Forecasting Automotive Industry Trends for 2025 2030

Similarly, hardware security modules (HSMs) protect encryption keys and authenticate critical functions, with secure microcontrollers embedded into electronic control units (ECUs). Additionally, Motoreto streamlines operations with features such as multi-channel publishing, branded digital tools, and integrated logistics and financing. It produces alternating current (AC) wallboxes for residential charging up to 22 kW and AC column stations for companies and municipalities.

Electric Vehicle (EV) Expansion: EV Sales Reached 17M Units in 2024

• 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.
• UK-based startup Electric Car Converts changes classic Land Rovers into EVs by replacing combustion engines with modern electric motors and battery packs.
• Expected to produce batteries for up to 800,000 vehicles annually, the plant will be powered entirely by renewable energy, demonstrating a dual focus on production efficiency and sustainability.
• The same report states that 68% of drivers believe car companies should collect personal data, but only 5% agree to unrestricted collection.
• Through our work with automotive innovators, we witness first-hand how rapidly this sector is evolving.
• The current trends in the automotive industry seen in previous years will remain in 2025 and are likely to become automotive future trends.
• North America is commanding a 43% share as new-age OEMs focus on BEVs and software-driven architectures.
• That’s no longer a distant future — it’s happening now, and it’s transforming everything from manufacturing floors to your driveway.

The continued global expansion of various players will require a strategic focus on supply chain efficiencies and may bring transformation and consolidation in the industry. Figures from the last few years show that the EV adoption rate is still slow at a global level. However, the share of cars that are electric (hybrid and full electric) continues to rise. Also, despite the slowing adoption rate, data has shown that the number of electric and hybrid vehicles actually on the road has dramatically increased (from 26 million in 2022 to 40 million in 2023).

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Demand for customizable, software-updatable vehicles is growing, as is interest in electric and hybrid powertrains. Automakers must balance traditional desires for performance and style with new expectations for tech integration and environmental responsibility. The present-day automotive industry is affected by innovative ideas and is ready to transform and evolve rapidly. Current automotive trends are encouraging automotive manufacturers to offer consumers much more than a metal box on four wheels. In addition, the IoT’s potential in the automotive industry presents a significant chance for manufacturers to revamp their marketing strategies. IoT solutions can offer numerous benefits to end-users by utilizing interconnected systems, such as better safety, driving assistance, and predictive maintenance.

• In addition, assembling a car involves a massive number of parts (30,000 on average), with materials accounting for a significant portion (40-50 percent) of the manufacturing cost.
• Sales of electric vehicles (EVs) are expected to grow, although governments may restructure their incentive programs.
• Further, their drivers use out-of-the-box or white-labeled apps to manage reservations or remotely access vehicles.
• Several leading OEMs have already announced plans to adopt the chipset for their automotive solutions, including BYD, Nuro, XPENG, Volvo and Zeekr.
• However, there are yet to be more autonomous vehicles on the road due to the technological and safety challenges that must be overcome.
• As we reflect on 2024, it’s clear that this year was a turning point for automotive manufacturing.
• Read on to explore each trend in depth – uncover key drivers, current market stats, cutting-edge innovations, and the 20 leading innovators shaping the future.

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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. 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.

Electric Vehicle (EV) Production Expansion

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 final trend, and one which has been subject to a lot of attention (and hype), is driverless transportation.

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• Its progress influences OEM investments, partnerships with tech firms, and consumer expectations.
• EloySignals utilizes AI to optimize traffic flow, advising drivers on stopping or proceeding, and prioritizing emergency vehicles and vulnerable road users.
• Just days ago, Jaguar unveiled their new concept car, the Jaguar Type 00, a fully electric, futuristic vehicle that marks a departure from every other car the brand has produced.
• By the second quarter of 2024, global cyber-attacks had surged, with organisations facing an average of 1,636 attacks per week—a 30% year-on-year increase.
• In these regions, shared mobility options like vans, minibuses, and two- and three-wheelers are more common and often electrified due to their affordability.
• Looking ahead, Tesla’s strategies are likely to influence industry standards and inspire localisation efforts across the sector.

Consumer trends in the automotive industry highlight that short videos are more effective in converting leads into customers. Dealerships can take advantage of different video formats, like how-to videos, car highlights, and customer testimonials. 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. The truck’s design removes the internal combustion engine, advancing commercial vehicle safety standards, and protecting pedestrians and other road users. Volta Trucks also offers leasing or purchasing options, and integrates services like maintenance, charging infrastructure, and training through its truck-as-a-service model. This simplifies the transition to electric vehicles for fleets, reducing environmental impact and promoting safer urban transport.

🔮 Preparing for Tomorrow: Strategies for Industry Players and Consumers

Norway set a record in the electric vehicle sector in August 2024, as the number of all-electric vehicles on the road surpassed that of gasoline-powered vehicles for the first time. In terms of new car sales, Norway boasts the highest percentage of battery-electric vehicles in Europe. It also leads Europe in new EV market activity, with just 9.61 percent of new passenger car sales in 2023 attributed to gasoline, diesel, and non-rechargeable hybrid vehicles. The idea behind a circular economy is to create a closed-loop system where materials are reused, refurbished, and recycled rather than disposed of.

Volta Trucks manufactures Electric Trucks

Reports from 2022 showed vehicle inventory was stagnant, sitting between 1 million and 1.1 million vehicles, for the first six months of the year. Sales of passenger cars were down 25% in the first half of 2022 compared to the same period in 2021. Many expected the auto industry to mount a post-pandemic rebound in 2021, but that didn’t happen. Search volume for “Infineon Technologies” has seen modest growth over the past 5 years. Infineon, the largest manufacturer of auto chips, is increasing its investment in production by nearly $1 billion euros in 2022.

Shift to an “Agency model”

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. However, regulatory hurdles and the complexity of navigating diverse driving environments remain significant barriers. On the bright side, partnerships between automakers and tech companies are fuelling innovation and accelerating development, bringing their vision of safer, smarter transportation closer to reality.

• The car market trends are shifting towards regional suppliers to diversify their supply chains and mitigate risks.
• With the introduction of 5G networks, advanced telematics features like real-time diagnostics, autonomous driving, and improved safety systems are becoming even more feasible.
• Battery technology has taken centre stage in the EV revolution, and this article provides a deep dive into the leading chemistries and formats that defined 2024.
• Israeli startup NoTraffic develops an AI-powered traffic signal platform that digitizes road infrastructure management and connects drivers to the city roadways to manage various traffic-related challenges.
• Indian startup General Intelligence creates self-driving intelligence software that supports software-defined vehicles in adapting to diverse driving environments.
• Many auto manufacturers are considering integrating in-car payments to ease refueling, paying for parking or tolls, and even grocery shopping.
• Recycling initiatives, such as reusing EV batteries, further emphasize the industry’s shift toward circular manufacturing.
• 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.

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.

China remains dominant but new players are also making noise on the EV scene

Such advancements align with global trends favoring autonomous fleet deployment in urban areas, positioning automakers to meet future demand for self-driving capabilities. Most consumers today are much more concerned with what the in-cabin experience is going to be, than the size and power of the engine. Global economic slowdowns and fierce competition from Chinese manufacturers have slowed the growth of EVs. In 2025, the automotive industry’s digital marketing spending is predicted to keep growing.

The rise of such technologies reflects consumer demand for vehicles that are not just transportation tools but extensions of their digital ecosystems. Connected cars enable real-time navigation updates, remote diagnostics, and seamless smartphone integration. They also support smart city initiatives by offering data for traffic management and logistics automation. Established in 2007, SG Analytics is a Great Place to Work® (GPTW) certified company with a team of over 1200 employees and a presence across the U.S.A., the UK, Switzerland, Poland, and India.

• The global ADAS market is projected to reach USD 36.6 billion by 2025, with a CAGR of 10.8% from 2025 to 2037.
• The fleet of light-duty EVs has grown in the last four years by more than 14 times with a very significant, 17-times increase in the fleet of plug-in hybrid vehicles (PHEVs).
• The startup’s platform combines augmented reality (AR), smart camera, and surround-view monitoring to illuminate the route on turns, curves, slopes as well as complex junctions.
• Autonomous driving is a key innovation driver but remains in a development and regulatory phase.
• The platform also erases personally identifiable information (PII) from vehicle systems to maintain privacy.

For example, Toyota plans a commercial rollout by 2027 to bring solid-state battery EVs into mass production. Moreover, automakers reduce tailpipe emissions, cities improve air quality, and governments reduce fossil fuel dependence. For instance, India’s eBus Sewa scheme deploys 10K electric buses to curb urban pollution. Government incentives, environmental imperatives, technological advances, and shifting consumer preferences drive this expansion. The EU enforces a 2035 zero-emission mandate, and the US Inflation Reduction Act channels subsidies into domestic EV production and attracts international manufacturers.

Overview – Automotive Industry

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.

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It also enables customers to schedule and monitor charging activity for improved efficiency. Australian startup V2Grid designs V2G technology that converts EVs into mobile energy resources for homes, businesses, and the national grid. Its bidirectional charging system enables EV batteries to both draw electricity and feed surplus power back, which balances demand during peak hours and reduces strain on infrastructure. In Europe, the new General Safety Regulation EpicVIN helps confirm a bike is not stolen 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.

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In 2024, the automotive industry is increasingly integrating cutting-edge technologies into its operations. Key automotive industry trends include a significant rise in electric vehicle production, a growing market for pre-owned vehicles, and an uptick in digital car sales. Alongside established technologies like AI and big data analytics, the industry is also embracing the Internet of Things (IoT) and blockchain for diverse applications. This technological evolution is reshaping the automotive landscape, driving innovation and efficiency.

• TeraDAR strengthens sensor fusion by providing high-resolution, all-weather imaging that improves vehicle perception and increases safety.
• For this in-depth research on the Top Automotive Trends & Startups, we analyzed a sample of 6000+ global startups & scaleups.
• In 2024, the automotive industry is increasingly integrating cutting-edge technologies into its operations.
• Self-driving vehicles rely on artificial intelligence (AI) and machine learning algorithms to process real-time data from cameras, sensors, and radars.
• Connectivity also enables remote diagnostics, alerts the driver about necessary maintenance, and promotes both safety and cost-efficiency.
• The solution also serves as the base for additional services such as micropayments and micro-mobility.

Instead of owning a car, consumers will increasingly use digital platforms to access transportation services on demand, whether through ride-sharing, car-sharing, or subscription models. MaaS is set to become a key focus for the automotive industry in 2025 as companies look to diversify their business models and create new revenue streams. 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. Autonomous driving will continue progressing from Level 2+ driver-assist to Level 3 conditional autonomy in geo-fenced areas.

Major car, truck, and SUV manufacturers are investing in fuel-cell electric vehicle development, with the support of countries like China, Germany, Japan, South Korea, and the United States. The EU’s Green Deal and its accompanying “Fit for 55” initiative aim to cut carbon emissions drastically by 2030, piling new expectations on manufacturers to reduce their environmental impact. Adding to the challenge, measures such as stricter Euro 7 tailpipe standards and updated rules on battery recycling demand deeper innovation within supply chains and operations.

By the end of that decade, it’s predicted that over 30% of the cars on the road will be EVs. The massive rotation in the global vehicle fleet is predicted to take place in the 2030s. Bloomberg New Energy Finance expects EVs to account for 10% of all new car sales by 2025 and 58% by 2040. After a disappointing 2019 in terms of EV sales, 2020 sales surpassed expectations, growing over 40% year-over-year. 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.