Automotive trends in 2025 impacting middle-market organisations RSM Global

These vehicles improve public transport safety by reducing accidents caused by human error. LiDAR sensors enable precise 3D mapping, crucial for vehicle navigation and obstacle detection. AI algorithms process vast data from sensors and cameras, enhancing decision-making for safe, efficient driving. French startup Airnity provides a cellular connectivity platform for the automotive industry to enhance connected car operations.

Phenikaa X provides Intelligent Transportation Solutions

Meanwhile, Carlos Tarves, CEO of automaker Stellantis, has said the chip shortages will continue to plague his industry next year. 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.

Electric Mobility

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. 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. Discover trends, forecasts, and global developments shaping the future of mobility. These systems will become increasingly sophisticated, moving toward semi-autonomous driving capabilities and improving the overall driving experience. Environmental consciousness is driving the automotive industry toward more sustainable and eco-friendly solutions.

Tangram Vision offers a Perception Platform

For instance, Texas Instruments‘ AWR2544 radar achieves sensing beyond 200 meters. Gallium nitride (GaN) chips enable high-frequency switching, compact designs, and fast charging. It re-engineers proven EV technology and applies it to Land Rover Defenders, Range Rover Classics, and Series models from 1949 to 2016. It does so to preserve their heritage design and deliver zero-emission performance. Digital replicas and simulations allow manufacturers to test efficiency improvements before implementation. For example, BMW’s San Luis Potosí facility applies digital replicas to reconfigure layouts and minimize waste.

Expect more biodegradable components, renewable energy-powered factories, and battery recycling programs. The trend is irreversible and will accelerate innovation while challenging legacy ICE-dependent supply chains. British startup Cube Intelligence develops a blockchain-based security platform for autonomous vehicles. The startup’s technology utilizes hash codes to block malicious attacks or hacking attempts on autonomous cars and connected cars. Additionally, Cube Intelligence offers ride-hailing and valet parking services for AVs, as well as smart parking management systems.

Tree Map reveals the Impact of the Top 10 Automotive Trends

• It highlights high startup activity in Western Europe and the USA, followed by India.
• 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.
• For our trend reports, we leverage our proprietary StartUs Insights Discovery Platform, covering 7M+ global startups, 20K technologies & trends, plus 150M+ patents, news articles, and market reports.
• As per market and industry experts, these four trends represent the future of the automotive industry.

The automotive manufacturing industry is evolving rapidly as manufacturers respond to technological advancements, consumer preferences, and regulatory changes. With established automakers facing nimble startups in the mobility race, building new businesses should be a priority for auto executives. Data-driven connectivity services and on-demand mobility will add up to $1.5 trillion to the automotive revenue pool by the year 2030. Electrification and autonomous vehicles will remain megatrends, transforming the sector and forcing automakers, suppliers, and dealers to adapt to new technologies and business methods. The new year will also witness L4 implementation, with companies like Baidu, Pony.ai, and WeRide conducting extensive road tests across various cities. Initiatives and support from the Chinese government, such as pilot zones and regulatory frameworks, are further accelerating the process.

• The chip shortage is one-factor holding cars back from getting to the dealership lots.
• The Global Startup Heat Map below highlights the global distribution of the 4800+ exemplary startups & scaleups that we analyzed for this research.
• For example, Valeo, with its SCALA LiDAR, which scans the surroundings 25 times per second at ranges beyond 200 meters.
• With the new administration of Donald Trump in January, the trade war with China will have a major impact on the automotive industry in 2025.
• The currently available infotainment systems can connect with smartphones, sensors, ADAS (advanced driver assistance systems) as well as other in-vehicle and external systems.
• The strides made in EV battery innovation, renewable energy adoption, and sustainability are paving the way for a more resilient and forward-thinking industry.

Automotive trends for 2025

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. 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. The US National Highway Traffic Safety Administration (NHTSA) estimates that V2X addresses up to 80% of crashes involving non-impaired drivers. 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).

Launching of fuel cell EVs

Recent auto trends show that customers prefer to experience a car or dealership before purchasing. Top car brands are embracing VR as part of their dealership photography strategies to further enhance the customer experience. OEMs like Toyota, Hyundai-Kia, Renault-Nissan Mitsubishi, and Stellantis already have a large portfolio of hybrid variants, including mild and full hybrids. At the same time, BYD, Stellantis, and Volkswagen are focused on designing a stronger PHEV portfolio. Hyundai plans to ramp up its hybrid offerings under its ‘Hyundai Way’ strategy from seven to 14 models by 2030. Toyota continues to emphasize hybrids as a critical part of its electrification strategy.

ARK MOTORS builds Electric Vehicles

In Latin America, much like other regions, the electrified vehicle fleet is still only a small share of the total vehicle fleet; however, that share is growing. 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). Brazil is leading the way by a large margin, followed by Mexico, Costa Rica, Colombia and Chile, respectively. This Electric Vehicles Market Report 2026 examines industry growth, investment flows, patent activity, and global hubs shaping the EV ecosystem. It highlights workforce trends, leading investors, and key technologies driving adoption across vehicles, batteries, charging, and software. Several leading OEMs have already announced plans to adopt the chipset for their automotive solutions, including BYD, Nuro, XPENG, Volvo and Zeekr.

• Collecting user data through these sensors creates ample opportunities for marketers to promote upselling.
• Personalising the IVX will drive the need for AI agents, which is one reason why EDA tool vendor Synopsys is working with Sima.ai.
• In the next section, we’ll explore these and other automotive sector trends in more detail, and see how they will evolve in 2025.
• It also aligns with ISO for cybersecurity and ensures reliability under demanding automotive standards.

Discover Trending Technologies & Topics

• Identifying new opportunities and emerging technologies to implement into your business early on goes a long way in gaining a competitive advantage.
• In some cases, car dealerships are charging huge markups on the inventory they do have.
• Data-driven connectivity services and on-demand mobility will add up to $1.5 trillion to the automotive revenue pool by the year 2030.
• The US National Highway Traffic Safety Administration (NHTSA) estimates that V2X addresses up to 80% of crashes involving non-impaired drivers.
• 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.
• These advancements are driving the future of connected vehicles, which are increasingly becoming a standard feature in new cars.
• Stellantis, for instance, has demonstrated how AI can transform production efficiency.
• Whilst these acts have been active for some years now, the landscape has not changed drastically.

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.

What role will artificial intelligence play in the future of the automotive industry and its trends?

These advancements are critical as manufacturers aim to balance efficiency, durability, and safety. The automobile seminar is utilized by a lot of experts working in the automotive industry, researchers, and people with an affinity for the carmaker as a forum for sharing knowledge and collaboration. They are discussing the prospect of AI for driving systems, the implications of some regulatory changes for automotive innovation, and the potentials of renewable sources for energy for the automobiles. 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.

Governments also enforce stricter safety standards, pushing automakers to integrate advanced sensor systems. Further, sensor fusion systems incorporate AI and machine learning (ML) algorithms to enhance optimization, predictive maintenance, and decision-making. With a CAGR of 25.5% from 2025 to 2037, the global sensor fusion market is expected to reach USD 7.91 billion by 2025. The automotive cybersecurity market is projected to reach USD 5.11 billion in 2025, with a CAGR of 18.14% from 2024 to 2034.

Whilst these acts have been active for some years now, the landscape has not changed drastically. Until these efforts bear fruit, the industry will need to focus on mitigating risks and prioritising demand effectively. Whilst the U.S. may be bucking it, there is certainly a global trend towards a more sustainability-forward manufacturing scene. However, as with all complex bodies of rulesets, differing rules and regulatory mandates across the globe make it easier for international automakers to fall foul of compliance.

Despite this, 2025 is guaranteed to be pivotal, with potential breakthroughs in autonomous driving technology along with a stronger push toward hybridization and sustainability. Simultaneously, many automakers embrace vertical integration strategies, taking control of the software stack from chip development to application integration. This approach equips them to differentiate their offerings, with software being the key to creating compelling customer experiences. Software-defined vehicles (SDVs), where software manages essential functions like steering, braking, and infotainment, will see rapid growth over the next few years. SDVs are more efficient and safer and can be updated with the latest technologies through software, keeping them up to date in a constantly evolving industry.

Automotive Sourcing Models are Changing

By 2025, nearly all new vehicles are expected to feature advanced connectivity options, integrating aspects of digital life directly into driving experiences. Such advancements align with global trends favoring autonomous fleet deployment in urban areas, positioning automakers to meet future demand for self-driving capabilities. While there are a lot of opportunities ahead for the industry, there will be plenty of challenges like cost pressures, growing competition, and globalization.

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 automate VIN checks in your workflow draws energy during off-peak hours to lower costs and stabilize the grid.

With 2024 now firmly in the rearview mirror, let us dive into how those trends have developed into 2025 and what that means for middle-market organisations for the year ahead. In addition, it offers insurance-approved vehicle tracking systems with Thatcham S5 and S7 certification to meet insurer requirements and offers nationwide installation with priority police response. Consumer demand for eco-friendly products is rising, with 80% of US consumers concerned about the environmental impact of their purchases in April 2024, up from 68% in 2023. 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. Its early fusion approach integrates LiDAR and radar data, while neural networks infer road elements and topology to create accurate high-definition maps.

For instance, India’s eBus Sewa scheme deploys 10K electric buses to curb urban pollution. Further, it establishes local manufacturing facilities, which reduce supply chain dependency and generate employment and stimulate economic growth. 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.

Project Management in Renewable Energy: Strategies, Challenges, and Future Trends

• In 2025, automakers will continue improving AI systems’ reliability, reducing the likelihood of accidents, and enabling safer autonomous driving experiences.
• These vehicles improve public transport safety by reducing accidents caused by human error.
• North America is commanding a 43% share as new-age OEMs focus on BEVs and software-driven architectures.
• It highlights workforce trends, leading investors, and key technologies driving adoption across vehicles, batteries, charging, and software.
• It is also integrated into fleet management dashboards and security operations centers (SOC).
• Shared mobility reduces individual car ownership, especially in urban areas, impacting vehicle sales volumes but increasing demand for fleet vehicles and mobility-as-a-service (MaaS) platforms.

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. 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 best-selling vehicle in the US, the Ford F-Series pickup, has an average price of $66,451, placing it in the luxury category. In this world where we are shifting to EVs, individuals usually prefer to shift to smaller vehicles which are much more affordable and environmentally friendly. They are much more convenient to use in these congested cities and parking these vehicles is much easier. Younger generations, especially Genz or millennials prefer these vehicles as they are much more attractive. The shortage may not be as bad as it was in the early 2020s; however, even with a larger output, a report has found that only 26% of organisations that are reliant on these chips have a sufficient supply. This leaves the vast majority of companies concerned with their supply and wanting for more.

• Ransomware-related costs in the automotive industry skyrocketed from $74.7 million to $209.6 million in just the first half of 2023.
• The startup’s sensors provide consistent performance by transmitting and interpreting signals effectively.
• What initially appeared to be a niche sector is now the foundation of the auto industry’s transition.
• The market for FCEVs is expected to grow at a remarkable CAGR of nearly 70%, through 2026.
• Predictive maintenance powered by AI minimizes machine failures, while IoT networks provide detailed insights into factory operations.
• Large automakers like Tesla, Alphabet, Ford, GM, and Volvo have all entered the autonomous vehicle space.
• This ensures precise planning, reduces downtime, and enhances efficiency in assembly operations.
• Artificial Intelligence and Smart Factory technologies are no longer aspirational but integral to modern automotive manufacturing.

The chip shortage is one-factor holding cars back from getting to the dealership lots. But, there are other various supply chain issues and factory closures that have led to low inventory, too. After demand started coming back, there simply wasn’t an adequate supply of chips, and the auto industry has been feeling the effects ever since. The parts industry is benefiting from the ever-increasing average age of vehicles on the road. The two purportedly plan to begin manufacturing an autonomous Apple electric car as of 2024.

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. We explore eight most influential trends expected to define the automotive manufacturing landscape, offering insights into what lies ahead for the industry. The European Commission will start talks in the New Year on the future of the industry in the region as sales of electric vehicles stall.