These vehicles reduce emissions and feature innovative designs for modern commuters. Avvenire focuses on sustainable mobility to contribute to a cleaner environment and meet the demand for green transportation. Sensor fusion and autonomous vehicle technologies enhance safety and enable intelligent driving solutions while ADAS bridges the gap to full autonomy. However, an SSAB survey reveals that cost and investment challenges remain significant barriers to widespread adoption. Despite these hurdles, the integration of sustainable materials is expected to accelerate as regulatory frameworks tighten and consumer demand for environmentally responsible products grows.

Dodge Unleashes the Durango Hellcat, Everywhere

The same report states that 68% of drivers believe car companies should collect personal data, but only 5% agree to unrestricted collection. Most favour an opt-in approach (63%), and many are willing to share data for benefits, with 67% open to lower insurance rates, 43% for personalised features, and 36% for improved safety options. As will be discussed later, with more data being collected for premium features, the inevitable concern for data security is raised, and cyber security threats loom overhead. 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. Our new report spotlights 10 connected vehicle trends to watch in 2026 that promise safer, smarter mobility and fresh revenue streams for automakers.

• The software integrates a one-shot multitask network capable of performing 2D detection, semantic segmentation, and monocular depth estimation.
• By leveraging these factors, Statevolt is positioning itself to meet the rising demand for EV batteries in an increasingly competitive market.
• Italian startup Moi combines thermosetting composite materials and 3D printing to manufacture high-performance parts for the automotive industry.
• The foundation of autonomous vehicle architecture lies in a set of sensors, including LiDAR, radar, and ultrasonic systems, providing cars with a 360-degree panoramic view.
• Also, EV charging infrastructure requires strong cybersecurity, as attackers target charging stations for data theft or service disruption.
• From electric vehicles zipping past gas guzzlers to cars that update themselves like your smartphone, the industry is in the middle of a revolution.

EV sales grew from less than 1% of total vehicle sales a decade ago to more than 4% today. Rapid technological and environmental innovations have forced incumbents to adapt to new challenges. The auto industry is one of the largest and most influential markets on the planet. Overall, Auto News suggests that analysts expect the chip shortage will result in a loss of 3 million in vehicle production in 2025.

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

Its vehicle tracking system provides 24/7 real-time visibility, supported by self-install and engineer-fitted options, with no minimum fleet size required. With the introduction of 5G networks, advanced telematics features like real-time diagnostics, autonomous driving, and improved safety systems are becoming even more feasible. Canadian startup Xaba develops intelligent automation solutions, materials, and processes for sustainable manufacturing. Its AI-driven control systems, xCognition and xTrude, enhance industrial robotics and additive manufacturing by automating programming and improving precision. US-based startup Aviva Links builds in-vehicle connectivity solutions that include multi-gigabit Ethernet and ASA Motion Link (ASA-ML) semiconductor products for ADAS systems.

Cars have become even more connected

US-based startup MotionSafe provides AI-powered cybersecurity solutions that protect connected vehicles from data breaches and cyber threats. Vehicle cybersecurity drives one of the fastest-growing areas in the auto industry as connected vehicles multiply and cyber risks intensify. Analysts project the automotive cybersecurity market to increase from USD 5.24 billion in 2025 to approximately USD 18.88 billion by 2034, advancing at a CAGR of 15.3%. Geopolitical risks, regulatory frameworks, cost advantages, and compliance needs drive the auto industry toward supply chain resilience and nearshoring.

🚗 The Road Ahead: A Brief History of Automotive Evolution

Manufacturers are prioritizing robust security measures to protect sensitive consumer data and prevent malicious interference. 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.

Autonomous Vehicles are Changing the Face of the Auto Industry

Personalising the IVX will drive the need for AI agents, which is one reason why EDA tool vendor Synopsys is working with Sima.ai. Across in-vehicle infotainment (IVI) and advanced driver assistance systems (ADAS), there have been various OEM innovations in the past year, with AI models being integrated into these systems. For example, Mercedes-Benz is using Chat-GPT for intelligent virtual assistants within its vehicles.

Shared mobility

XTrude models the physics of FDM processes to optimize parameters like flow rate and extrusion temperature to ensure large-scale 3D printing. Automakers are responding by integrating carbon-neutral initiatives across their value chains. This includes upstream supply chains and downstream life cycle phases like recycling. Companies like Nvidia innovate in AI-powered chips for AVs, partnering with automakers like Toyota, Tesla, and Aurora Innovation to enhance autonomous capabilities. 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.

Connected, autonomous, shared, and electric (CASE) vehicle technologies remain a strong focus in automotive markets

Megacasting, which involves producing large aluminium castings to replace multiple smaller components in vehicle structures, is gaining momentum in the automotive industry. As 2024 comes to a close, the automotive manufacturing industry continues to accelerate its transformation. 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. Autonomous driving is a key innovation driver but remains in a development and regulatory phase. It enhances safety via driver-assist features and promises to revolutionize mobility with robotaxis and freight automation. Its progress influences OEM investments, partnerships with tech firms, and consumer expectations.

a. Battery Technology and Range Improvements

It enables sensor fusion and control for advanced driver assistance and autonomous driving. 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. Due to the pandemic, the automotive sector is undoubtedly facing one of the most challenging periods and a massive slowdown for the last couple of years.

• We expect to see the concept of Mobility-as-a-Service (MaaS) develop through 2025.
• AI technologies like machine learning, deep learning, and computer vision are advancing robotic automation.
• The industry is also innovating in battery chemistry, thermal management, and vehicle-to-grid (V2G) tech to improve EV usability.
• Searches for “autonomous driving” have increased by over 1,029% over the past 10 years.
• 2025 is shaping up to be an interesting year for automotive with regards to global shifts in the market with a mixed bag of potential harmony and disruption.
• Sensor fusion and autonomous vehicle technologies enhance safety and enable intelligent driving solutions while ADAS bridges the gap to full autonomy.
• Toyota’s Mirai and Hyundai’s Nexo have been the two major players in the market since sales launched in 2016.
• Automakers move from fleets of electronic control units (ECUs) toward centralized computing platforms that run multiple domains on Systems on Chip (SoCs).

Most consumers today are much more concerned with what the in-cabin experience is going to be, than the size and power of the engine. However there are huge opportunities for the industry in the shift to software-defined vehicles and autonomous driving. These shifts are beneficial to ARM, STMicroelectronics, NXP Semiconductors and Infineon Technologies. Contact us today to make critical data-driven decisions, prompting accelerated business expansion and breakthrough performance. GenAI offers potential for advanced applications like predictive maintenance, where AI could assist in analyzing vehicle data and forecast potential failures before they occur. This would mark a critical shift toward an era of personalized vehicle recommendations and optimized repair services.

b. Regulatory and Legal Challenges

By 2025, nearly all new vehicles are expected to feature advanced connectivity options, integrating aspects of digital life directly into driving experiences. Such advancements align with global trends favoring autonomous fleet deployment in urban areas, positioning automakers to meet future demand for self-driving capabilities. While there are a lot of opportunities ahead for the industry, there will be plenty of challenges like cost pressures, growing competition, and globalization.

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. Meanwhile, tech companies such as Uber and Lyft continue to expand their digital-first transportation solutions, creating a more competitive and diverse mobility landscape. The startup strengthens autonomous driving by providing reliable and production-ready Level 4 vehicles that expand commercial mobility solutions. Semiconductors enhance safety by enabling faster decisions and reducing accident risks.

BOS Semiconductors focuses on high-performance, energy-efficient AI solutions to drive innovation in autonomous driving and enhance in-cabin experiences. US-based startup Avvenire develops LEVs for efficient and eco-friendly urban transportation. Its products include the Leggera, an all-electric vehicle for on-road and off-road use, and the Spiritus, a three-wheel electric car with optional autonomous driving, Wi-Fi connectivity, and solar panels. Younger buyers often prefer subscription models or shared mobility over ownership.

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. “Advanced sensors will make a significant impact on ADAS solutions by providing more accurate data and improving safety maneuvers, from lane-keep-assist to auto parking and braking,” added Lyons. The automotive industry was perhaps the saving grace of the European semiconductor industry in 2023, but reality has hit hard in 2024. Auto brands that stay on top of these trends and continue to innovate will be able to build a resilient business, that will help nurture a more electrified, connected, and sustainable future. With EV makers in China engaging in a price war due to declining demand, Chinese brands with strong hybrid presently are gaining popularity.

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.

Information technology has become a crucial part of the recent trends in the automobile industry as priorities change over time. Market leaders are adjusting their strategies to align with current trends, further emphasizing the shift towards EV-only vehicles. Just days ago, Jaguar unveiled their new concept car, the Jaguar Type 00, a fully electric, futuristic vehicle that marks a departure from every other car the brand has produced.

Furthermore, the need for EV charging stations is no longer a challenge to the electric vehicle market. While it’s true that at the end of 2023, there wasn’t an adequate supply of electric mobility hubs, the charging infrastructure in Europe has improved drastically. Currently, there are about 750,000 public charging stations with a combined 28.7 GW of charging capacity. 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.

Automakers need to redesign their vehicles or should look for other chip options available. The autonomous vehicle (AV) market is on an impressive growth trajectory, expected to surge from a market value of $1,921.1 billion in 2023 to a staggering $13,632.4 billion by 2030, with a CAGR of 32.3%. A major driver of this growth is the increasing focus on commercial applications, such as logistics and ride-sharing services. Advances in AI, sensor technology, and connectivity are also playing a key role in improving the safety and adoption of autonomous vehicles. The global automotive semiconductor market is expected to grow at a rate of 8.1% between 2023 and 2030.

The truck’s design removes the internal combustion engine, advancing commercial vehicle safety standards, and protecting pedestrians and other road users. Volta Trucks also offers leasing or purchasing options, and integrates services like maintenance, charging infrastructure, and training through its truck-as-a-service model. This simplifies the transition to electric vehicles for fleets, reducing environmental impact and promoting safer urban transport. 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.

Software-Defined Vehicles: Cars as the Ultimate Connected Devices

The main issue holding back the popularity of these vehicles is a lack of hydrogen fueling stations. The market for FCEVs is expected preserving the stories behind classic cars to grow at a remarkable CAGR of nearly 70%, through 2026. However, that number is smaller than it was in 2019 when more than 80% of people commuted by car. The Wall Street Journal reports that dealerships have been known to charge $40k above MSRP on luxury cars.

What technology is used in the automotive industry?

The global automotive sensor fusion market is projected to reach USD 3.3 billion by 2030 at a 42.4% CAGR. The market reflects its role in meeting strict safety rules and consumer demand for smarter vehicles. The main advantage of this digital technology is that it allows auto manufacturers to create complex and at the same time lightweight vehicle parts. 3D printing them is faster than traditional manufacturing and cheaper, which makes the whole process more efficient. Also, additive manufacturing makes prototyping more rapid, which enables faster design and testing periods for new vehicles.

Procon Analytics builds Automotive Finance

Software-defined vehicles redefine business models through centralized computing and OTA upgrades. The latest technology in automobile industry have revolutionized the way vehicles are designed, manufactured, and sold, and the vehicles themselves have become much more than a means of transport. Technology in automotive industry forges ahead—the latest technological advancements are more and more extensively used by the domain. Let’s consider the recent trends in automobile industry related to the application of latest technologies.