The latest technology in automobile industry have revolutionized the way vehicles are designed, manufactured, and sold, and the vehicles themselves have become much more than a means of transport. A recent survey reveals automotive companies have product development and launch cycles shorter than 18 months. As per market and industry experts, these four trends represent the future of the automotive industry. It won’t take too long for the CASE to accelerate the transition of the automotive industry from the way it has been working for hundreds of years.
The Automotive Parts Market Continues to Grow
The modernized vehicles available in the market have opened an opportunity for the firms that supply and also manufacture the parts. Modernized and upgraded vehicles with much more technology allow a thunder growth for the markets providing parts of the vehicles. Conversely, in Europe, regulations are scaling up in preparation for the EU ban on new ICE vehicles by 2035. Chinese EV automakers’ expansion into new markets, including Europe, other Asian countries, and Latin America as previously mentioned, could see a completely new global EV landscape. Perhaps the biggest shift here is in a new manufacturing landscape, with new decentralised hubs across the globe producing EVs for local markets. 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.
As electric vehicles become mainstream, digitalization reshapes production, and mobility services redefine car ownership, the industry is set to transform how vehicles are manufactured and used. However, sales of robotaxi vehicles will remain a minority, as safety concerns, legislative bottlenecks and the high cost of operations restrict growth. The current trends in the automotive industry seen in previous years will remain in 2025 and are likely to become automotive future trends. The auto manufacturers who rely on the older versions of chips which are not advanced and powerful will disrupt the growth of the automotive industry.
Top Automotive Marketing Trends in 2025
The automotive industry is gearing up for a transformation as fast and furious as the iconic franchise suggests. The latest technological advancements and evolving consumer preferences are seriously revamping vehicle production as we know it, remodeling the auto market for good. A quick online search reveals that by 2040, 33 million autonomous cars are expected to be on the road.
Insights
As we progress through 2025, these trends will continue to reshape the automotive landscape. Success will depend on manufacturers’ ability to balance technological advancement with practical implementation while meeting evolving consumer expectations. The transformation of the automotive sector is far from complete, but the direction is clear – towards a more sustainable, connected and intelligent future of mobility. Traditional internal combustion engine (ICE) vehicles are steadily losing ground as governments worldwide implement stricter regulations, including the EU’s upcoming ban on new ICE vehicle sales by 2035. This regulatory advancement, combined with growing environmental awareness, is accelerating the shift towards electric mobility. Canadian startup Aadhya Navik designs software solutions that improve safety, comfort, and traffic efficiency in autonomous driving.
For Events, Webinars and Awards
- Meanwhile, Toyota is reported to be cautiously evaluating the technology, balancing its benefits against potential risks.
- The global automotive parts market has been steadily growing for the past twenty years.
- These cars even come equipped with Wi-Fi hotspots, ensuring easy Internet access for all passengers.
- Moreover, car connectivity transforms the driving experience by integrating with real-time systems and smart gadgets.
- In addition, Hawaii passed a bill in 2022 that will create a hydrogen refueling system rebate for developers.
- Its vehicle control system processes passenger comfort thresholds related to acceleration, deceleration, and jerk rate.
- From encrypted communications to intrusion detection systems, cybersecurity advancements will ensure consumer trust as vehicles become smarter and more networked.
- Consumer trends in the automotive industry highlight that short videos are more effective in converting leads into customers.
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. Governments are implementing innovative policies to encourage sales without increasing costs or benefiting high-income households. Car dealerships are no exception, as recent auto trends reveal that customers prefer to experience a car or dealership before purchasing. Top car brands and dealerships are embracing VR as part of their dealership photography strategies to improve the customer experience.
The U.S. and China trade war has also influenced the search for alternative sourcing options. Labor costs are another factor in the rise of local sourcing, with countries such as Taiwan, Cambodia, and Laos providing a lower-cost labor alternative to China. Given the opportunity to significantly disrupt private transport and shape the future of the automotive industry, companies are expected to continue investing in autonomous vehicles in 2025.
From groundbreaking advancements in EV battery technologies to bold steps toward sustainable production, this year has marked a pivotal shift in how vehicles are designed, built, and powered. 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. Safety concerns remain in the spotlight – this is leading to greater acceptance of incremental developments in advanced driver-assistance systems (ADAS) rather than pushing for immediate full autonomy. Major automotive manufacturers are responding by rethinking their revenue models and investing heavily in on-demand vehicle access services.
Motomatix develops Auto Parts Ordering Platform
This agreement is expected to drastically enhance automotive trade between these regions. The ongoing global semiconductor shortage continues to cast a shadow over manufacturing progress, particularly for industries such as automotive and electronics. While efforts are underway from many different automakers to expand fabrication capacity, lead times for chip production remain long with little sign of a solution in the near future.
Of course, the danger does not stop with vehicles as smart infrastructure is also at risk, potentially jeopardising safety and operational reliability. By 2025, V2X technology is expected to significantly create more innovative transportation networks and advance autonomous driving capabilities. Looking ahead, there is no doubt that the automotive industry is on the brink of a paradigm shift driven by unprecedented technological advancements and a commitment to sustainability. While most of these concerns can be overcome, it will take some time, and this time will be the most challenging for the industry. Canadian startup KonnectShift provides IoT solutions to optimize fleet and asset management.
Aadhya Navik designs Ride Safety Software
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.
Electric Mobility
The systems optimize the performance of electric power steering, vehicle pumps, cooling fans, and HVAC modules. EVs typically use 2-3 times more semiconductor content than internal combustion engine models, and in powertrain-specific components, that multiplier is possibly higher. Demand is rising, especially for power electronics, battery management systems, and more energy-efficient chips.
- Solid-state batteries, which promise to offer higher energy density and improved safety over traditional lithium-ion batteries, are on the horizon.
- CARNIQ Technologies secures the auto industry by embedding compliance-driven cybersecurity into development lifecycles.
- These advancements are driving the future of connected vehicles, which are increasingly becoming a standard feature in new cars.
- In 2025, the focus will be enhancing ADAS features, such as adaptive cruise control, lane-keeping assistance, automatic emergency braking, and more.
- In India, for example, electric car sales rose by 70%, driven by government incentives and new models, though future growth may be impacted if it sees subsidy reductions.
- As we reflect on 2024, it’s clear that this year was a turning point for automotive manufacturing.
- However, it raises privacy and cybersecurity concerns that OEMs must address to maintain consumer trust.
RevitsOne provides AI-based Fleet Management
By 2035, approximately 16% of all new LV (light vehicle) sales in the US are predicted to consist of advanced automated vehicles (L3, L4, and L5). Fewer new vehicle purchases mean consumers hold onto their vehicles longer, reducing the available used inventory and increasing prices. 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.
Vehicle purchases shift online
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. Keyvault raised USD 1 million in January 2025 to introduce smartphone-enabled car keys in the US, following the trend of incorporating smart device features into automobiles.
- Now, 94% of consumers check the manufacturer’s website for product information before purchasing a part.
- By leveraging tech and sustainable practices, the automotive sector can meet the challenges of tomorrow while delivering exceptional value to consumers.
- 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.
- Wireless and ultra-fast charging stations are also emerging as promising solutions to ease the transition to EVs further.
- While full autonomy is still on the horizon, advanced driver assistance systems (ADAS) are already transforming how we drive.
Advanced Safety Features
This is fueled by increased vehicle production and sales in China, Japan, and South Korea. The AV market is projected to reach USD 1.73 trillion by 2033, growing at a CAGR of 31.85% from 2025 to 2033. Automakers are investing in cybersecurity technologies such as hardware security modules (HSMs), AI-based intrusion detection systems, and secure over-the-air (OTA) updates to address these challenges. Automotive Manufacturing Solutions (AMS) is the essential resource for automotive manufacturing professionals and suppliers globally. 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. Looking ahead, JLR’s focus on carbon-neutral manufacturing and environmentally responsible practices sets a powerful example for the industry.
Its RC ONE driverless vehicle combines proprietary software and hardware with automotive-grade components to achieve low-speed autonomous operation. The sensor integrates chip-level innovations that reduce power consumption, simplify hardware complexity, and enable performance through a modular architecture. This design ensures durability, compact packaging, and flexible vehicle integration. Chinese startup Chipv offers automotive semiconductors that combine computing capabilities with motor control and power management.
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.
Manufacturers that successfully integrate these elements into their strategies will not only navigate the challenges of today but also position themselves as leaders in the future of mobility. 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.
What impact do connected cars have on the automotive market?
In the United States, the newly appointed administration has issued several executive orders that will likely have drastic impacts on both global and national automotive markets. One such order significantly impacts the future of EVs and EV infrastructure by rolling back policies that once supported their growth. It eliminates mandates that favour EVs, emphasising consumer choice and opposing regulations that make gasoline-powered vehicles less accessible. Subsidies and incentives for EVs are also under scrutiny, with plans to reconsider or eliminate government-imposed market advantages that favour them. Crucially, the order halts federal funding for EV infrastructure projects, such as charging station programs, until they align with the administration’s policy goals.
🚧 Pitfalls to Avoid: Common Missteps in the Evolving Automotive Landscape
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.
IONT tech specializes in EV Charging Solutions
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.
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 digital era of transparent used cars further fueled by increasing awareness of convenience and supported by rising digital literacy, internet accessibility, urbanization, and disposable income levels.
The efficiency of electric power fused with the reliability of traditional engines has contributed to the rise of hybrid vehicles. Hybrid vehicles present the perfect compromise of lower emissions and enhanced fuel economy without the need for charging. 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.
Also, digital twin technology builds virtual replicas of supply chains to simulate disruptions and optimize performance. The USMCA requires 75% of motor industry components to be produced in North America. And the US Inflation Reduction Act ties USD 7500 EV subsidies to regional sourcing. Cost efficiency strengthens the case, with Mexico offering a 35% landed-cost edge over China in 2022.
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. Peugeot introduced groundbreaking technologies like the Hypersquare control system and steer-by-wire, marking a significant leap in electric vehicle design and user experience. These innovations represent the brand’s commitment to redefining driving dynamics in the EV era.
- Its technology applies signal processing algorithms to eliminate interference and ensure radar units operate reliably within the same environment.
- Megacasting, which involves producing large aluminium castings to replace multiple smaller components in vehicle structures, is gaining momentum in the automotive industry.
- Artificial intelligence (AI), the Internet of Things (IoT), blockchain, and advanced semiconductors allow autonomous driving, predictive maintenance, and secure connectivity.
- Dealerships can take advantage of various videos, such as how-to videos, car highlights, and customer testimonials.
- This trend is reshaping how manufacturers think about scalability and flexibility, particularly as the demand for electric vehicles continues to grow, and will continue to make itself felt throughout 2025.
- For businesses, the vehicle subscriptions lower capital requirements and simplify fleet management.
- Experts anticipate a rise in digital advertising spending, driven by the growing mobile and social media usage rates.
Further, through its smart management app, it enables users to schedule charging, monitor consumption, and manage fleets from one platform. Moreover, the startup installs Tesla motors and Fellten battery systems, which provide up to 295 horsepower, enable flexible range options, and ensure authenticity through fully reversible conversions. Also, adoption rises quickly, with China reaching 50% EV penetration in 2024, and in India, over 18.8 lakh EVs are supported under FAME schemes till June 2025 by the government. Declining battery costs move EVs closer to price parity with combustion vehicles. While the market for cars valued below $80k is expected to remain flat through 2031, the luxury car market is predicted to grow at up to 14% CAGR. The chip shortage is one-factor holding cars back from getting to the dealership lots.
By leveraging tech and sustainable practices, the automotive sector can meet the challenges of tomorrow while delivering exceptional value to consumers. This digital transformation enhances scalability, a key driver in the competitive automotive sector. Companies like Huawei are allocating significant resources to developing EVs with cutting-edge ADAS and autonomous features. These technologies aim to reduce accidents and provide a safer driving experience. As we look ahead to 2025, these trends highlight the challenges and opportunities that manufacturers face.
The Volta Zero addresses sustainability by enabling zero tailpipe emissions, contributing to cleaner city environments. It incorporates an intuitive infotainment system for efficient power management while minimizing driver distractions. The control system includes safeguards like automatic overheating prevention, battery depletion protection, and real-time torque and speed calibration for optimal performance on challenging terrains. The Asia-Pacific region currently controls the majority of the market due to the strong uptake of electric cars (EVs) in countries like China, India, and Japan. The region’s substantial market share results from government incentives and the growth of the automobile industry.