As for those who already use micromobility vehicles, 32% say they often or very often use it instead of a private car. The market for micromobility sat at $40 billion in 2020 and is expected to grow to $195 billion by 2030. The US market was worth $14 billion in 2021 and is expected to grow at a CAGR of 10.7% to reach more than $31 billion by 2028. Cox Automotive Industry Insights predicted total new-vehicle sales in 2022 of only 14.4 million units, a number that doesn’t even surpass 2020 sales volume.

Driving Into the Future: Top Automotive Innovations and Insights of 2024

A 5G connection transmits data to a remote control station, which allows operators to monitor and intervene when needed. As the industry advances, 2025 will be a defining year in the automotive manufacturing sector. The convergence of AI-driven production systems, the scaling of EV capabilities, and the adoption of sustainable practices will reshape the competitive landscape. Manufacturers that successfully integrate these elements into their strategies will not only navigate the challenges of today but also position themselves as leaders in the future of mobility.

Automotive Industry Trends 2025: Shifting Gears Toward Innovation

Digital platforms enable smooth is buying a car at an auction risky access and allow users to book, swap, and unlock vehicles through mobile apps. For example, Hyundai partners with Revv in India to expand subscription offerings through a mobile-first platform. AI and ML processors support object recognition, path planning, and decision-making. For instance, Texas Instruments‘ AWR2544 radar achieves sensing beyond 200 meters.

Shared mobility

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.

• 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.
• In addition, Hawaii passed a bill in 2022 that will create a hydrogen refueling system rebate for developers.
• In addition to electrification, hydrogen fuel cell technology is gaining traction as a potential solution for zero-emission transportation.
• Global passenger EV sales grew 60% from 6.5 million units in 2021 to 10.5 million in 2022.
• CARNIQ Technologies secures the auto industry by embedding compliance-driven cybersecurity into development lifecycles.
• IoT, AI, and digital twins are becoming essential tools for improving efficiency, reducing downtime, and optimizing production processes.
• Buyers check all the accessible platforms like your social media, website, videos, and more.
• Semiconductors enhance safety by enabling faster decisions and reducing accident risks.

Shortage of chips will complicate the automotive industry

Sustainable manufacturing lowers emissions, which allows automakers to meet compliance requirements and reduce their environmental footprint. Cleaner production methods reduce operating costs and free resources for reinvestment in new technologies. In 2025, electrification and software integration will have an essential impact on the automotive industry. These tendencies are long-term and are expected to continue shaping the auto industry in the near future. In the next section, we’ll explore these and other automotive sector trends in more detail, and see how they will evolve in 2025. Environmental concerns and technological innovations are advancing faster than many anticipated.

Explore the Top 10 Automotive Industry Trends in 2024

It encourages OEMs to develop subscription models, short-term rentals, and multi-modal transport integration. Shared mobility also influences vehicle design toward durability, modularity, and connectivity. Autonomous driving is a key innovation driver but remains in a development and regulatory phase. It enhances safety via driver-assist features and promises to revolutionize mobility with robotaxis and freight automation. Its progress influences OEM investments, partnerships with tech firms, and consumer expectations.

Automotive Semiconductors: Asia-Pacific Leads with 45% Global Share

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. This is not just a European problem with Volkswagen and Stellantis, as Honda and Nissan merge, and Ford and General Motors struggle. Software-defined vehicles (SDVs), where software manages essential functions like steering, braking, and infotainment, will see rapid growth over the next few years.

a. Battery Technology and Range Improvements

Following these trends will equip enterprises with greater penetration in the emerging market, such as the growing adoption of EVs across China and India. A combination of technological advancements, sustainability initiatives, and new business models will shape the automotive industry in 2025. The rise of electric vehicles, autonomous driving, and innovative mobility solutions will redefine how we think about transportation. Meanwhile, environmental concerns will drive automakers to focus on sustainable manufacturing processes, alternative fuels, and circular economy principles.

❓ FAQ: Your Burning Questions About Automotive Trends Answered

The integrated powertrain segment is likely to hold ~60-65% of the total e-powertrain market in 2025. Connected cars create new revenue streams via subscription services, data monetization, and personalized experiences. However, it raises privacy and cybersecurity concerns that OEMs must address to maintain consumer trust. The connected car market is a battleground for tech giants and traditional automakers alike. Sustainability is a major driver reshaping vehicle design, manufacturing, and lifecycle management.

• 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.
• Probably the most important trend in the automotive industry is the worldwide shift to electric vehicles (EVs).
• Europe is projected to reach a 20.4% market share, while the US is likely to reach 11.2%.
• They also incorporate floating-point units that improve computational accuracy and performance.
• By the end of that decade, it’s predicted that over 30% of the cars on the road will be EVs.
• However, that number is smaller than it was in 2019 when more than 80% of people commuted by car.
• 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.
• Companies like Toyota and Hyundai are investing in hydrogen fuel cell technology.

Electrified Vehicles Top 50% of Sales in China

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.

Electric Mobility

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. They also facilitate the management of maintenance and repair appointments, streamlining dealership operations. Voice search assistants also optimize their interface for advertisements and voice search queries.

Also, digital twin technology builds virtual replicas of supply chains to simulate disruptions and optimize performance. The USMCA requires 75% of motor industry components to be produced in North America. And the US Inflation Reduction Act ties USD 7500 EV subsidies to regional sourcing. Cost efficiency strengthens the case, with Mexico offering a 35% landed-cost edge over China in 2022.

Overview – Automotive Industry

This rise in digital advertising spending is being steered by the growing usage of social media. Dealerships need to integrate strategic frameworks to capture potential buyers across different stages in the process with the use of social media marketing, click-to-call conversions, and messaging apps. The efficiency of electric power fused with the reliability of traditional engines has contributed to the rise of hybrid vehicles. Hybrid vehicles present the perfect compromise of lower emissions and enhanced fuel economy without the need for charging.

• The auto industry is one of the largest and most influential markets on the planet.
• Given the opportunity to significantly disrupt private transport and shape the future of the automotive industry, companies are expected to continue investing in autonomous vehicles in 2025.
• Furthermore, the need for EV charging stations is no longer a challenge to the electric vehicle market.
• Our new report spotlights 10 connected vehicle trends to watch in 2026 that promise safer, smarter mobility and fresh revenue streams for automakers.
• However, the demand for parts is also being diminished by the increasing quality of newly manufactured vehicle parts.
• The market share with EVs specifically is even greater, manufacturing 58% of the world’s electric vehicles.
• Norwegian startup Chargerly designs vehicle-to-building (V2B) solutions that integrate EVs with building energy systems to improve resilience, efficiency, and sustainability.
• The startup develops protocols for drone charging networks, drone flight planning, and open mobility.

Shift Toward Mobility Services

The control system includes safeguards like automatic overheating prevention, battery depletion protection, and real-time torque and speed calibration for optimal performance on challenging terrains. The Asia-Pacific region currently controls the majority of the market due to the strong uptake of electric cars (EVs) in countries like China, India, and Japan. The region’s substantial market share results from government incentives and the growth of the automobile industry. The increasing adoption of EVs globally drives the optimization of energy usage and enhances features like regenerative braking systems through sensor fusion technologies. To accommodate the rising demand for EVs and autonomous vehicles, major automakers such as BMW, Hyundai, and Stellantis are investing in EV battery plants and semiconductor-related facilities.

It processes these tasks in real time at over 120 frames per second on consumer-grade graphics processing units (GPUs). Indian startup General Intelligence creates self-driving intelligence software that supports software-defined vehicles in adapting to diverse driving environments. Owing to these advancements, the global SDV market is set to reach USD 3.3 trillion by 2034, growing at 31.2% annually. Also, GPS and V2X connectivity improve fleet distribution and service reliability.

At the same time, a limited EV infrastructure and uneven policy application dampen the pace of meaningful progress throughout the region. When it comes to the benefits of connected cars, it seems that drivers are more willing to allow for data collection, too. The same report states that 68% of drivers believe car companies should collect personal data, but only 5% agree to unrestricted collection. Most favour an opt-in approach (63%), and many are willing to share data for benefits, with 67% open to lower insurance rates, 43% for personalised features, and 36% for improved safety options. As will be discussed later, with more data being collected for premium features, the inevitable concern for data security is raised, and cyber security threats loom overhead.