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. It also supports over-the-air (OTA) updates with larger data payloads and faster speeds, improving software reliability and feature rollout. For consumers, 5G means richer infotainment, seamless smartphone integration, and enhanced navigation services. The automotive ecosystem will become more interconnected, paving the way for smart cities and mobility-as-a-service (MaaS). The transition to electric vehicles has moved beyond early adoption and is now something of a global imperative.
- 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.
- 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.
- AI is also transforming automotive manufacturing by speeding up production and cutting costs.
- The software integrates a one-shot multitask network capable of performing 2D detection, semantic segmentation, and monocular depth estimation.
Automotive Supply Chain Issues.
This article offers an inside look at the facility and Xiaomi’s ambitious plans in the automotive sector. Meanwhile, we are seeing the economic case for sustainable materials strengthen as manufacturers realise operational efficiency gains and reduce their long-term costs. Cross-industry collaboration is emerging as a key enabler, with automotive companies forming partnerships to develop and implement innovative material solutions. Software-defined vehicle (SDV) architectures are revolutionising automotive technology, with electric models often leading this digital transformation. While traditional OEMs are adapting to this shift, we are also witnessing newer market entrants are making significant strides in implementation, which is making for a more competitive automotive sector.
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- Supply chain resilience and nearshoring strengthen operational stability, while vehicle cybersecurity ensures trust in connected ecosystems.
- Europe is projected to reach a 20.4% market share, while the US is likely to reach 11.2%.
- Also, despite the slowing adoption rate, data has shown that the number of electric and hybrid vehicles actually on the road has dramatically increased (from 26 million in 2022 to 40 million in 2023).
- With customers becoming more demanding, rules and regulations are becoming stricter, and competition is stronger and faster.
- The high prices and increasing interest rates are causing sales to decline for dealers and automakers nationwide.
- The focus will also be on cybersecurity and fail-safe systems to build consumer trust.
- 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.
It enables sensor fusion and control for advanced driver assistance and autonomous driving. 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. 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.
Automotive Technology and Engineering
The uptake in EVs is experiencing a surge, driven by rapid advances in battery technology, an expanding charging infrastructure and supportive government incentives. As more manufacturers roll out affordable and appealing EV models, the market is shifting towards sustainable alternatives which are becoming more accessible to a broader consumer base. One of the most in-demand connectivity solutions is in-vehicle infotainment—the systems that provide both information and entertainment for enhanced driving experience. The currently available infotainment systems can connect with smartphones, sensors, ADAS (advanced driver assistance systems) as well as other in-vehicle and external systems.
Vehicle Subscription Services: SIXT & Stellantis Partner on 250K Vehicle Subscription Deal
This growth is driven by the increasing adoption of electronic control units (ECUs) in modern vehicles and the rising implementation of advanced safety systems. Semiconductors are, in essence, at the heart of modern car manufacturing, reshaping our understanding of mobility. Developing high-performance, long-lasting, and cost-effective batteries is a key area of focus for automakers in 2025. Batteries are the heart of any electric vehicle, and improvements in battery technology will continue to shape the future of EVs.
Motoreto simplifies Automobile Distribution for Used Vehicles
- The solution also serves as the base for additional services such as micropayments and micro-mobility.
- This communication system is crucial for the safe deployment of autonomous vehicles, as it will enable them to “talk” to other vehicles and infrastructure, reducing the risk of accidents.
- With the Middle East emerging as a significant player in the EV supply chain, manufacturers must adapt their strategies to seize these new opportunities.
- The parts industry is benefiting from the ever-increasing average age of vehicles on the road.
- On the other side of the globe, in Asia, China has implemented a landmark energy policy, aptly named the ‘Energy Law’, as of January 2025.
- Moreover, it enables companies to customize their fleet by choosing preferred brands, models, and service options, ranging from premium to ultra-luxury vehicles.
- Top car brands are embracing VR as part of their dealership photography strategies to further enhance the customer experience.
Government incentives, environmental imperatives, technological advances, and shifting consumer preferences drive this expansion. The EU enforces a 2035 zero-emission mandate, and the US Inflation Reduction Act channels subsidies into domestic EV production and attracts international manufacturers. In addition, the startup integrates regional infrastructure knowledge into vehicle design to ensure durability, accessibility, and energy efficiency. Additionally, it uses the Future Trends Index to identify and prioritize relevant design directions across different markets. For our trend reports, we leverage our proprietary StartUs Insights Discovery Platform, covering 7M+ global startups, 20K technologies & trends, plus 150M+ patents, news articles, and market reports.
- Electrification and autonomous vehicles will remain megatrends, transforming the sector and forcing automakers, suppliers, and dealers to adapt to new technologies and business methods.
- However, regulatory hurdles and the complexity of navigating diverse driving environments remain significant barriers.
- Its vehicle tracking system provides 24/7 real-time visibility, supported by self-install and engineer-fitted options, with no minimum fleet size required.
- The simulations improve thermal management, safety, and efficiency to meet the demands of future mobility.
- Radar Reticence strengthens sensor fusion by supplying interference-free radar data that enhances vehicle perception and improves safety.
Procon Analytics builds Automotive Finance
- As battery technology and charging infrastructure progress, EVs lead the push toward sustainability.
- 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.
- Governments are implementing innovative policies to encourage sales without increasing costs or benefiting high-income households.
- Geopolitical risks, regulatory frameworks, cost advantages, and compliance needs drive the auto industry toward supply chain resilience and nearshoring.
- Governments worldwide are imposing stricter emissions standards and incentivizing zero-emission vehicles (ZEVs).
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.
- A major barrier to this relentless growth, however, is consumer and regulatory concerns.
- 2025 is shaping up to be an interesting year for automotive with regards to global shifts in the market with a mixed bag of potential harmony and disruption.
- Toyota’s Mirai and Hyundai’s Nexo have been the two major players in the market since sales launched in 2016.
- AI technologies like machine learning, deep learning, and computer vision are advancing robotic automation.
- We expect to see the concept of Mobility-as-a-Service (MaaS) develop through 2025.
- Digital platforms enable smooth access and allow users to book, swap, and unlock vehicles through mobile apps.
🚦 Levels of Autonomy Explained: From Driver-Assist to Full Self-Driving
Automotive semiconductors and sensor fusion enhance safety, efficiency, and intelligence. This approach ensures our reports provide reliable, actionable insights into the automobile innovation ecosystem while highlighting startups driving technological advancements in the industry. This process enables us to identify the most impactful and innovative trends in the automobile industry. Along with battery-powered electric vehicles, fuel cell electric vehicles (FCEV) are another alternative to internal combustion engines. Fewer new vehicle purchases mean consumers hold onto their vehicles longer, reducing the available used inventory and increasing prices.
Still not the EV revolution once thought but still plenty of growth
The number of connected cars worldwide will likely reach 400 million by 2025 up from 237 million in 2021. The startup also offers META, a compact shuttle for urban mobility; and SPACE for passenger transportation. These vehicles use a re-assembly factory model, which allows upgrades and updates to extend their lifecycle. Moreover, lightweight and bio-based materials are used to reduce vehicle weight and improve fuel efficiency, which aligns with sustainability goals. These pods use AI and machine learning algorithms for real-time perception and adaptive decision-making. The startup’s technology allows these pods to adapt across industries, enhancing efficiency and safety in transporting people and goods.
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This is especially necessary for electric, connected, and autonomous vehicles, which require specialized software and advanced technology to function safely. Manufacturers are partnering with tech companies to design and produce the new operating systems necessary for the next generation of technologically advanced vehicles. Automakers and technology giants like Google and Tesla are incorporating more digital technology into their cars. The automotive industry stands at a thrilling crossroads, where innovation meets complexity and opportunity rides alongside challenge.
These over-the-air updates are becoming essential for ensuring vehicle reliability, safety and security, and are opening new revenue streams for manufacturers. Moreover, its software platform manages real-time energy flows and integrates with solar systems to optimize renewable energy usage. It also enables customers to schedule and monitor charging activity for improved efficiency. In Europe, the new General Safety Regulation II (from July 2024) and related standards embed connectivity, advanced sensors, and cybersecurity requirements into safety compliance frameworks.
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.
In 2025, the future of mobility will take a new shape in ways that promise smarter, more efficient, and more sustainable vehicles. Central to this evolution is the growing demand for electric vehicles and software-defined vehicles. The automotive manufacturing sector is entering 2025 amidst seismic shifts driven by electrification, digital transformation, and the growing mandate for sustainability. Recent developments highlight how manufacturers are leveraging advanced technologies and evolving their strategies to meet these challenges. Connected cars create new revenue streams via subscription services, data monetization, and personalized experiences.
Tree Map reveals the Impact of the Top 10 Automotive Trends
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. 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. Self-driving vehicles rely on artificial intelligence (AI) and machine learning algorithms to process real-time data from cameras, sensors, and radars. The goal is to enable cars to make decisions and navigate without human intervention. In 2025, automakers will continue improving AI systems’ reliability, reducing the likelihood of accidents, and enabling safer autonomous driving experiences.
Companies like BYD VIN check before mechanic inspection 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.
The same report states that 68% of drivers believe car companies should collect personal data, but only 5% agree to unrestricted collection. Most favour an opt-in approach (63%), and many are willing to share data for benefits, with 67% open to lower insurance rates, 43% for personalised features, and 36% for improved safety options. As will be discussed later, with more data being collected for premium features, the inevitable concern for data security is raised, and cyber security threats loom overhead. Connected vehicles are entering a software-defined era where 5G, AI, and V2X convert cars into real-time data nodes that communicate smoothly with infrastructure, other vehicles, and the cloud. Our new report spotlights 10 connected vehicle trends to watch in 2026 that promise safer, smarter mobility and fresh revenue streams for automakers.
Volta Trucks manufactures Electric Trucks
For instance, AI-driven intrusion detection systems adapt to new attack patterns and block breaches before they spread. It uses AI-powered damage recognition, estimation, and work distribution to streamline repair processes. Also, its platform manages claims and mechanical breakdowns across vehicle models from manufacturers. Further, through its smart management app, it enables users to schedule charging, monitor consumption, and manage fleets from one platform. UK-based startup Electric Car Converts changes classic Land Rovers into EVs by replacing combustion engines with modern electric motors and battery packs.