The startup develops protocols for drone charging networks, drone flight planning, and open mobility. Advanced manufacturing technologies, such as megacasting and giga-stamping, are playing a pivotal role in enabling the industry’s transformation. Megacasting, which involves producing large aluminium castings to replace multiple smaller components in vehicle structures, is gaining momentum in the automotive industry. Shared mobility reduces individual car ownership, especially in urban areas, impacting vehicle sales volumes but increasing demand for fleet vehicles and mobility-as-a-service (MaaS) platforms.
EVIE Autonomous produces Autonomous Shuttles
However, their preferences changed after some time, Buyers are willing to spend an amount, while looking for the best vehicles available in the market. Businesses would start optimizing their search guides as per the consumer’s preferences. To address these threats, proactive cyber security is a must for automakers and their partners across the value chain. Robust IoT (Internet of Things) security, regular software updates, and well-prepared incident response plans are the essential building blocks of a strong cyber security strategy. In addition to electrification, hydrogen fuel cell technology is gaining traction as a potential solution for zero-emission transportation. Hydrogen-powered vehicles produce only water vapor as a byproduct, making them a strong contender for sectors that are harder to electrify, such as long-haul trucking and commercial transportation.
Innovation Map outlines the Top 10 Auto Trends & 20 Promising Startups
Approximately 70 percent of industrial companies report faster chip supply, possibly due to weakened consumer spending and demand. These constraints are expected to persist into 2025, as semiconductor production has exceeded full production-rate utilization since 2019, with recent rates surpassing 95%. Battery manufacturers have significantly reduced their production since early December due to the unpromising demand in the upcoming months.
Other Technology Trends in Automotive Industry
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. Along with battery-powered electric vehicles, fuel cell electric vehicles (FCEV) are another alternative to internal combustion engines.
Automotive Sourcing Models are Changing
- XCognition captures operator input or sensor data to generate execution-ready robotic programs to increase accuracy and reduce deployment time.
- Further, its Craidlr ATX-G gateways are integral to the surface temperature & vibration monitoring solution, catering to diverse automotive testing needs.
- Compared to EVs, they don’t require charging, but at the same time reduce carbon emissions.
- Digital twins—virtual replicas of physical systems—are gaining traction, enabling manufacturers to simulate scenarios and predict outcomes in real-time.
- 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.
- BMW’s Neue Klasse illustrates this shift with four superbrains that reduce wiring by 600 meters and reduce vehicle weight.
Also, applications extend from adaptive cruise control, lane-keeping, and traffic jam assistance to robotaxis and driverless trucking. Advanced cameras paired with computer vision enable vehicles to classify road users, read signs, and recognize traffic signals, directly supporting ADAS and autonomous navigation. Silicon carbide (SiC) semiconductors improve energy efficiency in high-voltage EV systems by reducing losses and enhancing thermal management.
Further, Chipv creates power control chips equipped with triple RISC-V cores, extensive on-chip memory, and robust hardware security modules. In the US, the CHIPS and Science Act allocates USD 52.7 billion in funding and offers a 25% investment tax credit. It provides grants, loans, and incentives to expand domestic fabs, semiconductor R&D, and the broader supply chain. It offers ready-to-use workflows across system, software, and project management processes. Its MotionSafe Privacy platform uses algorithms to monitor controller area network (CAN) traffic and detect anomalies. The platform also erases personally identifiable information (PII) from vehicle systems to maintain privacy.
- Cleaner production methods reduce operating costs and free resources for reinvestment in new technologies.
- Across in-vehicle infotainment (IVI) and advanced driver assistance systems (ADAS), there have been various OEM innovations in the past year, with AI models being integrated into these systems.
- Swedish startup Intended Future utilizes data-driven design benchmarking tools for the automotive industry.
- In 2025, used passenger car registrations are forecast to hit 179 million globally and are predicted to grow by 1.4% year-on-year.
- It also supports this process by integrating buybacks, residual value calculations, and automated stock analysis.
- 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.
- 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.
- Mercedes-Benz’s Drive Pilot showcases this with over 35 sensors, including LiDAR and radar, working together to achieve certified Level 3 autonomy.
- 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.
Summary – Automotive Industry
- Companies like Huawei are allocating significant resources to developing EVs with cutting-edge ADAS and autonomous features.
- It won’t take too long for the CASE to accelerate the transition of the automotive industry from the way it has been working for hundreds of years.
- 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 semiconductors also enable infotainment, voice assistants, and AI-driven interfaces for a better user experience.
- The startup’s product range includes residential wallboxes from 7 to 22 kW and commercial chargers up to 132 kW.
- They are focusing on lightweight materials and improved energy recovery efficiency.
The increasing adoption of EVs globally drives the optimization of energy usage and enhances features like regenerative braking systems through sensor fusion technologies. To accommodate the rising demand for EVs and autonomous vehicles, major automakers such as BMW, Hyundai, and Stellantis are investing in EV battery plants and semiconductor-related facilities. Sensor fusion and autonomous vehicle technologies enhance safety and enable intelligent driving solutions while ADAS bridges the gap to full autonomy. Moreover, automakers and tier-suppliers are increasingly focusing on sustainable steel production to lower emissions across their supply chains. Further, Jaguar Land Rover is pioneering a closed-loop recycling process for seat foam, turning waste from old vehicles into high-quality material for new ones. This innovative, circular production approach supports sustainability goals by reducing landfill waste and advancing circular economy practices in automotive manufacturing.
Global Startup Heat Map covers 4859 Innovative Automotive Startups & Scaleups
Indian startup RevitsOne offers AI-powered fleet-management software that is suitable for fleets of varying sizes. The startup’s vehicle management system provides insights into speed, running vitals, and health information. Drivers benefit from Voicera ID, a voice-based virtual assistant that helps them keep track of the information they need. Additionally, the onboard speed recorder limits the speed to discourage dangerous driving behaviors. Connected vehicles are fostering new business models centered on shared mobility, offering an alternative to traditional vehicle ownership. This shift supports mobility-as-a-service (MaaS), reducing the number of idle vehicles and addressing urban transportation needs without adding more cars.
- Currently, there are about 750,000 public charging stations with a combined 28.7 GW of charging capacity.
- Further, its V2X-cloud system implementation guarantees uninterrupted connectivity between vehicles and infrastructure.
- The startup also serves other industries, such as aerospace, construction, and biomedical.
- In 2025, electrification and software integration will have an essential impact on the automotive industry.
- New EV launches slated for 2025 are expected to reinvigorate the market, underscoring the importance of product innovation in sustaining growth.
- This decision also highlights a broader trend toward diversification in battery production hubs.
- Toyota continues to emphasize hybrids as a critical part of its electrification strategy.
- Nigerian startup Revive Earth develops the Revive Kit, to convert petrol vehicles into efficient EVs.
The market for FCEVs is expected to grow at a remarkable CAGR of nearly 70%, through 2026. According to a study completed by INRIX Transportation, Honolulu, New Orleans, and Nashville are the three US cities that stand to gain the most from micromobility vehicles. Tesla reportedly rewrote the software it uses in its vehicles so they could run on a different type of chip.
However, the primary function of these cars is not just to entertain they can connect to other vehicles (V2V), pedestrians (V2P), infrastructure (V2I), and cloud (V2C). Lastly, there’s even a term “vehicle-to-everything” (V2X), which includes all types of vehicle communication. This infrastructure ensures the safety of drivers and passengers and can even send emergency SOS messages to respective services in case of an accident, sharing all the critical information. Connectivity also enables remote diagnostics, alerts the driver about necessary maintenance, and promotes both safety and cost-efficiency. The foundation of autonomous vehicle architecture lies in a set of sensors, including LiDAR, radar, and ultrasonic systems, providing cars with a 360-degree panoramic view.
How is the rise of shared mobility changing the automotive industry?
Environmental concerns and technological innovations are advancing faster than many anticipated. From electrification to IoT connectivity, these shifts are changing the way cars are manufactured, sold, repaired, and driven. Shared micromobility vehicles are becoming a popular mode of transportation in cities where the pollution from cars and traffic congestion is particularly evident. Chip shortages have been causing myriad changes to trends that affect the automotive trends that are not all positive. Meanwhile, Carlos Tarves, CEO of automaker Stellantis, has said the chip shortages will continue to plague his industry next year. Self-driving taxis are already available in parts of China and several US cities.
This includes driver monitoring systems, adaptive cruise control, and collision avoidance systems. Integrating vehicle-to-everything (V2X) communication further improves connectivity and safety. German startup Qumasoft offers a software-driven cybersecurity management solution for vehicles and components. Its platform automates the cybersecurity management system (CSMS) and product cybersecurity evidence (PCSE) to ensure compliance with UNECE R 155 and ISO/SAE 21434.
- EloyMessage broadcasts fixed or dynamic visual and audio messages directly into vehicles, reducing driver distraction with patented technology.
- 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.
- Internet of Things (IoT) and real-time monitoring solutions improve shipment tracking, warehouse oversight, and production visibility.
- The truck’s design removes the internal combustion engine, advancing commercial vehicle safety standards, and protecting pedestrians and other road users.
- What initially appeared to be a niche sector is now the foundation of the auto industry’s transition.
- 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.
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. Explore the most important trade fairs and conferences to boost your business success.
Consumer demand for eco-friendly products is rising, with 80% of US consumers concerned about the environmental impact of their purchases in April 2024, up from 68% in 2023. Toyota intends to power its battery plant in North Carolina with renewable energy by 2025. Its early fusion approach integrates LiDAR and radar data, while neural networks infer road elements and topology to create accurate high-definition maps. Continuous change detection triggers automatic cloud updates to ensure up-to-date navigation information. South Korean startup BOS Semiconductors builds Eagle-N, an AI accelerator for in-vehicle infotainment (IVI) and ADAS. It uses Tenstorrent’s Tensix NPU core to deliver up to 250 tera operations per second (TOPS) for efficient AI processing.
FlxTran develops Autonomous Vehicles for Unused Railway Tracks
Meanwhile, environmental concerns will drive automakers to focus on sustainable manufacturing processes, alternative fuels, and circular economy principles. In 2024, the automotive industry is increasingly integrating cutting-edge technologies into its operations. 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. Alongside established technologies like AI and big data analytics, the industry is also embracing the Internet of Things (IoT) and blockchain for diverse applications. This technological evolution is reshaping the automotive landscape, driving innovation and efficiency.
What are the Top 10 Trends & Innovations in Automotive ( ?
They’re so important that one analyst said, “semiconductors have moved ahead of oil as the world’s key commodity input for growth”. Explore competitors’ website traffic stats, discover growth points, and expand your market share. In addition, the initiative will leverage the data collected by adding Google’s AI capabilities to Ford vehicles.
IONT tech specializes in EV Charging Solutions
The move highlights the scale of investment required to meet zero-emission vehicle targets and align with regulatory pressures for decarbonisation. 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. This article profiles the top five Chinese automotive original equipment manufacturers (OEMs) leading the industry in sales volume and market capitalization. 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.
Methodology: How We Created the Automotive Trend Report
Avvenire focuses on sustainable mobility to contribute to a cleaner environment and meet the demand for green transportation. 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.
- Manufacturers are investing in innovative mobility technologies, such as personal voice assistance, autonomous driving, and AI and ML, creating a positive market outlook.
- 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.
- This article sheds light on how OEMs are embracing solar, wind, and hydrogen power to achieve sustainability goals.
- “Advanced sensors will make a significant impact on ADAS solutions by providing more accurate data and improving safety maneuvers, from lane-keep-assist to auto parking and braking,” added Lyons.
- Regardless, with the continued global slowdown of EV adoption, we can also expect original equipment manufacturers (OEMs) to follow suit, with a decrease in the level of production, especially in the West.
- For example, Qualcomm released reports and white papers highlighting C-V2X as a critical capability for intelligent transportation systems.
- Digital replicas and simulations allow manufacturers to test efficiency improvements before implementation.
- This enables an all-inclusive model that replaces ownership with monthly flexibility.
What is the scope of emerging auto trends?
The Tree Map below illustrates the top 10 automotive trends that will impact companies in 2024. Emerging companies are working to build the first fully autonomous vehicle for city roads, which in turn accelerates the advancements in-vehicle connectivity and IoT. Major automakers, such as General Motors, are expanding telematics offerings by integrating subscription-based services like OnStar as standard features across models.
Automakers need to redesign their vehicles or should look for other chip options available. The AI in Automotive industry in 2026 is evolving as AI, autonomous technologies, and software-defined vehicles reshape global mobility systems. This AI in Automotive Market Report examines the trends and technologies driving vehicle intelligence, operational efficiency, safety advancement, and data-driven mobility innovation. 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.
What are Automotive Industry Trends?
Also, automotive Ethernet and time-sensitive networking (TSN) provide deterministic in-vehicle data highways that keep safety-critical communication reliable. In addition, SWYTCHD includes access to premium electric scooters and cars such as the Ola S1 Pro, Ather 450X, TVS iQube, and Nexon EV. This approach enhances road efficiency and reduces fuel consumption, thereby lowering emissions. Regulations such as Europe’s General Safety Regulation 2 (GSR2), US mandates for automatic emergency braking, and China’s target VIN powered content for car dealers 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.
Automotive trends in 2025 impacting middle-market organisations
But, there are other various supply chain issues and factory closures that have led to low inventory, too. After demand started coming back, there simply wasn’t an adequate supply of chips, and the auto industry has been feeling the effects ever since. The parts industry is benefiting from the ever-increasing average age of vehicles on the road. The two purportedly plan to begin manufacturing an autonomous Apple electric car as of 2024. This kind of adoption should lead to much-improved 5G infrastructure, which could support vehicle connectivity. As 5G and the Internet of Things (IoT) continue their growth, vehicles are becoming more and more connected.
Improved range, faster charging times and enhanced performance are making EVs not just environmentally conscious choices, but compelling alternatives for everyday use. The global vehicle subscription market is projected to reach as high as USD 791.0 billion by 2032 at growth rates of up to 74.6% annually. This rapid expansion reflects how automakers and mobility providers are shifting from ownership models toward flexible, access-based mobility solutions. Sensor fusion drives the automotive industry’s shift to autonomy by integrating data from cameras, light detection and ranging (LiDAR), radar, and ultrasonic sensors into a unified perception system.
The Innovative Armor PowerFlex 330 Drive Motor For Warehouse Applications
These sensors measure distances, identify obstructions, and capture crucial traffic and road condition data. When paired with high-resolution cameras, these tools allow self-driving cars to identify objects, lane markers, and even pedestrians with unprecedented precision. While full autonomy is still on the horizon, advanced driver assistance systems (ADAS) are already transforming how we drive. In 2025, the focus will be enhancing ADAS features, such as adaptive cruise control, lane-keeping assistance, automatic emergency braking, and more.
And with about two-thirds of people saying they would rather drive than ride in an autonomous car, much of the near-term focus is on trucking. A major barrier to this relentless growth, however, is consumer and regulatory concerns. Large automakers like Tesla, Alphabet, Ford, GM, and Volvo have all entered the autonomous vehicle space.
It also supports this process by integrating buybacks, residual value calculations, and automated stock analysis. The automotive industry is one of the most severely affected by supply chain disruptions. Currently, its greatest challenge is uncertainty and instability, which are expected to persist this year. Hybrid vehicles are becoming increasingly popular—they combine electric power with the reliability of a combustion engine. Compared to EVs, they don’t require charging, but at the same time reduce carbon emissions. However, it’s estimated that there will be 33 million autonomous vehicles on the road by 2040.