Software-defined vehicle (SDV) architectures are revolutionising automotive technology, with electric models often leading this digital transformation. 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. Road safety, regulatory mandates, autonomous vehicle adoption, and smart city development drive this innovation. The World Health Organization links 1.36 million annual deaths to road accidents.
Move-X Autonomous Driving advances Level 4 Mobility Solutions
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. In 2023, the global connected car market was valued at $80.87 billion and projecting remarkable growth. It is expected to expand from $95.14 billion in 2024 to $386.82 billion by 2032, reflecting a robust compound annual growth rate (CAGR) of 19.2% over the forecast period according to some figures.
Electric vehicle trends in 2025
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.
Volta Trucks manufactures Electric Trucks
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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Also, radar ensures long-range detection of moving objects in all weather conditions, which is critical for adaptive cruise control and highway safety. US-based startup NuNami designs automotive semiconductors that provide reliable connectivity and safety-critical interfaces. Its modules integrate high-voltage isolation, digital error correction, and built-in self-testing to ensure secure data transfer and fault-tolerant operation in automotive systems. They also incorporate floating-point units that improve computational accuracy and performance. The startup provides single-chip motor control solutions that integrate RISC-V processor cores with programmable MOSFET drivers, FD-CAN and LIN interfaces, and dedicated PWM modules. The systems optimize the performance of electric power steering, vehicle pumps, cooling fans, and HVAC modules.
Autonomous Vehicles are Changing the Face of the Auto Industry
- While the past two years have been a challenge for most auto manufacturers, high-end luxury brands have experienced unexpected success.
- The Global Startup Heat Map below highlights the global distribution of the 4800+ exemplary startups & scaleups that we analyzed for this research.
- 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.
- Did you know that EVs are projected to make up nearly 20% of global vehicle sales in 2026?
- Peugeot introduced groundbreaking technologies like the Hypersquare control system and steer-by-wire, marking a significant leap in electric vehicle design and user experience.
- Moreover, its NuPort solution extends reliability by enabling connections between automotive components that support both diagnostics and long-term endurance.
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. 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, read why VIN checks are essential and sustainable mobility.
Sustainable Automotive Technologies
- Mercedes-Benz is also using generative AI to include conversational assistants for improving user experiences and redefining in-car interactions.
- They improve energy efficiency through wide-bandgap devices that extend EV range and minimize charging times.
- From LFP to cutting-edge solid-state batteries, it examines the trade-offs between cost, performance, and sustainability while uncovering key regional trends.
- Belgian startup Apache Automotive develops the APH-01, a T3 prototype for extreme terrain.
- The simulations improve thermal management, safety, and efficiency to meet the demands of future mobility.
- Owing to these advancements, the global SDV market is set to reach USD 3.3 trillion by 2034, growing at 31.2% annually.
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.
- More driverless journeys will occur as technology continues to be enhanced and refined.
- The market reflects its role in meeting strict safety rules and consumer demand for smarter vehicles.
- Due to the pandemic, the automotive sector is undoubtedly facing one of the most challenging periods and a massive slowdown for the last couple of years.
- AI, automation, and an ‘electric-first’ mindset are impacting every industry, and automotive is no exception.
- By leveraging these factors, Statevolt is positioning itself to meet the rising demand for EV batteries in an increasingly competitive market.
- Sustainable manufacturing and EV expansion deliver cost savings, regulatory compliance, and reduced emissions, positioning automakers as leaders in green mobility.
Electrified Vehicles Top 50% of Sales in China
By optimizing driving routes, connected cars help reduce emissions, contributing to a greener future. Using data from IoT technology, drivers receive real-time route suggestions to avoid traffic jams and ease congestion, ensuring faster, stress-free travel. From supply chain optimization and manufacturing to personalized driving experiences and smart routing, advanced AI systems and real-time data analysis enable it all. By 2027, the global automotive AI market is expected to grow from its 2022 valuation of USD 2.3 billion to USD 7.0 billion, with a compound annual growth rate (CAGR) of 24.1%.
How is the rise of shared mobility changing the automotive industry?
Semiconductors ensure energy efficiency, consistent power distribution, and power the battery systems in EVs. They also enable software updates, enhance entertainment, and facilitate smooth communication in connected and software-defined vehicles. Let’s embark on this journey together, where ‘driving the future’ is more than just empty rhetoric. In 2025, consumers may opt for flexible ownership models that allow them to pay a monthly fee to access a range of vehicles, including electric cars, luxury models, and even autonomous vehicles. This approach offers more convenience and flexibility than traditional car ownership and allows consumers to change vehicles based on their needs.
Driverless Vehicles- The Future of Connected Cars
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. Brands provide specific offers by analyzing your needs, preferences, and behavior.
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Self-driving vehicles are becoming increasingly common and will continue to do so in 2025. Research has indicated that autonomous cars are safer, reduce downtime, expand the last-mile delivery scope, and improve fuel efficiency by 10%. Additionally, several trucking companies have tested self-driving technology, and it will soon become commonplace, with fleets of autonomous trucks sharing the road with traditional vehicles.
Additive manufacturing shortens prototyping cycles, and IoT-driven analytics improve predictive maintenance. Changing consumer preferences, cost efficiency, technological progress, and sustainability targets drive this innovation. A Deloitte UK study found that 52% of all consumers show no interest in car subscription models; interest is higher among younger people (age 18-34). These all-inclusive options reduce the financial burdens of ownership, especially for urban users.
- Technological advancements, changes in consumer preferences, regulatory changes, and global economic conditions drive these trends.
- The chip shortage is one-factor holding cars back from getting to the dealership lots.
- 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.
- The Latin America Energy Organisation (Olade), released a report showing that with the increase in supply, lower prices and tax incentives, Latin America and the Caribbean have great potential for EV growth.
Top car brands are embracing VR as part of their dealership photography strategies to further enhance the customer experience. Due to these advancements, the global automotive IoT market is anticipated to reach USD 56 billion by 2026 at a CAGR of 19% during the period from 2021 to 2026. It also uses regenerative braking to capture and store energy in the car’s battery. The APH-01 incorporates flax fiber in its body shell, which reduces weight, increases impact resistance, and improves vibration damping. In addition to enhancing energy efficiency, regenerative braking systems reduce greenhouse gas emissions by recovering energy during braking to support global efforts to meet stricter emission norms.
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Legacy brands like Ford, GM, and Volkswagen are launching dedicated EV lines, while startups like Rivian and Lucid push luxury and performance boundaries. Supply chains are being restructured to secure critical minerals and diversify chip sources. The industry is also innovating in battery chemistry, thermal management, and vehicle-to-grid (V2G) tech to improve EV usability. As we progress through 2025, these trends will continue to reshape the automotive landscape.
Advances in solid-state batteries promise higher energy density and faster charging times, while the expansion of ultra-fast chargers addresses key barriers to EV adoption. With the growing popularity of bidirectional charging (V2G) technology, EVs now contribute energy to the grid to improve stability. By focusing on digital transformation, the company aims to integrate predictive analytics and process automation, creating production systems that are adaptable and resilient. 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. Toyota unveiled its forward-thinking approach to electric vehicle design, focusing on sustainability, performance, and cutting-edge technology.
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Meanwhile, Carlos Tarves, CEO of automaker Stellantis, has said the chip shortages will continue to plague his industry next year. Self-driving taxis are already available in parts of China and several US cities. More driverless journeys will occur as technology continues to be enhanced and refined. Global passenger EV sales grew 60% from 6.5 million units in 2021 to 10.5 million in 2022. EV sales are going to increase aggressively in 2025, providing a bright spot in the automotive industry.