Governments worldwide are imposing stricter emissions standards and incentivizing zero-emission vehicles (ZEVs). This pushes automakers to invest heavily in electric drivetrains, recycled materials, and circular economy practices. Consumers increasingly demand eco-friendly options, influencing market offerings.
- Global supply chain disruptions over recent years have prompted manufacturers to rethink strategies.
- Additionally, infrastructure developments like Toyota‘s new battery plant in North Carolina underscore the industry’s dedication to scaling EV output.
- Also, additive manufacturing makes prototyping more rapid, which enables faster design and testing periods for new vehicles.
- But, there are other various supply chain issues and factory closures that have led to low inventory, too.
- The autonomous vehicle (AV) market is on an impressive growth trajectory, expected to surge from a market value of $1,921.1 billion in 2023 to a staggering $13,632.4 billion by 2030, with a CAGR of 32.3%.
- With the growing popularity of bidirectional charging (V2G) technology, EVs now contribute energy to the grid to improve stability.
Lexus LS Coupe Concept Could Be the Future of… Something
The best-selling vehicle in the US, the Ford F-Series pickup, has an average price of $66,451, placing it in the luxury category. In this world where we are shifting to EVs, individuals usually prefer to shift to smaller vehicles which are much more affordable and environmentally friendly. They are much more convenient to use in these congested cities and parking these vehicles is much easier. Younger generations, especially Genz or millennials prefer these vehicles as they are much more attractive. 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.
Lean Project Management: What It Is, Key Principles & How to Implement It
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. 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. At the same time, a limited EV infrastructure and uneven policy application dampen the pace of meaningful progress throughout the region. When it comes to the benefits of connected cars, it seems that drivers are more willing to allow for data collection, too.
Automotive Industry Trends 2025: Future & Growth of Automotive
These vehicles improve public transport safety by reducing accidents caused by human error. LiDAR sensors enable precise 3D mapping, crucial for vehicle navigation and obstacle detection. AI algorithms process vast data from sensors and cameras, enhancing decision-making for safe, efficient driving. French startup Airnity provides a cellular connectivity platform for the automotive industry to enhance connected car operations.
- Its vehicle control system processes passenger comfort thresholds related to acceleration, deceleration, and jerk rate.
- It integrates templates, examples, and practices aligned with ISO/SAE 21434, Automotive SPICE for Cybersecurity, and VDA guidelines.
- For example, Toyota plans a commercial rollout by 2027 to bring solid-state battery EVs into mass production.
- With consumers increasingly prioritizing environmental performance when purchasing vehicles, automakers must focus on reducing emissions and developing more sustainable transportation options.
- Companies like Nvidia innovate in AI-powered chips for AVs, partnering with automakers like Toyota, Tesla, and Aurora Innovation to enhance autonomous capabilities.
- This report explores how breakthrough technologies are accelerating the shift toward safer, smarter, and more sustainable transportation systems worldwide.
e.Volution manufactures Sustainable Vehicles
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. However, automotive executives need help as they focus on new technology that meets consumer and regulatory demands. This has led to a shift away from traditional automotive infrastructure, which focused on powertrains, interiors, electrical systems, and safety systems.
What are the latest automotive industry trends in 2024?
- They also support smart city initiatives by offering data for traffic management and logistics automation.
- The Tree Map below illustrates the top 10 automotive trends that will impact companies in 2024.
- For example, BMW’s San Luis Potosí facility applies digital replicas to reconfigure layouts and minimize waste.
- AI and ML processors support object recognition, path planning, and decision-making.
- Google and Ford recently announced a connected car partnership called Team Upshift.
- Lastly, MARV.Automotive is a configurable and extensible data management platform that reliably transmits data from the vehicle to the cloud.
- 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).
- For instance, Texas Instruments‘ AWR2544 radar achieves sensing beyond 200 meters.
As a result of this partnership, Ford is expected to launch its own self-driving car business. The standard ranges from SAE Level 0 (no automation) to SAE Level 5 (full automation). The Society of Automotive Engineers (SAE) “Levels of Driving Automation” standard shows how stages of vehicle automation progress. In China, it was even reported that lithium-ion battery pack prices fell below $100/kWh for the first time. It’s estimated that to meet many of these net-zero emission goals, EVs will have to climb to at least half of all new car sales by 2050.
What are the expected effects of sustainability and environmental concerns on the automotive industry’s future trends?
This transformation is also expected to help revive sluggish vehicle sales by 2030. Let’s embark on this journey together, where ‘driving the future’ is more than just empty rhetoric. 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. 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.
- 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.
- 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.
- Therefore, these were the five trends transforming the automotive industry this year and beyond.
- However, it raises privacy and cybersecurity concerns that OEMs must address to maintain consumer trust.
- Simultaneously, many automakers embrace vertical integration strategies, taking control of the software stack from chip development to application integration.
- This is further fueled by increasing awareness of convenience and supported by rising digital literacy, internet accessibility, urbanization, and disposable income levels.
Software-Defined Vehicles: Cars as the Ultimate Connected Devices
It eliminates mandates that favour EVs, emphasising consumer choice and opposing regulations that make gasoline-powered vehicles less accessible. 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.
🔋 Battery Technology Breakthroughs and Range Anxiety Solutions
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. Legacy brands like Ford, GM, and Volkswagen are launching dedicated EV lines, while startups like Rivian and Lucid push luxury and performance boundaries.
Motoreto strengthens supply chain resilience in the auto industry and drives nearshoring by aligning distribution, procurement, and sales with regional market needs. The startup enables dealerships, fleet managers, and manufacturers to manage inventory strategically. It also supports this process by integrating buybacks, residual value calculations, and automated stock analysis.
🛍️ Trend 6: Evolving Consumer Preferences and New Mobility Solutions
Its product range includes an electric modular chassis, the standard autonomous shuttle pod, and pods for other applications. The need for high-performance processors is also growing as a result of software-defined vehicles (SDVs), which rely on semiconductors for ongoing updates and subscription-based services. The global automotive semiconductor market is projected to grow from USD 53.57 billion in 2025 to USD 86.81 billion by 2033, with a CAGR of 6.22%. Join us today and access AMS’s wealth of global news, insights, intelligence and content, and to make valuable connections with your peers from across the automotive industry. Volkswagen is using digital twin technology at its Wolfsburg plant to simulate and optimise production processes for the Tayron SUV.
Automakers reduce reliance on distant suppliers as trade tensions and conflicts expose the fragility of global networks. Also, advanced battery management systems improve safety, extend battery life, and optimize performance. Automakers integrate these systems to offer more reliable vehicles across global markets. In 2024, EV sales reached 17 million units, accounting for over 20% of global new car sales. Also, the EV market is projected to reach USD 6.16 trillion by 2035 at a CAGR of 25.32%. Autonomous driving demonstrates scalable deployment across passenger and freight use cases, and subscription models give consumers flexible access to vehicles.
ARK MOTORS builds Electric Vehicles
Moreover, the solution is customizable to any car model or specific OEM requirements. 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. These advancements are driving the future of connected vehicles, which are increasingly becoming a standard feature in new cars.
BOS Semiconductors focuses on high-performance, energy-efficient AI solutions to drive innovation in autonomous driving and enhance in-cabin experiences. US-based startup Avvenire develops LEVs for efficient and eco-friendly urban transportation. 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. Younger buyers often prefer subscription models or shared mobility over ownership.
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.
What are Automotive Industry Trends?
It enables systematic results in cybersecurity, functional safety, and process conformance. In addition, the startup strengthens automotive cybersecurity with features such as real-time intrusion detection and automated containment protocols. It is also integrated into fleet management dashboards and security operations centers (SOC). By securing these systems, cybersecurity prevents hijacking of steering or braking functions, protects sensitive driver data, and shields automakers from costly recalls and reputational harm.
- The automotive industry is being altered by the integration of Artificial Intelligence (AI), which is powering a new wave of smarter and more personalized innovations.
- Its RISC-V IP processors adopt 32/64-bit architectures supported by a nine-stage dual-issue pipeline.
- All of this puts the auto industry at the back of the line when it comes to receiving chips.
- Automotive semiconductors and sensor fusion enhance safety, efficiency, and intelligence.
- NVIDIA’s DRIVE Thor, for instance, offers up to 2000 TOPS of AI inference performance.
- These shifts are beneficial to ARM, STMicroelectronics, NXP Semiconductors and Infineon Technologies.
- The company already has 50 Level 4 autonomous trucks operating in the Southwestern United States.
- Notable achievements in 2024 include significant progress in reducing emissions and advancing transparent ESG reporting.
- IoT solutions can offer numerous benefits to end-users by utilizing interconnected systems, such as better safety, driving assistance, and predictive maintenance.
Moreover, the startup installs Tesla motors and Fellten battery systems, information tools that help you choose the right car which provide up to 295 horsepower, enable flexible range options, and ensure authenticity through fully reversible conversions. Ultra-fast charging infrastructure minimizes downtime by offering hundreds of kilometers of range in just minutes. For example, BYD demonstrated a 1000 kW charging system that is capable of adding about 400 km of range in five minutes to its Han L and Tang L models under ideal conditions.
People are shifting to EVs because of their design and their being environmentally friendly. 50% of buyers are willing to opt for EVs, so businesses should surely focus on marketing electric vehicles to make their brands more broader. Increased government focus on charging networks will be needed to support the expanding EV fleet. The autonomous vehicle sector will advance as UN regulators lift their speed limit. In the United States, the newly appointed administration has issued several executive orders that will likely have drastic impacts on both global and national automotive markets. One such order significantly impacts the future of EVs and EV infrastructure by rolling back policies that once supported their growth.
Industry 4.0 and Digitalization in Manufacturing
The final trend, and one which has been subject to a lot of attention (and hype), is driverless transportation. Its electronic control unit (ECU) platform combines AUTOSAR software modules with customizable hardware. It manages functions such as steer-by-wire, brake-by-wire, engine control, and ADAS. At the same time, governments and companies view subscriptions as a pathway to scale EV adoption without heavy upfront investments.