This also presents an emerging opportunity to connect the vehicle ecosystem, creating a dynamic adaptation of data for road and weather conditions, assisted by IoT-enabled devices. Car companies plan to integrate powertrain components in the next five to ten years by combining onboard chargers with batteries. Tesla already employs single inverter housings across its models, offering efficient integration of power electronics. This shift is driven by the growing need for more efficient power management in electric vehicles, resulting in smarter and more streamlined EV designs. 2025 will witness the automotive industry transitioning from Level 2 autonomy to Levels 2.5 and 3, representing a substantial evolution in automotive technology and enhancing vehicle automation and safety. Almost 40% of all autonomous vehicles sold in 2025 are predicted to have L2 ADAS features.
- 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).
- 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.
- This regulatory clarity will pave the way for broader AV adoption in cities, particularly in controlled environments like urban areas or designated autonomous vehicle lanes.
- In 2024, the automotive industry is increasingly integrating cutting-edge technologies into its operations.
- It highlights high startup activity in Western Europe and the USA, followed by India.
Technology Challenges Yield Growth Opportunities
Overlanding, a newer trend, combines off-roading with remote travel and camping, with products like mounted tents falling under this category. As per the traditional method, we used to visit the dealer and purchase vehicles from him, and the dealer used to make transactions with OEMs. However, as per the new Agency model, we will get to see that the people would directly be dealing with the OEMs and the dealer’s profit would be shared by OEMs. That will enhance in gaining the trust of society and the brand’s potential customers. Consumers thoroughly research their preferred car on their mobile phones, searching for the best offers and dealerships in their area. Therefore, websites must be easily readable and accessible on mobile devices, with clear calls to action.
🛍️ Trend 6: Evolving Consumer Preferences and New Mobility Solutions
Also, EV charging infrastructure requires strong cybersecurity, as attackers target charging stations for data theft or service disruption. The startup also operates PartSmart, a real-time parts ordering platform that connects insurers, workshops, fleet owners, and suppliers. The platform enables visibility online vehicle purchase with confidence across the entire claims cycle and supports both OEM and aftermarket sourcing.
– Special offers
- Its technology applies signal processing algorithms to eliminate interference and ensure radar units operate reliably within the same environment.
- Blockchain technology is increasingly being utilized in the automotive industry for various applications.
- It also supports over-the-air (OTA) updates with larger data payloads and faster speeds, improving software reliability and feature rollout.
- The auto industry is one of the largest and most influential markets on the planet.
- Automotive drivers now expect vehicles to behave like smartphones, gaining features through over-the-air (OTA) updates.
- However, growth EV adoption is predicted to slow, with year-on-year growth falling from 15% in 2024 to 11% in 2025.
Curious how electric vehicle trends like solar integration, AI-powered systems, and modular design are innovating mobility? This report explores the top 10 electric vehicle trends shaping the industry in 2026. Discover how these shifts improve charging, safety, and sustainability and what they mean for your business.
- Due to the pandemic, the automotive sector is undoubtedly facing one of the most challenging periods and a massive slowdown for the last couple of years.
- The startup enables automakers to reduce waste, optimize design processes, and advance sustainable manufacturing strategies.
- Moreover, the solution is customizable to any car model or specific OEM requirements.
- In line with this, automakers focus on sustainability in their manufacturing processes, energy sourcing, and material selection.
- Meanwhile, we are seeing the economic case for sustainable materials strengthen as manufacturers realise operational efficiency gains and reduce their long-term costs.
- Conversely, in Europe, regulations are scaling up in preparation for the EU ban on new ICE vehicles by 2035.
♻️ Circular Economy Principles and Eco-Friendly Production
Leading companies such as Volkswagen, General Motors, and Volvo have committed to producing zero-emission vehicles and achieving carbon-neutral operations by mid-century. In line with this, automakers focus on sustainability in their manufacturing processes, energy sourcing, and material selection. The SDVs market is set to reach 7.6 million units in 2025 from 6.2 million units in 2024. North America is commanding a 43% share as new-age OEMs focus on BEVs and software-driven architectures. Major technology providers are also solidifying their roles in key areas such as ADAS, electrical/electronic (E/E) architectures, and cloud computing solutions. This will further usher the industry into a new era of smarter, more connected, and more efficient vehicles.
- Some countries (and California) have even committed to phasing out all new sales of combustion engine vehicles over the next few decades.
- The U.S. and China trade war has also influenced the search for alternative sourcing options.
- With zero emissions, low noise, and a range of up to 400 km, FALAK offers a sustainable urban mobility solution.
- The platform also erases personally identifiable information (PII) from vehicle systems to maintain privacy.
- Searches for “autonomous driving” have increased by over 1,029% over the past 10 years.
- The startup emphasizes comfort with electric doors, extended safety features, and panoramic views from all seats.
- Moreover, automakers reduce tailpipe emissions, cities improve air quality, and governments reduce fossil fuel dependence.
Autonomous driving demonstrates scalable deployment across passenger and freight use cases, and subscription models give consumers flexible access to vehicles. Software-defined vehicles redefine business models through centralized computing and OTA upgrades. Technology in automotive industry forges ahead—the latest technological advancements are more and more extensively used by the domain. Let’s consider the recent trends in automobile industry related to the application of latest technologies.
Top Three Automotive and Mobility Trends in 2025
- Advanced manufacturing technologies, such as megacasting and giga-stamping, are playing a pivotal role in enabling the industry’s transformation.
- Connectivity is one of the key trends in automotive industry, and 5G is what takes it to a more advanced level.
- Fleet-as-a-Service (FaaS) solutions, particularly autonomous fleets, are set to transform how people navigate cities.
- Recent auto trends show that customers prefer to experience a car or dealership before purchasing.
- Asia, home to key production hubs, remains at the epicentre of attempts to address this crisis, with nations like Taiwan investing heavily in scaling chip production.
- This simplifies the transition to electric vehicles for fleets, reducing environmental impact and promoting safer urban transport.
- Automakers integrate these systems to offer more reliable vehicles across global markets.
- From enhancing in-vehicle safety solutions to enabling semi-autonomous driving features, AI is redefining innovations in vehicle functionality and unprecedentedly shaping the driving experience.
What initially appeared to be a niche sector is now the foundation of the auto industry’s transition. While automakers spend billions developing electric cars, most governments worldwide have ambitious plans to phase out internal combustion engines. According to Statista’s report, global sales of electric vehicles are expected to reach an astounding US$786.2 billion by the end of 2024. The concept of Mobility as a Service (MaaS) is changing how people think about transportation. 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.
🔮 Preparing for Tomorrow: Strategies for Industry Players and Consumers
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. 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.
Evolving video marketing & environmental sustainability
Many of those trends will be on display at the Consumer Electronics Show next week in Las Vegas. Honda will be showing its Series 0 platform that will be used for its SAE Level 4 driverless car in 2026. Recent auto trends show that customers prefer to experience a car or dealership before purchasing. Top car brands are embracing VR as part of their dealership photography strategies to further enhance the customer experience. 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.
🚀 Go Way Beyond Traditional Industry Expertise: Our Unique Perspective
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. These vehicles improve public transport safety by reducing accidents caused by human error.
Electrified Vehicles Top 50% of Sales in China
One critical challenge in transitioning to electric mobility is the availability and accessibility of charging infrastructure. By 2025, significant investments in fast-charging networks will be essential for EV adoption to reach mass-market penetration. Advanced Driver Assistance Systems (ADAS) and autonomous driving technologies continue to evolve, bringing unprecedented changes to vehicle safety and functionality. Additionally, infrastructure developments like Toyota‘s new battery plant in North Carolina underscore the industry’s dedication to scaling EV output. Expected to produce batteries for up to 800,000 vehicles annually, the plant will be powered entirely by renewable energy, demonstrating a dual focus on production efficiency and sustainability. With established automakers facing nimble startups in the mobility race, building new businesses should be a priority for auto executives.
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. From enhancing in-vehicle safety solutions to enabling semi-autonomous driving features, AI is redefining innovations in vehicle functionality and unprecedentedly shaping the driving experience. US-based startup FlxTran develops a new transportation system using self-driving vehicles on abandoned railroad tracks to provide fast regional transport to connect smaller communities. The system uses an app to schedule rides on autonomous vehicles, cutting down trip times compared to the available commuting options.
Forecasting Top 3 Automotive Industry Trends, 2030
Additionally, CARNIQ Technologies supports the automotive sector with threat analysis, cybersecurity management, and secure system development. It also provides validation services that ensure resilience against potential risks. The rapid rollout of software-defined vehicles, vehicle-to-everything (V2X) networks, and electrification pushes automakers to secure digital systems as rigorously as physical components. Moreover, the startup’s marketplace connects professionals in a secure environment.
Cyber security in the automotive industry
Moreover, Avvenire has a strategic agreement with Daymak International Inc., Canada’s leading LEV distributor. Daymak will assemble Avvenire’s vehicles and distribute them through its network of over 200 dealers in 25 countries. Further, as part of larger decarbonization efforts, the Intergovernmental Panel on Climate Change (IPCC) emphasizes the contribution of EVs to the reduction of greenhouse gas emissions.
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. The company already has 50 Level 4 autonomous trucks operating in the Southwestern United States. One of the most promising companies in the autonomous trucking ecosystem is TuSimple. The number of autonomous trucks on the road was expected to increase from roughly 150 in 2020 to over 2000 in 2021. It’s expected that the $800 billion trucking industry could benefit from a significant reduction in the 4900 trucking-related deaths that occur each year if only Level 3 or 4 autonomy would gain traction.
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.
Data-driven connectivity services and on-demand mobility will add up to $1.5 trillion to the automotive revenue pool by the year 2030. Electrification and autonomous vehicles will remain megatrends, transforming the sector and forcing automakers, suppliers, and dealers to adapt to new technologies and business methods. The new year will also witness L4 implementation, with companies like Baidu, Pony.ai, and WeRide conducting extensive road tests across various cities. Initiatives and support from the Chinese government, such as pilot zones and regulatory frameworks, are further accelerating the process. OEMs are advancing and navigating regulatory challenges to introduce and test L3 and L4 automation, setting the background for augmented adoption of autonomous vehicles.
Cube Intelligence builds Blockchains for Autonomous Vehicles
This makes sense, as 83% of car customers already said they wish they could save time by shopping online. This number is expected to have risen in 2020 as dealers everywhere turned to digital channels. As of 2023, the two now equip Ford and Lincoln vehicles with a built-in Android operating system.