The modernized vehicles available in the market have opened an opportunity for the firms that supply and also manufacture the parts. 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. 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.

e.Volution manufactures Sustainable Vehicles

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. Explore the most important trade fairs and conferences to boost your business success.

• Waymo highlights this in its robotaxi fleet, which processes multimodal data to complete over 250K paid rides weekly with high reliability.
• The chip shortage is proving to be costly for the industry with many auto manufacturers shutting down plants due to low supply.
• It also provides lane-change algorithms that ensure comfortable lateral movement and personalized passenger comfort profiles refined with each journey.
• In 2025, Uber and GM Cruise will partner, allowing users of the Uber ride-hailing platform to book fully self-driving vehicles from the app in selected US cities.
• With a CAGR of 25.5% from 2025 to 2037, the global sensor fusion market is expected to reach USD 7.91 billion by 2025.
• The startup employs the Perceived Quality Index to eliminate engineering bias by translating customer insights into measurable quality improvements.

Sustainable Automotive Technologies

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. This is not just a European problem with Volkswagen and Stellantis, as Honda and Nissan merge, and Ford and General Motors struggle. Software-defined vehicles (SDVs), where software manages essential functions like steering, braking, and infotainment, will see rapid growth over the next few years.

From groundbreaking advancements in EV battery technologies to bold steps toward sustainable production, this year has marked a pivotal shift in how vehicles are designed, built, and powered. 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. Plug-in hybrid electric vehicle (PHEV) sales also hit a record high, indicating a robust consumer interest in electric mobility. While fully autonomous vehicles have the potential to revolutionise how society moves from A to B, the industry is taking a more measured approach to implementation. Safety concerns remain in the spotlight – this is leading to greater acceptance of incremental developments in advanced driver-assistance systems (ADAS) rather than pushing for immediate full autonomy. Major automotive manufacturers are responding by rethinking their revenue models and investing heavily in on-demand vehicle access services.

Vehicle-to-Everything (V2X): V2X Prevents 80% of Non-impaired Driver Crashes

In 2025, we expect to see more automated and electric shared vehicles providing affordable, on-demand transportation. Autonomous driving is one of the most prominent applications of AI in the industry. It incorporates various AI-powered technologies like adaptive cruise control, automatic emergency braking, and lane-keeping assistance, allowing vehicles to navigate complex road conditions autonomously.

Conclusion – Automotive Industry Trends

• 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.
• Even six months into 2022, vehicle manufacturers haven’t been able to correct the issue of low inventory.
• Also, despite the slowing adoption rate, data has shown that the number of electric and hybrid vehicles actually on the road has dramatically increased (from 26 million in 2022 to 40 million in 2023).
• The ongoing global semiconductor shortage continues to cast a shadow over manufacturing progress, particularly for industries such as automotive and electronics.
• 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.
• In 2024, the automotive industry is increasingly integrating cutting-edge technologies into its operations.
• Brands need to provide specific offers by analyzing their customer’s needs, preferences, and behavior.
• 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.

When demand for cars plummeted in the early days of the pandemic, auto manufacturers stopped ordering them and chip producers focused their attention elsewhere. The global automotive parts market has been steadily growing for the past twenty years. Europe now is the largest market for new plug-in electric vehicles, overtaking China’s first spot. The high prices and increasing interest rates are causing sales to decline for dealers and automakers nationwide.

They’re so important that one analyst said, “semiconductors have moved ahead of oil as the world’s key commodity input for growth”. Explore competitors’ website traffic stats, discover growth points, and expand your market share. In addition, the initiative will leverage the data collected by adding Google’s AI capabilities to Ford vehicles.

Self-driving cars are considered safer since they can sense their environment and operate safely within it, eliminating factors such as human error and driver fatigue. In 2025, new registrations of electric vehicles – BEVs (battery electric vehicles) and PHEVs (plug-in hybrid electric vehicles) – are anticipated to reach a record 18.1 million – up from 16.3 million in 2024. However, growth EV adoption is predicted to slow, with year-on-year growth falling from 15% in 2024 to 11% in 2025. This continues a trend in the EV industry, which has been challenged by the high cost of vehicles and a lack of charging stations. They have downgraded their EV targets and scaled back production of fully electric vehicles, suggesting that the transition to EVs will take longer than previously expected.

Launching of fuel cell EVs

More than 12% of consumers who financed a new car in June of 2022 had a monthly payment of $1,000 or more. It’s clear that a select subset of today’s consumers are willing to pay for high-end automobiles. Power say that sales of cars worth more than $100k were outselling lower-priced cars 3 to 1 in the first quarter of 2022.

🔌 Trend 1: The Electric Revolution Accelerates – EVs Taking Charge

The idea behind a circular economy is to create a closed-loop system where materials are reused, refurbished, and recycled rather than disposed of. In 2025, many automakers will focus on creating vehicles that are easier to disassemble, repair, and recycle at the end of their lifecycle. This approach could significantly reduce waste and contribute to a more sustainable automotive industry. Leading companies such as Volkswagen, General Motors, and Volvo have committed to producing zero-emission vehicles and achieving carbon-neutral operations by mid-century. In line with this, automakers focus on sustainability in their manufacturing processes, energy sourcing, and material selection.

Software-defined Vehicles (SDV): Market Set to Reach USD 3.3T by 2034

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%.

Stop Guessing, Start Growing 🚀

From enhancing in-vehicle safety solutions to enabling semi-autonomous driving features, AI is redefining innovations in vehicle functionality and unprecedentedly shaping the driving experience. US-based startup FlxTran develops a new transportation system using self-driving vehicles on abandoned railroad tracks to provide fast regional transport to connect smaller communities. The system uses an app to schedule rides on autonomous vehicles, cutting down trip times compared to the available commuting options. FlxTran’s approach improves connectivity and access to opportunities beyond major cities. Moreover, V2X communication systems allow vehicles to interact with each other and infrastructure, improving traffic flow and reducing accidents. These innovations collectively propel the industry towards safer, more efficient transportation.

With the growing popularity of bidirectional charging (V2G) technology, EVs now contribute energy to the grid to improve stability. By focusing on digital transformation, the company aims to integrate predictive analytics and process automation, creating production systems that are adaptable and resilient. These examples point to AI enabling real-time decision-making and predictive maintenance, while improving quality control and minimising downtime, marking the technology ‘a no-brainer’ for production in 2025. Toyota unveiled its forward-thinking approach to electric vehicle design, focusing on sustainability, performance, and cutting-edge technology. Peugeot introduced groundbreaking technologies like the Hypersquare control system and steer-by-wire, marking a significant leap in electric vehicle design and user experience. These innovations represent the brand’s commitment to redefining driving dynamics in the EV era.

Automotive Sourcing Models are Changing

From encrypted communications to intrusion detection systems, cybersecurity advancements will ensure consumer trust as vehicles become smarter and more networked. The rise of such technologies reflects consumer demand for vehicles that are not just transportation tools but extensions of their digital ecosystems. Connected cars enable real-time navigation updates, remote diagnostics, and seamless smartphone integration. They also support smart city initiatives by offering data for traffic management and logistics automation. Established in 2007, SG Analytics is a Great Place to Work® (GPTW) certified company with a team of over 1200 employees and a presence across the U.S.A., the UK, Switzerland, Poland, and India.

The shortages have forced manufacturers to delay product launches and reduce outputs, among other issues. Asia, home to key production hubs, remains at the epicentre of attempts to address this crisis, with nations like Taiwan investing heavily in scaling chip production. 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.

Apex AI offers an Automotive Data Management Platform

Further, through its smart management app, it enables users to schedule charging, monitor consumption, and manage fleets from one platform. Moreover, the startup installs Tesla motors and Fellten battery systems, which provide up to 295 horsepower, enable flexible range options, and ensure authenticity through fully reversible conversions. Also, adoption rises quickly, 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. While the market for cars valued below $80k is expected to remain flat through 2031, the luxury car market is predicted to grow at up to 14% CAGR. The chip shortage is one-factor holding cars back from getting to the dealership lots.

Advanced Driver Assistance Systems (ADAS) and autonomous driving technologies continue to evolve, bringing unprecedented changes to vehicle safety and functionality. Additionally, infrastructure developments like Toyota‘s new battery plant in North Carolina underscore the industry’s dedication to scaling EV output. Expected to produce batteries for up to 800,000 vehicles annually, the plant will be powered entirely by renewable energy, demonstrating a dual focus on production efficiency and sustainability. With established automakers facing nimble startups in the mobility race, building new businesses should be a priority for auto executives. Data-driven connectivity services and on-demand mobility will add up to $1.5 trillion to the automotive revenue pool by the year 2030. Electrification and autonomous vehicles will remain megatrends, transforming the sector and forcing automakers, suppliers, and dealers to adapt to new technologies and business methods.

Additionally, CARNIQ Technologies supports the automotive sector with threat analysis, cybersecurity management, and secure system development. It also provides validation services that ensure resilience against potential risks. The rapid rollout of software-defined vehicles, vehicle-to-everything (V2X) networks, and electrification pushes automakers to secure digital systems as rigorously as physical components. Moreover, the startup’s marketplace connects professionals in a secure environment. It provides exclusive access to vehicles and optimizes purchase decisions based on supply and demand trends.

Its product, THINKey, transforms smartphones into digital keys that allow users to lock, unlock, and start their vehicles. The integration of 5G networks is accelerating advancements in vehicle-to-infrastructure (V2I) and vehicle-to-vehicle (V2V) communication, supporting autonomous driving functionalities. The startup offers tools for real-time calibration health checks for deployed fleets to reduce time-to-market and operational risks.

For example, Mercedes-Benz is using Chat-GPT for intelligent virtual assistants within its vehicles. 94 percent of global automakers are using ARM-based technology for automotive applications, alongside the top 15 automotive semiconductor suppliers in the world adopting ARM technologies in their silicon. The automotive industry is being altered by the integration of Artificial Intelligence (AI), which is powering a new wave of smarter and more personalized innovations.

The global automotive blockchain market is experiencing significant growth — it is projected to reach USD 6.11 billion by 2032. 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 license plate history and public records sharing, safety, reliability, and durability. Users discover the nearest Beam scooter on the app and park it in visible public spots after the ride. Further, the micro-mobility platform offers a sustainable alternative to short-distance rides and helps regulate traffic flow in cities.

Moi uses continuous fiber manufacturing (CFM) technology, robotic intelligence, and digital fabrication to deposit fibers. As a result, the solution is easily scalable for producing composites for panels, frames, and interior components. The startup also serves other industries, such as aerospace, construction, and biomedical.

• Subsidies and incentives for EVs are also under scrutiny, with plans to reconsider or eliminate government-imposed market advantages that favour them.
• As battery technology and charging infrastructure progress, EVs lead the push toward sustainability.
• With EV makers in China engaging in a price war due to declining demand, Chinese brands with strong hybrid presently are gaining popularity.
• By securing these systems, cybersecurity prevents hijacking of steering or braking functions, protects sensitive driver data, and shields automakers from costly recalls and reputational harm.
• Younger generations, especially Genz or millennials prefer these vehicles as they are much more attractive.
• The AI system answers the driver’s query by cross-referencing data from the car’s diagnostics.
• The global automotive sensor fusion market is projected to reach USD 3.3 billion by 2030 at a 42.4% CAGR.

Predictive maintenance powered by AI minimizes machine failures, while IoT networks provide detailed insights into factory operations. These practices not only meet regulatory demands but also resonate with consumers increasingly drawn to environmentally responsible brands. Toyota’s North Carolina battery plant exemplifies this commitment, with operations fully powered by renewables. Recycling initiatives, such as reusing EV batteries, further emphasize the industry’s shift toward circular manufacturing.

• Moreover, its NuPort solution extends reliability by enabling connections between automotive components that support both diagnostics and long-term endurance.
• Automakers are also adopting hyper-personalized features to offer customized experiences through infotainment systems, user profiles, and real-time navigation updates.
• Moreover, Asia-Pacific is the fastest-growing region, with a projected CAGR of 14.8%.
• Modernized and upgraded vehicles with much more technology allow a thunder growth for the markets providing parts of the vehicles.
• While traditional OEMs are adapting to this shift, we are also witnessing newer market entrants are making significant strides in implementation, which is making for a more competitive automotive sector.
• Self-driving cars are considered safer since they can sense their environment and operate safely within it, eliminating factors such as human error and driver fatigue.
• The vans deliver groceries from nearby stores and send out a push notification when the order arrives.

It also works with Ethernet and LIN, enabling integration across passenger cars, buses, trucks, and autonomous vehicles. Chinese startup Move-X Autonomous Driving offers Level 4 autonomous driving through integrated vehicle platforms designed for commercial deployment. TeraDAR strengthens sensor fusion by providing high-resolution, all-weather imaging that improves vehicle perception and increases safety. Moreover, the startup leverages patented research and extensive radar expertise to deliver dependable detection in densely populated settings. Radar Reticence strengthens sensor fusion by supplying interference-free radar data that enhances vehicle perception and improves safety.

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. Nigerian startup Revive Earth develops the Revive Kit, to convert petrol vehicles into efficient EVs. It integrates electric drivetrains, transforming existing vehicles into sustainable and cost-effective alternatives to new EVs. The kit maintains original vehicle features to ensure a seamless transition and familiar driving experience.

The automotive parts market continues to grow

The answer lies in education, infrastructure, and trust-building—slow but steady wins the race. The software integrates a one-shot multitask network capable of performing 2D detection, semantic segmentation, and monocular depth estimation. It processes these tasks in real time at over 120 frames per second on consumer-grade graphics processing units (GPUs). Indian startup General Intelligence creates self-driving intelligence software that supports software-defined vehicles in adapting to diverse driving environments.

However, the share of cars that are electric (hybrid and full electric) continues to rise. Also, despite the slowing adoption rate, data has shown that the number of electric and hybrid vehicles actually on the road has dramatically increased (from 26 million in 2022 to 40 million in 2023). Regardless, with the continued global slowdown of EV adoption, we can also expect original equipment manufacturers (OEMs) to follow suit, with a decrease in the level of production, especially in the West.

💡 Related Insights: Diving Deeper into Specific Automotive Niches

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. The control system includes safeguards like automatic overheating prevention, battery depletion protection, and real-time torque and speed calibration for optimal performance on challenging terrains. The Asia-Pacific region currently controls the majority of the market due to the strong uptake of electric cars (EVs) in countries like China, India, and Japan. The region’s substantial market share results from government incentives and the growth of the automobile industry.