Continuous change detection triggers automatic cloud updates to ensure up-to-date navigation information. South Korean startup BOS Semiconductors builds Eagle-N, an AI accelerator for in-vehicle infotainment (IVI) and ADAS. It uses Tenstorrent’s Tensix NPU core to deliver up to 250 tera operations per second (TOPS) for efficient AI processing. The Global Startup Heat Map showcases the distribution of 6000+ exemplary startups and scaleups analyzed using the StartUs Insights Discovery Platform.
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The rise of online car buying and digital retail experiences is forcing dealerships and OEMs to innovate. Demand for customizable, software-updatable vehicles is growing, as is interest in electric and hybrid powertrains. Automakers must balance traditional desires for performance and style with new expectations for tech integration and environmental responsibility. The inherent flexibility of electric powertrains is enabling automakers to reimagine vehicle design, resulting in lighter, more efficient vehicles. Improved range, faster charging times and enhanced performance are making EVs not just environmentally conscious choices, but compelling alternatives for everyday use.
AI to Impact All of the Automotive Trends
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.
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Discover how these shifts improve charging, safety, and sustainability and what they mean for your business. The AI systems also learn about the driver’s preferences in music and temperature, making the driving experiences as enjoyable as possible. Many auto manufacturers are considering integrating in-car payments to ease refueling, paying for parking or tolls, and even grocery shopping.
- The global automotive sensor fusion market is projected to reach USD 3.3 billion by 2030 at a 42.4% CAGR.
- These articles highlight not just the progress made but also the opportunities and challenges that lie ahead.
- Hydrogen-powered vehicles produce only water vapor as a byproduct, making them a strong contender for sectors that are harder to electrify, such as long-haul trucking and commercial transportation.
- In 2025, the automotive industry will face global headwinds such as the energy crisis, slower global demand, and ongoing supply-chain issues.
- However, automotive executives need help as they focus on new technology that meets consumer and regulatory demands.
- ABB is investing in advanced software that simulates automotive painting processes, cutting costs by up to 30%.
- As net-zero targets become the norm, the reliance on renewable energy is only set to grow.
- Telematics adoption in logistics and transportation industries is driven by features such as real-time tracking, driver behavior analysis, and fuel consumption reduction.
Shift Toward Mobility Services
This will further usher the industry into a new era of smarter, more connected, and more efficient vehicles. The startup’s platform combines augmented reality (AR), smart camera, and surround-view monitoring to illuminate the route on turns, curves, slopes as well as complex junctions. This assists the drivers in keeping lanes, prevents collisions, and enables autonomous driving options.
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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. And it is projected to widen to 45% by 2030 due to lower labor and freight costs. Also, advanced composites and recycled inputs reduce reliance on virgin resources.
Printing: Revolution in Automotive Manufacturing
- The big data market in automotive is growing, with a projected market size of USD 5.92 billion in 2024, expanding at a CAGR of 16.78% to reach USD 12.86 billion by 2029.
- Modern vehicles are now equipped with a unique digital identity, making it easier to track and share data for applications like insurance, driver safety, predictive maintenance, and fleet management.
- 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.
- With the Middle East emerging as a significant player in the EV supply chain, manufacturers must adapt their strategies to seize these new opportunities.
- EVs also enable new business models like vehicle-to-grid services and battery leasing.
- This communication system is crucial for the safe deployment of autonomous vehicles, as it will enable them to “talk” to other vehicles and infrastructure, reducing the risk of accidents.
These all-inclusive options reduce the financial burdens of ownership, especially for urban users. Moreover, economic efficiency improves adoption, as autonomous vehicles reduce transport costs by up to 40% and maximize logistics utilization. Probably the most important trend in the automotive industry is the worldwide shift to electric vehicles (EVs). The emergence of CASE (Connected, Autonomous, Shared, and Electrified) technologies is changing the industry like never before. This will drive growth opportunities for automakers in the years to come and shape the automotive industry outlook in the future. Moreover, the growth of the automotive IoT market signals a strong trend toward connectivity.
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These tools equip dealerships to handle inquiries efficiently, thus freeing time for other important tasks. They further assist with management, maintenance, and repair appointments, as well as streamlining operations. Voice search assistants help optimize interfaces for advertisements and voice search queries.
Automotive purchases will shift to online
While fully autonomous vehicles (AVs) are not yet standard on the roads, significant advancements are being made in 2025 toward realizing the vision of driverless cars. Companies like Tesla, Waymo, and others are working tirelessly to refine the technology, which includes machine learning, computer vision, and lidar (light detection and ranging) systems. The US-based startup Apex AI enables automotive companies to implement complex AI solutions. Apex.OS runs on automotive electronic control units (ECUs) and offers robust, reliable, and secure APIs to develop autonomous mobility solutions. ApexAutonomy offers modules to build 3D perception, localization, and control to enable autonomous vehicles.
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A few hybrid models are priced below their EV and ICE counterparts, attracting Chinese consumers to hybrids, especially plug-in hybrid (PHEV) and extended-range hybrid (EREV) models. Further, its Craidlr ATX-G gateways are integral to the surface temperature & vibration monitoring solution, catering to diverse automotive testing needs. These gateways, combined with advanced transducers, facilitate real-time data collection. The Global Startup Heat Map below highlights the global distribution of the 4800+ exemplary startups & scaleups that we analyzed for this research. Created through the StartUs Insights Discovery Platform, the Heat Map reveals high startup activity in the US, Europe, and India.
Increasing production of digital vehicles
Moreover, car connectivity transforms the driving experience by integrating with real-time systems and smart gadgets. These advancements guide the automotive sector toward a more intelligent, secure, and sustainable future. It includes journey replays, geofencing, and driver behavior monitoring to enhance fleet efficiency and safety. The startup also offers Leap EasyTrack, a vehicle tracking solution that allows for quick and easy self-installation, making it simple to transfer between vehicles without downtime. Indian startup Starkenn develops AI-powered ADAS to enhance vehicle safety and reduce road accidents.
Moreover, the startup offers fleet-grade protection through continuous monitoring and predictive alerts. Its intelligent asset tracking defends vehicles against spoofing, ransomware, and remote control attempts. Also, EV charging infrastructure requires strong cybersecurity, as attackers target charging stations for data theft or service disruption. The startup also operates PartSmart, a real-time parts ordering platform that connects insurers, workshops, fleet owners, and suppliers. The platform enables visibility across the entire claims cycle and supports both OEM and aftermarket sourcing. AI and predictive analytics enhance demand forecasting, risk detection, and sourcing optimization.
This is not just a European problem with Volkswagen and Stellantis, as Honda and Nissan merge, and Ford and General Motors struggle. Global economic slowdowns and fierce competition from Chinese manufacturers have slowed the growth of EVs. In 2025, the automotive industry’s digital marketing spending is predicted to keep growing. 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. UK-based startup Distributed Additive Manufacturing (DAM) offers 3D printing services including design, building, and finishing of parts.
- Along with an increase in refueling stations, look to see an increase in the variety of FCEVs available to consumers in the coming years.
- AI and predictive analytics enhance demand forecasting, risk detection, and sourcing optimization.
- This may also see American automakers finding more challenges in exporting vehicles to regions in which regulations are more stringent.
- This shift is driven by the growing need for more efficient power management in electric vehicles, resulting in smarter and more streamlined EV designs.
This makes sense, as 83% of car customers already said they wish they could save time by shopping online. This number is expected to have risen in 2020 as dealers everywhere turned to digital channels. As of 2023, the two now equip Ford and Lincoln vehicles with a built-in Android operating system. In addition, TuSimple has partnered with Navistar and UPS to test its software under supervised driving conditions.
- ADAS adoption enables lane-keeping, adaptive cruise control, and emergency braking to rely on AI-powered processors and sensor fusion chips.
- Furthermore, the need for EV charging stations is no longer a challenge to the electric vehicle market.
- These systems can detect objects, evaluate road environments, and make real-time decisions to further enhance safety and comfort.
- Hyundai plans to ramp up its hybrid offerings under its ‘Hyundai Way’ strategy from seven to 14 models by 2030.
- Our new generation which is called millennials or Genz researches everything online before the actual purchase.
- Additionally, smart virtual assistants are emerging as a key HMI feature, aiding drivers and passengers in interacting with vehicles and external services.
Phenikaa X provides Intelligent Transportation Solutions
Also, adoption rises quickly, company car selection supported by data with China reaching 50% EV penetration in 2024, and in India, over 18.8 lakh EVs are supported under FAME schemes till June 2025 by the government. Declining battery costs move EVs closer to price parity with combustion vehicles. Sales of the most expensive cars are predicted to drive the most market growth through 2031.
Electrified Vehicles Top 50% of Sales in China
- The SDVs market is set to reach 7.6 million units in 2025 from 6.2 million units in 2024.
- Dealerships can take advantage of different video formats, like how-to videos, car highlights, and customer testimonials.
- The automotive cybersecurity market is projected to reach USD 5.11 billion in 2025, with a CAGR of 18.14% from 2024 to 2034.
- Further, through its smart management app, it enables users to schedule charging, monitor consumption, and manage fleets from one platform.
- Today, you can hear about renewable energy from every corner of the Internet, and it’s no wonder why.
- Automotive industry trends refer to changes in patterns within the automotive sector that influence vehicle design, production, marketing, and usage.
Companies like Huawei are allocating significant resources to developing EVs with cutting-edge ADAS and autonomous features. These technologies aim to reduce accidents and provide a safer driving experience. 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.
- They play pivotal roles in guiding self-driving cars, managing fleets, enhancing driver safety, and refining services such as vehicle inspections and insurance.
- Regulations such as Europe’s General Safety Regulation 2 (GSR2), US mandates for automatic emergency braking, and China’s target of 70% Level 2-3 adoption by 2025 compel automakers to improve deployment.
- Last year, the European Union updated the General Safety Regulation (GSR) and establishes mandatory safety requirements for cars sold in the EU.
- Its electronic control unit (ECU) platform combines AUTOSAR software modules with customizable hardware.
- Power say that sales of cars worth more than $100k were outselling lower-priced cars 3 to 1 in the first quarter of 2022.
- These systems will become increasingly sophisticated, moving toward semi-autonomous driving capabilities and improving the overall driving experience.
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.
Indian startup RevitsOne offers AI-powered fleet-management software that is suitable for fleets of varying sizes. The startup’s vehicle management system provides insights into speed, running vitals, and health information. Drivers benefit from Voicera ID, a voice-based virtual assistant that helps them keep track of the information they need. Additionally, the onboard speed recorder limits the speed to discourage dangerous driving behaviors. Singapore-based startup Beam focuses on e-scooters to promote shared mobility in the Asia-Pacific region. Their scooters use an aviation-grade aluminum frame and are customized for sharing, safety, reliability, and durability.
It highlights high startup activity in Western Europe and the United States, followed by India. From these, 20 promising startups are featured below, selected based on factors like founding year, location, and funding. 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).