Top trends driving the automotive sector in 2025 EMG

Automotive Topics and Trends

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. However, there are yet to be more autonomous vehicles on the road due to the technological and safety challenges that must be overcome.

  • The present-day automotive industry is affected by innovative ideas and is ready to transform and evolve rapidly.
  • This reduces development costs and time while enhancing quality and analytical capabilities.
  • Major technology providers are also solidifying their roles in key areas such as ADAS, electrical/electronic (E/E) architectures, and cloud computing solutions.
  • The kit maintains original vehicle features to ensure a seamless transition and familiar driving experience.

No Surprise: Q4 Auto Sales Fell, EVs Fell Further

2025 is predicted to be a big year for self-driving taxi services, as companies look to re-imagine the future of the automotive and taxi-hailing industry. 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. Italian startup Moi combines thermosetting composite materials smart used car shopping starts with VIN and 3D printing to manufacture high-performance parts for the automotive industry.

  • In addition, the ecommerce automotive aftermarket market is worth an estimated $85.28 billion.
  • The US-based startup Launch Mobility develops a platform for a range of shared mobility solutions.
  • The standard ranges from SAE Level 0 (no automation) to SAE Level 5 (full automation).
  • The Latin America Energy Organisation (Olade), released a report showing that with the increase in supply, lower prices and tax incentives, Latin America and the Caribbean have great potential for EV growth.
  • The startup strengthens autonomous driving by providing reliable and production-ready Level 4 vehicles that expand commercial mobility solutions.

(c) 2025 Automotive Manufacturing Solutions

Additionally, Cube Intelligence offers ride-hailing and valet parking services for AVs, as well as smart parking management systems. The automotive manufacturing sector is entering 2025 amidst seismic shifts driven by electrification, digital transformation, and the growing mandate for sustainability. Recent developments highlight how manufacturers are leveraging advanced technologies and evolving their strategies to meet these challenges.

Automotive Topics and Trends

Kemet Automotive manufactures All-terrain Electric Vehicles

When demand for cars plummeted in the early days of the pandemic, auto manufacturers stopped ordering them and chip producers focused their attention elsewhere. The global automotive parts market has been steadily growing for the past twenty years. Europe now is the largest market for new plug-in electric vehicles, overtaking China’s first spot. The high prices and increasing interest rates are causing sales to decline for dealers and automakers nationwide.

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There are already over 30 million vehicles on the road that meet the Level 1 standard. 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). 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.

  • Michelin’s development of tyres composed of 45% sustainable materials is a noteworthy example of how companies are rethinking material usage to minimise their environmental footprint.
  • The startup’s technology utilizes hash codes to block malicious attacks or hacking attempts on autonomous cars and connected cars.
  • Semiconductor experts say manufacturers won’t see a return on investment if they build new foundries to meet the auto industry’s demand.
  • European manufacturers are leading the charge with plans for affordable EV models, such as Citroën and Renault.
  • Market leaders are adjusting their strategies to align with current trends, further emphasizing the shift towards EV-only vehicles.
  • The startup emphasizes comfort with electric doors, extended safety features, and panoramic views from all seats.
  • There will be continued demand for legacy process technology, with the construction and facilitation of the ESMC fab in Dresden progressing through 2025.

Automotive industry: Where companies stand today – and what is missing

  • 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%.
  • These advanced technologies are widely used across a great number of industries and the automotive domain is no exception.
  • Chip shortages have been causing myriad changes to trends that affect the automotive trends that are not all positive.
  • The continued global expansion of various players will require a strategic focus on supply chain efficiencies and may bring transformation and consolidation in the industry.
  • US-based startup TeraDAR designs its 4D imaging sensor that enhances sensor fusion by offering the Terahertz wavelength for vehicle perception.
  • Apart from this, reduced access to EV charging points remains a significant challenge, according to consumer trends in the automotive industry.

In the United States, the newly appointed administration has issued several executive orders that will likely have drastic impacts on both global and national automotive markets. One such order significantly impacts the future of EVs and EV infrastructure by rolling back policies that once supported their growth. It eliminates mandates that favour EVs, emphasising consumer choice and opposing regulations that make gasoline-powered vehicles less accessible. Subsidies and incentives for EVs are also under scrutiny, with plans to reconsider or eliminate government-imposed market advantages that favour them. Crucially, the order halts federal funding for EV infrastructure projects, such as charging station programs, until they align with the administration’s policy goals.

Eloy provides Connected Car Solutions

In 2022, the automotive industry’s automotive digital marketing spending increased to $17 billion and is predicted to keep growing in 2025. Experts anticipate a rise in digital advertising spending, driven by the growing mobile and social media usage rates. Increased government focus on charging networks will be needed to support the expanding EV fleet. The autonomous vehicle sector will advance as UN regulators lift their speed limit.

Global Startup Heat Map covers 4859 Innovative Automotive Startups & Scaleups

The UK’s automotive sector offers a compelling illustration of the progress being made. In the first half of 2023, electrified vehicle production surged by 70%, highlighting the rapid pace of investment in EV production capabilities, and continues to grow. As battery technologies evolve, the future promises breakthroughs in recyclability and energy efficiency.

Automotive Events Worldwide

It offers more sustainable 3D printing by developing its own large-scale printing hardware and using fully recycled composite materials. DAM can print parts as large as 1000x3000x1000mm using engineering-grade recycled plastics. Firstly, it accelerates the design and testing process through rapid prototyping. The Automotive Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation & startup scouting process.

WF Telematics improves Fleet and Asset Management

Its RC ONE driverless vehicle combines proprietary software and hardware with automotive-grade components to achieve low-speed autonomous operation. The sensor integrates chip-level innovations that reduce power consumption, simplify hardware complexity, and enable performance through a modular architecture. This design ensures durability, compact packaging, and flexible vehicle integration. Chinese startup Chipv offers automotive semiconductors that combine computing capabilities with motor control and power management.

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From encrypted communications to intrusion detection systems, cybersecurity advancements will ensure consumer trust as vehicles become smarter and more networked. The rise of such technologies reflects consumer demand for vehicles that are not just transportation tools but extensions of their digital ecosystems. Connected cars enable real-time navigation updates, remote diagnostics, and seamless smartphone integration. They also support smart city initiatives by offering data for traffic management and logistics automation. Established in 2007, SG Analytics is a Great Place to Work® (GPTW) certified company with a team of over 1200 employees and a presence across the U.S.A., the UK, Switzerland, Poland, and India.

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. Data-driven connectivity services and on-demand mobility will add up to $1.5 trillion to the automotive revenue pool by the year 2030. Electrification and autonomous vehicles will remain megatrends, transforming the sector and forcing automakers, suppliers, and dealers to adapt to new technologies and business methods.

More automakers collaborating with tech companies

Meanwhile, tech companies such as Uber and Lyft continue to expand their digital-first transportation solutions, creating a more competitive and diverse mobility landscape. Moreover, automakers offer features on demand as they are turning cars into service platforms. Likewise, projects USD billion in annual software and services revenue by 2030 from connected vehicles. The startup strengthens autonomous driving by providing reliable and production-ready Level 4 vehicles that expand commercial mobility solutions. Semiconductors enhance safety by enabling faster decisions and reducing accident risks.

Jeep Recon Aims to Define Electric Off-Roading

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.

Moreover, redundancy across sensor types improves resilience in poor weather or low visibility. Waymo highlights this in its robotaxi fleet, which processes multimodal data to complete over 250K paid rides weekly with high reliability. Tesla’s Full Self-Driving Computer processes high-rate image input, handling camera streams of up to approximately 2.5 billion pixels per second through its camera serial interface.

b. Charging Infrastructure Expansion

Several leading OEMs have already announced plans to adopt the chipset for their automotive solutions, including BYD, Nuro, XPENG, Volvo and Zeekr. Contact us today to make critical data-driven decisions, prompting accelerated business expansion and breakthrough performance. With customers becoming more demanding, rules and regulations are becoming stricter, and competition is stronger and faster. Many enterprises are moving ahead to create autonomous vehicles with all the multi-faceted benefits. To meet these new requirements and realize this long-term vision, approaches are required to push against the status quo.

Automotive Topics and Trends

Also, applications extend from adaptive cruise control, lane-keeping, and traffic jam assistance to robotaxis and driverless trucking. Advanced cameras paired with computer vision enable vehicles to classify road users, read signs, and recognize traffic signals, directly supporting ADAS and autonomous navigation. Silicon carbide (SiC) semiconductors improve energy efficiency in high-voltage EV systems by reducing losses and enhancing thermal management.

Indian startup Starkenn develops AI-powered ADAS to enhance vehicle safety and reduce road accidents. 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.

Increase in Digital Advertising Spending

Solid-state batteries increase energy density, shorten charging times, and give EVs longer ranges and greater convenience. 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.