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.

• This Electric Vehicles Market Report 2026 examines industry growth, investment flows, patent activity, and global hubs shaping the EV ecosystem.
• As 5G and the Internet of Things (IoT) continue their growth, vehicles are becoming more and more connected.
• Major automotive manufacturers are responding by rethinking their revenue models and investing heavily in on-demand vehicle access services.
• This is fueled by increased vehicle production and sales in China, Japan, and South Korea.
• Toyota intends to power its battery plant in North Carolina with renewable energy by 2025.
• These tools equip dealerships to handle inquiries efficiently, thus freeing time for other important tasks.

Apex AI offers an Automotive Data Management Platform

Automotive semiconductors and sensor fusion enhance safety, efficiency, and intelligence. This approach ensures our reports provide reliable, actionable insights into the automobile innovation ecosystem while highlighting startups driving technological advancements trends behind America’s most popular cars in the industry. This process enables us to identify the most impactful and innovative trends in the automobile industry. Along with battery-powered electric vehicles, fuel cell electric vehicles (FCEV) are another alternative to internal combustion engines. Fewer new vehicle purchases mean consumers hold onto their vehicles longer, reducing the available used inventory and increasing prices.

Future Readiness Monitor: Automotive Industry Report

Mercedes-Benz is also using generative AI to include conversational assistants for improving user experiences and redefining in-car interactions. Usage-based insurance (UBI) models use driving behavior data to provide customized premiums and are gaining popularity. From 2024 to 2029, the insurance telematics industry is projected to grow at a CAGR of 17.6%.

Top 10 Emerging Automotive Industry Trends 2025 and Beyond

For instance, Audi and BMW vehicles exchanged sensor data, including camera feeds, during 5G-V2X Direct demonstrations in Berlin. This data alerted drivers to pedestrians and cyclists before they became visible. Dedicated short-range communication (DSRC) based on IEEE 802.11p facilitates direct vehicle-to-vehicle and vehicle-to-infrastructure communication. For instance, Volkswagen integrated DSRC-based V2X technology into its Golf 8 and its ID electric series in Europe. Moreover, it enables companies to customize their fleet by choosing preferred brands, models, and service options, ranging from premium to ultra-luxury vehicles. Moreover, blockchain and digital contracts enhance security and automate billing.

• However, the share of cars that are electric (hybrid and full electric) continues to rise.
• However, interest rates may remain high as the Federal Reserve works to lower inflation.
• In parallel, the startup offers carAISuite, an AI-driven tool that automates engineering and compliance activities.
• As the technology evolves and becomes more affordable for the industry, it opens more and more opportunities every year.
• Moreover, lightweight and bio-based materials are used to reduce vehicle weight and improve fuel efficiency, which aligns with sustainability goals.
• US-based startup Aeluma develops semiconductor technology for mobile devices, AI, AR/VR, autonomous systems, and other applications.
• 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.
• Also, GPS and V2X connectivity improve fleet distribution and service reliability.

Major transportation industry trends in 2026

These technologies enhance safety, efficiency, and user experience across vehicles. 2025 is no exception—automotive manufacturers are expected to continue implementing more and more advanced safety features in their vehicles. Last year, the European Union updated the General Safety Regulation (GSR) and establishes mandatory safety requirements for cars sold in the EU. According to this regulation, starting from 2024, the following features become compulsory.

Industry 4.0

EV technology is the catalyst for transformation—it’s forcing OEMs to rethink vehicle architecture, supply chains, and customer engagement. Battery improvements reduce costs and increase range, making EVs more accessible. EVs also enable new business models like vehicle-to-grid services and battery leasing. This tech shift is also accelerating the move toward software-defined vehicles and connected ecosystems. Moreover, high-performance computing platforms supply the processing power needed to run these systems in real time. NVIDIA’s DRIVE Thor, for instance, offers up to 2000 TOPS of AI inference performance.

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

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. Tesla reportedly rewrote the software it uses in its vehicles so they could run on a different type of chip. They’re so important that one analyst said, “semiconductors have moved ahead of oil as the world’s key commodity input for growth”. However, the demand for parts is also being diminished by the increasing quality of newly manufactured vehicle parts. In addition, the ecommerce automotive aftermarket market is worth an estimated $85.28 billion.

• Automakers reduce reliance on distant suppliers as trade tensions and conflicts expose the fragility of global networks.
• They are used by the automotive industry for car manufacturing, employee training as well as vehicle sales and marketing.
• North America led the AV market in 2024 with over 40% revenue share, while Asia-Pacific is the fastest-growing region, with an expected CAGR of 35% from 2024 to 2033.
• Indian startup SWYTCHD manages vehicle subscription services that focus on electric two-wheelers and cars.
• AI, additive manufacturing, the Internet of Things, and 5G have become sources of product innovation and manufacturing efficiency, which in turn has led to revolutionary changes in customer experience.
• The future of automotive industry trends suggests that the automotive parts market will grow aggressively due to a growing demand for replacement parts and an increase in vehicle production.
• Long journeys are no longer exhausting and tedious, as everyone on board can watch movies, stream their favorite music, and play games through pre-loaded entertainment services.

What is the scope of emerging auto trends?

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.

Electric Vehicle (EV) Expansion: EV Sales Reached 17M Units in 2024

• Make sure you stand out from your peers by focusing on every intricate detail through marketing and staying at the top of buyers’ minds.
• Innovations like solid-state batteries are set to revolutionise manufacturing priorities and reshape the EV supply chain.
• In 2025, automakers will continue improving AI systems’ reliability, reducing the likelihood of accidents, and enabling safer autonomous driving experiences.
• Self-driving vehicles rely on artificial intelligence (AI) and machine learning algorithms to process real-time data from cameras, sensors, and radars.
• North America is commanding a 43% share as new-age OEMs focus on BEVs and software-driven architectures.

This approach enhances flexibility across its global operations, ensuring a rapid response to shifting market demands. Similarly, Skoda has embraced AI to navigate the complexities of modern manufacturing. Shared mobility reduces individual car ownership, especially in urban areas, impacting vehicle sales volumes but increasing demand for fleet vehicles and mobility-as-a-service (MaaS) platforms.

Autonomous Vehicles are Changing the Face of the Auto Industry

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.

a. Carbon Neutrality Goals

Ransomware-related costs in the automotive industry skyrocketed from $74.7 million to $209.6 million in just the first half of 2023. System downtime caused by these attacks reached $1.99 billion, compared to $1.3 billion in 2021. AI, automation, and an ‘electric-first’ mindset are impacting every industry, and automotive is no exception.

• For instance, Audi and BMW vehicles exchanged sensor data, including camera feeds, during 5G-V2X Direct demonstrations in Berlin.
• The integration of renewable energy into automotive production took centre stage in 2024.
• This report explores the top 10 electric vehicle trends shaping the industry in 2026.
• Recent auto trends show that customers prefer to experience a car or dealership before purchasing.
• They also facilitate the management of maintenance and repair appointments, streamlining dealership operations.
• Sales of passenger cars were down 25% in the first half of 2022 compared to the same period in 2021.
• This has led to a shift away from traditional automotive infrastructure, which focused on powertrains, interiors, electrical systems, and safety systems.
• The global ADAS market is projected to reach USD 36.6 billion by 2025, with a CAGR of 10.8% from 2025 to 2037.
• Overall, Auto News suggests that analysts expect the chip shortage will result in a loss of 3 million in vehicle production in 2025.

is set to be a big year for automotive production

Its product range includes an electric modular chassis, the standard autonomous shuttle pod, and pods for other applications. The need for high-performance processors is also growing as a result of software-defined vehicles (SDVs), which rely on semiconductors for ongoing updates and subscription-based services. 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%. Join us today and access AMS’s wealth of global news, insights, intelligence and content, and to make valuable connections with your peers from across the automotive industry. Volkswagen is using digital twin technology at its Wolfsburg plant to simulate and optimise production processes for the Tayron SUV.

Autonomous tech will likely be bundled with subscription services, reshaping mobility economics. From electric vehicles zipping past gas guzzlers to cars that update themselves like your smartphone, the industry is in the middle of a revolution. 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. The current trends in the automotive industry seen in previous years will remain in 2025 and are likely to become automotive future trends. We hope this blog helps you understand the upcoming automotive industry trends in 2025.

Users discover the nearest Beam scooter on the app and park it in visible public spots after the ride. Further, the micro-mobility platform offers a sustainable alternative to short-distance rides and helps regulate traffic flow in cities. German startup ChargeX offers a modular EV charging solution that converts parking spaces into charging stations. 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 solution recognizes the power requirements of every car and automatically controls the charging speed for each vehicle.

c. Circular Economy in Automotive Manufacturing

Issues such as liability in the event of an accident, cybersecurity measures to prevent hacking, and how to deal with AVs in mixed-traffic environments (with human drivers) will need to be addressed. One critical challenge in transitioning to electric mobility is the availability and accessibility of charging infrastructure. By 2025, significant investments in fast-charging networks will be essential for EV adoption to reach mass-market penetration. Advanced Driver Assistance Systems (ADAS) and autonomous driving technologies continue to evolve, bringing unprecedented changes to vehicle safety and functionality.

🤖 Over-the-Air (OTA) Updates and Personalized Driving Experiences

The best-selling vehicle in the US, the Ford F-Series pickup, has an average price of $66,451, placing it in the luxury category. In this world where we are shifting to EVs, individuals usually prefer to shift to smaller vehicles which are much more affordable and environmentally friendly. They are much more convenient to use in these congested cities and parking these vehicles is much easier. Younger generations, especially Genz or millennials prefer these vehicles as they are much more attractive. The shortage may not be as bad as it was in the early 2020s; however, even with a larger output, a report has found that only 26% of organisations that are reliant on these chips have a sufficient supply. This leaves the vast majority of companies concerned with their supply and wanting for more.

Q) What are the new trends in the automotive industry?

Lithium-ion battery prices have fallen by 89% over the last decade, reaching a price of $137/kWh in 2020. After a disappointing 2019 in terms of EV sales, 2020 sales surpassed expectations, growing over 40% year-over-year. The industry itself, however, has remained relatively stable over the last decade.

Its product suite includes a collision warning system, Starkenn Safe which uses radar to detect obstacles and alert drivers of potential collisions. The Starkenn Brake Safe, a collision mitigation system features automatic emergency braking in critical scenarios. 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. Car connectivity and telematics improve the driving experience with real-time data integration.