However, as with all complex bodies of rulesets, differing rules and regulatory mandates across the globe make it easier for international automakers to fall foul of compliance. Ransomware-related costs in the automotive industry skyrocketed from $74.7 million to $209.6 million in just the first half of 2023. 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.
The rising role of renewable energy supply in automotive production
The systems that come together to implement such technologies are sensor fusion, computer vision, and real-time decisions to enable the vehicle to take all complex traffic scenarios easily. Significant investments in AI and Internet of Things (IoT) devices are crucial for fine-tuning self-driving algorithms, making them safer and more reliable. 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.
Chip Shortage Continues to Plague Auto Manufacturers
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.
Tangram Vision offers a Perception Platform
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.
🔮 Preparing for Tomorrow: Strategies for Industry Players and Consumers
In 2025, we expect to see more automated and electric shared vehicles providing affordable, on-demand transportation. Autonomous driving is one of the most prominent applications of AI in the industry. 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.
Instantly Analyze Any Market
Sustainable manufacturing lowers emissions, which allows automakers to meet compliance requirements and reduce their environmental footprint. Cleaner production methods reduce operating costs and free resources for reinvestment in new technologies. In 2025, electrification and software integration will have an essential impact on the automotive industry. These tendencies are long-term and are expected to continue shaping the auto industry in the near future. In the next section, we’ll explore these and other automotive sector trends in more detail, and see how they will evolve in 2025.
Automobile Engineering Seminar Topics For Students
Automakers and technology companies are forming partnerships due to vehicles’ constantly evolving tech requirements. This is especially necessary for electric, connected, and autonomous vehicles, which require specialized software and advanced technology to function safely. Manufacturers are partnering with tech companies to design and produce the new operating systems necessary for the next generation of technologically advanced vehicles. Self-driving vehicles are becoming increasingly common and will continue to do so in 2025.
Top Automotive Marketing Trends in 2025
Modern vehicles are now equipped with a unique digital identity, making it easier to track and share data for applications like insurance, driver safety, predictive maintenance, and fleet management. Nigerian startup Revive Earth develops the Revive Kit, to convert petrol vehicles into efficient EVs. It integrates electric drivetrains, transforming existing vehicles into sustainable and cost-effective alternatives to new EVs. The kit maintains original vehicle features to ensure a seamless transition and familiar driving experience.
Manufacturing
For example, Valeo, with its SCALA LiDAR, which scans the surroundings 25 times per second at ranges beyond 200 meters. Further, high-speed automotive Ethernet, 5G networks, and V2X communication extend a car’s perception beyond its line of sight. Gallium nitride (GaN) chips enable high-frequency switching, compact designs, and fast charging. Transparency rules such as the EU’s Corporate Sustainability Due Diligence Directive and the US Uyghur Forced Labor Act add pressure for stricter supplier oversight.
Why the EV Boom Hasn’t Happened
Its vehicle tracking system provides 24/7 real-time visibility, supported by self-install and engineer-fitted options, with no minimum fleet size required. With the introduction of 5G networks, advanced telematics features like real-time diagnostics, autonomous driving, and improved safety systems are becoming even more feasible. Canadian startup Xaba develops intelligent automation solutions, materials, and processes for sustainable manufacturing. Its AI-driven control systems, xCognition and xTrude, enhance industrial robotics and additive manufacturing by automating programming and improving precision.
Immersive technologies: VR & AR
As of 2023, the two now equip Ford and Lincoln vehicles with a built-in Android operating system. In addition, TuSimple has partnered with Navistar and UPS to test its software under supervised driving conditions. This could allow drivers to retain their jobs, but avoid the injuries and deaths that result from exhaustion. Additionally, Chevrolet, Hyundai, Kia, Nissan, and Jaguar have all released more affordable EVs that have a range of anywhere from 200 miles to 250 miles. Right now, there are only about 73,215 public EV charging stations across the US. Lithium-ion battery prices have fallen by 89% over the last decade, reaching a price of $137/kWh in 2020.
- The industry will continue to experience disruptions from geopolitical headwinds to regulatory and legislative developments, data security and economic challenges.
- A major driver of this growth is the increasing focus on commercial applications, such as logistics and ride-sharing services.
- Australian startup V2Grid designs V2G technology that converts EVs into mobile energy resources for homes, businesses, and the national grid.
- The expansion will stem from the speedy spread of data that can be capitalized upon to lower expenses, streamline research and development, enhance products and services, and restrict emissions.
- It also allows operators to integrate services and microservices in the chargers to make the charging process profitable.
- Manufacturers are prioritizing robust security measures to protect sensitive consumer data and prevent malicious interference.
- Companies like Tesla, Waymo, and others are working tirelessly to refine the technology, which includes machine learning, computer vision, and lidar (light detection and ranging) systems.
- Further, as part of larger decarbonization efforts, the Intergovernmental Panel on Climate Change (IPCC) emphasizes the contribution of EVs to the reduction of greenhouse gas emissions.
- Indian startup Starkenn develops AI-powered ADAS to enhance vehicle safety and reduce road accidents.
Evolving video marketing & environmental sustainability
Mercedes-Benz’s Drive Pilot showcases this with over 35 sensors, including LiDAR and radar, working together to achieve certified Level 3 autonomy. In 2026, the auto industry accelerates its transition from combustion-based production to electrified, software-driven, and sustainable mobility. Sustainable manufacturing and EV expansion deliver cost savings, regulatory compliance, and reduced emissions, positioning automakers as leaders in green mobility. For this in-depth research on the Top Auto Trends & Startups, we analyzed a sample of 3836 global startups & scaleups. The car market trends are shifting towards regional suppliers to diversify their supply chains and mitigate risks. OEMs seek alternative sources to improve sourcing flexibility and bring products to market faster.
Mobility
By 2025, we will see increased investments in EV production as automakers cater to evolving consumer demands and regulatory pressures. However there are huge opportunities for the industry in the shift to software-defined vehicles and autonomous driving. These shifts are beneficial to ARM, STMicroelectronics, NXP Semiconductors and Infineon Technologies. While there are a lot of opportunities ahead for the industry, there will be plenty of challenges like cost pressures, growing competition, and globalization.
- Luxury car brands are experiencing growth due to increased tangible luxury offerings and rising disposable incomes.
- 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.
- 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 automotive cybersecurity market is projected to reach USD 5.11 billion in 2025, with a CAGR of 18.14% from 2024 to 2034.
- The startup develops Konnect – GS01, an automatic electronic logging device (ELD) to continuously track vehicular health.
The Future of Automobiles
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.
Q) What are the current trends in the automotive industry?
EV sales grew from less than 1% of total vehicle sales a decade ago to more than 4% today. Rapid technological and environmental innovations have forced incumbents to adapt to new challenges. The auto industry is one of the largest and most influential markets on the planet. Overall, Auto News suggests that analysts expect the chip shortage will result in a loss of 3 million in vehicle production in 2025.
- 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.
- While traditional OEMs are adapting to this shift, we are also witnessing newer market entrants are making significant strides in implementation, which is making for a more competitive automotive sector.
- Automakers are also adopting hyper-personalized features to offer customized experiences through infotainment systems, user profiles, and real-time navigation updates.
- 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.
- Moreover, its NuPort solution extends reliability by enabling connections between automotive components that support both diagnostics and long-term endurance.
- The vans deliver groceries from nearby stores and send out a push notification when the order arrives.
Nissans to Look For at Tokyo Auto Salon
Swedish startup Radar Reticence designs radar sensors that advance sensor fusion capabilities in the automotive industry. Its technology applies signal processing algorithms to eliminate interference and ensure radar units operate reliably planning safer road trips with kids within the same environment. In parallel, the startup offers carAISuite, an AI-driven tool that automates engineering and compliance activities. It enables systematic results in cybersecurity, functional safety, and process conformance.