FRM 2025: Sector Report Automotive Industry KPMG in Germany

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.

• This pushes automakers to invest heavily in electric drivetrains, recycled materials, and circular economy practices.
• Companies focus on increasing energy density to improve range and reduce charging times.
• The AV industry itself is just in its infancy, as there are only 17,000 self-driving cars on the road in the US today.
• 2025 will witness the automotive industry transitioning from Level 2 autonomy to Levels 2.5 and 3, representing a substantial evolution in automotive technology and enhancing vehicle automation and safety.
• South African startup Motomatix applies AI and custom software solutions to strengthen supply chain resilience in the automotive repair sector.
• It is expected to expand from $95.14 billion in 2024 to $386.82 billion by 2032, reflecting a robust compound annual growth rate (CAGR) of 19.2% over the forecast period according to some figures.
• By optimizing driving routes, connected cars help reduce emissions, contributing to a greener future.

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The strides made in EV battery innovation, renewable energy adoption, and sustainability are paving the way for a more resilient and forward-thinking industry. These articles highlight not just the progress made but also the opportunities and challenges that lie ahead. Xiaomi’s foray into the electric vehicle market is exemplified by its state-of-the-art factory, capable of producing an electric car every 76 seconds.

Xaba builds Industrial AI-driven Control Systems

Sustainability is a major driver reshaping vehicle design, manufacturing, and lifecycle management. Governments worldwide are imposing stricter emissions standards and incentivizing zero-emission vehicles (ZEVs). This pushes automakers to invest heavily in electric drivetrains, recycled materials, and circular economy practices.

Automotive Industry Trends 2025: Shifting Gears Toward Innovation

• Data from the past 10 years shows the sale of luxury vehicles making a steep climb in 2022.
• The global Automotive Human Machine Interface market, valued at USD 70.41 billion in 2022, is expected to grow significantly, reflecting these advancements in automotive technology.
• The autonomous vehicle sector will advance as UN regulators lift their speed limit.
• Moi uses continuous fiber manufacturing (CFM) technology, robotic intelligence, and digital fabrication to deposit fibers.
• Sales of electric vehicles (EVs) are expected to grow, although governments may restructure their incentive programs.

The startup develops Konnect – GS01, an automatic electronic logging device (ELD) to continuously track vehicular health. Israeli startup DAV offers a decentralized autonomous vehicles platform based on blockchain technology. 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.

Self-driving to gain traction, but semi-autonomous cars will reign

The adoption of augmented reality (AR) in head-up displays and automated parking systems is expanding, which is advancing ADAS technologies. 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.

Overview – Automotive Industry

Even with this rapid growth, EV’s share of cars on the road is expected to remain at just 8% by 2030. If you want to learn more about 10 of the most important auto industry trends for the next months, read on. The specialty equipment industry recognizes the potential in off-road products and accessories, mainly for pickups and SUVs such as the Jeep Wrangler. More than half of pickup owners purchase off-road parts and engage in outdoor activities with their vehicles. Overlanding, a newer trend, combines off-roading with remote travel and camping, with products like mounted tents falling under this category.

Industry 4.0

From LFP to cutting-edge solid-state batteries, it examines the trade-offs between cost, performance, and sustainability while uncovering key regional trends. These advancements are critical as manufacturers aim to balance efficiency, durability, and safety. The automobile seminar is utilized by a lot of experts working in the automotive industry, researchers, and people with an affinity for the carmaker as a forum for sharing knowledge and collaboration.

• The startup develops protocols for drone charging networks, drone flight planning, and open mobility.
• Software-defined vehicle (SDV) architectures are revolutionising automotive technology, with electric models often leading this digital transformation.
• Additionally, Chevrolet, Hyundai, Kia, Nissan, and Jaguar have all released more affordable EVs that have a range of anywhere from 200 miles to 250 miles.
• People are shifting to EVs because of their design and their being environmentally friendly.
• Gallium nitride (GaN) chips enable high-frequency switching, compact designs, and fast charging.
• This data alerted drivers to pedestrians and cyclists before they became visible.
• Many of those trends will be on display at the Consumer Electronics Show next week in Las Vegas.
• In 2025, a great number of car manufacturers are planning to improve their infotainment systems providing them with more and more advanced capabilities.
• The startup’s Ethernet products support precise timing synchronization with the 802.1AS Precision Time Protocol (gPTP) to ensure reliable communication for time-sensitive applications.

How is technology improving the auto industry?

Wireless and ultra-fast charging stations are also emerging as promising solutions to ease the transition to EVs further. Wireless charging could eliminate the need for physical connectors, offering a more seamless user experience. Digital twins—virtual replicas of physical systems—are gaining traction, enabling manufacturers to simulate scenarios and predict outcomes in real-time.

NuNami designs Vehicular Interface Systems

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. This transformation is also expected to help revive sluggish vehicle sales by 2030.

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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. While full autonomy is still years away, incremental advances are reshaping vehicle capabilities and market offerings today. These material innovations are also crucial to meeting evolving regulations, particularly the EU’s stringent emission standards. For EVs specifically, weight reduction translates directly into extended range and improved battery performance. The inherent flexibility of electric powertrains is enabling automakers to reimagine vehicle design, resulting in lighter, more efficient vehicles.

What are the predicted future trends in the automotive industry regarding autonomous driving?

The U.S. and China trade war has also influenced the search for alternative sourcing options. 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.

Automotive Industry and Market Trends

The automotive industry is gearing up for a transformation as fast and furious as the iconic franchise suggests. The latest technological advancements and evolving consumer preferences are seriously revamping vehicle production as we know it, remodeling the auto market for good. A quick online search reveals that by 2040, 33 million autonomous cars are expected to be on the road.

Methodology: How We Created the Automobile Trend Report

Despite these hurdles, the integration of sustainable materials is expected to accelerate as regulatory frameworks tighten and consumer demand for environmentally responsible products grows. ABB is investing in advanced software that simulates automotive painting processes, cutting costs by up to 30%. The simulations enhance precision and minimise waste in this energy-intensive stage of manufacturing.

(c) 2025 Automotive Manufacturing Solutions

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.

• Meanwhile, we are seeing the economic case for sustainable materials strengthen as manufacturers realise operational efficiency gains and reduce their long-term costs.
• Its product, THINKey, transforms smartphones into digital keys that allow users to lock, unlock, and start their vehicles.
• Without subsidies, demand for EVs on the consumer end could also drastically decrease as was recently seen in Germany after government incentives ended.
• German startup CARNIQ Technologies enhances vehicle cybersecurity through web-based and AI-powered tools that ensure compliance with automotive standards.

Several leading OEMs have already announced plans to adopt the chipset for their automotive solutions, including BYD, Nuro, XPENG, Volvo and Zeekr. Contact us today to make critical data-driven decisions, prompting accelerated business expansion and breakthrough performance. With customers becoming more demanding, rules and regulations are becoming stricter, and competition is stronger and faster. Many enterprises are moving ahead to create autonomous vehicles with all the multi-faceted benefits. To meet these new requirements and realize this long-term vision, approaches are required to push against the status quo.

🔮 Preparing for Tomorrow: Strategies for Industry Players and Consumers

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 check accidents and ownership by VIN the industry towards safer, more efficient transportation.

Indian startup Starkenn develops AI-powered ADAS to enhance vehicle safety and reduce road accidents. Its product suite includes a collision warning system, Starkenn Safe which uses radar to detect obstacles and alert drivers of potential collisions. The Starkenn Brake Safe, a collision mitigation system features automatic emergency braking in critical scenarios.