The global automotive semiconductor market is expected to grow at a rate of 8.1% between 2023 and 2030. This growth is driven by the increasing adoption of electronic control units (ECUs) in modern vehicles and understand VIN decoding with this complete guide the rising implementation of advanced safety systems. Semiconductors are, in essence, at the heart of modern car manufacturing, reshaping our understanding of mobility. 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.
Shift to an “Agency model”
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.
Electric Vehicle (EV) Production Expansion
Owing to these advancements, the global SDV market is set to reach USD 3.3 trillion by 2034, growing at 31.2% annually. Also, GPS and V2X connectivity improve fleet distribution and service reliability. Telematics and IoT sensors monitor vehicle condition and enable predictive maintenance. For instance, Planet42 extends access to underbanked consumers in South Africa and Mexico. Additionally, the startup offers features such as platooning algorithms for safe and efficient vehicle grouping. It also provides lane-change algorithms that ensure comfortable lateral movement and personalized passenger comfort profiles refined with each journey.
Driving Into the Future: Top Automotive Innovations and Insights of 2024
Digital platforms enable smooth access and allow users to book, swap, and unlock vehicles through mobile apps. For example, Hyundai partners with Revv in India to expand subscription offerings through a mobile-first platform. AI and ML processors support object recognition, path planning, and decision-making. For instance, Texas Instruments‘ AWR2544 radar achieves sensing beyond 200 meters.
Launch Mobility streamlines Shared Mobility
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.
Increasing production of digital vehicles
By leveraging tech and sustainable practices, the automotive sector can meet the challenges of tomorrow while delivering exceptional value to consumers. This digital transformation enhances scalability, a key driver in the competitive automotive sector. 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.
- Vietnamese startup Phenikaa-X creates autonomous electric vehicles with AI and multi-sensor technology for safe transportation.
- Telematics adoption in logistics and transportation industries is driven by features such as real-time tracking, driver behavior analysis, and fuel consumption reduction.
- These tendencies are long-term and are expected to continue shaping the auto industry in the near future.
- Also, GPS and V2X connectivity improve fleet distribution and service reliability.
- In addition, Move-X supports over-the-air updates, ensures continuous improvement of system performance, and allows customization across diverse use cases.
- For instance, Planet42 extends access to underbanked consumers in South Africa and Mexico.
Its RISC-V IP processors adopt 32/64-bit architectures supported by a nine-stage dual-issue pipeline. Connectivity also adds momentum, with 5G and V2X semiconductors enabling real-time data exchange and secure over-the-air updates. Also, regulatory frameworks such as ISO and Europe’s mandate for emergency braking systems encourage mission-critical chip integration across new vehicles.
Artificial Intelligence in the Automotive Industry
European manufacturers are leading the charge with plans for affordable EV models, such as Citroën and Renault. These budget-friendly models aim to stimulate adoption following a dip in EV sales. Consumers research their preferred car on their mobile phones, looking for the best options, offers, and dealerships. Therefore, websites need to be easily readable and accessible across mobile devices, with clear calls to action.
Dodge Unleashes the Durango Hellcat, Everywhere
This is fueled by increased vehicle production and sales in China, Japan, and South Korea. 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.
Conclusion: The Automotive Industry in 2025
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.
Bring the studio to your cars.
It combines compound semiconductor nanomaterials with scalable silicon manufacturing for mass-market microelectronics. This approach ensures our reports provide reliable, actionable insights into the automotive innovation ecosystem while highlighting startups driving technological advancements in the industry. However, an SSAB survey reveals that cost and investment challenges remain significant barriers to widespread adoption.
Issues such as liability in the event of an accident, cybersecurity measures to prevent hacking, and how to deal with AVs in mixed-traffic environments (with human drivers) will need to be addressed. One critical challenge in transitioning to electric mobility is the availability and accessibility of charging infrastructure. By 2025, significant investments in fast-charging networks will be essential for EV adoption to reach mass-market penetration.
There are already over 30 million vehicles on the road that meet the Level 1 standard. Sales for BEV and PHEV in Europe increased by 137% in 2020 compared with the previous year (despite a 20% year-over-year decrease in the total car market). 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.
- It uses Tenstorrent’s Tensix NPU core to deliver up to 250 tera operations per second (TOPS) for efficient AI processing.
- For example, Toyota plans a commercial rollout by 2027 to bring solid-state battery EVs into mass production.
- Companies like BYD are collaborating with TSMC and MediaTek to develop advanced chips for vehicle controllers and smart cockpits.
- Moreover, automakers and tier-suppliers are increasingly focusing on sustainable steel production to lower emissions across their supply chains.
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. The uptake in EVs is experiencing a surge, driven by rapid advances in battery technology, an expanding charging infrastructure and supportive government incentives.
Immersive technologies: VR & AR
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.
- Tangram Vision allows perception teams to focus on product-specific features by handling complex sensor tasks and accelerating development and deployment processes.
- US-based startup FlxTran develops a new transportation system using self-driving vehicles on abandoned railroad tracks to provide fast regional transport to connect smaller communities.
- Central to this evolution is the growing demand for electric vehicles and software-defined vehicles.
- In 2024, hybrids saw a YoY growth of almost 19%, which is expected to grow to over 23% by 2025.
- Also, MotionSafe protects the auto industry by securing vehicle data, supporting supply chains, and ensuring a safe transition to connected mobility.
- In 2022, the automotive industry’s automotive digital marketing spending increased to $17 billion and is predicted to keep growing in 2025.
- The automotive industry is one of the most severely affected by supply chain disruptions.
- US-based startup Aviva Links builds in-vehicle connectivity solutions that include multi-gigabit Ethernet and ASA Motion Link (ASA-ML) semiconductor products for ADAS systems.
- As the technology evolves and becomes more affordable for the industry, it opens more and more opportunities every year.
At the same time, a limited EV infrastructure and uneven policy application dampen the pace of meaningful progress throughout the region. When it comes to the benefits of connected cars, it seems that drivers are more willing to allow for data collection, too. 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.
- 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.
- Level 3 (conditional automation) and Level 4 (high automation) systems are gaining traction, with broader availability expected in Europe and North America by 2025.
- 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.
- In October 2022, the delivery lead time for chips decreased by six days to 25.5 weeks, the most significant drop since 2016.
- Moreover, Asia-Pacific leads the automotive semiconductor market with a 45% global share.
- Moreover, it enables companies to customize their fleet by choosing preferred brands, models, and service options, ranging from premium to ultra-luxury vehicles.
- Consumers thoroughly research their preferred car on their mobile phones, searching for the best offers and dealerships in their area.
- UK-based startup WF Telematics offers vehicle and asset tracking solutions for businesses seeking efficient fleet management and asset monitoring.
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.
We evaluate our own startup data and complement these insights with external research, including industry reports, news articles, and market analyses. This process enables us to identify the most impactful and innovative trends in the automotive industry. Volvo Cars has announced plans to adopt large aluminium castings for its next-generation electric vehicles, aiming to simplify production and enhance sustainability. Meanwhile, Toyota is reported to be cautiously evaluating the technology, balancing its benefits against potential risks.
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. With the new administration of Donald Trump in January, the trade war with China will have a major impact on the automotive industry in 2025.