FRM 2025: Sector Report Automotive Industry KPMG in Germany

• Uri
• December 30, 2025
• Automotive Topics and Trends
• 0 comment

This ensures precise planning, reduces downtime, and enhances efficiency in assembly operations. This decision also highlights a broader trend toward diversification in battery production hubs. With the Middle East emerging as a significant player in the EV supply chain, manufacturers must adapt their strategies to seize these new opportunities.

Avvenire designs Light Electric Vehicles (LEVs)

However, regulatory hurdles and the complexity of navigating diverse driving environments remain significant barriers. On the bright side, partnerships between automakers and tech companies are fuelling innovation and accelerating development, bringing their vision of safer, smarter transportation closer to reality. Discover trends, forecasts, and global developments shaping the future of mobility. These systems will become increasingly sophisticated, moving toward semi-autonomous driving capabilities and improving the overall driving experience.

♻️ Circular Economy Principles and Eco-Friendly Production

• Market leaders are adjusting their strategies to align with current trends, further emphasizing the shift towards EV-only vehicles.
• The startup emphasizes comfort with electric doors, extended safety features, and panoramic views from all seats.
• 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.
• This platform uses secured safety assurance and risk-mitigation principles to detect and address failures in assisted and self-driving systems.
• There will be continued demand for legacy process technology, with the construction and facilitation of the ESMC fab in Dresden progressing through 2025.

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.

Eloy provides Connected Car Solutions

As of the end of 2023, over 1 billion miles have been driven with Tesla Autopilot enables. As a result of this partnership, Ford is expected to launch its own self-driving car business. The standard ranges from SAE Level 0 (no automation) to SAE Level 5 (full automation). The Society of Automotive Engineers (SAE) “Levels of Driving Automation” standard shows how stages of vehicle automation progress. In China, it was even reported that lithium-ion battery pack prices fell below $100/kWh for the first time. It’s estimated that to meet many of these net-zero emission goals, EVs will have to climb to at least half of all new car sales by 2050.

• The company already has 50 Level 4 autonomous trucks operating in the Southwestern United States.
• 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 platform features customizable work product templates, detailed instructions, and comprehensive checklists for self-assessment.
• The market reflects its role in meeting strict safety rules and consumer demand for smarter vehicles.
• Chinese startup Chipv offers automotive semiconductors that combine computing capabilities with motor control and power management.
• Simultaneously, many automakers embrace vertical integration strategies, taking control of the software stack from chip development to application integration.

🚗 Top 15 Car Drifting Games to Master the Art of Slide (

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. As the technology evolves and becomes more affordable for the industry, it opens more and more opportunities every year. The emergence of CASE (Connected, Autonomous, Shared, and Electrified) technologies is changing the industry like never before. This will drive growth opportunities for automakers in the years to come and shape the automotive industry outlook in the future.

🇨🇳 Increasing Competitiveness and Influence of Chinese Automakers

More driverless journeys will occur as technology continues to be enhanced and refined. Global passenger EV sales grew 60% from 6.5 million units in 2021 to 10.5 million in 2022. EV sales are going to increase aggressively in 2025, providing a bright spot in the automotive industry. Governments are implementing innovative policies to encourage sales without increasing costs or benefiting high-income households. Car dealerships are no exception, as recent auto trends reveal that customers prefer to experience a car or dealership before purchasing. Top car brands and dealerships are embracing VR as part of their dealership photography strategies to improve the customer experience.

• It also provides validation services that ensure resilience against potential risks.
• The data of all road users is streamed and processed in real-time to empower smart mobility.
• Fleet-as-a-Service (FaaS) solutions, particularly autonomous fleets, are set to transform how people navigate cities.
• The big data market in automotive is growing, with a projected market size of USD 5.92 billion in 2024, expanding at a CAGR of 16.78% to reach USD 12.86 billion by 2029.
• We expect to see the concept of Mobility-as-a-Service (MaaS) develop through 2025.
• It also uses regenerative braking to capture and store energy in the car’s battery.
• As electric vehicles become mainstream, digitalization reshapes production, and mobility services redefine car ownership, the industry is set to transform how vehicles are manufactured and used.
• From electrification to IoT connectivity, these shifts are changing the way cars are manufactured, sold, repaired, and driven.

Driverless Vehicles- The Future of Connected Cars

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.

🚀 Go Way Beyond Traditional Industry Expertise: Our Unique Perspective

This calls for a thorough analysis of recent trends in the automotive industry, So this blog brings you some of the significant car market trends in 2025 that you must know. 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.

Increase in Digital Advertising Spending

French startup Airnity provides a cellular connectivity platform for the automotive industry to enhance connected car operations. THINKey operates through a secure architecture using enclaves in the phone, vehicle, and cloud, adhering to the car connectivity consortium’s digital key standard. Additionally, the startup offers infotainment solutions with plug-and-play SDKs and certification-ready apps for phone mirroring and multimedia features. This facilitates the integration of Apple CarPlay, Google Android Auto, and media streaming into in-vehicle infotainment systems. UK-based startup WF Telematics offers vehicle and asset tracking solutions for businesses seeking efficient pre trip car check using VIN fleet management and asset monitoring.

This EV Just Set an Efficiency Record

Further, Chipv creates power control chips equipped with triple RISC-V cores, extensive on-chip memory, and robust hardware security modules. In the US, the CHIPS and Science Act allocates USD 52.7 billion in funding and offers a 25% investment tax credit. It provides grants, loans, and incentives to expand domestic fabs, semiconductor R&D, and the broader supply chain. It offers ready-to-use workflows across system, software, and project management processes. Its MotionSafe Privacy platform uses algorithms to monitor controller area network (CAN) traffic and detect anomalies. The platform also erases personally identifiable information (PII) from vehicle systems to maintain privacy.

Current automotive trends are encouraging automotive manufacturers to offer consumers much more than a metal box on four wheels. In addition, the IoT’s potential in the automotive industry presents a significant chance for manufacturers to revamp their marketing strategies. IoT solutions can offer numerous benefits to end-users by utilizing interconnected systems, such as better safety, driving assistance, and predictive maintenance. Collecting user data through these sensors creates ample opportunities for marketers to promote upselling.

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. BMW’s Neue Klasse illustrates this shift with four superbrains that reduce wiring by 600 meters and reduce vehicle weight. This centralization allows faster product cycles, OTA updates, and cross-domain features.

Norway set a record in the electric vehicle sector in August 2024, as the number of all-electric vehicles on the road surpassed that of gasoline-powered vehicles for the first time. In terms of new car sales, Norway boasts the highest percentage of battery-electric vehicles in Europe. It also leads Europe in new EV market activity, with just 9.61 percent of new passenger car sales in 2023 attributed to gasoline, diesel, and non-rechargeable hybrid vehicles.

• Software-defined vehicle (SDV) architectures are revolutionising automotive technology, with electric models often leading this digital transformation.
• Blockchain secures supply chains and in-car data, and extended reality (XR) advances design, testing, and training.
• People are shifting to EVs because of their design and their being environmentally friendly.
• The startup develops protocols for drone charging networks, drone flight planning, and open mobility.
• This data alerted drivers to pedestrians and cyclists before they became visible.
• Gallium nitride (GaN) chips enable high-frequency switching, compact designs, and fast charging.
• In 2025, a great number of car manufacturers are planning to improve their infotainment systems providing them with more and more advanced capabilities.
• 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.
• 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.

And it is projected to widen to 45% by 2030 due to lower labor and freight costs. The startup enables automakers to reduce waste, optimize design processes, and advance sustainable manufacturing strategies. Also, advanced composites and recycled inputs reduce reliance on virgin resources.

Evolving Video Marketing Solutions

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. As incentives and projects pile up and resources remain limited, delivering everything on time,…

• The global automotive industry, responsible for 10% of the world’s carbon dioxide emissions, faces ongoing pressure to overhaul its practices.
• 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.
• The market for FCEVs is expected to grow at a remarkable CAGR of nearly 70%, through 2026.
• Automakers are responding by integrating carbon-neutral initiatives across their value chains.

By 2030, automotive industry trends 2030 will witness a significant shift towards electric and autonomous vehicles, driving sustainable growth in the car market. The infrastructure for EVs is expected to become more widespread and advanced, supporting the increasing number of electric vehicles on the road. Additionally, autonomous driving technology is set to dominate the industry, creating a safer and more efficient transportation system.

• Younger buyers often prefer subscription models or shared mobility over ownership.
• This shift supports mobility-as-a-service (MaaS), reducing the number of idle vehicles and addressing urban transportation needs without adding more cars.
• Hybrid vehicles present the perfect compromise of lower emissions and enhanced fuel economy without the need for charging.
• Finally, its V2AP (V2X Integration Platform) is a server-side software to amplify V2X services to elevate road safety and efficiency.
• 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.
• 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.
• AI algorithms process vast data from sensors and cameras, enhancing decision-making for safe, efficient driving.

Shift Toward Mobility Services

Road safety, regulatory mandates, autonomous vehicle adoption, and smart city development drive this innovation. The World Health Organization links 1.36 million annual deaths to road accidents. The US National Highway Traffic Safety Administration (NHTSA) estimates that V2X addresses up to 80% of crashes involving non-impaired drivers. Moreover, economic efficiency improves adoption, as autonomous vehicles reduce transport costs by up to 40% and maximize logistics utilization.