a significant shift towards electric and autonomous vehicles, driving sustainable growth in the car market.
- By addressing issues proactively, manufacturers and service providers can further reduce breakdowns, enhance vehicle reliability, and improve overall customer satisfaction.
- Meanwhile, tech companies such as Uber and Lyft continue to expand their digital-first transportation solutions, creating a more competitive and diverse mobility landscape.
- Automakers like Toyota and QuantumScape are heavily investing in this technology, and we can expect breakthroughs in battery chemistry and design in the coming years.
Rise in autonomous self-driving cars
The high prices and increasing interest rates are causing sales to decline for dealers and automakers nationwide. Prices are expected to decrease as supply-chain issues improve, and sales continue to soften. However, interest rates may remain high as the Federal Reserve works to lower inflation.
- The concept of Mobility as a Service (MaaS) is changing how people think about transportation.
- Rapid technological and environmental innovations have forced incumbents to adapt to new challenges.
- They are used by the automotive industry for car manufacturing, employee training as well as vehicle sales and marketing.
- Apart from this, reduced access to EV charging points remains a significant challenge, according to consumer trends in the automotive industry.
- Maximising the ROI to investors and stakeholders while remaining competitive will be priorities of the industry.
- The kit maintains original vehicle features to ensure a seamless transition and familiar driving experience.
- Shared mobility also influences vehicle design toward durability, modularity, and connectivity.
Methodology: How We Created the Automotive Trend Report
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. Success will depend on manufacturers’ ability to balance technological advancement with practical implementation while meeting evolving consumer expectations. The transformation of the automotive sector is far from complete, but the direction is clear – towards a more sustainable, connected and intelligent future of mobility. 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.
The rising preference for pre-owned/used cars
This pushes automakers to invest heavily in electric drivetrains, recycled materials, and circular economy practices. Consumers increasingly demand eco-friendly options, influencing market offerings. Expect more biodegradable components, renewable energy-powered factories, and battery recycling programs. The trend is irreversible and will accelerate innovation while challenging legacy ICE-dependent supply chains. 5G connectivity unlocks ultra-low latency communication, enabling real-time vehicle-to-everything (V2X) interactions. This enhances autonomous driving capabilities, traffic management, and safety features.
- However, interest rates may remain high as the Federal Reserve works to lower inflation.
- By 2025, we will see increased investments in EV production as automakers cater to evolving consumer demands and regulatory pressures.
- Increasing battery efficiency as well as EV charging infrastructure can speed up adoption.
- These facilities use data-driven insights to optimise processes, reduce energy consumption, and increase operational efficiency.
- Operating from Germany and the US, EcoG is a startup offering an IoT-based operating system and platform for EV charging.
- Artificial intelligence (AI), the Internet of Things (IoT), blockchain, and advanced semiconductors allow autonomous driving, predictive maintenance, and secure connectivity.
Tesla’s EV battery production and global gigafactory network
- By incorporating AI tools, the company has reduced production costs while accelerating vehicle launch timelines.
- The autonomous vehicle sector will advance as UN regulators lift their speed limit.
- Soon, this will expand to more complex urban environments as vehicle access becomes increasingly prioritised over ownership among the driving masses.
- South Korean startup BOS Semiconductors builds Eagle-N, an AI accelerator for in-vehicle infotainment (IVI) and ADAS.
- Singaporean startup EVIE Autonomous designs electric, autonomous shuttles for last-mile delivery, passenger transport, agriculture, and cargo movement.
- The startup uses automotive sensors and compute platforms to offer a scalable solution for cars to enable large-scale fleet learning.
- We invite you to revisit these top stories, share your perspectives, and stay tuned for more in-depth coverage of the trends shaping the automotive world.
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. Automotive industry trends refer to changes in patterns within the automotive sector that influence vehicle design, production, marketing, and usage.
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. Statevolt’s decision to build its gigafactory in the UAE rather than Europe has been a talking point this year. This article explores the strategic reasons behind the move, including the UAE’s favourable energy policies, market accessibility, and logistical advantages. By leveraging these factors, Statevolt is positioning itself to meet the rising demand for EV batteries in an increasingly competitive market.
It offers ready-to-use workflows across system, software, and project management processes. Its MotionSafe Privacy platform uses algorithms to monitor controller area network (CAN) traffic and detect anomalies. The platform also erases personally identifiable information (PII) from vehicle systems to maintain privacy. For example, over-the-air (OTA) updates depend on secure encryption and authentication to block malicious code injection. Likewise, fleet operators strengthen defenses for telematics, routing data, and driver information against manipulation. AI and machine learning (ML) support cyber defenses by enabling real-time anomaly detection and predictive monitoring.
What are the Top 10 Trends & Innovations in Automotive ( ?
Major automotive manufacturers are responding by rethinking their revenue models and investing heavily in on-demand vehicle access services. Meanwhile, tech companies such as Uber and Lyft continue to expand their digital-first transportation solutions, creating a more competitive and diverse mobility landscape. Moreover, automakers offer features on demand as they are turning cars into service platforms. Likewise, projects USD billion in annual software and services revenue by 2030 from connected vehicles. The startup strengthens autonomous driving by providing reliable and production-ready Level 4 vehicles that expand commercial reduce downtime of farm transport mobility solutions. Semiconductors enhance safety by enabling faster decisions and reducing accident risks.