Furthermore, the need for EV charging stations is no longer a challenge to the electric vehicle market. 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. Currently, there are about 750,000 public charging stations with a combined 28.7 GW of charging capacity. Notably, China, Europe, and the US have established themselves as the leading EV markets, with other countries following suit.
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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. This move highlights the industry’s broader trend of building resilient supply chains to safeguard against geopolitical and economic uncertainties. Global supply chain disruptions over recent years have prompted manufacturers to rethink strategies.
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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. 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.
The rising preference for pre-owned/used cars
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.
Cars have become even more connected
The platform includes geofencing, driver behavior monitoring, route mapping, and integrated or standalone camera options, accessible via a dashboard and mobile app. For asset tracking, the startup provides small, discrete devices with long-life batteries lasting up to five years, waterproof ratings, and location monitoring alerts for reliability in outdoor conditions. XCognition captures operator input or sensor data to generate execution-ready robotic programs to increase accuracy and reduce deployment time. XTrude models the physics of EpicVIN’s expert picks for eco cars FDM processes to optimize parameters like flow rate and extrusion temperature to ensure large-scale 3D printing.
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- Continuous change detection triggers automatic cloud updates to ensure up-to-date navigation information.
- ADAS adoption enables lane-keeping, adaptive cruise control, and emergency braking to rely on AI-powered processors and sensor fusion chips.
- Many expected the auto industry to mount a post-pandemic rebound in 2021, but that didn’t happen.
- By 2025, nearly all new vehicles are expected to feature advanced connectivity options, integrating aspects of digital life directly into driving experiences.
- Almost 40% of all autonomous vehicles sold in 2025 are predicted to have L2 ADAS features.
- It integrates electric drivetrains, transforming existing vehicles into sustainable and cost-effective alternatives to new EVs.
- This simplifies the transition to electric vehicles for fleets, reducing environmental impact and promoting safer urban transport.
- Czech Republic-based startup IONT tech manufactures EV charging stations that support home, business, and public use.
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.
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The ongoing global semiconductor shortage continues to cast a shadow over manufacturing progress, particularly for industries such as automotive and electronics. While efforts are underway from many different automakers to expand fabrication capacity, lead times for chip production remain long with little sign of a solution in the near future. However, regulatory hurdles and the complexity of navigating diverse driving environments remain significant barriers. On the bright side, partnerships between automakers and tech companies are fuelling innovation and accelerating development, bringing their vision of safer, smarter transportation closer to reality.
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This also presents an emerging opportunity to connect the vehicle ecosystem, creating a dynamic adaptation of data for road and weather conditions, assisted by IoT-enabled devices. Car companies plan to integrate powertrain components in the next five to ten years by combining onboard chargers with batteries. Tesla already employs single inverter housings across its models, offering efficient integration of power electronics.
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- US-based startup NuNami designs automotive semiconductors that provide reliable connectivity and safety-critical interfaces.
- 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.
- 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.
- Tesla already employs single inverter housings across its models, offering efficient integration of power electronics.
- 2025 will witness the automotive industry transitioning from Level 2 autonomy to Levels 2.5 and 3, representing a substantial evolution in automotive technology and enhancing vehicle automation and safety.
- Additionally, the onboard speed recorder limits the speed to discourage dangerous driving behaviors.
- 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.
By 2025, we could see a broader adoption of fuel cell vehicles, especially in regions like Europe and Asia, where hydrogen infrastructure is beginning to grow. Environmental consciousness is driving the automotive industry toward more sustainable and eco-friendly solutions. Manufacturers are prioritizing robust security measures to protect sensitive consumer data and prevent malicious interference. From encrypted communications to intrusion detection systems, cybersecurity advancements will ensure consumer trust as vehicles become smarter and more networked.
Leap Business Solutions advances Fleet Management
For this, it uses advanced system-on-chips (SoCs) that integrate mixed-signal analog and digital signal processing (DSP) algorithms. The European Union’s Vehicle General Safety Regulation (GSR2), effective July 2024, mandates several ADAS features in new vehicles. The U.S. National Highway Traffic Safety Administration (NHTSA) plans to require automatic emergency braking (AEB) systems in all new light-duty vehicles by 2026. 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.
The Automotive Parts Market Continues to Grow
- Perhaps the biggest shift here is in a new manufacturing landscape, with new decentralised hubs across the globe producing EVs for local markets.
- Moving further east, Thailand’s electric car sales quadrupled, aided by subsidies and Chinese carmaker investments, positioning the country as a potential EV manufacturing hub.
- “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.
- The data of all road users is streamed and processed in real-time to empower smart mobility.
- Supply chains are being restructured to secure critical minerals and diversify chip sources.
- AI, ML, and computing allow vehicles to process data points per second with split-second precision.
By 2025, the sector is expected to experience continued technological advances, heightened sustainability efforts, and shifting market dynamics. In this article, we’ll explore the significant focuses of the automotive industry in 2025, ranging from electric mobility to autonomous driving and sustainability initiatives. One of the most significant shifts in the automotive industry is the widespread adoption of electric vehicles (EVs).
- 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.
- Peugeot introduced groundbreaking technologies like the Hypersquare control system and steer-by-wire, marking a significant leap in electric vehicle design and user experience.
- The Global Startup Heat Map below highlights the global distribution of the 4800+ exemplary startups & scaleups that we analyzed for this research.
- While the past two years have been a challenge for most auto manufacturers, high-end luxury brands have experienced unexpected success.
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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.
DAM can print parts as large as 1000x3000x1000mm using engineering-grade recycled plastics. Firstly, it accelerates the design and testing process through rapid prototyping. The Automotive Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation & startup scouting process. Identifying new opportunities & emerging technologies to implement into your business goes a long way in gaining a competitive advantage. The vehicle’s architecture includes a 3D mapping system that merges GPS and IMU data with digital maps to determine precise positioning and plan optimal routes.
Top 8 Automotive Manufacturing Trends Shaping the Future of 2025
- LiDAR provides high-resolution 3D mapping that allows vehicles to detect road geometry, obstacles, and pedestrians with centimeter-level accuracy.
- The high prices and increasing interest rates are causing sales to decline for dealers and automakers nationwide.
- These solutions decrease fleet wait times and cut pollution from petrol or diesel vehicles.
- The adoption of augmented reality (AR) in head-up displays and automated parking systems is expanding, which is advancing ADAS technologies.
- The Asia-Pacific region currently controls the majority of the market due to the strong uptake of electric cars (EVs) in countries like China, India, and Japan.
- Qumasoft’s solution enables companies to develop, produce, and operate cybersecure vehicles and components efficiently.
- Luxury car brands are experiencing growth due to increased tangible luxury offerings and rising disposable incomes.
Following these trends will equip enterprises with greater penetration in the emerging market, such as the growing adoption of EVs across China and India. A combination of technological advancements, sustainability initiatives, and new business models will shape the automotive industry in 2025. The rise of electric vehicles, autonomous driving, and innovative mobility solutions will redefine how we think about transportation. Meanwhile, environmental concerns will drive automakers to focus on sustainable manufacturing processes, alternative fuels, and circular economy principles.
Future Readiness Monitor: Automotive Industry Report
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. Displays will also be a key driver of automotive technologies in 2025, from microLEDs to the production of holographic windscreens and smart glass. Belgian startup Apache Automotive develops the APH-01, a T3 prototype for extreme terrain. It combines a gasoline engine with an electric motor to enhance fuel efficiency and reduce emissions.
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. The AV industry itself is just in its infancy, as there are only 17,000 self-driving cars on the road in the US today. Searches for “autonomous driving” have increased by over 1,029% over the past 10 years. However, it is estimated that over 60% of all Americans have garages that will allow for electric vehicle charging.