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.
Connected, autonomous, shared, and electric (CASE) vehicle technologies remain a strong focus in automotive markets
It uses Tenstorrent’s Tensix NPU core to deliver up to 250 tera operations per second (TOPS) for efficient AI processing. The Global Startup Heat Map showcases the distribution of 6000+ exemplary startups and scaleups analyzed using the StartUs Insights Discovery Platform. It highlights high startup activity in Western Europe and the United States, followed by India. From these, 20 promising startups are featured below, selected based on factors like founding year, location, and funding.
Automotive Supply Chain Issues.
This continues a trend in the EV industry, which has been challenged by the high cost of vehicles and a lack of charging stations. They have downgraded their EV targets and scaled back production of fully electric vehicles, suggesting that the transition to EVs will take longer than previously expected. The automotive industry leads in technological innovation that will reshape vehicle design, construction, and user experience in 2025. Emerging automotive industry trends include the increased adoption of electric vehicles (EVs), advanced semiconductors, and the growing focus on vehicle cybersecurity.
Major Shifts in China’s Automotive Industry
- In the US, the CHIPS and Science Act allocates USD 52.7 billion in funding and offers a 25% investment tax credit.
- For this, it uses advanced system-on-chips (SoCs) that integrate mixed-signal analog and digital signal processing (DSP) algorithms.
- Indian startup SWYTCHD manages vehicle subscription services that focus on electric two-wheelers and cars.
- Manufacturers are partnering with tech companies to design and produce the new operating systems necessary for the next generation of technologically advanced vehicles.
- The startup enables dealerships, fleet managers, and manufacturers to manage inventory strategically.
- Moreover, the technology combines EV chargers, a DC bus, smart inverters, and an energy management platform.
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.
Here’s how TikTok unboxings and gaming are driving one of 2025’s top retail trends. Data from the past 10 years shows the sale of luxury vehicles making a steep climb in 2022. Toyota’s Mirai and Hyundai’s Nexo have been the two major players in the market since sales launched in 2016. Along with an increase in refueling stations, look to see an increase in the variety of FCEVs available to consumers in the coming years. In addition, Hawaii passed a bill in 2022 that will create a hydrogen refueling system rebate for developers. Any infrastructure that’s built after January 1, 2023, and utilizes renewable hydrogen will be eligible for up to $200k.
- However, the primary function of these cars is not just to entertain they can connect to other vehicles (V2V), pedestrians (V2P), infrastructure (V2I), and cloud (V2C).
- Dedicated short-range communication (DSRC) based on IEEE 802.11p facilitates direct vehicle-to-vehicle and vehicle-to-infrastructure communication.
- Daymak will assemble Avvenire’s vehicles and distribute them through its network of over 200 dealers in 25 countries.
- As battery technology and charging infrastructure progress, EVs lead the push toward sustainability.
Luxury Car Brands See Growth
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.
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The integration of renewable energy into automotive production took centre stage in 2024. This article sheds light on how OEMs are embracing solar, wind, and hydrogen power to achieve sustainability goals. From energy-efficient factories to green hydrogen applications, the examples showcased highlight the industry’s shift toward greener production methods. 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. From LFP to cutting-edge solid-state batteries, it examines the trade-offs between cost, performance, and sustainability while uncovering key regional trends. These advancements are critical as manufacturers aim to balance efficiency, durability, and safety.
🚦 Levels of Autonomy Explained: From Driver-Assist to Full Self-Driving
Additionally, CARNIQ Technologies supports the automotive sector with threat analysis, cybersecurity management, and secure system development. It also provides validation services that ensure resilience against potential risks. The rapid rollout of software-defined vehicles, vehicle-to-everything (V2X) networks, and electrification pushes automakers to secure digital systems as rigorously as physical components. Moreover, the startup’s marketplace connects professionals in a secure environment. It provides exclusive access to vehicles and optimizes purchase decisions based on supply and demand trends.
We expect to see the concept of Mobility-as-a-Service (MaaS) develop through 2025. Initial deployments focus on simpler, grid-like cities such as Phoenix in the USA, Milton Keynes in the UK, and Singapore. Soon, this will expand to more complex urban environments as vehicle access becomes increasingly prioritised over ownership among the driving masses. The startup’s product range includes residential wallboxes from 7 to 22 kW and commercial chargers up to 132 kW. These units support CCS2 and CHAdeMO standards, ensuring broad adaptability across EV models. For example, Qualcomm released reports and white papers highlighting C-V2X as a critical capability for intelligent transportation systems.
- FlxTran’s approach improves connectivity and access to opportunities beyond major cities.
- The market for FCEVs is expected to grow at a remarkable CAGR of nearly 70%, through 2026.
- 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.
- One of the most significant shifts in the automotive industry is the widespread adoption of electric vehicles (EVs).
- The APH-01 incorporates flax fiber in its body shell, which reduces weight, increases impact resistance, and improves vibration damping.
Insights
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.
Top Automotive Marketing Trends in 2025
Examples are bikes, scooters, and mopeds, as well as the electric versions of these vehicles. The chip shortage is proving to be costly for the industry with many auto manufacturers shutting down plants due to low supply. Increasing battery efficiency as well as EV charging infrastructure can speed up adoption.
- However, used electric powertrain vehicles are still few and far between, with the Society of Motor Manufacturers and Traders, in the UK, suggesting EVs make up 2.7% of the total used car market.
- Predictive maintenance powered by AI minimizes machine failures, while IoT networks provide detailed insights into factory operations.
- The startup’s vehicle management system provides insights into speed, running vitals, and health information.
- Gallium nitride (GaN) chips enable high-frequency switching, compact designs, and fast charging.
- For EVs specifically, weight reduction translates directly into extended range and improved battery performance.
- Learn why it matters more than organic traffic and how to improve your rankings and visibility.
- Moreover, the solution is customizable to any car model or specific OEM requirements.
- The AI in Automotive industry in 2026 is evolving as AI, autonomous technologies, and software-defined vehicles reshape global mobility systems.
- THINKey operates through a secure architecture using enclaves in the phone, vehicle, and cloud, adhering to the car connectivity consortium’s digital key standard.
Apex AI offers an Automotive Data Management Platform
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. Moreover, the growth of the automotive IoT market signals a strong trend toward connectivity. IoT creates more opportunities for manufacturers to market to consumers even after they’ve made a purchase. Consistent brand messaging across all channels, including in-car infotainment systems and websites, can help foster long-term customer relationships, promoting brand loyalty and advocacy.
By 2025, we could see a broader adoption of fuel cell vehicles, especially in regions like Europe and Asia, where hydrogen infrastructure is beginning to grow. Environmental consciousness is driving the automotive industry toward more sustainable and eco-friendly solutions. Manufacturers are prioritizing robust security measures to protect sensitive consumer data and prevent malicious interference. From encrypted communications to intrusion detection systems, cybersecurity advancements will ensure consumer trust as vehicles become smarter and more networked.
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. Companies like Toyota and Hyundai are investing in hydrogen fuel cell technology.
SafeAD enables Large-scale Fleet Learning
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. This makes sense, as 83% of car customers already said they wish they could save time by shopping online. This number is expected to have risen in 2020 as dealers everywhere turned to digital channels. As of 2023, the two now equip Ford and Lincoln vehicles with a built-in Android operating system.
5G facilitates faster data transmission, higher network and bandwidth capacity as well as improves security (e.g., protection from cyberattacks). As a result, vehicles become even more connected with each other and the infrastructure and provide drivers with more advanced opportunities. We hope this blog helps you understand the upcoming automotive industry trends in 2025. The industry trends show a positive perspective for the times to come despite the expected global slowdown and supply chain disruptions. As a car seller, dealer, or manufacturer, you must only build flexible yet solid automotive marketing strategies and create a strong sense of customer trust and loyalty.
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. Also, IoT sensors such as LiDAR and radar expand perception by generating environmental data. For instance, Audi and BMW vehicles exchanged sensor data, including camera feeds, during 5G-V2X Direct demonstrations in Berlin.
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.
The solution recognizes the power requirements of every car and automatically controls the charging speed for each vehicle. Swedish startup Volta Trucks makes Volta Zero, an electric truck for urban deliveries. This vehicle’s design prioritizes driver safety and comfort, featuring a central driving position and panoramic vision for enhanced visibility. 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.
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.
consumer trends
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.
A major barrier to this relentless growth, however, is consumer and regulatory concerns. Large automakers like Tesla, Alphabet, Ford, GM, and Volvo have all entered the autonomous vehicle space. The AV industry itself is just in its infancy, as there are only 17,000 self-driving cars on the road in the US today. Searches for “autonomous driving” have increased by over 1,029% over the past 10 years. However, it is estimated that over 60% of all Americans car buying confidence backed by data have garages that will allow for electric vehicle charging.
Additionally, customer data drives sales, optimizes supply chains and informs new vehicle designs. 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. The data of all road users is streamed and processed in real-time to empower smart mobility. The solution also serves as the base for additional services such as micropayments and micro-mobility.