Top 3 Automotive and Mobility Trends Shaping 2025

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Inside the architecture: How software-defined vehicle (SDV) platforms are built

As more manufacturers roll out affordable and appealing EV models, the market is shifting towards sustainable alternatives which are becoming more accessible to a broader consumer base. One of the most in-demand connectivity solutions is in-vehicle infotainment—the systems that provide both information and entertainment for enhanced driving experience. The currently available infotainment systems can connect with smartphones, sensors, ADAS (advanced driver assistance systems) as well as other in-vehicle and external systems. In 2025, a great number of car manufacturers are planning to improve their infotainment systems providing them with more and more advanced capabilities.

Nissans to Look For at Tokyo Auto Salon

The automotive industry stands at a thrilling crossroads, where innovation meets complexity and opportunity rides alongside challenge. The industry will continue to experience disruptions from geopolitical headwinds to regulatory and legislative developments, data security and economic challenges. Maximising the ROI to investors and stakeholders while remaining competitive will be priorities of the industry. 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. Figures from the last few years show that the EV adoption rate is still slow at a global level.

• Many auto manufacturers are considering integrating in-car payments to ease refueling, paying for parking or tolls, and even grocery shopping.
• Singapore-based startup Beam focuses on e-scooters to promote shared mobility in the Asia-Pacific region.
• NVIDIA’s DRIVE Thor, for instance, offers up to 2000 TOPS of AI inference performance.
• The booming e-commerce industry is essential to the global online car buying demand.
• As we look forward to 2025, RSM’s automotive professionals predict a slowdown overall in the growth of the industry as well as a reduction in overall margins and profitability.
• These 20 automotive companies are hand-picked based on criteria such as founding year, location, funding raised & more.
• AI, automation, and an ‘electric-first’ mindset are impacting every industry, and automotive is no exception.
• The Global Startup Heat Map showcases the distribution of 3836 exemplary startups and scaleups analyzed using the StartUs Insights Discovery Platform.

Top Three Automotive and Mobility Trends in 2025

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.

⚖️ Regulatory Hurdles and Ethical Dilemmas in Autonomous Tech

• Similarly, Skoda has embraced AI to navigate the complexities of modern manufacturing.
• We hope this blog helps you understand the upcoming automotive industry trends in 2025.
• It also advances autonomous driving by enabling adaptability across vehicle types and conditions.
• Additionally, customer data drives sales, optimizes supply chains and informs new vehicle designs.
• German startup Qumasoft offers a software-driven cybersecurity management solution for vehicles and components.
• Emerging companies are developing advanced sensing technologies to collect extensive vehicle data and enable vehicles to better understand their surroundings.
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Moreover, Avvenire has a strategic agreement with Daymak International Inc., Canada’s leading LEV distributor. Daymak will assemble Avvenire’s vehicles and distribute them through its network of over 200 dealers in 25 countries. Further, as part of larger decarbonization efforts, the Intergovernmental Panel on Climate Change (IPCC) emphasizes the contribution of EVs to the reduction of greenhouse gas emissions. Europe is projected to reach a 20.4% market share, while the US is likely to reach 11.2%.

How is the rise of shared mobility changing the automotive industry?

Meanwhile, environmental concerns will drive automakers to focus on sustainable manufacturing processes, alternative fuels, and circular economy principles. In 2024, the automotive industry is increasingly integrating cutting-edge technologies into its operations. Key automotive industry trends include a significant rise in electric vehicle production, a growing market for pre-owned vehicles, and an uptick in digital car sales. Alongside established technologies like AI and big data analytics, the industry is also embracing the Internet of Things (IoT) and blockchain for diverse applications. This technological evolution is reshaping the automotive landscape, driving innovation and efficiency.

• 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.
• By 2025, the sector is expected to experience continued technological advances, heightened sustainability efforts, and shifting market dynamics.
• These tools equip dealerships to handle inquiries efficiently, thus freeing time for other important tasks.
• These vehicles reduce emissions and feature innovative designs for modern commuters.

Top 10 Emerging Automotive Industry Trends 2025 and Beyond

The SAE, originally the Society of Automotive Engineers, has identified six levels of automation on the path to completely autonomous vehicles. The scale established by these six stages is essential for comprehending and characterizing self-driving technologies, which span from complete human driving to complete vehicle autonomy. Through V2X, vehicles can share information about road conditions, accidents, and traffic patterns, allowing for real-time decision-making.

Printing: Revolution in Automotive Manufacturing

Therefore, these were the five trends transforming the automotive industry this year and beyond. However, overcoming supply chain challenges takes time, so they are likely to remain in 2025. Sales of the most expensive cars are predicted to drive the most market growth through 2031.

Q) How Will Adapting to Evolving Tech Landscape Help Automakers?

• However, as with all complex bodies of rulesets, differing rules and regulatory mandates across the globe make it easier for international automakers to fall foul of compliance.
• Its technology transports ultra-high-bandwidth video and data from sensors to processors with ultra-low latency.
• After the pandemic, we developed a habit of shifting all requirements to online methods, and so do goes with the automobile industry.
• This includes upstream supply chains and downstream life cycle phases like recycling.
• This technology will be further developed through 2025, with the end results showing up in the following years.
• We don’t just regurgitate press releases—we road-trip, wrench, code, and occasionally sleep in dealership parking lots to bring you unfiltered truth.
• It also enables customers to schedule and monitor charging activity for improved efficiency.

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). US-based startup MotionSafe provides AI-powered cybersecurity solutions that protect connected vehicles from data breaches and cyber threats.

V2ROADS simplifies Vehicle-to-Everything (V2X) Connectivity

The startup’s technology allows these pods to adapt across industries, enhancing efficiency and safety in transporting people and goods. Singaporean startup EVIE Autonomous designs electric, autonomous shuttles for last-mile delivery, passenger transport, agriculture, and cargo movement. Its product range includes an electric modular chassis, the standard autonomous shuttle pod, and review 2025 car history before buying pods for other applications.

Automation of a biopharma enterprise’s internal budget processes

The SDVs market is set to reach 7.6 million units in 2025 from 6.2 million units in 2024. North America is commanding a 43% share as new-age OEMs focus on BEVs and software-driven architectures. Major technology providers are also solidifying their roles in key areas such as ADAS, electrical/electronic (E/E) architectures, and cloud computing solutions. 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.

• Manufacturers that successfully integrate these elements into their strategies will not only navigate the challenges of today but also position themselves as leaders in the future of mobility.
• These advancements guide the automotive sector toward a more intelligent, secure, and sustainable future.
• IoT creates more opportunities for manufacturers to market to consumers even after they’ve made a purchase.
• In addition, the unit supports multiple communication protocols, including CAN and FlexRay.
• Further, this also offers software solutions for fleet and asset tracking as well as connected cars.

Similarly, Skoda has embraced AI to navigate the complexities of modern manufacturing. Senegal-based startup Kemet Automotive manufactures all-terrain electric vehicles (EVs) designed for the road conditions. It builds connected EV models that operate reliably on diverse terrains and promotes sustainable mobility solutions for the region.

Sales of electric vehicles (EVs) are expected to grow, although governments may restructure their incentive programs. The automotive industry is transforming, fueled by evolving consumer demands, rapid technological advancements, and the urgency of addressing climate change. In 2025, the future of mobility will take a new shape in ways that promise smarter, more efficient, and more sustainable vehicles. Central to this evolution is the growing demand for electric vehicles and software-defined vehicles. British startup Cube Intelligence develops a blockchain-based security platform for autonomous vehicles. The startup’s technology utilizes hash codes to block malicious attacks or hacking attempts on autonomous cars and connected cars.

Tree Map reveals the Impact of the Top 10 Automotive Trends

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.

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. Tesla’s relentless drive to expand its global gigafactory network has been a defining feature of 2024. This article dives into the company’s ambitious production targets, including the development of Gigafactory Mexico and its innovative approaches to battery cell technology. By streamlining its supply chain through vertical integration, Tesla is raising the bar for EV production efficiency and sustainability. As 2024 comes to a close, the automotive manufacturing industry continues to accelerate its transformation.

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We evaluate our own startup data and complement these insights with external research, including industry reports, news articles, and market analyses. This process enables us to identify the most impactful and innovative trends in the automotive industry. Volvo Cars has announced plans to adopt large aluminium castings for its next-generation electric vehicles, aiming to simplify production and enhance sustainability. Meanwhile, Toyota is reported to be cautiously evaluating the technology, balancing its benefits against potential risks.