10 Important Auto Industry Trends 2025-2027

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. Advanced manufacturing technologies, such as megacasting and giga-stamping, are playing a pivotal role in enabling the industry’s transformation. Megacasting, which involves producing large aluminium castings to replace multiple smaller components in vehicle structures, is gaining momentum in the automotive industry.

How is electric vehicle technology shaping the automotive industry?

This trend is reshaping how manufacturers think about scalability and flexibility, particularly as the demand for electric vehicles continues to grow, and will continue to make itself felt throughout 2025. EV technology is the catalyst for transformation—it’s forcing OEMs to rethink vehicle architecture, supply chains, and customer engagement. Battery improvements reduce costs and increase range, making EVs more accessible. EVs also enable new business models like vehicle-to-grid services and battery leasing.

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Curious how electric vehicle trends like solar integration, AI-powered systems, and modular design are innovating mobility? This report explores the top 10 electric vehicle trends shaping the industry in 2026. Discover how these shifts improve charging, safety, and sustainability and what they mean for your business.

Integrated Powertrains will be Standard in EVs of the Future.

There will be continued demand for legacy process technology, with the construction and facilitation of the ESMC fab in Dresden progressing through 2025. Whether this central compute is a monolithic chip such as Nvidia Thor, which will be detailed in 2025, it will also be constructed from chiplets. This technology will be further developed through 2025, with the end results showing up in the following years. With increasing political uncertainty and a cooling economy, responding to the top three trends will be key to traversing a difficult year ahead.

Cube Intelligence builds Blockchains for Autonomous Vehicles

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. Its RISC-V IP processors adopt 32/64-bit architectures supported by a nine-stage dual-issue pipeline. Connectivity also adds momentum, with 5G and V2X semiconductors enabling real-time data exchange and secure over-the-air updates. Also, regulatory frameworks such as ISO and Europe’s mandate for emergency braking systems encourage mission-critical chip integration across new vehicles.

Bring the studio to your cars.

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. North America bore the brunt, accounting for 58% of publicly extorted ransomware victims. Manufacturing was not spared either, representing 29% of global ransomware targets, an alarming 56% rise over the previous year.

Chip Shortage Continues to Plague Auto Manufacturers

This deal comes at a time when car sales in the EU have seen a noticeable dip as consumer preferences shift. Data suggests a decline in car sales across most categories, particularly traditional fuel vehicles like petrol and diesel, which saw significant drops in market share and registrations. 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.

• With 2024 now firmly in the rearview mirror, let us dive into how those trends have developed into 2025 and what that means for middle-market organisations for the year ahead.
• 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.
• Recycling initiatives, such as reusing EV batteries, further emphasize the industry’s shift toward circular manufacturing.
• Additionally, Europe and the U.S. have sought to bolster their chip and semiconductor production with the ‘European Chips Act’ and the ‘CHIPS and Science Act’, respectively.
• 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.

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This digital transformation enhances scalability, a key driver in the competitive automotive sector. 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.

Top 10 Global Automotive Industry Trends in 2025

Additionally, Europe and the U.S. have sought to bolster their chip and semiconductor production with the ‘European Chips Act’ and the ‘CHIPS and Science Act’, respectively. Whilst these acts have been active for some years now, the landscape has not changed drastically. Until these efforts bear fruit, the industry will need to focus on mitigating risks and prioritising demand effectively. Whilst the U.S. may be bucking it, there is certainly a global trend towards a more sustainability-forward manufacturing scene. 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. Ransomware-related costs in the automotive industry skyrocketed read why VIN checks are essential from $74.7 million to $209.6 million in just the first half of 2023.

Discover all Auto Trends, Technologies & Startups

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. Car connectivity and telematics improve the driving experience with real-time data integration. Cybersecurity protects these connected systems, while regenerative braking and sustainable manufacturing practices reduce the environmental impact.

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. Automotive industry trends refer to changes in patterns within the automotive sector that influence vehicle design, production, marketing, and usage.

• A quick online search reveals that by 2040, 33 million autonomous cars are expected to be on the road.
• The US-based startup Procon Analytics leverages big data to offer a solution for automotive finance.
• This trend is reshaping how manufacturers think about scalability and flexibility, particularly as the demand for electric vehicles continues to grow, and will continue to make itself felt throughout 2025.
• The technology has already processed over a billion customer requests and is set to grow in 2025 with predictive intelligence and maintenance technology.
• Sales of electric vehicles (EVs) are expected to grow, although governments may restructure their incentive programs.
• They are discussing the prospect of AI for driving systems, the implications of some regulatory changes for automotive innovation, and the potentials of renewable sources for energy for the automobiles.

Modernized and upgraded vehicles with much more technology allow a thunder growth for the markets providing parts of the vehicles. Conversely, in Europe, regulations are scaling up in preparation for the EU ban on new ICE vehicles by 2035. Chinese EV automakers’ expansion into new markets, including Europe, other Asian countries, and Latin America as previously mentioned, could see a completely new global EV landscape. Perhaps the biggest shift here is in a new manufacturing landscape, with new decentralised hubs across the globe producing EVs for local markets.

🚦 Levels of Autonomy Explained: From Driver-Assist to Full Self-Driving

Dealerships can take advantage of various videos, such as how-to videos, car highlights, and customer testimonials. The demand is highest for vehicles under four years old, which have the latest technologies but are less expensive than new cars. This includes pre-owned electric and hybrid vehicles, and dealerships now offer certified pre-owned cars that look and function like new ones at a lower cost. 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. Many OEM’s are already revisiting original forecasts and realigning through-put and production schedules accordingly. Automotive suppliers are renegotiating their vendor/supplier contracts to align with these new predictions.

• However, the share of cars that are electric (hybrid and full electric) continues to rise.
• China’s automotive sector underwent substantial changes, with battery electric vehicle (BEV) sales reaching 582,813 units in August 2024—a 20.8% increase from the previous month.
• This is not just a European problem with Volkswagen and Stellantis, as Honda and Nissan merge, and Ford and General Motors struggle.
• As climate change concerns intensify, automakers are increasingly pressured to reduce emissions, lower their environmental footprint, and embrace green technologies.
• This process enables us to identify the most impactful and innovative trends in the automobile industry.

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. In addition, assembling a car involves a massive number of parts (30,000 on average), with materials accounting for a significant portion (40-50 percent) of the manufacturing cost. To maintain cost competitiveness, automotive procurement teams must be critical in managing supplier networks and supply chains for existing and upcoming vehicle models. This includes aligning new technologies and business models with the company’s vision. With consumers increasingly prioritizing environmental performance when purchasing vehicles, automakers must focus on reducing emissions and developing more sustainable transportation options. Most car buyers now consider a vehicle’s environmental impact before purchasing, with many willing to pay a premium of over £2,000 for greener emissions.

• Hungarian startup V2ROADS offers a range of products and services tailored to the V2X ecosystem.
• For instance, China has introduced policies encouraging automakers to procure up to 25% of their chips domestically by 2025, reducing reliance on foreign suppliers.
• This approach offers more convenience and flexibility than traditional car ownership and allows consumers to change vehicles based on their needs.
• 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.
• These systems will become increasingly sophisticated, moving toward semi-autonomous driving capabilities and improving the overall driving experience.
• 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.
• Transparency rules such as the EU’s Corporate Sustainability Due Diligence Directive and the US Uyghur Forced Labor Act add pressure for stricter supplier oversight.
• 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.

The global ADAS market is projected to reach USD 36.6 billion by 2025, with a CAGR of 10.8% from 2025 to 2037. Companies like Nvidia innovate in AI-powered chips for AVs, partnering with automakers like Toyota, Tesla, and Aurora Innovation to enhance autonomous capabilities. North America led the AV market in 2024 with over 40% revenue share, while Asia-Pacific is the fastest-growing region, with an expected CAGR of 35% from 2024 to 2033. Level 3 (conditional automation) and Level 4 (high automation) systems are gaining traction, with broader availability expected in Europe and North America by 2025. Tangram Vision allows perception teams to focus on product-specific features by handling complex sensor tasks and accelerating development and deployment processes.

Software-Defined Vehicles: Cars as the Ultimate Connected Devices

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.