Perhaps the biggest shift here is in a new manufacturing landscape, with new decentralised hubs across the globe producing EVs for local markets.
The World Health Organization links 1.36 million annual deaths to road accidents.
Its image-signal processor manages approximately 1 billion pixels per second from high dynamic range (HDR) sensor inputs.
This approach ensures our reports provide reliable, actionable insights into the automotive innovation ecosystem while highlighting startups driving technological advancements in the industry.
“Advanced sensors will make a significant impact on ADAS solutions by providing more accurate data and improving safety maneuvers, from lane-keep-assist to auto parking and braking,” added Lyons.
Supply chains are being restructured to secure critical minerals and diversify chip sources.
AI, ML, and computing allow vehicles to process data points per second with split-second precision.

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.

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

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.

Automotive Topics and Trends

🌐 Trend 4: Global Supply Chain Resilience and Geopolitical Shifts

We don’t just regurgitate press releases—we road-trip, wrench, code, and occasionally sleep in dealership parking lots to bring you unfiltered truth. Our proprietary data blends EPA fuel-economy dumps, NHTSA complaint logs, insurance quote engines, and Reddit sentiment (yes, really). The final trend, and one which has been subject to a lot of attention (and hype), is driverless transportation.

This EV Just Set an Efficiency Record

This process enables us to identify the most impactful and innovative trends in the automobile industry. The latest technology in automobile industry have revolutionized the way vehicles are designed, manufactured, and sold, and the vehicles themselves have become much more than a means of transport. A recent survey reveals automotive companies have product development and launch cycles shorter than 18 months. As per market and industry experts, these four trends represent the future of the automotive industry. It won’t take too long for the CASE to accelerate the transition of the automotive industry from the way it has been working for hundreds of years.

The industry trends show a positive perspective for the times to come despite the expected global slowdown and supply chain disruptions.
AI and ML processors support object recognition, path planning, and decision-making.
Data from the past 10 years shows the sale of luxury vehicles making a steep climb in 2022.
Hybrid vehicles present the perfect compromise of lower emissions and enhanced fuel economy without the need for charging.
Therefore, you should focus on environmentally conscious manufacturing processes and eco-friendly cars like electric vehicles.
Also, advanced composites and recycled inputs reduce reliance on virgin resources.
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.
The US-based startup Launch Mobility develops a platform for a range of shared mobility solutions.

(c) 2025 Automotive Manufacturing Solutions

The Auto Industry Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation & startup scouting process. Norwegian startup Chargerly designs vehicle-to-building (V2B) solutions that integrate EVs with building energy systems to improve resilience, efficiency, and sustainability. Automotive drivers now expect vehicles to behave like smartphones, gaining features through over-the-air (OTA) updates. Regulations also support adoption, as safety and emissions standards require continuous updates and smarter architectures.

The rising preference for pre-owned/used cars

Motoreto strengthens supply chain resilience in the auto industry and drives nearshoring by aligning distribution, procurement, and sales with regional market needs. The startup enables dealerships, fleet managers, and manufacturers to manage inventory strategically. It also supports this process by integrating buybacks, residual value calculations, and automated stock analysis. The automotive industry is one of the most severely affected by supply chain disruptions.

Predictive maintenance powered by AI minimizes machine failures, while IoT networks provide detailed insights into factory operations.
The booming e-commerce industry is essential to the global online car buying demand.
The AI in Automotive industry in 2026 is evolving as AI, autonomous technologies, and software-defined vehicles reshape global mobility systems.
Gallium nitride (GaN) chips enable high-frequency switching, compact designs, and fast charging.
Learn why it matters more than organic traffic and how to improve your rankings and visibility.

Increasing production of digital vehicles

Also, radar ensures long-range detection of moving objects in all weather conditions, which is critical for adaptive cruise control and highway safety. US-based startup NuNami designs automotive semiconductors that provide reliable connectivity and safety-critical interfaces. Its modules integrate high-voltage isolation, digital error correction, and built-in self-testing to ensure secure data transfer and fault-tolerant operation in automotive systems. They also incorporate floating-point units that improve computational accuracy and performance. 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. The systems optimize the performance of electric power steering, vehicle pumps, cooling fans, and HVAC modules.

Automotive Topics and Trends

Integrated Powertrains will be Standard in EVs of the Future.

The Global Startup Heat Map showcases the distribution of 3836 exemplary startups and scaleups analyzed using the StartUs Insights Discovery Platform. It highlights high startup activity in Western Europe and the USA, followed by India. Unless otherwise noted, this page’s content was written by either an employee or a paid contractor of Semrush Inc.

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.

How is the automotive industry adapting to the shift towards electric vehicles?

We expect to see the concept of Mobility-as-a-Service (MaaS) develop through 2025. Initial deployments focus on simpler, grid-like cities such as Phoenix in the USA, Milton Keynes in the UK, and Singapore. Soon, this will expand to more complex urban environments as vehicle access becomes increasingly prioritised over ownership among the driving masses. The startup’s product range includes residential wallboxes from 7 to 22 kW and commercial chargers up to 132 kW. These units support CCS2 and CHAdeMO standards, ensuring broad adaptability across EV models. For example, Qualcomm released reports and white papers highlighting C-V2X as a critical capability for intelligent transportation systems.

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. The automotive industry is many things, but it is never idle; it thrives on the pulse of innovation, resilience in hard times, and mobility transformation. Every year brings with it new shifts in technology, consumer behaviour, and market dynamics, all of which shape and build automotive as a cornerstone industry of the world. The AI systems also learn about the driver’s preferences in music and temperature, making the driving experiences as enjoyable as possible.

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. 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 auto industry is one of the largest and most influential markets on the planet. Overall, Auto News suggests that analysts expect the chip shortage will EpicVIN’s exclusive insights on 2025 models result in a loss of 3 million in vehicle production in 2025. These are the old and traditional methods that buyers use to contact dealers or check your products or information about the brand on search engines. Buyers check all the accessible platforms like your social media, website, videos, and more. Buyers would be shifting to a new modernized model and will directly deal with OEMs (original equipment manufacturers) and the dealer will play the role of an agent. By the second quarter of 2024, global cyber-attacks had surged, with organisations facing an average of 1,636 attacks per week—a 30% year-on-year increase.

Legacy brands like Ford, GM, and Volkswagen are launching dedicated EV lines, while startups like Rivian and Lucid push luxury and performance boundaries. Supply chains are being restructured to secure critical minerals and diversify chip sources. The industry is also innovating in battery chemistry, thermal management, and vehicle-to-grid (V2G) tech to improve EV usability. As we progress through 2025, these trends will continue to reshape the automotive landscape.

Lexus LS Coupe Concept Could Be the Future of… Something

As climate change concerns intensify, automakers are increasingly pressured to reduce emissions, lower their environmental footprint, and embrace green technologies.
This technology will be further developed through 2025, with the end results showing up in the following years.
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.
While BEVs and PHEVs showed some growth in September 2024, the year-to-date figures for BEVs are still lower than last year, and PHEVs also experienced a notable decline.
Quantum computing accelerates material discovery and crash simulation, and edge computing and 5G offer real-time responsiveness in vehicles.
Search volume for “Infineon Technologies” has seen modest growth over the past 5 years.
Its vehicle tracking system provides 24/7 real-time visibility, supported by self-install and engineer-fitted options, with no minimum fleet size required.

Battery manufacturers have significantly reduced their production since early December due to the unpromising demand in the upcoming months. However, their preferences changed after some time, Buyers are willing to spend an amount, while looking for the best vehicles available in the market. Businesses would start optimizing their search guides as per the consumer’s preferences. To address these threats, proactive cyber security is a must for automakers and their partners across the value chain. Robust IoT (Internet of Things) security, regular software updates, and well-prepared incident response plans are the essential building blocks of a strong cyber security strategy. In addition to electrification, hydrogen fuel cell technology is gaining traction as a potential solution for zero-emission transportation.

Wireless and ultra-fast charging stations are also emerging as promising solutions to ease the transition to EVs further.
These vehicles use a re-assembly factory model, which allows upgrades and updates to extend their lifecycle.
On the other side of the globe, in Asia, China has implemented a landmark energy policy, aptly named the ‘Energy Law’, as of January 2025.
The increasing adoption of EVs globally drives the optimization of energy usage and enhances features like regenerative braking systems through sensor fusion technologies.
Meanwhile, we are seeing the economic case for sustainable materials strengthen as manufacturers realise operational efficiency gains and reduce their long-term costs.
The automotive industry is many things, but it is never idle; it thrives on the pulse of innovation, resilience in hard times, and mobility transformation.

📱 The Digital Dealership Experience and Online Sales

However, used electric powertrain vehicles are still few and far between, with the Society of Motor Manufacturers and Traders, in the UK, suggesting EVs make up 2.7% of the total used car market. These solutions decrease fleet wait times and cut pollution from petrol or diesel vehicles. Hungarian startup V2ROADS offers a range of products and services tailored to the V2X ecosystem. They provide V2X applications, services, and communication stacks specifically designed for on-board units (OBUs) and road-side units (RSUs). Further, its V2X-cloud system implementation guarantees uninterrupted connectivity between vehicles and infrastructure. Finally, its V2AP (V2X Integration Platform) is a server-side software to amplify V2X services to elevate road safety and efficiency.

European manufacturers are leading the charge with plans for affordable EV models, such as Citroën and Renault.
The goal is to enable cars to make decisions and navigate without human intervention.
Additionally, autonomous driving technology is set to dominate the industry, creating a safer and more efficient transportation system.
EV technology is the catalyst for transformation—it’s forcing OEMs to rethink vehicle architecture, supply chains, and customer engagement.
Dealerships can take advantage of different video formats, like how-to videos, car highlights, and customer testimonials.
It provides grants, loans, and incentives to expand domestic fabs, semiconductor R&D, and the broader supply chain.
While regulatory hurdles remain, 2025 will likely see significant progress in integrating these services into urban infrastructure, offering consumers affordable, sustainable alternatives to owning a car.

The solution recognizes the power requirements of every car and automatically controls the charging speed for each vehicle. Swedish startup Volta Trucks makes Volta Zero, an electric truck for urban deliveries. This vehicle’s design prioritizes driver safety and comfort, featuring a central driving position and panoramic vision for enhanced visibility. The Volta Zero addresses sustainability by enabling zero tailpipe emissions, contributing to cleaner city environments. It incorporates an intuitive infotainment system for efficient power management while minimizing driver distractions.

Printing: Revolution in Automotive Manufacturing

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. Trends span sustainable manufacturing, EV expansion, supply chain nearshoring, vehicle cybersecurity, automotive semiconductors, sensor fusion, autonomous driving, subscription models, SDVs, and V2X. They shift the industry toward electrification, digitalization, and connected mobility.

Improve DH58GOH9.7: Top Tips to Boost Performance and Efficiency Today

Meanwhile, Toyota is reported to be cautiously evaluating the technology, balancing its benefits against potential risks. Sustainability has evolved from a competitive advantage to an existential necessity for the automotive industry. Efforts to adopt circular economy practices are intensifying, with manufacturers exploring innovative ways to extend the lifecycle of materials and reduce waste.

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