Sensor fusion that combines information from various sources improves safety and autonomy by enabling accurate decision-making. Indian startup ThinkSeed develops middleware solutions that enhance smartphone connectivity to vehicles for secure access and infotainment. Its product, THINKey, transforms smartphones into digital keys that allow users to lock, unlock, and start their vehicles. The integration of 5G networks is accelerating advancements in vehicle-to-infrastructure (V2I) and vehicle-to-vehicle (V2V) communication, supporting autonomous driving functionalities. The startup offers tools for real-time calibration health checks for deployed fleets to reduce time-to-market and operational risks.
Automotive Industry and Market Trends
- If you want to learn more about 10 of the most important auto industry trends for the next months, read on.
- Project portfolio management (PPM) has developed significantly over the past few years and is expected to evolve even faster in…
- It re-engineers proven EV technology and applies it to Land Rover Defenders, Range Rover Classics, and Series models from 1949 to 2016.
- Technology in automotive industry forges ahead—the latest technological advancements are more and more extensively used by the domain.
- Moreover, the startup offers fleet-grade protection through continuous monitoring and predictive alerts.
- This continues a trend in the EV industry, which has been challenged by the high cost of vehicles and a lack of charging stations.
- Additionally, CARNIQ Technologies supports the automotive sector with threat analysis, cybersecurity management, and secure system development.
- From electrification and software integration to new mobility models, the industry faces unprecedented change.
For this in-depth research on the Top Automotive Trends & Startups, we analyzed a sample of 6000+ global startups & scaleups. 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.
The startup provides manufacturers with tools that make the development and maintenance of EV charging infrastructure simple, fast, and scalable. It also allows operators to integrate services and microservices in the chargers to make the charging process profitable. In addition, the solution works with any EV charger and enables new features to be shipped throughout the network. Additionally, blockchain is instrumental in verifying the supply chain of automotive parts, ensuring that materials and components are sourced from legal and trustworthy suppliers. The global automotive blockchain market is experiencing significant growth — it is projected to reach USD 6.11 billion by 2032. Singapore-based startup Beam focuses on e-scooters to promote shared mobility in the Asia-Pacific region.
Top 8 Automotive Manufacturing Trends Shaping the Future of 2025
It builds connected EV models that operate reliably on diverse terrains and promotes sustainable mobility solutions for the region. Artificial intelligence (AI), the Internet of Things (IoT), blockchain, and advanced semiconductors allow autonomous driving, predictive maintenance, and secure connectivity. These technologies enhance safety, efficiency, and user experience across vehicles. 2025 is no exception—automotive manufacturers are expected to continue implementing more and 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.
- The standard ranges from SAE Level 0 (no automation) to SAE Level 5 (full automation).
- Connected vehicles are fostering new business models centered on shared mobility, offering an alternative to traditional vehicle ownership.
- Autonomous vehicles (AVs) are advancing transportation by minimizing the need for human drivers and enhancing last-mile delivery efficiency.
- Usage-based insurance (UBI) models use driving behavior data to provide customized premiums and are gaining popularity.
- In 2026, the auto industry accelerates its transition from combustion-based production to electrified, software-driven, and sustainable mobility.
- Curious how electric vehicle trends like solar integration, AI-powered systems, and modular design are innovating mobility?
- With increasing political uncertainty and a cooling economy, responding to the top three trends will be key to traversing a difficult year ahead.
- 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.
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. It highlights high startup activity in Western Europe and the United States, followed by India. From these, 20 promising startups are featured below, selected based on factors like founding year, location, and funding.
Auto Sales Impacted by Low Inventory and High Prices
Here’s how TikTok unboxings and gaming are driving one of 2025’s top retail trends. Data from the past 10 years shows the sale of luxury vehicles making a steep climb in 2022. Toyota’s Mirai and Hyundai’s Nexo have been the two major players in the market since sales launched in 2016. Along with an increase in refueling stations, look to see an increase in the variety of FCEVs available to consumers in the coming years. In addition, Hawaii passed a bill in 2022 that will create a hydrogen refueling system rebate for developers. Any infrastructure that’s built after January 1, 2023, and utilizes renewable hydrogen will be eligible for up to $200k.
Electric Vehicle (EV) Production Expansion
Chatbots and messaging solutions are key technology trends in the automotive industry. These tools enable dealerships to handle inquiries efficiently, freeing time for other tasks. They also facilitate the management of maintenance and repair appointments, streamlining dealership operations. Voice search assistants also optimize their interface for advertisements and voice search queries.
Key Technology Trends in the Automotive Industry in 2025
It also manufactures direct current (DC) fast chargers with capacities of up to 240 kW. Vehicle-to-grid solutions convert EVs into mobile energy storage units by allowing bidirectional energy flow with the grid. As incentives and projects pile up and resources remain limited, delivering everything on time,… Project portfolio management (PPM) has developed significantly over the past few years and is expected to evolve even faster in… Learn why it matters more than organic traffic and how to improve your rankings and visibility.
Automotive Semiconductors: Asia-Pacific Leads with 45% Global Share
The shortages have forced manufacturers to delay product launches and reduce outputs, among other issues. 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. Additionally, Europe and the U.S. have sought to bolster their chip and semiconductor production with the ‘European Chips Act’ and the ‘CHIPS and Science Act’, respectively. Whilst these acts have been active for some years now, the landscape has not changed drastically. Until these efforts bear fruit, the industry will need to focus on mitigating risks and prioritising demand effectively.
- Its RISC-V IP processors adopt 32/64-bit architectures supported by a nine-stage dual-issue pipeline.
- Therefore, websites need to be easily readable and accessible across mobile devices, with clear calls to action.
- 94 percent of global automakers are using ARM-based technology for automotive applications, alongside the top 15 automotive semiconductor suppliers in the world adopting ARM technologies in their silicon.
- Moreover, Asia-Pacific leads the automotive semiconductor market with a 45% global share.
Leap Business Solutions advances Fleet Management
Moreover, car connectivity transforms the driving experience by integrating with real-time systems and smart gadgets. These advancements guide the automotive sector toward a more intelligent, secure, and sustainable future. It includes journey replays, geofencing, and driver behavior monitoring to enhance fleet efficiency and safety.
Download Free Industry Reports
Google and Ford recently announced a connected car partnership called Team Upshift. This type of vehicle is defined by its ability to communicate with other software systems and collect data from its surroundings. And TuSimple is hoping to begin selling completely autonomous Level 4 trucks to fleet operators in 2024. In addition, more than half of all vehicles are expected to fall into the Level 1-5 range in 2024. There are already over 30 million vehicles on the road that meet the Level 1 standard.
Q) What is the trend of automotive industry in India?
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. In 2025, new registrations of electric vehicles – BEVs (battery electric vehicles) and PHEVs (plug-in hybrid electric vehicles) – are anticipated to reach a record 18.1 million – up from 16.3 million in 2024. However, growth EV adoption is predicted to slow, with year-on-year growth falling from 15% in 2024 to 11% in 2025.
Dodge Unleashes the Durango Hellcat, Everywhere
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.
Further, its Craidlr ATX-G gateways are integral to the surface temperature & vibration monitoring solution, catering to diverse automotive testing needs. These gateways, combined with advanced transducers, facilitate real-time data collection. The Global Startup Heat Map below highlights the global distribution of the 4800+ exemplary startups & scaleups that we analyzed for this research. Created through the StartUs Insights Discovery Platform, the Heat Map reveals high startup activity in the US, Europe, and India. 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.
- The automotive cybersecurity market is projected to reach USD 5.11 billion in 2025, with a CAGR of 18.14% from 2024 to 2034.
- Further, its Craidlr ATX-G gateways are integral to the surface temperature & vibration monitoring solution, catering to diverse automotive testing needs.
- This data alerted drivers to pedestrians and cyclists before they became visible.
- After a disappointing 2019 in terms of EV sales, 2020 sales surpassed expectations, growing over 40% year-over-year.
- Initiatives and support from the Chinese government, such as pilot zones and regulatory frameworks, are further accelerating the process.
- The Auto Industry Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation & startup scouting process.
- For this in-depth research on the Top Auto Trends & Startups, we analyzed a sample of 3836 global startups & scaleups.
The rise of Chinese EV manufacturers
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. The big data market in automotive is growing, with a projected market size of USD 5.92 billion in 2024, expanding at a CAGR of 16.78% to reach USD 12.86 billion by 2029. Startups are developing big data solutions to help manufacturers and related industries streamline operations and maximize profits. Below, you get to meet 20 out of these 4859 promising startups & scaleups as well as the solutions they develop. These 20 automotive companies are hand-picked based on criteria such as founding year, location, funding raised & more. As battery technology and charging infrastructure progress, EVs lead the push toward sustainability.
Demand may decelerate due to the end of Chinese subsidies for grow your business and your profits EVs, but it should not lead to a decrease. Apart from this, reduced access to EV charging points remains a significant challenge, according to consumer trends in the automotive industry. Moreover, the growth of the automotive IoT market signals a strong trend toward connectivity. IoT creates more opportunities for manufacturers to market to consumers even after they’ve made a purchase. Consistent brand messaging across all channels, including in-car infotainment systems and websites, can help foster long-term customer relationships, promoting brand loyalty and advocacy.
While China’s dominance in EV and automotive production at large is not anything new, the movements being made in emerging economies outside of China are. The automotive industry is many things, but it is never idle; it thrives on the pulse of innovation, resilience in hard times, and mobility transformation. Every year brings with it new shifts in technology, consumer behaviour, and market dynamics, all of which shape and build automotive as a cornerstone industry of the world. The AI systems also learn about the driver’s preferences in music and temperature, making the driving experiences as enjoyable as possible.
The US National Highway Traffic Safety Administration (NHTSA) estimates that V2X addresses up to 80% of crashes involving non-impaired drivers. Moreover, economic efficiency improves adoption, as autonomous vehicles reduce transport costs by up to 40% and maximize logistics utilization. Swedish startup Intended Future utilizes data-driven design benchmarking tools for the automotive industry. Probably the most important trend in the automotive industry is the worldwide shift to electric vehicles (EVs).
In 2025, the focus will be enhancing ADAS features, such as adaptive cruise control, lane-keeping assistance, automatic emergency braking, and more. While some regions already allow limited AV testing and deployment, 2025 will likely see a more transparent legal framework surrounding autonomous driving technology. 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. As autonomous vehicles become more mainstream, governments and regulatory bodies will need to create new laws to ensure their safe deployment.
- Such advancements align with global trends favoring autonomous fleet deployment in urban areas, positioning automakers to meet future demand for self-driving capabilities.
- Looking ahead, there is no doubt that the automotive industry is on the brink of a paradigm shift driven by unprecedented technological advancements and a commitment to sustainability.
- The fleet of light-duty EVs has grown in the last four years by more than 14 times with a very significant, 17-times increase in the fleet of plug-in hybrid vehicles (PHEVs).
- The platform also erases personally identifiable information (PII) from vehicle systems to maintain privacy.
- A recent survey reveals automotive companies have product development and launch cycles shorter than 18 months.
- The startup’s platform combines augmented reality (AR), smart camera, and surround-view monitoring to illuminate the route on turns, curves, slopes as well as complex junctions.
- The automotive industry was perhaps the saving grace of the European semiconductor industry in 2023, but reality has hit hard in 2024.
- Increased government focus on charging networks will be needed to support the expanding EV fleet.
With increasing political uncertainty and a cooling economy, responding to the top three trends will be key to traversing a difficult year ahead. Circular economy initiatives are also gaining momentum, exemplified by Jaguar Land Rover’s closed-loop recycling for seat foam and Michelin’s production of tires using 45% sustainable materials. The startup’s Ethernet products support precise timing synchronization with the 802.1AS Precision Time Protocol (gPTP) to ensure reliable communication for time-sensitive applications. In the US, the AV market is expected to expand, rising from USD 22.6 billion in 2024 to USD 222.8 billion by 2033, with a CAGR of 28.92% starting in 2025. Regulatory frameworks like UNECE WP.29, effective from last year, mandate stringent cybersecurity measures to drive compliance-related investments. Moreover, Avvenire has a strategic agreement with Daymak International Inc., Canada’s leading LEV distributor.
Discover the Top 10 Auto Trends and Innovations
Additionally, interest rates for used vehicle loans are higher than those for new cars. It is anticipated that used-vehicle sales will not return to pre-pandemic levels of around 40 million units per year until 2025, similar to new-vehicle sales. Connected cars are vehicles that use wireless means to connect to the Internet of Things. They offer a safe, comfortable, and convenient multimedia experience with on-demand features that allow users to browse the web while in their vehicle. They provide various features such as remote diagnostics, vehicle health reports, 4G LTE Wi-Fi hotspots, turn-by-turn directions, and warnings of car health issues.