The study offers data-based insights and recommendations for action for decision-makers in the automotive sector. Gain in-depth insights into the key developments that characterise the automotive industry. UK-based startup Distributed Additive Manufacturing (DAM) offers 3D printing services including design, building, and finishing of parts. It offers more sustainable 3D printing by developing its own large-scale printing hardware and using fully recycled composite materials.
What is the scope of emerging auto trends?
The high prices and increasing interest rates are causing sales to decline for dealers and automakers nationwide. Prices are expected to decrease as supply-chain issues improve, and sales continue to soften. However, interest rates may remain high as the Federal Reserve works to lower inflation. In October 2022, the delivery lead time for chips decreased by six days to 25.5 weeks, the most significant drop since 2016. 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%.
Vehicle Purchases Shift Online
In 2024, hybrids saw a YoY growth of almost 19%, which is expected to grow to over 23% by 2025. In 2025, used passenger car registrations are forecast to hit 179 million globally and are predicted to grow by 1.4% year-on-year. The cost of new cars remains at an all-time high, and with higher interest rates, consumers are likely either to wait for rates to decrease or to turn to the used car market. 2025 is predicted to be a big year for self-driving taxi services, as companies look to re-imagine the future of the automotive and taxi-hailing industry.
Electrification to grow despite various hurdles
In 2025, many automakers will focus on creating vehicles that are easier to disassemble, repair, and recycle at the end of their lifecycle. This approach could significantly reduce waste and contribute to a more sustainable automotive industry. Leading companies such as Volkswagen, General Motors, and Volvo have committed to producing zero-emission vehicles and achieving carbon-neutral operations by mid-century. In line with this, automakers focus on sustainability in their manufacturing processes, energy sourcing, and material selection. The SDVs market is set to reach 7.6 million units in 2025 from 6.2 million units in 2024.
AI Agents for Project Management: Tools, Trends & Examples (
Nearshoring is becoming increasingly prevalent, particularly in North America, where manufacturers are shifting operations closer to key markets to mitigate supply chain risks and reduce logistical costs. In the UK, auto production surpassed one million units in 2023, marking a significant recovery. However, with the cessation of certain models, there are concerns about a potential production dip in 2024. New EV launches slated for 2025 are expected to reinvigorate the market, underscoring the importance of product innovation in sustaining growth. Artificial Intelligence and Smart Factory technologies are no longer aspirational but integral to modern automotive manufacturing.
- Meanwhile, Toyota is reported to be cautiously evaluating the technology, balancing its benefits against potential risks.
- Solid-state batteries increase energy density, shorten charging times, and give EVs longer ranges and greater convenience.
- AI algorithms process vast data from sensors and cameras, enhancing decision-making for safe, efficient driving.
- German OEMs already have a full roadmap from L2 to L3, with Mercedes Benz commercializing their DrivePilot system, and BMW is likely to follow soon.
- As of the end of 2023, over 1 billion miles have been driven with Tesla Autopilot enables.
- Lastly, there’s even a term “vehicle-to-everything” (V2X), which includes all types of vehicle communication.
Advanced Driver Assistance Systems (ADAS)
China’s automotive sector underwent substantial changes, with battery electric vehicle (BEV) sales reaching 582,813 units in August 2024—a 20.8% increase from the previous month. Plug-in hybrid electric vehicle (PHEV) sales also hit a record high, indicating a robust consumer interest in electric mobility. While fully autonomous vehicles have the potential to revolutionise how society moves from A to B, the industry is taking a more measured approach to implementation.
- 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.
- The automotive manufacturing industry is evolving rapidly as manufacturers respond to technological advancements, consumer preferences, and regulatory changes.
- Trends span sustainable manufacturing, EV expansion, supply chain nearshoring, vehicle cybersecurity, automotive semiconductors, sensor fusion, autonomous driving, subscription models, SDVs, and V2X.
- The used car market is also expected to become more important for consumers looking for cheaper EVs, which typically face greater levels of depreciation than internal combustion engine vehicles.
- Automotive suppliers are renegotiating their vendor/supplier contracts to align with these new predictions.
- The startup’s technology allows these pods to adapt across industries, enhancing efficiency and safety in transporting people and goods.
Future Readiness Monitor: Automotive Industry Report
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.
♻️ Circular Economy Principles and Eco-Friendly Production
This data-driven research provides innovation intelligence that helps you improve strategic decision-making by giving you an overview of emerging technologies in the automotive industry. In the Automotive Innovation Map below, you get a comprehensive overview of the innovation trends & startups that impact your company. Vietnamese startup Phenikaa-X creates autonomous electric vehicles with AI and multi-sensor technology for safe transportation. Its system uses functional modules, combining LiDAR, radar, cameras, and ultrasonic sensors to perceive surroundings, analyze traffic, and navigate efficiently.
Forecasting Top 3 Automotive Industry Trends, 2030
Auto brands that stay on top of these trends and continue to innovate will be able to build a resilient business, that will help nurture a more electrified, connected, and sustainable future. With EV makers in China engaging in a price war due to declining demand, Chinese brands with strong hybrid presently are gaining popularity. A few hybrid models are priced below their EV and ICE counterparts, attracting Chinese consumers to hybrids, especially plug-in hybrid (PHEV) and extended-range hybrid (EREV) models.
e.Volution manufactures Sustainable Vehicles
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 vehicle history reports and environmental impact shaped by enabling technologies that extend beyond electrification and connectivity. Quantum computing accelerates material discovery and crash simulation, and edge computing and 5G offer real-time responsiveness in vehicles. Its bidirectional charging technology allows EV batteries to supply electricity to buildings during outages or peak demand. The technology also draws energy during off-peak hours to lower costs and stabilize the grid.
Mercedes-Benz CLA EV Feels Lighter Than It Is
These advancements are driving the future of connected vehicles, which are increasingly becoming a standard feature in new cars. 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.
Automotive Semiconductors: Asia-Pacific Leads with 45% Global Share
The Starkenn Brake Safe, a collision mitigation system features automatic emergency braking in critical scenarios. AI-powered semiconductors drive transformation in autonomous driving systems by enabling real-time communication with road infrastructure and enhancing safety features such as emergency braking systems. Tesla’s relentless drive to expand its global gigafactory network has been a defining feature of 2024.
- The automotive industry leads in technological innovation that will reshape vehicle design, construction, and user experience in 2025.
- While the past two years have been a challenge for most auto manufacturers, high-end luxury brands have experienced unexpected success.
- As we progress through 2025, these trends will continue to reshape the automotive landscape.
- 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.
- The Global Startup Heat Map below highlights the global distribution of the 4800+ exemplary startups & scaleups that we analyzed for this research.
- Did you know that EVs are projected to make up nearly 20% of global vehicle sales in 2026?
- South Korean startup BOS Semiconductors builds Eagle-N, an AI accelerator for in-vehicle infotainment (IVI) and ADAS.
Further, its Craidlr ATX-G gateways are integral to the surface temperature & vibration monitoring solution, catering to diverse automotive testing needs. These gateways, combined with advanced transducers, facilitate real-time data collection. The Global Startup Heat Map below highlights the global distribution of the 4800+ exemplary startups & scaleups that we analyzed for this research. Created through the StartUs Insights Discovery Platform, the Heat Map reveals high startup activity in the US, Europe, and India. Regenerative braking systems, crucial in EVs and hybrid cars (HEVs and PHEVs), contribute to energy recovery rates of 5% to 20%, depending on driving conditions.
- This type of vehicle is defined by its ability to communicate with other software systems and collect data from its surroundings.
- Data-driven connectivity services and on-demand mobility will add up to $1.5 trillion to the automotive revenue pool by the year 2030.
- Auto brands that stay on top of these trends and continue to innovate will be able to build a resilient business, that will help nurture a more electrified, connected, and sustainable future.
- Automakers are also adopting hyper-personalized features to offer customized experiences through infotainment systems, user profiles, and real-time navigation updates.
- At the same time, BYD, Stellantis, and Volkswagen are focused on designing a stronger PHEV portfolio.
- Indian startup Starkenn develops AI-powered ADAS to enhance vehicle safety and reduce road accidents.
- These gateways, combined with advanced transducers, facilitate real-time data collection.
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.
- The industry is also innovating in battery chemistry, thermal management, and vehicle-to-grid (V2G) tech to improve EV usability.
- Explore the most important trade fairs and conferences to boost your business success.
- The global automotive semiconductor market is expected to grow at a rate of 8.1% between 2023 and 2030.
- Improved range, faster charging times and enhanced performance are making EVs not just environmentally conscious choices, but compelling alternatives for everyday use.
- The industry itself, however, has remained relatively stable over the last decade.
Q) How Will Adapting to Evolving Tech Landscape Help Automakers?
- Despite these challenges, global new-vehicle sales are projected to remain flat, with new-car sales increasing.
- As 2024 comes to a close, the automotive manufacturing industry continues to accelerate its transformation.
- The autonomous vehicle (AV) market is on an impressive growth trajectory, expected to surge from a market value of $1,921.1 billion in 2023 to a staggering $13,632.4 billion by 2030, with a CAGR of 32.3%.
- In terms of new car sales, Norway boasts the highest percentage of battery-electric vehicles in Europe.
- German startup SafeAD develops a vision-first perception and scene-understanding pipeline for autonomous driving.
- In 2022, the automotive industry’s automotive digital marketing spending increased to $17 billion and is predicted to keep growing in 2025.
- Volkswagen is using digital twin technology at its Wolfsburg plant to simulate and optimise production processes for the Tayron SUV.
The market reflects its role in meeting strict safety rules and consumer demand for smarter vehicles. AI, additive manufacturing, the Internet of Things, and 5G have become sources of product innovation and manufacturing efficiency, which in turn has led to revolutionary changes in customer experience. Finally, automotive manufacturers are increasingly adopting PMO software to standardize the execution of complex projects with globally distributed teams and ensure compliance with industry standards.
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.
SDVs are more efficient and safer and can be updated with the latest technologies through software, keeping them up to date in a constantly evolving industry. The big data market in automotive is growing, with a projected market size of USD 5.92 billion in 2024, expanding at a CAGR of 16.78% to reach USD 12.86 billion by 2029. Startups are developing big data solutions to help manufacturers and related industries streamline operations and maximize profits. Below, you get to meet 20 out of these 4859 promising startups & scaleups as well as the solutions they develop. These 20 automotive companies are hand-picked based on criteria such as founding year, location, funding raised & more. As battery technology and charging infrastructure progress, EVs lead the push toward sustainability.