This VIN check mistakes when buying a car has led to a shift away from traditional automotive infrastructure, which focused on powertrains, interiors, electrical systems, and safety systems. Information technology has become a crucial part of the recent trends in the automobile industry as priorities change over time. The automotive industry stands at a thrilling crossroads, where innovation meets complexity and opportunity rides alongside challenge. The industry will continue to experience disruptions from geopolitical headwinds to regulatory and legislative developments, data security and economic challenges.
Classic and Historical Cars
Predictive maintenance powered by AI minimizes machine failures, while IoT networks provide detailed insights into factory operations. These practices not only meet regulatory demands but also resonate with consumers increasingly drawn to environmentally responsible brands. Toyota’s North Carolina battery plant exemplifies this commitment, with operations fully powered by renewables. Recycling initiatives, such as reusing EV batteries, further emphasize the industry’s shift toward circular manufacturing.
Electrification to grow despite various hurdles
On the other side of the globe, in Asia, China has implemented a landmark energy policy, aptly named the ‘Energy Law’, as of January 2025. The law emphasises a cleaner and more efficient use of fossil fuels, placing a higher emphasis on sustainability and developing renewable energy infrastructures. This comes as China continues to make their presence known in the global EV scene, with ramped-up production and dominance in the international EV market.
Auto Sales Impacted by Low Inventory and High Prices
Get in touch to easily and exhaustively scout relevant technologies & startups that matter to you. Operating from Germany and the US, EcoG is a startup offering an IoT-based operating system and platform for EV charging. The startup provides manufacturers with tools that make the development and maintenance of EV charging infrastructure simple, fast, and scalable. 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.
An Overview of the Latest Automotive Industry Trends
Despite initial scepticism, the automotive industry is embracing enhanced connectivity by enabling real-time updates and post-production feature additions. Through our work with automotive innovators, we witness first-hand how rapidly this sector is evolving. From electrification and software integration to new mobility models, the industry faces unprecedented change.
What is the future of the automotive industry?
The integration of Industry 4.0 technologies is revolutionizing automotive manufacturing. IoT, AI, and digital twins are becoming essential tools for improving efficiency, reducing downtime, and optimizing production processes. The push toward electrification is reshaping the automotive manufacturing landscape. 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.
- Dealerships can take advantage of different video formats, like how-to videos, car highlights, and customer testimonials.
- The AV market is projected to reach USD 1.73 trillion by 2033, growing at a CAGR of 31.85% from 2025 to 2033.
- This may also see American automakers finding more challenges in exporting vehicles to regions in which regulations are more stringent.
- The next decade will undoubtedly see dramatic changes in how we drive, how we share vehicles, and how we engage with the technology that powers our transportation systems.
- Information technology has become a crucial part of the recent trends in the automobile industry as priorities change over time.
- Innovations like solid-state batteries are set to revolutionise manufacturing priorities and reshape the EV supply chain.
Methodology: How We Created the Automobile Trend Report
It uses Tenstorrent’s Tensix NPU core to deliver up to 250 tera operations per second (TOPS) for efficient AI processing. The Global Startup Heat Map showcases the distribution of 6000+ exemplary startups and scaleups analyzed using the StartUs Insights Discovery Platform. It highlights high startup activity in Western Europe and the United States, followed by India.
Explore the Top 10 Automotive Industry Trends in 2024
In addition, it offers insurance-approved vehicle tracking systems with Thatcham S5 and S7 certification to meet insurer requirements and offers nationwide installation with priority police response. 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.
- The Global Startup Heat Map below highlights the global distribution of the 4800+ exemplary startups & scaleups that we analyzed for this research.
- It manages functions such as steer-by-wire, brake-by-wire, engine control, and ADAS.
- Cleaner production methods reduce operating costs and free resources for reinvestment in new technologies.
- Blockchain secures supply chains and in-car data, and extended reality (XR) advances design, testing, and training.
- For example, Toyota plans a commercial rollout by 2027 to bring solid-state battery EVs into mass production.
- Contact Avenga today to learn more about what industry experts have to say about these trends.
- South African startup Motomatix applies AI and custom software solutions to strengthen supply chain resilience in the automotive repair sector.
- These examples point to AI enabling real-time decision-making and predictive maintenance, while improving quality control and minimising downtime, marking the technology ‘a no-brainer’ for production in 2025.
Innovation Map outlines Top 10 Automotive Trends & 20 Promising Startups
The software integrates a one-shot multitask network capable of performing 2D detection, semantic segmentation, and monocular depth estimation. It processes these tasks in real time at over 120 frames per second on consumer-grade graphics processing units (GPUs). Indian startup General Intelligence creates self-driving intelligence software that supports software-defined vehicles in adapting to diverse driving environments.
The startup’s platform, Aqueduct, is easy to install, has 4 charging modules with up to 22kW, provides monthly reports, and uses a Typ2 charging cable. The solution recognizes the power requirements of every car and automatically controls the charging speed for each vehicle. Swedish startup Volta Trucks makes Volta Zero, an electric truck for urban deliveries. This vehicle’s design prioritizes driver safety and comfort, featuring a central driving position and panoramic vision for enhanced visibility. The Volta Zero addresses sustainability by enabling zero tailpipe emissions, contributing to cleaner city environments.
- For example, Hyundai partners with Revv in India to expand subscription offerings through a mobile-first platform.
- Swedish startup Volta Trucks makes Volta Zero, an electric truck for urban deliveries.
- Our proprietary data blends EPA fuel-economy dumps, NHTSA complaint logs, insurance quote engines, and Reddit sentiment (yes, really).
- Moreover, automakers and tier-suppliers are increasingly focusing on sustainable steel production to lower emissions across their supply chains.
- 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.
- Market leaders are adjusting their strategies to align with current trends, further emphasizing the shift towards EV-only vehicles.
- Italian startup Moi combines thermosetting composite materials and 3D printing to manufacture high-performance parts for the automotive industry.
- The project avoids more than 500K tonnes of CO2 emissions by reducing the need for primary aluminum.
- To maintain cost competitiveness, automotive procurement teams must be critical in managing supplier networks and supply chains for existing and upcoming vehicle models.
Vehicle purchases shift online
The evolution of self-driving and connected cars is simplifying driver-vehicle interaction. Human-machine interfaces (HMIs), including voice-based and haptic feedback systems, are expanding control over various car functions. For this in-depth research on the Top Automotive Industry Trends and startups, we analyzed a sample of 4859 innovative automotive startups & scaleups worldwide.
More than 12% of consumers who financed a new car in June of 2022 had a monthly payment of $1,000 or more. It’s clear that a select subset of today’s consumers are willing to pay for high-end automobiles. Power say that sales of cars worth more than $100k were outselling lower-priced cars 3 to 1 in the first quarter of 2022. 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.
- Toyota unveiled its forward-thinking approach to electric vehicle design, focusing on sustainability, performance, and cutting-edge technology.
- Collecting user data through these sensors creates ample opportunities for marketers to promote upselling.
- Further, it establishes local manufacturing facilities, which reduce supply chain dependency and generate employment and stimulate economic growth.
- AI and ML processors support object recognition, path planning, and decision-making.
- The push toward electrification is reshaping the automotive manufacturing landscape.
- Toyota’s Mirai and Hyundai’s Nexo have been the two major players in the market since sales launched in 2016.
- Localized production and sourcing are gaining momentum as companies aim to mitigate risks and ensure a steady supply of components.
The drive towards electric and autonomous vehicles is further bolstered by progress in machine learning and IoT. Volvo has adopted megacasting techniques to simplify EV production, reducing the number of components required and streamlining assembly processes. This both lowers costs and improves vehicle performance, addressing both market demands and sustainability goals.
Their scooters use an aviation-grade aluminum frame and are customized for sharing, safety, reliability, and durability. Users discover the nearest Beam scooter on the app and park it in visible public spots after the ride. Further, the micro-mobility platform offers a sustainable alternative to short-distance rides and helps regulate traffic flow in cities. The US-based startup Udelv provides autonomous vehicles for last-mile deliveries. It combines advanced AI algorithms and hyper-speed teleoperations for human-assisted guidance in unique situations. The vans deliver groceries from nearby stores and send out a push notification when the order arrives.
- A simple yet impactful example would be the replacement of vehicle manuals with voice-activated AI assistants.
- Moreover, Avvenire has a strategic agreement with Daymak International Inc., Canada’s leading LEV distributor.
- It also works with Ethernet and LIN, enabling integration across passenger cars, buses, trucks, and autonomous vehicles.
- Connected vehicles are fostering new business models centered on shared mobility, offering an alternative to traditional vehicle ownership.
- This article offers an inside look at the facility and Xiaomi’s ambitious plans in the automotive sector.
- As battery technologies evolve, the future promises breakthroughs in recyclability and energy efficiency.
This makes sense, as 83% of car customers already said they wish they could save time by shopping online. This number is expected to have risen in 2020 as dealers everywhere turned to digital channels. As of 2023, the two now equip Ford and Lincoln vehicles with a built-in Android operating system.
Top 10 Global Automotive Industry Trends in 2025
Consistent brand messaging across all channels, including in-car infotainment systems and websites, can help foster long-term customer relationships, promoting brand loyalty and advocacy. Chatbots and messaging solutions are key technology trends in the automotive industry. These tools enable dealerships to handle inquiries efficiently, freeing time for other tasks. They also facilitate the management of maintenance and repair appointments, streamlining dealership operations. Voice search assistants also optimize their interface for advertisements and voice search queries. Therefore, you should focus on environmentally conscious manufacturing processes and eco-friendly cars like electric vehicles.
The rise of Chinese EV manufacturers
However, although the Chinese EV market may take some time to adapt to the new subsidy-free scenario, the situation is optimistic. Demand may decelerate due to the end of Chinese subsidies for EVs, but it should not lead to a decrease. Apart from this, reduced access to EV charging points remains a significant challenge, according to consumer trends in the automotive industry. Moreover, the growth of the automotive IoT market signals a strong trend toward connectivity. IoT creates more opportunities for manufacturers to market to consumers even after they’ve made a purchase.
Overlanding, a newer trend, combines off-roading with remote travel and camping, with products like mounted tents falling under this category. 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. 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. That will enhance in gaining the trust of society and the brand’s potential customers. Consumers thoroughly research their preferred car on their mobile phones, searching for the best offers and dealerships in their area. Therefore, websites must be easily readable and accessible on mobile devices, with clear calls to action.