The startup enables automakers to reduce waste, optimize design processes, and advance sustainable manufacturing strategies. The automotive industry is one of the most severely affected by supply chain disruptions. Currently, its greatest challenge is uncertainty and instability, which are expected to persist this year.
Top 10 Automobile Industry Trends & Innovations (
This could allow drivers to retain their jobs, but avoid the injuries and deaths that result from exhaustion. Additionally, Chevrolet, Hyundai, Kia, Nissan, and Jaguar have all released more affordable EVs that have a range of anywhere from 200 miles to 250 miles. Right now, there are only about 73,215 public EV charging stations across the US.
Mercedes-Benz CLA EV Feels Lighter Than It Is
In some cases, car dealerships are charging huge markups on the inventory they do have. Even six months into 2022, vehicle manufacturers haven’t been able to correct the issue of low inventory. Reports from 2022 showed vehicle inventory was stagnant, sitting between 1 million and 1.1 million vehicles, for the first six months of the year. Sales of passenger cars were down 25% in the first half of 2022 compared to the same period in 2021.
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. Nearshoring is becoming increasingly prevalent, particularly in North America, where manufacturers are shifting operations closer to key markets to mitigate supply chain risks and reduce logistical costs.
Major transportation industry trends in 2026
Get in touch to easily and exhaustively scout relevant technologies & startups that matter to you. Operating from Germany and the US, EcoG is a startup offering an IoT-based operating system and platform for EV charging. The startup provides manufacturers with tools that make the development and maintenance of EV charging infrastructure simple, fast, and scalable. It also allows operators to integrate services and microservices in the chargers to make the charging process profitable. In addition, the solution works with any EV charger and enables new features to be shipped throughout the network.
How is the rise of shared mobility changing the automotive industry?
As for those who already use micromobility vehicles, 32% say they often or very often use it instead of a private car. 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. Semiconductor experts say manufacturers won’t see a return on investment if they build new foundries to meet the auto industry’s demand. In addition, the initiative will leverage the data collected by adding Google’s AI capabilities to Ford vehicles. 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.
These articles highlight not just the progress made but also the opportunities and challenges that lie ahead. 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. Xiaomi’s foray into the electric vehicle market is exemplified by its state-of-the-art factory, capable of producing an electric car every 76 seconds.
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).
Sustainable production continues to rise
According to Statista’s report, global sales of electric vehicles are expected to reach an astounding US$786.2 billion by the end of 2024. As cities become more congested, shared mobility solutions are becoming increasingly popular. In 2025, we expect to see more automated and electric shared vehicles providing affordable, on-demand transportation. 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.
The rising preference for pre-owned/used cars
The chip shortage is proving to be costly for the industry with many auto manufacturers shutting down plants due to low supply. The global automotive parts market has been steadily growing for the past twenty years. Increasing battery efficiency as well as EV charging infrastructure can speed up adoption. As climate change concerns intensify, automakers are increasingly pressured to reduce emissions, lower their environmental footprint, and embrace green technologies. Digital twins—virtual replicas of physical systems—are gaining traction, enabling manufacturers to simulate scenarios and predict outcomes in real-time. Predictive maintenance powered by AI minimizes machine failures, while IoT networks provide detailed insights into factory operations.
Government incentives, environmental imperatives, technological advances, and shifting consumer preferences drive this boost profits with VIN check upsells 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. In addition, the startup integrates regional infrastructure knowledge into vehicle design to ensure durability, accessibility, and energy efficiency. Additionally, it uses the Future Trends Index to identify and prioritize relevant design directions across different markets. 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.
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. Semiconductor chips are at the heart of almost every automotive trend, from connected technologies to autonomous driving and EVs. Advanced systems that power, control, and optimize automobiles are increasingly being built around tiny chips. Semiconductors ensure energy efficiency, consistent power distribution, and power the battery systems in EVs.
Automotive
XTrude models the physics of FDM processes to optimize parameters like flow rate and extrusion temperature to ensure large-scale 3D printing. Automakers are responding by integrating carbon-neutral initiatives across their value chains. This includes upstream supply chains and downstream life cycle phases like recycling. Companies like Nvidia innovate in AI-powered chips for AVs, partnering with automakers like Toyota, Tesla, and Aurora Innovation to enhance autonomous capabilities. Automakers are investing in cybersecurity technologies such as hardware security modules (HSMs), AI-based intrusion detection systems, and secure over-the-air (OTA) updates to address these challenges.
Micromobility Presents a Potential Shift Among Consumers
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. Fuel-cell electric vehicles will emerge worldwide in 2025 due to their faster recharge, extended range, and zero emissions. Major car, truck, and SUV manufacturers are investing in fuel-cell electric vehicle development, with the support of countries like China, Germany, Japan, South Korea, and the United States. 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. Adding to the challenge, measures such as stricter Euro 7 tailpipe standards and updated rules on battery recycling demand deeper innovation within supply chains and operations.
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. The platform includes geofencing, driver behavior monitoring, route mapping, and integrated or standalone camera options, accessible via a dashboard and mobile app. XCognition captures operator input or sensor data to generate execution-ready robotic programs to increase accuracy and reduce deployment time.
Automotive Wire Harness & EDS Conference Returns to Detroit in 2025
Self-driving vehicles are becoming increasingly common and will continue to do so in 2025. Research has indicated that autonomous cars are safer, reduce downtime, expand the last-mile delivery scope, and improve fuel efficiency by 10%. Additionally, several trucking companies have tested self-driving technology, and it will soon become commonplace, with fleets of autonomous trucks sharing the road with traditional vehicles. The market share with EVs specifically is even greater, manufacturing 58% of the world’s electric vehicles. 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.
- Also, MotionSafe protects the auto industry by securing vehicle data, supporting supply chains, and ensuring a safe transition to connected mobility.
- In 2025, the automotive industry will face global headwinds such as the energy crisis, slower global demand, and ongoing supply-chain issues.
- 3D printing them is faster than traditional manufacturing and cheaper, which makes the whole process more efficient.
- Telematics adoption in logistics and transportation industries is driven by features such as real-time tracking, driver behavior analysis, and fuel consumption reduction.
- That will enhance in gaining the trust of society and the brand’s potential customers.
- The startup’s platform, Aqueduct, is easy to install, has 4 charging modules with up to 22kW, provides monthly reports, and uses a Typ2 charging cable.
The strong focus on technological advancements in the automotive sphere has also meant that cyber security is becoming a larger concern in a historically unconcerned industry. Threats like supply chain attacks, data breaches, ransomware, and state-sponsored intrusions are on the rise. Of course, the danger does not stop with vehicles as smart infrastructure is also at risk, potentially jeopardising safety and operational reliability. Figures from the last few years show that the EV adoption rate is still slow at a global level. However, the share of cars that are electric (hybrid and full electric) continues to rise. 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 evolution of self-driving and connected cars is simplifying driver-vehicle interaction. Human-machine interfaces (HMIs), including voice-based and haptic feedback systems, are expanding control over various car functions. 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%. For this in-depth research on the Top Automotive Industry Trends and startups, we analyzed a sample of 4859 innovative automotive startups & scaleups worldwide.
Major automakers, such as General Motors, are expanding telematics offerings by integrating subscription-based services like OnStar as standard features across models. Partnerships between telecom providers and automakers, like Targa Telematics’ collaboration with Renault, are enhancing connectivity solutions, particularly for fleet management. The European Union’s Vehicle General Safety Regulation (GSR2), effective July 2024, mandates several ADAS features in new vehicles. The U.S. National Highway Traffic Safety Administration (NHTSA) plans to require automatic emergency braking (AEB) systems in all new light-duty vehicles by 2026. Miniaturization trends in automotive electronics enable the integration of multiple sensors into compact systems to improve vehicle performance while reducing costs. US-based startup Aeluma develops semiconductor technology for mobile devices, AI, AR/VR, autonomous systems, and other applications.
Shortage of chips will complicate the automotive industry
Automotive Manufacturing Solutions (AMS) is the essential resource for automotive manufacturing professionals and suppliers globally. We invite you to revisit these top stories, share your perspectives, and stay tuned for more in-depth coverage of the trends shaping the automotive world. As net-zero targets become the norm, the reliance on renewable energy is only set to grow. Exciting developments in energy storage and green hydrogen technologies promise to redefine production processes further. The answer lies in education, infrastructure, and trust-building—slow but steady wins the race.
- Sales for BEV and PHEV in Europe increased by 137% in 2020 compared with the previous year (despite a 20% year-over-year decrease in the total car market).
- German startup CARNIQ Technologies enhances vehicle cybersecurity through web-based and AI-powered tools that ensure compliance with automotive standards.
- For instance, Texas Instruments‘ AWR2544 radar achieves sensing beyond 200 meters.
- 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.
- The Tree Map below illustrates the top 10 automotive trends that will impact companies in 2024.
After the pandemic, we developed a habit of shifting all requirements to online methods, and so do goes with the automobile industry. Our new generation which is called millennials or Genz researches everything online before the actual purchase. Car dealerships are no exception, as recent auto trends reveal that customers prefer to experience a car or dealership before purchasing.
It enables systematic results in cybersecurity, functional safety, and process conformance. In addition, the startup strengthens automotive cybersecurity with features such as real-time intrusion detection and automated containment protocols. It is also integrated into fleet management dashboards and security operations centers (SOC). By securing these systems, cybersecurity prevents hijacking of steering or braking functions, protects sensitive driver data, and shields automakers from costly recalls and reputational harm.
Further, this also offers software solutions for fleet and asset tracking as well as connected cars. AI is also transforming automotive manufacturing by speeding up production and cutting costs. Factories equipped with IoT-enabled devices and machine learning capabilities are emerging as the backbone of next-generation automotive production. These facilities use data-driven insights to optimise processes, reduce energy consumption, and increase operational efficiency. In 2024, the automotive industry experienced significant transformations, with advancements in electric vehicles (EVs), autonomous driving technologies, and shifts in global markets. The auto manufacturers who rely on the older versions of chips which are not advanced and powerful will disrupt the growth of the automotive industry.
For the eighth time, we asked managers and decision-makers in the automotive industry which trends and developments they are currently focusing on. The automotive industry report of the Future Readiness Monitor 2025 provides differentiated insights into strategies, challenges and fields of action in the industry. 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. Identifying new opportunities and emerging technologies to implement into your business early on goes a long way in gaining a competitive advantage.
Companies like BYD are collaborating with TSMC and MediaTek to develop advanced chips for vehicle controllers and smart cockpits. 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.
- AI and ML solutions process multimodal sensor data to power autonomy, predictive maintenance, and personalization.
- In India, for example, electric car sales rose by 70%, driven by government incentives and new models, though future growth may be impacted if it sees subsidy reductions.
- 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.
- Connected vehicles are fostering new business models centered on shared mobility, offering an alternative to traditional vehicle ownership.
- However, the share of cars that are electric (hybrid and full electric) continues to rise.
- The global automotive semiconductor market is projected to grow from USD 53.57 billion in 2025 to USD 86.81 billion by 2033, with a CAGR of 6.22%.
- The number of autonomous trucks on the road was expected to increase from roughly 150 in 2020 to over 2000 in 2021.
Nigerian startup Revive Earth develops the Revive Kit, to convert petrol vehicles into efficient EVs. 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. Henkel is using digital simulation tools to co-develop EV battery designs with automotive partners.
Evolving video marketing & environmental sustainability
Singapore’s adaptive traffic signal systems, along with real-time monitoring, ERP pricing, and predictive analytics, improve traffic efficiency. The automotive V2X market reached USD 2.87 billion in 2025 and is expected to expand to USD 18.67 billion by 2030 at a CAGR of 45.43%. This rapid expansion reflects its role in reducing road accidents, enabling connected mobility, and smart city systems worldwide. Moreover, the startup engineers the ECU platform with compliance to ISO for functional safety. It also aligns with ISO for cybersecurity and ensures reliability under demanding automotive standards. Also, automotive Ethernet and time-sensitive networking (TSN) provide deterministic in-vehicle data highways that keep safety-critical communication reliable.
Cars have become even more connected
In the UK, auto production surpassed one million units in 2023, marking a significant recovery. However, with the cessation of certain models, there are concerns about a potential production dip in 2024. New EV launches slated for 2025 are expected to reinvigorate the market, underscoring the importance of product innovation in sustaining growth. Advanced manufacturing technologies, such as megacasting and giga-stamping, are playing a pivotal role in enabling the industry’s transformation.
Jaguar Land Rover’s REALCAR project established a closed-loop recycling system that reclaims over 50K tonnes of aluminum scrap. The project avoids more than 500K tonnes of CO2 emissions by reducing the need for primary aluminum. Another instance is that of Michelin, which made a road-approved car tire with 45% sustainable materials. While the market for cars valued below $80k is expected to remain flat through 2031, the luxury car market is predicted to grow at up to 14% CAGR. While the past two years have been a challenge for most auto manufacturers, high-end luxury brands have experienced unexpected success.
Shift to Omni channel content strategy
Labor costs are another factor in the rise of local sourcing, with countries such as Taiwan, Cambodia, and Laos providing a lower-cost labor alternative to China. 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. Without subsidies, demand for EVs on the consumer end could also drastically decrease as was recently seen in Germany after government incentives ended. This may also see American automakers finding more challenges in exporting vehicles to regions in which regulations are more stringent. 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.