Autonomous driving technologies like AD and ADAS are only possible to implement with the adoption of AI. Driver assistance technology, in particular, can go as far as detecting driver fatigue by monitoring their eyes and taking measures to avoid car accidents. The systems that come together to implement such technologies are sensor fusion, computer vision, and real-time decisions to enable the vehicle to take all complex traffic scenarios easily. Significant investments in AI and Internet of Things (IoT) devices are crucial for fine-tuning self-driving algorithms, making them safer and more reliable. 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. Almost 40% of all autonomous vehicles sold in 2025 are predicted to have L2 ADAS features.

Vehicle purchases shift online

According to Statista’s report, global sales of electric vehicles are expected to reach an astounding US$786.2 billion by the end of 2024. As cities become more congested, shared mobility solutions are becoming increasingly popular. In 2025, we expect to see more automated and electric shared vehicles providing affordable, on-demand transportation. Self-driving vehicles rely on artificial intelligence (AI) and machine learning algorithms to process real-time data from cameras, sensors, and radars. The goal is to enable cars to make decisions and navigate without human intervention. In 2025, automakers will continue improving AI systems’ reliability, reducing the likelihood of accidents, and enabling safer autonomous driving experiences.

More automakers collaborating with tech companies

US-based startup MotionSafe provides AI-powered cybersecurity solutions that protect connected vehicles from data breaches and cyber threats. Vehicle cybersecurity drives one of the fastest-growing areas in the auto industry as connected vehicles multiply and cyber risks intensify. Analysts project the automotive cybersecurity market to increase from USD 5.24 billion in 2025 to approximately USD 18.88 billion by 2034, advancing at a CAGR of 15.3%. Geopolitical risks, regulatory frameworks, cost advantages, and compliance needs drive the auto industry toward supply chain resilience and nearshoring.

• Front-facing LiDAR scans the road to detect objects, track pedestrians, and respond to traffic to enhance safety.
• Further, high-speed automotive Ethernet, 5G networks, and V2X communication extend a car’s perception beyond its line of sight.
• Vehicle cybersecurity drives one of the fastest-growing areas in the auto industry as connected vehicles multiply and cyber risks intensify.
• Driverless cars have sometimes struggled with unexpected incidents on the road and in poor weather conditions.
• These are the old and traditional methods that buyers use to contact dealers or check your products or information about the brand on search engines.
• Software-defined vehicles (SDVs), where software manages essential functions like steering, braking, and infotainment, will see rapid growth over the next few years.
• This data-driven research provides innovation intelligence that helps you improve strategic decision-making by giving you an overview of emerging technologies in the automotive industry.

Buying Guide How to Choose the Right Safety Shoes?

• The Wall Street Journal reports that dealerships have been known to charge $40k above MSRP on luxury cars.
• According to Statista’s report, global sales of electric vehicles are expected to reach an astounding US$786.2 billion by the end of 2024.
• Additionally, it uses the Future Trends Index to identify and prioritize relevant design directions across different markets.
• 5G facilitates faster data transmission, higher network and bandwidth capacity as well as improves security (e.g., protection from cyberattacks).
• While it’s true that at the end of 2023, there wasn’t an adequate supply of electric mobility hubs, the charging infrastructure in Europe has improved drastically.

Personalising the IVX will drive the need for AI agents, which is one reason why EDA tool vendor Synopsys is working with Sima.ai. Across in-vehicle infotainment (IVI) and advanced driver assistance systems (ADAS), there have been various OEM innovations in the past year, with AI models being integrated into these systems. For example, Mercedes-Benz is using Chat-GPT CRO ideas for plate and VIN search pages for intelligent virtual assistants within its vehicles.

EcoG builds an Electric Vehicle Charging Platform

It offers ready-to-use workflows across system, software, and project management processes. Its MotionSafe Privacy platform uses algorithms to monitor controller area network (CAN) traffic and detect anomalies. The platform also erases personally identifiable information (PII) from vehicle systems to maintain privacy. For example, over-the-air (OTA) updates depend on secure encryption and authentication to block malicious code injection. Likewise, fleet operators strengthen defenses for telematics, routing data, and driver information against manipulation. AI and machine learning (ML) support cyber defenses by enabling real-time anomaly detection and predictive monitoring.

Software-Defined Vehicles: Cars as the Ultimate Connected Devices

Quantum computing accelerates material discovery and crash simulation, and edge computing and 5G offer real-time responsiveness in vehicles. Moreover, the technology combines EV chargers, a DC bus, smart inverters, and an energy management platform. This coordinates power flows between vehicles, buildings, and distributed energy resources. Its bidirectional charging technology allows EV batteries to supply electricity to buildings during outages or peak demand. The technology also draws energy during off-peak hours to lower costs and stabilize the grid.

is set to be a big year for automotive production

Top car brands and dealerships are embracing VR as part of their dealership photography strategies to improve the customer experience. As we look forward to 2025, RSM’s automotive professionals predict a slowdown overall in the growth of the industry as well as a reduction in overall margins and profitability. Many OEM’s are already revisiting original forecasts and realigning through-put and production schedules accordingly.

• Singapore-based startup Beam focuses on e-scooters to promote shared mobility in the Asia-Pacific region.
• Seamless connectivity between automobiles, infrastructure, and pedestrians is expected to become commonplace and help increase traffic safety and improve driver experience.
• The integrated powertrain segment is likely to hold ~60-65% of the total e-powertrain market in 2025.
• It includes journey replays, geofencing, and driver behavior monitoring to enhance fleet efficiency and safety.
• It also advances autonomous driving by enabling adaptability across vehicle types and conditions.
• 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.

Key Technology Trends in the Automotive Industry in 2025

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.

Methodology: How We Created the Automobile Trend Report

• Additionally, the onboard speed recorder limits the speed to discourage dangerous driving behaviors.
• They shift the industry toward electrification, digitalization, and connected mobility.
• The region’s substantial market share results from government incentives and the growth of the automobile industry.
• The automotive industry leads in technological innovation that will reshape vehicle design, construction, and user experience in 2025.
• If you want to learn more about 10 of the most important auto industry trends for the next months, read on.
• 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.
• The startup also operates PartSmart, a real-time parts ordering platform that connects insurers, workshops, fleet owners, and suppliers.

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.

Electric Cars.

The move highlights the scale of investment required to meet zero-emission vehicle targets and align with regulatory pressures for decarbonisation. The road to 2025 is set to bring even more dynamic changes, with global collaborations, technological breakthroughs, and bold strategies defining the future of manufacturing. This article profiles the top five Chinese automotive original equipment manufacturers (OEMs) leading the industry in sales volume and market capitalization.

• Expect more biodegradable components, renewable energy-powered factories, and battery recycling programs.
• Until these efforts bear fruit, the industry will need to focus on mitigating risks and prioritising demand effectively.
• The solution captures millions of data points in real time and analyzes them to enable lenders to instantly assess and reduce risk.
• Sustainable manufacturing lowers emissions, which allows automakers to meet compliance requirements and reduce their environmental footprint.
• The startup enables dealerships, fleet managers, and manufacturers to manage inventory strategically.
• Volvo Cars has announced plans to adopt large aluminium castings for its next-generation electric vehicles, aiming to simplify production and enhance sustainability.
• 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.
• A 5G connection transmits data to a remote control station, which allows operators to monitor and intervene when needed.

Advancements in ADAS and Autonomous Technologies

Many expected the auto industry to mount a post-pandemic rebound in 2021, but that didn’t happen. Infineon, the largest manufacturer of auto chips, is increasing its investment in production by nearly $1 billion euros in 2022. All of this puts the auto industry at the back of the line when it comes to receiving chips. Now, 94% of consumers check the manufacturer’s website for product information before purchasing a part. And Tesla had already decided to close all its stores in 2019, now selling all new cars online.

As a result, vehicles become even more connected with each other and the infrastructure and provide drivers with more advanced opportunities. The future of automotive industry trends suggests that the automotive parts market will grow aggressively due to a growing demand for replacement parts and an increase in vehicle production. The segment’s sales will rise in the first six months of fiscal 2025, while the industry’s revenue will increase at the same pace to $33.8 billion. According to Globe News Wire, the entire market will grow at a CAGR of 5.5% from 2025 to 2033, logging USD 984 billion. Automakers and technology companies are forming partnerships due to vehicles’ constantly evolving tech requirements.

The Automotive Industry in 2025: Key Focus Areas and Trends

Since we’ve already explored the use of AI in the auto industry, it makes perfect sense to discuss connected cars, which are undoubtedly one of the top trends for the future. Connected cars are equipped with cutting-edge technology that allows them to connect to the Internet, other vehicles, and external software. These cars offer numerous benefits, not just for drivers and manufacturers, but also for passengers and the environment. 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. Autonomous driving technology is one of the automotive industry’s most exciting and potentially disruptive developments.

They improve energy efficiency through wide-bandgap devices that extend EV range and minimize charging times. The semiconductors also enable infotainment, voice assistants, and AI-driven interfaces for a better user experience. Swedish startup Intended Future utilizes data-driven design benchmarking tools for the automotive industry. These advanced technologies are widely used across a great number of industries and the automotive domain is no exception. They are used by the automotive industry for car manufacturing, employee training as well as vehicle sales and marketing. However, although the Chinese EV market may take some time to adapt to the new subsidy-free scenario, the situation is optimistic.

Canadian startup Aadhya Navik designs software solutions that improve safety, comfort, and traffic efficiency in autonomous driving. Its vehicle control system processes passenger comfort thresholds related to acceleration, deceleration, and jerk rate. It then adjusts driving decisions to minimize motion sickness and maintain smooth operation.

The integrated powertrain segment is likely to hold ~60-65% of the total e-powertrain market in 2025. The upcoming automotive industry trends refer to evolving changes in patterns within the sector that influence vehicle design, production, marketing, and usage. Technological advancements, along with changing consumer preferences, regulatory changes, and global economic conditions, are driving these trends. The automotive industry is highly dynamic, and these trends are subject to change over time. Monitoring and understanding these trends are critical for automakers and other stakeholders to stay ahead of their competitors. The automotive industry is transforming, fueled by evolving consumer demands, rapid technological advancements, and the urgency of addressing climate change.

Classic and Historical Cars

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. In 2022, the automotive industry’s automotive digital marketing spending increased to $17 billion and is predicted to keep growing in 2025. Experts anticipate a rise in digital advertising spending, driven by the growing mobile and social media usage rates. 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.

Summary – Automotive Industry

The future trends in the automobile industry predict a roller-coaster ride for players. In 2025, the automotive industry will face global headwinds such as the energy crisis, slower global demand, and ongoing supply-chain issues. Despite these challenges, global new-vehicle sales are projected to remain flat, with new-car sales increasing. Sales of electric vehicles (EVs) are expected to grow, although governments may restructure their incentive programs. The automotive industry is set to witness huge growth in integrated drive ePowertain systems that reduce weight and cost and offer improvements like enhanced vehicle range and efficiency. In the future, advanced integrated solutions will dominate, leading to lighter and more efficient electric powertrains and driving the next generation of high-performance and mass-market EVs.