Further, its Craidlr ATX-G gateways are integral to the surface temperature & vibration monitoring solution, catering to diverse automotive testing needs. These gateways, combined with advanced transducers, facilitate real-time data collection. The Global Startup Heat Map below highlights the global distribution of the 4800+ exemplary startups & scaleups that we analyzed for this research. Created through the StartUs Insights Discovery Platform, the Heat Map reveals high startup activity in the US, Europe, and India. Regenerative braking systems, crucial in EVs and hybrid cars (HEVs and PHEVs), contribute to energy recovery rates of 5% to 20%, depending on driving conditions.
Apostera specializes in Advanced Driver Assistance Systems (ADAS)
Hydrogen-powered vehicles produce only water vapor as a byproduct, making them a strong contender for sectors that are harder to electrify, such as long-haul trucking and commercial transportation. This move highlights the industry’s broader trend of building resilient supply chains to safeguard against geopolitical and economic uncertainties. Global supply chain disruptions over recent years have prompted manufacturers to rethink strategies.
Stop Guessing, Start Growing 🚀
- For example, Mercedes-Benz is using Chat-GPT for intelligent virtual assistants within its vehicles.
- These tendencies are long-term and are expected to continue shaping the auto industry in the near future.
- More than half of pickup owners purchase off-road parts and engage in outdoor activities with their vehicles.
- Moreover, Asia-Pacific is the fastest-growing region, with a projected CAGR of 14.8%.
- Consumers thoroughly research their preferred car on their mobile phones, searching for the best offers and dealerships in their area.
- Bloomberg New Energy Finance expects EVs to account for 10% of all new car sales by 2025 and 58% by 2040.
Governments worldwide are imposing stricter emissions standards and incentivizing zero-emission vehicles (ZEVs). This pushes automakers to invest heavily in electric drivetrains, recycled materials, and circular economy practices. Consumers increasingly demand eco-friendly options, influencing market offerings. 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.
It integrates electric drivetrains, transforming existing vehicles into sustainable and cost-effective alternatives to new EVs. The kit maintains original vehicle features to ensure a seamless transition and familiar driving experience. Indian startup Starkenn develops AI-powered ADAS to enhance vehicle safety and reduce road accidents. Its product benefits of VIN decoding for used car buyers suite includes a collision warning system, Starkenn Safe which uses radar to detect obstacles and alert drivers of potential collisions.
MotionSafe enables AI-powered Automotive Cybersecurity
Regardless, with the continued global slowdown of EV adoption, we can also expect original equipment manufacturers (OEMs) to follow suit, with a decrease in the level of production, especially in the West. Market leaders are adjusting their strategies to align with current trends, further emphasizing the shift towards EV-only vehicles. 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. This transformation is also expected to help revive sluggish vehicle sales by 2030. The next decade will undoubtedly see dramatic changes in how we drive, how we share vehicles, and how we engage with the technology that powers our transportation systems.
Inside the architecture: How software-defined vehicle (SDV) platforms are built
In addition, it adapts to applications across fleets, workplaces, airports, and multi-housing units. Its electronic control unit (ECU) platform combines AUTOSAR software modules with customizable hardware. It manages functions such as steer-by-wire, brake-by-wire, engine control, and ADAS.
Procter & Gamble in Beauty and Personal Care
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. Specific components like silicon carbide (SiC) and gallium nitride (GaN) power devices are expected to see growth, offering up to 60% improved efficiency over traditional silicon components. Jaguar Land Rover’s “Reimagine” strategy has cemented its position as a sustainability leader.
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.
No Surprise: Q4 Auto Sales Fell, EVs Fell Further
5G connectivity unlocks ultra-low latency communication, enabling real-time vehicle-to-everything (V2X) interactions. This enhances autonomous driving capabilities, traffic management, and safety features. It also supports over-the-air (OTA) updates with larger data payloads and faster speeds, improving software reliability and feature rollout. For consumers, 5G means richer infotainment, seamless smartphone integration, and enhanced navigation services.
Looking ahead, JLR’s focus on carbon-neutral manufacturing and environmentally responsible practices sets a powerful example for the industry. The answer lies in education, infrastructure, and trust-building—slow but steady wins the race. The software integrates a one-shot multitask network capable of performing 2D detection, semantic segmentation, and monocular depth estimation.
This shift is driven by the growing need for more efficient power management in electric vehicles, resulting in smarter and more streamlined EV designs. 2025 will witness the automotive industry transitioning from Level 2 autonomy to Levels 2.5 and 3, representing a substantial evolution in automotive technology and enhancing vehicle automation and safety. Almost 40% of all autonomous vehicles sold in 2025 are predicted to have L2 ADAS features. German OEMs already have a full roadmap from L2 to L3, with Mercedes Benz commercializing their DrivePilot system, and BMW is likely to follow soon. Emerging companies are developing advanced sensing technologies to collect extensive vehicle data and enable vehicles to better understand their surroundings. Blockchain technology is increasingly being utilized in the automotive industry for various applications.
Innovation Map outlines Top 10 Automotive Trends & 20 Promising Startups
The startup also offers Leap EasyTrack, a vehicle tracking solution that allows for quick and easy self-installation, making it simple to transfer between vehicles without downtime. Car connectivity and telematics improve the driving experience with real-time data integration. Cybersecurity protects these connected systems, while regenerative braking and sustainable manufacturing practices reduce the environmental impact. EVs drive the shift to greener mobility and it is aided by advancements in semiconductors for smarter and efficient vehicles. OEMs are investing billions in EV platforms, battery R&D, and charging infrastructure partnerships.
- The startup provides manufacturers with tools that make the development and maintenance of EV charging infrastructure simple, fast, and scalable.
- Moreover, the startup engineers the ECU platform with compliance to ISO for functional safety.
- The ongoing global semiconductor shortage continues to cast a shadow over manufacturing progress, particularly for industries such as automotive and electronics.
- For this in-depth research on the Top Automotive Industry Trends and startups, we analyzed a sample of 4859 innovative automotive startups & scaleups worldwide.
The rising role of renewable energy supply in automotive production
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.
Self-driving to gain traction, but semi-autonomous cars will reign
In 2025, many automakers will focus on creating vehicles that are easier to disassemble, repair, and recycle at the end of their lifecycle. This approach could significantly reduce waste and contribute to a more sustainable automotive industry. Leading companies such as Volkswagen, General Motors, and Volvo have committed to producing zero-emission vehicles and achieving carbon-neutral operations by mid-century. In line with this, automakers focus on sustainability in their manufacturing processes, energy sourcing, and material selection. The SDVs market is set to reach 7.6 million units in 2025 from 6.2 million units in 2024.
The expected reach in 2026 is expected to reach nearly $62 billion at a growth of CAGR 22.75%. Self-driving cars are considered safer since they can sense their environment and operate safely within it, eliminating factors such as human error and driver fatigue. In 2025, new registrations of electric vehicles – BEVs (battery electric vehicles) and PHEVs (plug-in hybrid electric vehicles) – are anticipated to reach a record 18.1 million – up from 16.3 million in 2024. However, growth EV adoption is predicted to slow, with year-on-year growth falling from 15% in 2024 to 11% in 2025.
GenAI offers potential for advanced applications like predictive maintenance, where AI could assist in analyzing vehicle data and forecast potential failures before they occur. This would mark a critical shift toward an era of personalized vehicle recommendations and optimized repair services. By addressing issues proactively, manufacturers and service providers can further reduce breakdowns, enhance vehicle reliability, and improve overall customer satisfaction.
Advanced Driver Assistance Systems (ADAS) and autonomous driving technologies continue to evolve, bringing unprecedented changes to vehicle safety and functionality. Additionally, infrastructure developments like Toyota‘s new battery plant in North Carolina underscore the industry’s dedication to scaling EV output. 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. With established automakers facing nimble startups in the mobility race, building new businesses should be a priority for auto executives.
Seamless connectivity between automobiles, infrastructure, and pedestrians is expected to become commonplace and help increase traffic safety and improve driver experience. 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.
What are the latest automotive industry trends in 2024?
- More than 12% of consumers who financed a new car in June of 2022 had a monthly payment of $1,000 or more.
- Below, you get to meet 20 out of these 4859 promising startups & scaleups as well as the solutions they develop.
- The SDVs market is set to reach 7.6 million units in 2025 from 6.2 million units in 2024.
- The startup’s technology utilizes hash codes to block malicious attacks or hacking attempts on autonomous cars and connected cars.
- Regulations also support adoption, as safety and emissions standards require continuous updates and smarter architectures.
- For example, Toyota plans a commercial rollout by 2027 to bring solid-state battery EVs into mass production.
- This process enables us to identify the most impactful and innovative trends in the automotive industry.
The AI in Automotive industry in 2026 is evolving as AI, autonomous technologies, and software-defined vehicles reshape global mobility systems. This AI in Automotive Market Report examines the trends and technologies driving vehicle intelligence, operational efficiency, safety advancement, and data-driven mobility innovation. What initially appeared to be a niche sector is now the foundation of the auto industry’s transition.
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. To maintain cost competitiveness, automotive procurement teams must be critical in managing supplier networks and supply chains for existing and upcoming vehicle models. This includes aligning new technologies and business models with the company’s vision. With consumers increasingly prioritizing environmental performance when purchasing vehicles, automakers must focus on reducing emissions and developing more sustainable transportation options. Most car buyers now consider a vehicle’s environmental impact before purchasing, with many willing to pay a premium of over £2,000 for greener emissions.
Motomatix develops Auto Parts Ordering Platform
The scale established by these six stages is essential for comprehending and characterizing self-driving technologies, which span from complete human driving to complete vehicle autonomy. Through V2X, vehicles can share information about road conditions, accidents, and traffic patterns, allowing for real-time decision-making. This communication system is crucial for the safe deployment of autonomous vehicles, as it will enable them to “talk” to other vehicles and infrastructure, reducing the risk of accidents. The integration of Industry 4.0 technologies is revolutionizing automotive manufacturing. IoT, AI, and digital twins are becoming essential tools for improving efficiency, reducing downtime, and optimizing production processes.
From electrification to IoT connectivity, these shifts are changing the way cars are manufactured, sold, repaired, and driven. Shared micromobility vehicles are becoming a popular mode of transportation in cities where the pollution from cars and traffic congestion is particularly evident. Chip shortages have been causing myriad changes to trends that affect the automotive trends that are not all positive.
- In line with this, automakers focus on sustainability in their manufacturing processes, energy sourcing, and material selection.
- 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 future trends in the automobile industry suggest that 2025 can be the milestone year for connected cars.
- It enables sensor fusion and control for advanced driver assistance and autonomous driving.
- The startup uses automotive sensors and compute platforms to offer a scalable solution for cars to enable large-scale fleet learning.
At the same time, governments and companies view subscriptions as a pathway to scale EV adoption without heavy upfront investments. Bosch demonstrates this through 77 GHz radar modules integrated into adaptive cruise control and collision avoidance systems. LiDAR enables high-resolution 3D mapping by emitting laser pulses to measure distances.
Launching of fuel cell EVs
Statevolt’s decision to build its gigafactory in the UAE rather than Europe has been a talking point this year. This article explores the strategic reasons behind the move, including the UAE’s favourable energy policies, market accessibility, and logistical advantages. By leveraging these factors, Statevolt is positioning itself to meet the rising demand for EV batteries in an increasingly competitive market.
- While China’s dominance in EV and automotive production at large is not anything new, the movements being made in emerging economies outside of China are.
- These 20 automotive companies are hand-picked based on criteria such as founding year, location, funding raised & more.
- The startup employs the Perceived Quality Index to eliminate engineering bias by translating customer insights into measurable quality improvements.
- This digital transformation enhances scalability, a key driver in the competitive automotive sector.
- Self-driving cars are considered safer since they can sense their environment and operate safely within it, eliminating factors such as human error and driver fatigue.
- Its MotionSafe Privacy platform uses algorithms to monitor controller area network (CAN) traffic and detect anomalies.
- It highlights workforce trends, leading investors, and key technologies driving adoption across vehicles, batteries, charging, and software.
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.
While full autonomy is still years away, incremental advances are reshaping vehicle capabilities and market offerings today. These material innovations are also crucial to meeting evolving regulations, particularly the EU’s stringent emission standards. For EVs specifically, weight reduction translates directly into extended range and improved battery performance. The inherent flexibility of electric powertrains is enabling automakers to reimagine vehicle design, resulting in lighter, more efficient vehicles.
Battery manufacturers have significantly reduced their production since early December due to the unpromising demand in the upcoming months. However, their preferences changed after some time, Buyers are willing to spend an amount, while looking for the best vehicles available in the market. Businesses would start optimizing their search guides as per the consumer’s preferences. To address these threats, proactive cyber security is a must for automakers and their partners across the value chain. Robust IoT (Internet of Things) security, regular software updates, and well-prepared incident response plans are the essential building blocks of a strong cyber security strategy. In addition to electrification, hydrogen fuel cell technology is gaining traction as a potential solution for zero-emission transportation.
Localized production and sourcing are gaining momentum as companies aim to mitigate risks and ensure a steady supply of components. Automakers are adopting greener processes, from sourcing eco-friendly materials to utilizing renewable energy in manufacturing plants. Many of those trends will be on display at the Consumer Electronics Show next week in Las Vegas. Honda will be showing its Series 0 platform that will be used for its SAE Level 4 driverless car in 2026. Recent auto trends show that customers prefer to experience a car or dealership before purchasing.
