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). New vehicle inventory levels till December 2022 were 52% below December 2019 but 56% above January 2022. On the other hand, personal vehicles are on the rise due to improving urban road infrastructure, and the popularity of pre-owned cars among young people is also driving the market growth. North American and European automakers offer consumers the option to buy vehicles online without visiting dealerships. With a computer or smartphone, buyers can choose desired features, secure financing, and even take virtual walk-around and test drives. In 2025, more dealerships are expected to offer online sales, vehicle inspection, and home delivery.
Important Auto Industry Trends (2025-
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.
Tangram Vision offers a Perception Platform
These technologies enhance safety, efficiency, and user experience across vehicles. 2025 is no exception—automotive manufacturers are expected to continue implementing more and check demo and fleet use by VIN more advanced safety features in their vehicles. Last year, the European Union updated the General Safety Regulation (GSR) and establishes mandatory safety requirements for cars sold in the EU. According to this regulation, starting from 2024, the following features become compulsory.
Driving Into the Future: Top Automotive Innovations and Insights of 2024
OEMs are advancing and navigating regulatory challenges to introduce and test L3 and L4 automation, setting the background for augmented adoption of autonomous vehicles. Additionally, smart virtual assistants are emerging as a key HMI feature, aiding drivers and passengers in interacting with vehicles and external services. The global Automotive Human Machine Interface market, valued at USD 70.41 billion in 2022, is expected to grow significantly, reflecting these advancements in automotive technology. These solutions decrease fleet wait times and cut pollution from petrol or diesel vehicles. Modern vehicles are now equipped with a unique digital identity, making it easier to track and share data for applications like insurance, driver safety, predictive maintenance, and fleet management.
Automotive Industry Trends 2025: Shifting Gears Toward Innovation
- These systems can detect objects, evaluate road environments, and make real-time decisions to further enhance safety and comfort.
- ADAS adoption enables lane-keeping, adaptive cruise control, and emergency braking to rely on AI-powered processors and sensor fusion chips.
- In addition, Hawaii passed a bill in 2022 that will create a hydrogen refueling system rebate for developers.
- Our new generation which is called millennials or Genz researches everything online before the actual purchase.
- Hyundai plans to ramp up its hybrid offerings under its ‘Hyundai Way’ strategy from seven to 14 models by 2030.
- The startup’s product range includes residential wallboxes from 7 to 22 kW and commercial chargers up to 132 kW.
- Integrating vehicle-to-everything (V2X) communication further improves connectivity and safety.
- Furthermore, the need for EV charging stations is no longer a challenge to the electric vehicle market.
Specific components like silicon carbide (SiC) and gallium nitride (GaN) power devices are expected to see growth, offering up to 60% improved efficiency over traditional silicon components. Looking ahead, JLR’s focus on carbon-neutral manufacturing and environmentally responsible practices sets a powerful example for the industry. Jaguar Land Rover’s “Reimagine” strategy has cemented its position as a sustainability leader. This article highlights the company’s strides in electrification, material innovation, and circular economy practices. Notable achievements in 2024 include significant progress in reducing emissions and advancing transparent ESG reporting. Also, IoT sensors such as LiDAR and radar expand perception by generating environmental data.
Chargerly develops Vehicle-to-Building Solutions
- When demand for cars plummeted in the early days of the pandemic, auto manufacturers stopped ordering them and chip producers focused their attention elsewhere.
- Consumer trends in the automotive industry highlight that short videos are more effective in converting leads into customers.
- The startup strengthens autonomous driving by providing reliable and production-ready Level 4 vehicles that expand commercial mobility solutions.
- The automotive industry is highly dynamic, and these trends are subject to change over time.
- Right now, there are only about 73,215 public EV charging stations across the US.
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- Its AI-driven control systems, xCognition and xTrude, enhance industrial robotics and additive manufacturing by automating programming and improving precision.
- Its technology transports ultra-high-bandwidth video and data from sensors to processors with ultra-low latency.
Its bidirectional charging system enables EV batteries to both draw electricity and feed surplus power back, which balances demand during peak hours and reduces strain on infrastructure. Road safety, regulatory mandates, autonomous vehicle adoption, and smart city development drive this innovation. The World Health Organization links 1.36 million annual deaths to road accidents. The US National Highway Traffic Safety Administration (NHTSA) estimates that V2X addresses up to 80% of crashes involving non-impaired drivers. Changing consumer preferences, cost efficiency, technological progress, and sustainability targets drive this innovation. A Deloitte UK study found that 52% of all consumers show no interest in car subscription models; interest is higher among younger people (age 18-34).
- Localized production and sourcing are gaining momentum as companies aim to mitigate risks and ensure a steady supply of components.
- Subsidies and incentives for EVs are also under scrutiny, with plans to reconsider or eliminate government-imposed market advantages that favour them.
- Lastly, there’s even a term “vehicle-to-everything” (V2X), which includes all types of vehicle communication.
- The road to 2025 is set to bring even more dynamic changes, with global collaborations, technological breakthroughs, and bold strategies defining the future of manufacturing.
- The US-based startup Apex AI enables automotive companies to implement complex AI solutions.
- However, as with all complex bodies of rulesets, differing rules and regulatory mandates across the globe make it easier for international automakers to fall foul of compliance.
Evolving video marketing & environmental sustainability
For instance, Qualcomm states that C-V2X allows vehicles to communicate with other vehicles, with infrastructure (V2I), and with vulnerable road users. TeraDAR strengthens sensor fusion by providing high-resolution, all-weather imaging that improves vehicle perception and increases safety. Moreover, the startup leverages patented research and extensive radar expertise to deliver dependable detection in densely populated settings. Radar Reticence strengthens sensor fusion by supplying interference-free radar data that enhances vehicle perception and improves safety.
- The vans deliver groceries from nearby stores and send out a push notification when the order arrives.
- Also, its platform manages claims and mechanical breakdowns across vehicle models from manufacturers.
- In 2023, the global connected car market was valued at $80.87 billion and projecting remarkable growth.
- Moreover, the startup’s marketplace connects professionals in a secure environment.
- In 2025, more dealerships are expected to offer online sales, vehicle inspection, and home delivery.
- The startup also offers META, a compact shuttle for urban mobility; and SPACE for passenger transportation.
Shift Toward Mobility Services
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.
Advanced Driver Assistance Systems (ADAS)
Despite this, 2025 is guaranteed to be pivotal, with potential breakthroughs in autonomous driving technology along with a stronger push toward hybridization and sustainability. Simultaneously, many automakers embrace vertical integration strategies, taking control of the software stack from chip development to application integration. This approach equips them to differentiate their offerings, with software being the key to creating compelling customer experiences. Software-defined vehicles (SDVs), where software manages essential functions like steering, braking, and infotainment, will see rapid growth over the next few years. SDVs are more efficient and safer and can be updated with the latest technologies through software, keeping them up to date in a constantly evolving industry.
Can Car Color Really Affect Your Chances of a Speeding Ticket? 🚦
For the eighth time, we asked managers and decision-makers in the automotive industry which trends and developments they are currently focusing on. The automotive industry report of the Future Readiness Monitor 2025 provides differentiated insights into strategies, challenges and fields of action in the industry. The trends in automobile industry and startups outlined in this report only scratch the surface of automotive innovations that we identified during our in-depth research. Identifying new opportunities and emerging technologies to implement into your business early on goes a long way in gaining a competitive advantage.
Lean Project Management: What It Is, Key Principles & How to Implement It
EV sales grew from less than 1% of total vehicle sales a decade ago to more than 4% today. Rapid technological and environmental innovations have forced incumbents to adapt to new challenges. The auto industry is one of the largest and most influential markets on the planet. Overall, Auto News suggests that analysts expect the chip shortage will result in a loss of 3 million in vehicle production in 2025.
Autonomous Driving: The Road to a Self-Driving Future
Companies like Huawei are allocating significant resources to developing EVs with cutting-edge ADAS and autonomous features. These technologies aim to reduce accidents and provide a safer driving experience. As we look ahead to 2025, these trends highlight the challenges and opportunities that manufacturers face. We explore eight most influential trends expected to define the automotive manufacturing landscape, offering insights into what lies ahead for the industry. The European Commission will start talks in the New Year on the future of the industry in the region as sales of electric vehicles stall.
- Chinese startup Chipv offers automotive semiconductors that combine computing capabilities with motor control and power management.
- Additionally, Chevrolet, Hyundai, Kia, Nissan, and Jaguar have all released more affordable EVs that have a range of anywhere from 200 miles to 250 miles.
- In 2026, the auto industry accelerates its transition from combustion-based production to electrified, software-driven, and sustainable mobility.
- Transparency rules such as the EU’s Corporate Sustainability Due Diligence Directive and the US Uyghur Forced Labor Act add pressure for stricter supplier oversight.
- Norway set a record in the electric vehicle sector in August 2024, as the number of all-electric vehicles on the road surpassed that of gasoline-powered vehicles for the first time.
- South African startup Motomatix applies AI and custom software solutions to strengthen supply chain resilience in the automotive repair sector.
- They provide V2X applications, services, and communication stacks specifically designed for on-board units (OBUs) and road-side units (RSUs).
Lithium-ion battery prices have fallen by 89% over the last decade, reaching a price of $137/kWh in 2020. After a disappointing 2019 in terms of EV sales, 2020 sales surpassed expectations, growing over 40% year-over-year. The industry itself, however, has remained relatively stable over the last decade.
Discover Trending Technologies & Topics
In 2025, a great number of car manufacturers are planning to improve their infotainment systems providing them with more and more advanced capabilities. Vehicle connectivity has become a really game-changing innovation in automotive industry that will transform the future of driving. Cars are becoming unprecedentedly smarter, and this trend is here to stay in the future. Seamless connectivity between automobiles, infrastructure, and pedestrians is expected to become commonplace and help increase traffic safety and improve driver experience.
The chip shortage is proving to be costly for the industry with many auto manufacturers shutting down plants due to low supply. The global automotive parts market has been steadily growing for the past twenty years. Increasing battery efficiency as well as EV charging infrastructure can speed up adoption. As climate change concerns intensify, automakers are increasingly pressured to reduce emissions, lower their environmental footprint, and embrace green technologies. Digital twins—virtual replicas of physical systems—are gaining traction, enabling manufacturers to simulate scenarios and predict outcomes in real-time. Predictive maintenance powered by AI minimizes machine failures, while IoT networks provide detailed insights into factory operations.
Automobile Engineering Seminar Topics For Students
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. It also uses regenerative braking to capture and store energy in the car’s battery. The APH-01 incorporates flax fiber in its body shell, which reduces weight, increases impact resistance, and improves vibration damping. In addition to enhancing energy efficiency, regenerative braking systems reduce greenhouse gas emissions by recovering energy during braking to support global efforts to meet stricter emission norms. The automotive regenerative braking market is expected to reach USD 13.83 billion by 2029, growing at a CAGR of 15.8%. Keyvault raised USD 1 million in January 2025 to introduce smartphone-enabled car keys in the US, following the trend of incorporating smart device features into automobiles.
Methodology: How We Created the Automobile Trend Report
Information technology has become a crucial part of the recent trends in the automobile industry as priorities change over time. Market leaders are adjusting their strategies to align with current trends, further emphasizing the shift towards EV-only vehicles. 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.