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. They also emphasize that regulatory support and infrastructure readiness are essential for large-scale deployment.
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These systems aim to minimise human intervention, improve decision-making, and enhance overall efficiency, paving the way for smarter supply chain operations. However, the primary function of these cars is not just to entertain they can connect to other vehicles (V2V), pedestrians (V2P), infrastructure (V2I), and cloud (V2C). Lastly, there’s even a term “vehicle-to-everything” (V2X), which includes all types of vehicle communication.
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The charging infrastructure is more vulnerable as a result of the quick uptake of EVs, which hackers may attack to obtain customer information or interfere with services. Advances in solid-state batteries promise higher energy density and faster charging times, while the expansion of ultra-fast chargers addresses key barriers to EV adoption. With the growing popularity of bidirectional charging (V2G) technology, EVs now contribute energy to the grid to improve stability. Volkswagen’s Traton Group, recognising the urgency of addressing these bottlenecks, is planning a third battery assembly plant in Europe.
What impact do connected cars have on the automotive market?
After the pandemic, we developed a habit of shifting all requirements to online methods, and so do goes with the automobile industry. Our new generation which is called millennials or Genz researches everything online before the actual purchase. Car dealerships are no exception, as recent auto trends reveal that customers prefer to experience a car or dealership before purchasing.
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- As per the traditional method, we used to visit the dealer and purchase vehicles from him, and the dealer used to make transactions with OEMs.
- Automakers are investing in cybersecurity technologies such as hardware security modules (HSMs), AI-based intrusion detection systems, and secure over-the-air (OTA) updates to address these challenges.
- Shared mobility also influences vehicle design toward durability, modularity, and connectivity.
- Henkel is using digital simulation tools to co-develop EV battery designs with automotive partners.
- Let’s consider the recent trends in automobile industry related to the application of latest technologies.
- The number of connected cars worldwide will likely reach 400 million by 2025 up from 237 million in 2021.
These vehicles improve public transport safety by reducing accidents caused by human error. LiDAR sensors enable precise 3D mapping, crucial for vehicle navigation and obstacle detection. AI algorithms process vast data from sensors and cameras, enhancing decision-making for safe, efficient driving. French startup Airnity provides a cellular connectivity platform for the automotive industry to enhance connected car operations.
- Emerging companies are working to build the first fully autonomous vehicle for city roads, which in turn accelerates the advancements in-vehicle connectivity and IoT.
- The autonomous vehicle sector will advance as UN regulators lift their speed limit.
- Compared to EVs, they don’t require charging, but at the same time reduce carbon emissions.
- 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.
- It encourages OEMs to develop subscription models, short-term rentals, and multi-modal transport integration.
- These vehicles use a re-assembly factory model, which allows upgrades and updates to extend their lifecycle.
- The platform enables visibility across the entire claims cycle and supports both OEM and aftermarket sourcing.
- Self-driving taxis are already available in parts of China and several US cities.
Software-Defined Vehicles (SDVs) will Witness High Demand
Major automakers, such as General Motors, are expanding telematics offerings by integrating subscription-based services like OnStar as standard features across models. Partnerships between telecom providers and automakers, like Targa Telematics’ collaboration with Renault, are enhancing connectivity solutions, particularly for fleet management. The European Union’s Vehicle General Safety Regulation (GSR2), effective July 2024, mandates several ADAS features in new vehicles. 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. Miniaturization trends in automotive electronics enable the integration of multiple sensors into compact systems to improve vehicle performance while reducing costs. US-based startup Aeluma develops semiconductor technology for mobile devices, AI, AR/VR, autonomous systems, and other applications.
- The automotive industry is transforming, fueled by evolving consumer demands, rapid technological advancements, and the urgency of addressing climate change.
- They offer a safe, comfortable, and convenient multimedia experience with on-demand features that allow users to browse the web while in their vehicle.
- Connected vehicles are entering a software-defined era where 5G, AI, and V2X convert cars into real-time data nodes that communicate smoothly with infrastructure, other vehicles, and the cloud.
- By 2027, the global automotive AI market is expected to grow from its 2022 valuation of USD 2.3 billion to USD 7.0 billion, with a compound annual growth rate (CAGR) of 24.1%.
- Emerging automotive industry trends include the increased adoption of electric vehicles (EVs), advanced semiconductors, and the growing focus on vehicle cybersecurity.
- Any infrastructure that’s built after January 1, 2023, and utilizes renewable hydrogen will be eligible for up to $200k.
- Therefore, websites need to be easily readable and accessible across mobile devices, with clear calls to action.
🚗 Subscription Models and Car-Sharing Services
European manufacturers are leading the charge with plans for affordable EV models, such as Citroën and Renault. These budget-friendly models aim to stimulate adoption following a dip in EV sales. Consumers research their preferred car on their mobile phones, looking for the best options, offers, and dealerships. Therefore, websites need to be easily readable and accessible across mobile devices, with clear calls to action. Brands need to provide specific offers by analyzing their customer’s needs, preferences, and behavior.
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- New EV launches slated for 2025 are expected to reinvigorate the market, underscoring the importance of product innovation in sustaining growth.
- This rapid expansion reflects its role in reducing road accidents, enabling connected mobility, and smart city systems worldwide.
- In the Electric Vehicle Market, 2025 Will Be the Year of More – More Models, More Incentives, More Discounting, More Advertising, and More Sales Muscle.
- Battery improvements reduce costs and increase range, making EVs more accessible.
- Battery manufacturers have significantly reduced their production since early December due to the unpromising demand in the upcoming months.
- Virtual car shopping is the new norm and will remain a significant car industry trend for years.
- Advances in solid-state batteries promise higher energy density and faster charging times, while the expansion of ultra-fast chargers addresses key barriers to EV adoption.
They improve energy efficiency through wide-bandgap devices that extend EV range and minimize charging times. The semiconductors also enable infotainment, voice assistants, and AI-driven interfaces for a better user experience. Swedish startup Intended Future utilizes data-driven design benchmarking tools for the automotive industry. These advanced technologies are widely used across a great number of industries and the automotive domain is no exception. They are used by the automotive industry for car manufacturing, employee training as well as vehicle sales and marketing. However, although the Chinese EV market may take some time to adapt to the new subsidy-free scenario, the situation is optimistic.
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- The number of autonomous trucks on the road was expected to increase from roughly 150 in 2020 to over 2000 in 2021.
- 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.
- AI and ML solutions process multimodal sensor data to power autonomy, predictive maintenance, and personalization.
- In India, for example, electric car sales rose by 70%, driven by government incentives and new models, though future growth may be impacted if it sees subsidy reductions.
- Connected vehicles are fostering new business models centered on shared mobility, offering an alternative to traditional vehicle ownership.
Integrating vehicle-to-everything (V2X) communication further improves connectivity and safety. German startup Qumasoft offers a software-driven cybersecurity management solution for vehicles and components. Its platform automates the cybersecurity management system (CSMS) and product cybersecurity evidence (PCSE) to ensure compliance with UNECE R 155 and ISO/SAE 21434. We evaluate our own startup data and complement these insights with external research, including industry reports, news articles, and market analyses.
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The platform allows autonomous vehicles to discover AVs, service providers, or clients around them. The vehicle-to-vehicle (V2V) communication is either on-blockchain, with smart contracts or off-blockchain using DAV’s protocols. The startup develops protocols for drone charging networks, drone flight planning, and open mobility. Big data and advanced analytics play a crucial role in decision-making throughout a vehicle’s lifecycle. Vehicle-generated data facilitates predictive maintenance, fleet management, and accident response. Additionally, customer data drives sales, optimizes supply chains and informs new vehicle designs.
It integrates templates, examples, and practices aligned with ISO/SAE 21434, Automotive SPICE for Cybersecurity, and VDA guidelines. Similarly, hardware security modules (HSMs) protect encryption keys and authenticate critical functions, with secure microcontrollers embedded into electronic control units (ECUs). Additionally, Motoreto streamlines operations with features such as multi-channel publishing, branded digital tools, and integrated logistics and financing. It produces alternating current (AC) wallboxes for residential charging up to 22 kW and AC column stations for companies and municipalities. It also manufactures direct current (DC) fast chargers with capacities of up to 240 kW. Vehicle-to-grid solutions convert EVs into mobile energy storage units by allowing bidirectional energy flow with the grid.
Labor costs are another factor in the rise of local sourcing, with countries such as Taiwan, Cambodia, and Laos providing a lower-cost labor alternative to China. Given the opportunity to significantly disrupt private transport and shape the future of the automotive industry, companies are expected to continue investing in autonomous vehicles in 2025. Without subsidies, demand for EVs on the consumer end could also drastically decrease as was recently seen in Germany after government incentives ended. This may also see American automakers finding more challenges in exporting vehicles to regions in which regulations are more stringent. At the same time, a limited EV infrastructure and uneven policy application dampen the pace of meaningful progress throughout the region. When it comes to the benefits of connected cars, it seems that drivers are more willing to allow for data collection, too.
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.
- Self-driving vehicles rely on artificial intelligence (AI) and machine learning algorithms to process real-time data from cameras, sensors, and radars.
- Data from the past 10 years shows the sale of luxury vehicles making a steep climb in 2022.
- 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.
- Its image-signal processor manages approximately 1 billion pixels per second from high dynamic range (HDR) sensor inputs.
- It is also integrated into fleet management dashboards and security operations centers (SOC).
Related insights
As the technology evolves and becomes more affordable for the industry, it opens more and more opportunities every year. 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. Finally, automotive manufacturers are increasingly adopting PMO software to standardize the execution of complex projects with globally distributed teams and ensure compliance with industry standards.
Automakers reduce reliance on distant suppliers as trade tensions and conflicts expose the fragility of global networks. Also, advanced battery management systems improve safety, extend battery life, and optimize performance. Automakers integrate these systems to offer more reliable vehicles across global markets. In 2024, EV sales reached 17 million units, accounting for over 20% of global new car sales. Also, the EV market is projected to reach USD 6.16 trillion by 2035 at a CAGR of 25.32%. Autonomous driving demonstrates scalable deployment across passenger and freight use cases, and subscription models give consumers flexible access to vehicles.
The convergence of AI-driven production systems, the scaling of EV capabilities, and the adoption of sustainable practices will reshape the competitive landscape. 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. Artificial Intelligence and Smart Factory technologies are no longer aspirational but integral to modern automotive manufacturing. Stellantis, for instance, has demonstrated how AI can transform production efficiency. By incorporating AI tools, the company has reduced production costs while accelerating vehicle launch timelines.
Its technology transports ultra-high-bandwidth video and data from sensors to processors with ultra-low latency. For this, it uses advanced system-on-chips (SoCs) that integrate mixed-signal analog and digital signal processing (DSP) algorithms. This includes driver monitoring systems, adaptive cruise control, and collision avoidance systems.
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Efforts to adopt circular economy practices are intensifying, with manufacturers exploring innovative ways to extend the lifecycle of materials and reduce waste. 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. As we reflect on 2024, it’s clear that this year was a turning point for automotive manufacturing. The strides made in EV battery innovation, renewable energy adoption, and sustainability are paving the way for a more resilient and forward-thinking industry.
Key Technology Trends in the Automotive Industry in 2025
In India, for example, electric minimizing risk when buying a used Porsche car sales rose by 70%, driven by government incentives and new models, though future growth may be impacted if it sees subsidy reductions. Through V2X, vehicles can share information about road conditions, accidents, and traffic patterns, allowing for real-time decision-making. 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. Solid-state batteries, which promise to offer higher energy density and improved safety over traditional lithium-ion batteries, are on the horizon. These batteries can provide longer driving ranges and faster charging times, which have historically been limitations for EV adoption.