Virtual car shopping is the new norm and will remain a significant car industry trend for years. The booming e-commerce industry is essential to the global online car buying demand. This is further fueled by increasing awareness of convenience and supported by rising digital literacy, internet accessibility, urbanization, and disposable income levels.
Top trends driving the automotive sector in 2025
- Czech Republic-based startup IONT tech manufactures EV charging stations that support home, business, and public use.
- Its solution, carSECURITY, provides organizations with a complete cybersecurity process landscape.
- The trend is irreversible and will accelerate innovation while challenging legacy ICE-dependent supply chains.
- Furthermore, the need for EV charging stations is no longer a challenge to the electric vehicle market.
- 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.
- The concept of Mobility as a Service (MaaS) is changing how people think about transportation.
- 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.
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.
Printing: Revolution in Automotive Manufacturing
It also supports this process by integrating buybacks, residual value calculations, and automated stock analysis. The automotive industry is one of the most severely affected by supply chain disruptions. 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. However, it’s estimated that there will be 33 million autonomous vehicles on the road by 2040.
Increasing production of digital vehicles
In Europe, the new General Safety Regulation II (from July 2024) and related standards embed connectivity, advanced sensors, and cybersecurity requirements into safety compliance frameworks. This increases the regulatory push toward connected and safety-enhanced vehicles. General Intelligence strengthens the evolution of software-defined vehicles by aligning human-inspired learning with safety. It also advances autonomous driving by enabling adaptability across vehicle types and conditions. In addition, the unit supports multiple communication protocols, including CAN and FlexRay.
Radar Reticence designs Radar Sensors
- Italian startup Moi combines thermosetting composite materials and 3D printing to manufacture high-performance parts for the automotive industry.
- If you want to learn more about 10 of the most important auto industry trends for the next months, read on.
- US-based startup NuNami designs automotive semiconductors that provide reliable connectivity and safety-critical interfaces.
- Its early fusion approach integrates LiDAR and radar data, while neural networks infer road elements and topology to create accurate high-definition maps.
- As a result, vehicles become even more connected with each other and the infrastructure and provide drivers with more advanced opportunities.
- 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.
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.
The World Health Organization links 1.35 million annual deaths to road accidents, creating urgency for autonomy. AI, ML, and computing allow vehicles to process data points per second with split-second precision. This ensures cybersecurity and reliability for engine control, powertrain management, and other mission-critical automotive applications.
Sustainability Claims Unpacked: What B Corp Really Signals in 2025
Last year, the European Union updated the General Safety Regulation (GSR) and establishes mandatory safety requirements for cars sold in the EU. According to this regulation, starting from 2024, the following features become compulsory. However, there are yet to be more autonomous vehicles on the road due to the technological and safety challenges that must be overcome.
Auto Sales Impacted by Low Inventory and High Prices
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.
Qumasoft automates Automotive Cybersecurity Management
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.
- As incentives and projects pile up and resources remain limited, delivering everything on time,…
- It combines compound semiconductor nanomaterials with scalable silicon manufacturing for mass-market microelectronics.
- The EU enforces a 2035 zero-emission mandate, and the US Inflation Reduction Act channels subsidies into domestic EV production and attracts international manufacturers.
- Curious how electric vehicle trends like solar integration, AI-powered systems, and modular design are innovating mobility?
- Following these trends will equip enterprises with greater penetration in the emerging market, such as the growing adoption of EVs across China and India.
- This is fueled by increased vehicle production and sales in China, Japan, and South Korea.
- From these, 20 promising startups are featured below, selected based on factors like founding year, location, and funding.
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 VIN recovery for lost cars 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.
Autonomous tech will likely be bundled with subscription services, reshaping mobility economics. From electric vehicles zipping past gas guzzlers to cars that update themselves like your smartphone, the industry is in the middle of a revolution. Did you know that EVs are projected to make up nearly 20% of global vehicle sales in 2026? That’s no longer a distant future — it’s happening now, and it’s transforming everything from manufacturing floors to your driveway. Connectivity is one of the key trends in automotive industry, and 5G is what takes it to a more advanced level.
- As 2024 comes to a close, the automotive manufacturing industry continues to accelerate its transformation.
- EloySignals utilizes AI to optimize traffic flow, advising drivers on stopping or proceeding, and prioritizing emergency vehicles and vulnerable road users.
- This ensures cybersecurity and reliability for engine control, powertrain management, and other mission-critical automotive applications.
- This approach ensures our reports provide reliable, actionable insights into the automobile innovation ecosystem while highlighting startups driving technological advancements in the industry.
- 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.
- Search volume for “Infineon Technologies” has seen modest growth over the past 5 years.
- Despite initial scepticism, the automotive industry is embracing enhanced connectivity by enabling real-time updates and post-production feature additions.
EVIE Autonomous produces Autonomous Shuttles
Automakers need to redesign their vehicles or should look for other chip options available. The AI in Automotive industry in 2026 is evolving as AI, autonomous technologies, and software-defined vehicles reshape global mobility systems. This AI in Automotive Market Report examines the trends and technologies driving vehicle intelligence, operational efficiency, safety advancement, and data-driven mobility innovation. What initially appeared to be a niche sector is now the foundation of the auto industry’s transition. While automakers spend billions developing electric cars, most governments worldwide have ambitious plans to phase out internal combustion engines.
Tesla’s EV battery production and global gigafactory network
- Semiconductors enhance safety by enabling faster decisions and reducing accident risks.
- The kit maintains original vehicle features to ensure a seamless transition and familiar driving experience.
- Its vehicle tracking system provides 24/7 real-time visibility, supported by self-install and engineer-fitted options, with no minimum fleet size required.
- Major technology providers are also solidifying their roles in key areas such as ADAS, electrical/electronic (E/E) architectures, and cloud computing solutions.
- This reduces development costs and time while enhancing quality and analytical capabilities.
- Also, advanced composites and recycled inputs reduce reliance on virgin resources.
- The present-day automotive industry is affected by innovative ideas and is ready to transform and evolve rapidly.
For example, Mercedes-Benz is using Chat-GPT for intelligent virtual assistants within its vehicles. 94 percent of global automakers are using ARM-based technology for automotive applications, alongside the top 15 automotive semiconductor suppliers in the world adopting ARM technologies in their silicon. The automotive industry is being altered by the integration of Artificial Intelligence (AI), which is powering a new wave of smarter and more personalized innovations.
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.
Distributed Additive Manufacturing enables Large Scale Sustainable Parts Production
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.
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 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.
Improved range, faster charging times and enhanced performance are making EVs not just environmentally conscious choices, but compelling alternatives for everyday use. The global vehicle subscription market is projected to reach as high as USD 791.0 billion by 2032 at growth rates of up to 74.6% annually. This rapid expansion reflects how automakers and mobility providers are shifting from ownership models toward flexible, access-based mobility solutions. 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.
Sustainable Manufacturing: Michelin Makes Tires with 45% Sustainable Materials
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.
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. From these, 20 promising startups are featured below, selected based on factors like founding year, location, and funding. We don’t just regurgitate press releases—we road-trip, wrench, code, and occasionally sleep in dealership parking lots to bring you unfiltered truth. Our proprietary data blends EPA fuel-economy dumps, NHTSA complaint logs, insurance quote engines, and Reddit sentiment (yes, really).
The adoption of augmented reality (AR) in head-up displays and automated parking systems is expanding, which is advancing ADAS technologies. The global ADAS market is projected to reach USD 36.6 billion by 2025, with a CAGR of 10.8% from 2025 to 2037. Companies like Nvidia innovate in AI-powered chips for AVs, partnering with automakers like Toyota, Tesla, and Aurora Innovation to enhance autonomous capabilities. North America led the AV market in 2024 with over 40% revenue share, while Asia-Pacific is the fastest-growing region, with an expected CAGR of 35% from 2024 to 2033. Level 3 (conditional automation) and Level 4 (high automation) systems are gaining traction, with broader availability expected in Europe and North America by 2025. Tangram Vision allows perception teams to focus on product-specific features by handling complex sensor tasks and accelerating development and deployment processes.
🌐 Trend 4: Global Supply Chain Resilience and Geopolitical Shifts
Therefore, these were the five trends transforming the automotive industry this year and beyond. However, overcoming supply chain challenges takes time, so they are likely to remain in 2025. Sales of the most expensive cars are predicted to drive the most market growth through 2031.
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.