Central to this evolution is the growing demand for electric vehicles and software-defined vehicles. 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
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. Blockchain secures supply chains and in-car data, and extended reality (XR) advances design, testing, and training.
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.
Autonomous Driving: Waymo Offers 250K Paid Rides Weekly Across US Cities
Auto brands that stay on top of these trends and continue to innovate will be able to build a resilient business, that will help nurture a more electrified, connected, and sustainable future. With EV makers in China engaging in a price war due to declining demand, Chinese brands with strong hybrid presently are gaining popularity. A few hybrid models are priced below their EV and ICE counterparts, attracting Chinese consumers to hybrids, especially plug-in hybrid (PHEV) and extended-range hybrid (EREV) models.
Launching of fuel cell EVs
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.
- As the industry advances, 2025 will be a defining year in the automotive manufacturing sector.
- Chinese startup Move-X Autonomous Driving offers Level 4 autonomous driving through integrated vehicle platforms designed for commercial deployment.
- Additionally, Cube Intelligence offers ride-hailing and valet parking services for AVs, as well as smart parking management systems.
- OEMs are advancing and navigating regulatory challenges to introduce and test L3 and L4 automation, setting the background for augmented adoption of autonomous vehicles.
- Volvo Cars has announced plans to adopt large aluminium castings for its next-generation electric vehicles, aiming to simplify production and enhance sustainability.
- This process enables us to identify the most impactful and innovative trends in the automobile industry.
- This article profiles the top five Chinese automotive original equipment manufacturers (OEMs) leading the industry in sales volume and market capitalization.
- Through V2X, vehicles can share information about road conditions, accidents, and traffic patterns, allowing for real-time decision-making.
SWYTCHD offers EV Subscription
- 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.
- Its product range includes an electric modular chassis, the standard autonomous shuttle pod, and pods for other applications.
- Brands need to provide specific offers by analyzing their customer’s needs, preferences, and behavior.
- Current automotive trends are encouraging automotive manufacturers to offer consumers much more than a metal box on four wheels.
- Localized production and sourcing are gaining momentum as companies aim to mitigate risks and ensure a steady supply of components.
- Indian startup ThinkSeed develops middleware solutions that enhance smartphone connectivity to vehicles for secure access and infotainment.
Did you know that EVs are projected to make up nearly 20% of global vehicle sales in 2026? That’s no longer a distant future — it’s happening now, and it’s transforming everything from manufacturing floors to your driveway. Connectivity is one of the key trends in automotive industry, and 5G is what takes it to a more advanced level.
- As battery technologies evolve, the future promises breakthroughs in recyclability and energy efficiency.
- Advances in AI, sensor technology, and connectivity are also playing a key role in improving the safety and adoption of autonomous vehicles.
- Modernized and upgraded vehicles with much more technology allow a thunder growth for the markets providing parts of the vehicles.
- Its intelligent asset tracking defends vehicles against spoofing, ransomware, and remote control attempts.
- From energy-efficient factories to green hydrogen applications, the examples showcased highlight the industry’s shift toward greener production methods.
- Voice search assistants help optimize interfaces for advertisements and voice search queries.
Hyundai Crater Concept Teases the Next XRT Models
- AI-powered semiconductors drive transformation in autonomous driving systems by enabling real-time communication with road infrastructure and enhancing safety features such as emergency braking systems.
- Its early fusion approach integrates LiDAR and radar data, while neural networks infer road elements and topology to create accurate high-definition maps.
- It enhances safety via driver-assist features and promises to revolutionize mobility with robotaxis and freight automation.
- In 2025, Uber and GM Cruise will partner, allowing users of the Uber ride-hailing platform to book fully self-driving vehicles from the app in selected US cities.
- These cars even come equipped with Wi-Fi hotspots, ensuring easy Internet access for all passengers.
- Finally, automotive manufacturers are increasingly adopting PMO software to standardize the execution of complex projects with globally distributed teams and ensure compliance with industry standards.
- The move highlights the scale of investment required to meet zero-emission vehicle targets and align with regulatory pressures for decarbonisation.
- The currently available infotainment systems can connect with smartphones, sensors, ADAS (advanced driver assistance systems) as well as other in-vehicle and external systems.
Its early fusion approach integrates LiDAR and radar data, while neural networks infer road elements and topology to create accurate high-definition maps. Continuous change detection triggers automatic cloud updates to ensure up-to-date navigation information. South Korean startup BOS Semiconductors builds Eagle-N, an AI accelerator for in-vehicle infotainment (IVI) and ADAS.
Cyber security in the automotive industry
Technology in automotive industry forges ahead—the latest technological advancements are more and more extensively used by the domain. Let’s consider the recent trends in automobile industry related to the application of latest technologies. Along with battery-powered electric vehicles, fuel cell electric vehicles (FCEV) are another alternative to internal combustion engines. By 2035, approximately 16% of all new LV (light vehicle) sales in the US are predicted to consist of advanced automated vehicles (L3, L4, and L5). Fewer new vehicle purchases mean consumers hold onto their vehicles longer, reducing the available used inventory and increasing prices.
- Connected cars create new revenue streams via subscription services, data monetization, and personalized experiences.
- The US-based startup Apex AI enables automotive companies to implement complex AI solutions.
- Notable achievements in 2024 include significant progress in reducing emissions and advancing transparent ESG reporting.
- Automakers move from fleets of electronic control units (ECUs) toward centralized computing platforms that run multiple domains on Systems on Chip (SoCs).
- As the technology evolves and becomes more affordable for the industry, it opens more and more opportunities every year.
- 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.
- Tesla reportedly rewrote the software it uses in its vehicles so they could run on a different type of chip.
Procon Analytics builds Automotive Finance
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.
- It does so to preserve their heritage design and deliver zero-emission performance.
- These units support CCS2 and CHAdeMO standards, ensuring broad adaptability across EV models.
- 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).
- The trends in automobile industry and startups outlined in this report only scratch the surface of automotive innovations that we identified during our in-depth research.
- This trend is reshaping how manufacturers think about scalability and flexibility, particularly as the demand for electric vehicles continues to grow, and will continue to make itself felt throughout 2025.
- 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.
US-based startup FlxTran develops a new transportation system using self-driving vehicles on abandoned railroad tracks to provide fast regional transport to connect smaller communities. The system uses an app to schedule rides on autonomous vehicles, cutting down trip times compared to the available commuting options. FlxTran’s approach improves connectivity and access to opportunities beyond major cities. Moreover, V2X communication systems allow vehicles to interact with each other and infrastructure, improving traffic flow and reducing accidents. These innovations collectively propel the industry towards safer, more efficient transportation. Consequently, the global autonomous vehicle market size is projected to reach USD 448.6 billion by 2035, growing at a CAGR of 22.2%.
FlxTran develops Autonomous Vehicles for Unused Railway Tracks
Google and Ford recently announced a connected car partnership called Team Upshift. This type of vehicle is defined by its ability to communicate with other software systems and collect data from its surroundings. And TuSimple is hoping to begin selling completely autonomous Level 4 trucks to fleet operators in 2024. In addition, more than half of all vehicles are expected to fall into the Level 1-5 range in 2024. There are already over 30 million vehicles on the road that meet the Level 1 standard.
Micromobility Presents a Potential Shift Among Consumers
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.
It combines compound semiconductor nanomaterials with scalable silicon manufacturing for mass-market microelectronics. This approach ensures our reports provide reliable, actionable insights into the automotive innovation ecosystem while highlighting startups driving technological advancements in the industry. However, an SSAB survey reveals that cost and investment challenges remain significant barriers to widespread adoption. Despite these hurdles, the integration of sustainable materials is expected to accelerate as regulatory frameworks tighten and consumer demand for environmentally responsible products grows. ABB is investing in advanced software that simulates automotive painting processes, cutting costs by up to 30%. The simulations enhance precision and minimise waste in this energy-intensive stage of manufacturing.
The law emphasises a cleaner and EpicVIN VIN decoder for used cars 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.
Conclusion: The Automotive Industry in 2025
This chiplet-based architecture integrates with automotive processors via PCIe Gen5 and UCIe interfaces, which allows customizable and cost-effective system enhancements. BOS Semiconductors focuses on high-performance, energy-efficient AI solutions to drive innovation in autonomous driving and enhance in-cabin experiences. US-based startup Avvenire develops LEVs for efficient and eco-friendly urban transportation. Its products include the Leggera, an all-electric vehicle for on-road and off-road use, and the Spiritus, a three-wheel electric car with optional autonomous driving, Wi-Fi connectivity, and solar panels. Younger buyers often prefer subscription models or shared mobility over ownership. The rise of online car buying and digital retail experiences is forcing dealerships and OEMs to innovate.
Contact Avenga today to learn more about what industry experts have to say about these trends. For instance, China has introduced policies encouraging automakers to procure up to 25% of their chips domestically by 2025, reducing reliance on foreign suppliers. There will be continued demand for legacy process technology, with the construction and facilitation of the ESMC fab in Dresden progressing through 2025. Whether this central compute is a monolithic chip such as Nvidia Thor, which will be detailed in 2025, it will also be constructed from chiplets. This technology will be further developed through 2025, with the end results showing up in the following years.
Automotive Sourcing Models are Changing
The number of autonomous trucks on the road was expected to increase from roughly 150 in 2020 to over 2000 in 2021. It’s expected that the $800 billion trucking industry could benefit from a significant reduction in the 4900 trucking-related deaths that occur each year if only Level 3 or 4 autonomy would gain traction. As of the end of 2023, over 1 billion miles have been driven with Tesla Autopilot enables. As a result of this partnership, Ford is expected to launch its own self-driving car business.
Electric Mobility
The high prices and increasing interest rates are causing sales to decline for dealers and automakers nationwide. Prices are expected to decrease as supply-chain issues improve, and sales continue to soften. However, interest rates may remain high as the Federal Reserve works to lower inflation. In October 2022, the delivery lead time for chips decreased by six days to 25.5 weeks, the most significant drop since 2016. Approximately 70 percent of industrial companies report faster chip supply, possibly due to weakened consumer spending and demand. These constraints are expected to persist into 2025, as semiconductor production has exceeded full production-rate utilization since 2019, with recent rates surpassing 95%.
Automotive Manufacturing North America
Information technology has become a crucial part of the recent trends in the automobile industry as priorities change over time. The automotive industry stands at a thrilling crossroads, where innovation meets complexity and opportunity rides alongside challenge. The industry will continue to experience disruptions from geopolitical headwinds to regulatory and legislative developments, data security and economic challenges. Maximising the ROI to investors and stakeholders while remaining competitive will be priorities of the industry.
