Automotive Manufacturing Solutions (AMS) is the essential resource for automotive manufacturing professionals and suppliers globally. 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. As net-zero targets become the norm, the reliance on renewable energy is only set to grow. Exciting developments in energy storage and green hydrogen technologies promise to redefine production processes further. The answer lies in education, infrastructure, and trust-building—slow but steady wins the race.
- Czech Republic-based startup IONT tech manufactures EV charging stations that support home, business, and public use.
- AI and ML processors support object recognition, path planning, and decision-making.
- 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.
- It enables secure data sharing for connected and shared mobility solutions, including ride-hailing, urban transportation, and delivery services.
- Lastly, MARV.Automotive is a configurable and extensible data management platform that reliably transmits data from the vehicle to the cloud.
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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. Toyota intends to power its battery plant in North Carolina with renewable energy by 2025.
Inside Xiaomi’s EV Factory
- Read on to explore each trend in depth – uncover key drivers, current market stats, cutting-edge innovations, and the 20 leading innovators shaping the future.
- Moreover, the startup installs Tesla motors and Fellten battery systems, which provide up to 295 horsepower, enable flexible range options, and ensure authenticity through fully reversible conversions.
- Another instance is that of Michelin, which made a road-approved car tire with 45% sustainable materials.
- Recycling initiatives, such as reusing EV batteries, further emphasize the industry’s shift toward circular manufacturing.
- The US-based startup Launch Mobility develops a platform for a range of shared mobility solutions.
- From 2024 to 2029, the insurance telematics industry is projected to grow at a CAGR of 17.6%.
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 compare tech features with VIN based stats 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.
Automotive Industry Trends 2025: Shifting Gears Toward Innovation
The US market was worth $14 billion in 2021 and is expected to grow at a CAGR of 10.7% to reach more than $31 billion by 2028. Tesla reportedly rewrote the software it uses in its vehicles so they could run on a different type of chip. They’re so important that one analyst said, “semiconductors have moved ahead of oil as the world’s key commodity input for growth”. However, the demand for parts is also being diminished by the increasing quality of newly manufactured vehicle parts. In addition, the ecommerce automotive aftermarket market is worth an estimated $85.28 billion.
IONT tech specializes in EV Charging Solutions
For instance, India’s eBus Sewa scheme deploys 10K electric buses to curb urban pollution. Further, it establishes local manufacturing facilities, which reduce supply chain dependency and generate employment and stimulate economic growth. Read on to explore each trend in depth – uncover key drivers, current market stats, cutting-edge innovations, and the 20 leading innovators shaping the future.
- Michelin’s development of tyres composed of 45% sustainable materials is a noteworthy example of how companies are rethinking material usage to minimise their environmental footprint.
- The strong focus on technological advancements in the automotive sphere has also meant that cyber security is becoming a larger concern in a historically unconcerned industry.
- Global economic slowdowns and fierce competition from Chinese manufacturers have slowed the growth of EVs.
- The move highlights the scale of investment required to meet zero-emission vehicle targets and align with regulatory pressures for decarbonisation.
- In October 2022, the delivery lead time for chips decreased by six days to 25.5 weeks, the most significant drop since 2016.
- 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.
Mechatnom applies Automotive Software Modules
Continuous change detection triggers automatic cloud updates to ensure up-to-date navigation information. South Korean startup BOS Semiconductors builds Eagle-N, an AI accelerator for in-vehicle infotainment (IVI) and ADAS. It uses Tenstorrent’s Tensix NPU core to deliver up to 250 tera operations per second (TOPS) for efficient AI processing. The Global Startup Heat Map showcases the distribution of 6000+ exemplary startups and scaleups analyzed using the StartUs Insights Discovery Platform.
Radar Reticence designs Radar Sensors
By 2030, automotive industry trends 2030 will witness a significant shift towards electric and autonomous vehicles, driving sustainable growth in the car market. The infrastructure for EVs is expected to become more widespread and advanced, supporting the increasing number of electric vehicles on the road. Additionally, autonomous driving technology is set to dominate the industry, creating a safer and more efficient transportation system. Following these trends helps greater penetration in the emerging market, like the growing adoption of electric vehicles in China and India.
- OEMs are advancing and navigating regulatory challenges to introduce and test L3 and L4 automation, setting the background for augmented adoption of autonomous vehicles.
- EVs typically use 2-3 times more semiconductor content than internal combustion engine models, and in powertrain-specific components, that multiplier is possibly higher.
- Until these efforts bear fruit, the industry will need to focus on mitigating risks and prioritising demand effectively.
- Top car brands and dealerships are embracing VR as part of their dealership photography strategies to improve the customer experience.
- The Global Startup Heat Map showcases the distribution of 6000+ exemplary startups and scaleups analyzed using the StartUs Insights Discovery Platform.
- Just days ago, Jaguar unveiled their new concept car, the Jaguar Type 00, a fully electric, futuristic vehicle that marks a departure from every other car the brand has produced.
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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. UK-based startup WF Telematics offers vehicle and asset tracking solutions for businesses seeking efficient fleet management and asset monitoring.
Increase in Digital Advertising Spending
Its technology transports ultra-high-bandwidth video and data from sensors to processors with ultra-low latency. For this, it uses advanced system-on-chips (SoCs) that integrate mixed-signal analog and digital signal processing (DSP) algorithms. This includes driver monitoring systems, adaptive cruise control, and collision avoidance systems.
Toyota’s Vision for the Future of EV Design
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.
This calls for a thorough analysis of recent trends in the automotive industry, So this blog brings you some of the significant car market trends in 2025 that you must know. From supply chain optimization and manufacturing to personalized driving experiences and smart routing, advanced AI systems and real-time data analysis enable it all. By 2027, the global automotive AI market is expected to grow from its 2022 valuation of USD 2.3 billion to USD 7.0 billion, with a compound annual growth rate (CAGR) of 24.1%. The automotive industry is gearing up for a transformation as fast and furious as the iconic franchise suggests. The latest technological advancements and evolving consumer preferences are seriously revamping vehicle production as we know it, remodeling the auto market for good. A quick online search reveals that by 2040, 33 million autonomous cars are expected to be on the road.
The startup enables automakers to reduce waste, optimize design processes, and advance sustainable manufacturing strategies. The automotive industry is one of the most severely affected by supply chain disruptions. Currently, its greatest challenge is uncertainty and instability, which are expected to persist this year.
Major Shifts in China’s Automotive Industry
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. British startup Cube Intelligence develops a blockchain-based security platform for autonomous vehicles. The startup’s technology utilizes hash codes to block malicious attacks or hacking attempts on autonomous cars and connected cars. Additionally, Cube Intelligence offers ride-hailing and valet parking services for AVs, as well as smart parking management systems.
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. In addition, it offers insurance-approved vehicle tracking systems with Thatcham S5 and S7 certification to meet insurer requirements and offers nationwide installation with priority police response. Consumer demand for eco-friendly products is rising, with 80% of US consumers concerned about the environmental impact of their purchases in April 2024, up from 68% in 2023. North America led the AV market in 2024 with over 40% revenue share, while Asia-Pacific is the fastest-growing region, with an expected CAGR of 35% from 2024 to 2033. Its early fusion approach integrates LiDAR and radar data, while neural networks infer road elements and topology to create accurate high-definition maps.
This is not just a European problem with Volkswagen and Stellantis, as Honda and Nissan merge, and Ford and General Motors struggle. Global economic slowdowns and fierce competition from Chinese manufacturers have slowed the growth of EVs. In 2025, the automotive industry’s digital marketing spending is predicted to keep growing. This rise in digital advertising spending is being steered by the growing usage of social media. Dealerships need to integrate strategic frameworks to capture potential buyers across different stages in the process with the use of social media marketing, click-to-call conversions, and messaging apps. UK-based startup Distributed Additive Manufacturing (DAM) offers 3D printing services including design, building, and finishing of parts.
Ascent Labs builds Risk Management Platform
India-based startup DriveTech-AI builds solutions centered around optimizing the vehicle testing process through smart solutions. Its suite of platforms and solutions allows automotive OEMs to accelerate testing data analysis and enhance automation and team collaboration. For example, its StellarAi data intelligence platform offers templates to quickly identify engineering variables, trends, and vulnerabilities. AI technologies like machine learning, deep learning, and computer vision are advancing robotic automation. They play pivotal roles in guiding self-driving cars, managing fleets, enhancing driver safety, and refining services such as vehicle inspections and insurance. Autonomous vehicles (AVs) are advancing transportation by minimizing the need for human drivers and enhancing last-mile delivery efficiency.
- 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.
- Car dealerships are no exception, as recent auto trends reveal that customers prefer to experience a car or dealership before purchasing.
- To maintain cost competitiveness, automotive procurement teams must be critical in managing supplier networks and supply chains for existing and upcoming vehicle models.
- Also, EV charging infrastructure requires strong cybersecurity, as attackers target charging stations for data theft or service disruption.
- While most of these concerns can be overcome, it will take some time, and this time will be the most challenging for the industry.
- Its MotionSafe Privacy platform uses algorithms to monitor controller area network (CAN) traffic and detect anomalies.
- Connected cars enable real-time navigation updates, remote diagnostics, and seamless smartphone integration.
Its vehicle tracking system provides 24/7 real-time visibility, supported by self-install and engineer-fitted options, with no minimum fleet size required. With the introduction of 5G networks, advanced telematics features like real-time diagnostics, autonomous driving, and improved safety systems are becoming even more feasible. Canadian startup Xaba develops intelligent automation solutions, materials, and processes for sustainable manufacturing. 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.
The expected reach in 2026 is expected to reach nearly $62 billion at a growth of CAGR 22.75%. Self-driving cars are considered safer since they can sense their environment and operate safely within it, eliminating factors such as human error and driver fatigue. Sustainability is a major driver reshaping vehicle design, manufacturing, and lifecycle management.