This deal comes at a time when car sales in the EU have seen a noticeable dip as consumer preferences shift. Data suggests a decline in car sales across most categories, particularly traditional fuel vehicles like petrol and diesel, which saw significant drops in market share and registrations. While BEVs and PHEVs showed some growth in September 2024, the year-to-date figures for BEVs are still lower than last year, and PHEVs also experienced a notable decline.
Jeep Recon Aims to Define Electric Off-Roading
Regulations such as Europe’s General Safety Regulation 2 (GSR2), US mandates for automatic emergency braking, and China’s target of 70% Level 2-3 adoption by 2025 compel automakers to improve deployment. US-based startup TeraDAR designs its 4D imaging sensor that enhances sensor fusion by offering the Terahertz wavelength for vehicle perception. Moreover, redundancy across sensor types improves resilience in poor weather or low visibility.
💻 Trend 2: The Rise of Software-Defined Vehicles (SDVs) – Cars as Computers
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. The main issue holding back the popularity of these vehicles is a lack of hydrogen fueling stations. Instead, they get power from a fuel-cell stack that’s fed hydrogen and oxygen to create electricity through a chemical reaction.
Key players like Bosch, Continental AG, and ZF Friedrichshafen AG are investing in technological advancements. They are focusing on lightweight materials and improved energy recovery efficiency. The automotive regenerative braking market is expected to reach USD 13.83 billion by 2029, growing at a CAGR of 15.8%.
What technology is used in the automotive industry?
Technological advancements, changes in consumer preferences, regulatory changes, and global economic conditions drive these trends. The automotive industry is highly dynamic, and trends are subject to change over learn to always run VIN before buying time. Monitoring and understanding these trends is crucial for automakers, suppliers, and other stakeholders to stay competitive. 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. 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.
🚧 Pitfalls to Avoid: Common Missteps in the Evolving Automotive Landscape
- Automakers are investing in cybersecurity technologies such as hardware security modules (HSMs), AI-based intrusion detection systems, and secure over-the-air (OTA) updates to address these challenges.
- Finally, its V2AP (V2X Integration Platform) is a server-side software to amplify V2X services to elevate road safety and efficiency.
- IoT creates more opportunities for manufacturers to market to consumers even after they’ve made a purchase.
- North America is commanding a 43% share as new-age OEMs focus on BEVs and software-driven architectures.
- This platform uses secured safety assurance and risk-mitigation principles to detect and address failures in assisted and self-driving systems.
- Autonomous vehicles (AVs) are advancing transportation by minimizing the need for human drivers and enhancing last-mile delivery efficiency.
There will be continued demand for legacy process technology, with the construction and facilitation of the ESMC fab in Dresden progressing through 2025. Whether this central compute is a monolithic chip such as Nvidia Thor, which will be detailed in 2025, it will also be constructed from chiplets. This technology will be further developed through 2025, with the end results showing up in the following years. With increasing political uncertainty and a cooling economy, responding to the top three trends will be key to traversing a difficult year ahead.
Connected, autonomous, shared, and electric (CASE) vehicle technologies remain a strong focus in automotive markets
The startup uses automotive sensors and compute platforms to offer a scalable solution for cars to enable large-scale fleet learning. German startup SafeAD develops a vision-first perception and scene-understanding pipeline for autonomous driving. The charging infrastructure is more vulnerable as a result of the quick uptake of EVs, which hackers may attack to obtain customer information or interfere with services. The need for high-performance processors is also growing as a result of software-defined vehicles (SDVs), which rely on semiconductors for ongoing updates and subscription-based services.
Discover the Top 10 Auto Trends and Innovations
Recent developments highlight how manufacturers are leveraging advanced technologies and evolving their strategies to meet these challenges. The automotive industry is set to witness huge growth in integrated drive ePowertain systems that reduce weight and cost and offer improvements like enhanced vehicle range and efficiency. In the future, advanced integrated solutions will dominate, leading to lighter and more efficient electric powertrains and driving the next generation of high-performance and mass-market EVs. The integrated powertrain segment is likely to hold ~60-65% of the total e-powertrain market in 2025. Connected cars create new revenue streams via subscription services, data monetization, and personalized experiences.
- Its technology applies signal processing algorithms to eliminate interference and ensure radar units operate reliably within the same environment.
- The auto industry is one of the largest and most influential markets on the planet.
- Manufacturing was not spared either, representing 29% of global ransomware targets, an alarming 56% rise over the previous year.
- However, growth EV adoption is predicted to slow, with year-on-year growth falling from 15% in 2024 to 11% in 2025.
- It also supports over-the-air (OTA) updates with larger data payloads and faster speeds, improving software reliability and feature rollout.
- Blockchain technology is increasingly being utilized in the automotive industry for various applications.
- Data suggests a decline in car sales across most categories, particularly traditional fuel vehicles like petrol and diesel, which saw significant drops in market share and registrations.
These all-inclusive options reduce the financial burdens of ownership, especially for urban users. Vehicle cybersecurity drives one of the fastest-growing areas in the auto industry as connected vehicles multiply and cyber risks intensify. Analysts project the automotive cybersecurity market to increase from USD 5.24 billion in 2025 to approximately USD 18.88 billion by 2034, advancing at a CAGR of 15.3%. Geopolitical risks, regulatory frameworks, cost advantages, and compliance needs drive the auto industry toward supply chain resilience and nearshoring.
a. Battery Technology and Range Improvements
Buyers would be shifting to a new modernized model and will directly deal with OEMs (original equipment manufacturers) and the dealer will play the role of an agent. By the second quarter of 2024, global cyber-attacks had surged, with organisations facing an average of 1,636 attacks per week—a 30% year-on-year increase. North America bore the brunt, accounting for 58% of publicly extorted ransomware victims. Manufacturing was not spared either, representing 29% of global ransomware targets, an alarming 56% rise over the previous year.
Self-driving to gain traction, but semi-autonomous cars will reign
Younger buyers often prefer subscription models or shared mobility over ownership. The rise of online car buying and digital retail experiences is forcing dealerships and OEMs to innovate. Demand for customizable, software-updatable vehicles is growing, as is interest in electric and hybrid powertrains. Automakers must balance traditional desires for performance and style with new expectations for tech integration and environmental responsibility. The present-day automotive industry is affected by innovative ideas and is ready to transform and evolve rapidly. Current automotive trends are encouraging automotive manufacturers to offer consumers much more than a metal box on four wheels.
It incorporates various AI-powered technologies like adaptive cruise control, automatic emergency braking, and lane-keeping assistance, allowing vehicles to navigate complex road conditions autonomously. These systems can detect objects, evaluate road environments, and make real-time decisions to further enhance safety and comfort. Consumer trends in the automotive industry highlight that short videos are more effective in converting leads into customers. Dealerships can take advantage of different video formats, like how-to videos, car highlights, and customer testimonials. With more and more customers prioritizing environmental sustainability, the focus should be on promoting environmentally conscious manufacturing processes along with eco-friendly cars like electric vehicles.
Automotive Industry Trends 2025: Shifting Gears Toward Innovation
- The automotive V2X market reached USD 2.87 billion in 2025 and is expected to expand to USD 18.67 billion by 2030 at a CAGR of 45.43%.
- For instance, Texas Instruments‘ AWR2544 radar achieves sensing beyond 200 meters.
- Countries and states that have committed to phasing out the sale of internal combustion engines.
- Front-facing LiDAR scans the road to detect objects, track pedestrians, and respond to traffic to enhance safety.
- It processes these tasks in real time at over 120 frames per second on consumer-grade graphics processing units (GPUs).
- The automotive industry report of the Future Readiness Monitor 2025 provides differentiated insights into strategies, challenges and fields of action in the industry.
- Sustainable manufacturing lowers emissions, which allows automakers to meet compliance requirements and reduce their environmental footprint.
Autonomous driving will continue progressing from Level 2+ driver-assist to Level 3 conditional autonomy in geo-fenced areas. Full Level 4 and 5 autonomy remain years away due to regulatory, ethical, and technical challenges. Expect more robotaxi pilots, fleet autonomy, and advanced safety features integrated into mainstream cars. The focus will also be on cybersecurity and fail-safe systems to build consumer trust.
🇨🇳 Increasing Competitiveness and Influence of Chinese Automakers
The AV market is projected to reach USD 1.73 trillion by 2033, growing at a CAGR of 31.85% from 2025 to 2033. Automakers are investing in cybersecurity technologies such as hardware security modules (HSMs), AI-based intrusion detection systems, and secure over-the-air (OTA) updates to address these challenges. 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. Looking ahead, JLR’s focus on carbon-neutral manufacturing and environmentally responsible practices sets a powerful example for the industry. The answer lies in education, infrastructure, and trust-building—slow but steady wins the race.
Electrified Vehicles Top 50% of Sales in China
Major automotive manufacturers are responding by rethinking their revenue models and investing heavily in on-demand vehicle access services. Meanwhile, tech companies such as Uber and Lyft continue to expand their digital-first transportation solutions, creating a more competitive and diverse mobility landscape. Moreover, automakers offer features on demand as they are turning cars into service platforms. Likewise, projects USD billion in annual software and services revenue by 2030 from connected vehicles. The startup strengthens autonomous driving by providing reliable and production-ready Level 4 vehicles that expand commercial mobility solutions. Semiconductors enhance safety by enabling faster decisions and reducing accident risks.
Looking ahead, Tesla’s strategies are likely to influence industry standards and inspire localisation efforts across the sector. With its focus on next-generation cells and expanded production capacity, Tesla is paving the way for a more efficient and sustainable global EV landscape. The next wave of auto trends is shaped by enabling technologies that extend beyond electrification and connectivity.
- While it’s true that at the end of 2023, there wasn’t an adequate supply of electric mobility hubs, the charging infrastructure in Europe has improved drastically.
- The simulations enhance precision and minimise waste in this energy-intensive stage of manufacturing.
- This facilitates the integration of Apple CarPlay, Google Android Auto, and media streaming into in-vehicle infotainment systems.
- Notably, China, Europe, and the US have established themselves as the leading EV markets, with other countries following suit.
- Sustainability has evolved from a competitive advantage to an existential necessity for the automotive industry.
As we reflect on 2024, it’s clear that this year was a turning point for automotive manufacturing. The strides made in EV battery innovation, renewable energy adoption, and sustainability are paving the way for a more resilient and forward-thinking industry. These articles highlight not just the progress made but also the opportunities and challenges that lie ahead. Xiaomi’s foray into the electric vehicle market is exemplified by its state-of-the-art factory, capable of producing an electric car every 76 seconds.
What lies ahead is not just a continuation of trends but the potential for transformation that pushes the boundaries of how we move, connect, and thrive. The recently proposed 25% tariffs on imports from Mexico and Canada, while temporarily delayed, may also have a drastic impact on the global automotive supply chain. 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.
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With zero emissions, low noise, and a range of up to 400 km, FALAK offers a sustainable urban mobility solution. The startup emphasizes comfort with electric doors, extended safety features, and panoramic views from all seats. Advances in solid-state batteries promise higher energy density and faster charging times, while the expansion of ultra-fast chargers addresses key barriers to EV adoption. With the growing popularity of bidirectional charging (V2G) technology, EVs now contribute energy to the grid to improve stability. By focusing on digital transformation, the company aims to integrate predictive analytics and process automation, creating production systems that are adaptable and resilient. These examples point to AI enabling real-time decision-making and predictive maintenance, while improving quality control and minimising downtime, marking the technology ‘a no-brainer’ for production in 2025.
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. The law emphasises a cleaner and more efficient use of fossil fuels, placing a higher emphasis on sustainability and developing renewable energy infrastructures. This comes as China continues to make their presence known in the global EV scene, with ramped-up production and dominance in the international EV market.
System downtime caused by these attacks reached $1.99 billion, compared to $1.3 billion in 2021. AI, automation, and an ‘electric-first’ mindset are impacting every industry, and automotive is no exception. While regulatory hurdles remain, 2025 will likely see significant progress in integrating these services into urban infrastructure, offering consumers affordable, sustainable alternatives to owning a car. On top of all the 2025 automotive trends there will be the impact of tariffs set by the US and Europe.
- The startup’s technology allows these pods to adapt across industries, enhancing efficiency and safety in transporting people and goods.
- It offers ready-to-use workflows across system, software, and project management processes.
- Displays will also be a key driver of automotive technologies in 2025, from microLEDs to the production of holographic windscreens and smart glass.
- 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.
- 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.
- From groundbreaking advancements in EV battery technologies to bold steps toward sustainable production, this year has marked a pivotal shift in how vehicles are designed, built, and powered.
- Automakers are adopting greener processes, from sourcing eco-friendly materials to utilizing renewable energy in manufacturing plants.
- Additionally, several trucking companies have tested self-driving technology, and it will soon become commonplace, with fleets of autonomous trucks sharing the road with traditional vehicles.
Despite initial scepticism, the automotive industry is embracing enhanced connectivity by enabling real-time updates and post-production feature additions. Through our work with automotive innovators, we witness first-hand how rapidly this sector is evolving. From electrification and software integration to new mobility models, the industry faces unprecedented change.
