In 2025, AutoTech will mark a quarter-century milestone! Over the past 25 years, we have closely observed the automotive industry, brought together its top figures, and guided the industry toward future advancements.
With an eye on what lies ahead, we spoke with our leading experts to gather their insights and forecasts for the automotive industry's future. Here's what they shared.
“Over the next 5 years, I think we'll see a bit of a digital dichotomy. I think AI will significantly streamline internal processes of R&D and project management, accelerating development and speed to market. In parallel, growing digital fatigue is going to reshape vehicle and experience design - driving a shift toward more tactile, emotional interactions in client touchpoints. This not only enhances the vehicle experience but also becomes a powerful extension of brand identity through a distinctive look, feel, and sound.”
- Michelle Christensen, Vice President, Global Design, Karma Automotive
“Several key technologies significantly impact the automotive industry (AI, Autonomous, ADAS, Connected Vehicles etc.), with System testing and validation cycle playing a critical role in ensuring their safe and reliable integration and deployment on the vehicles. The shift-left approach will have a profound impact as the industry becomes more software driven and will address issues earlier in the development process particularly in the areas of testing, security, and quality assurance.
Virtualization and simulation tools play a key role in the development and testing of onboard and offboard features and autonomous systems. SW virtualization will be an essential technology to allow flexible, scalable and secure architecture and design for complex vehicle systems. The virtual vehicle environment will enable to simulate millions of driving scenarios and interactions with human drivers, reducing the need for extensive physical testing. Telematics and Connectivity features will be virtualized, and this will enable early and thorough testing to ensure secure, real time data exchange between vehicles and infrastructure. Digital Twin technology and simulation tools will be increasingly used in the next years helping reduce time to market and the cost associated with physical testing. Suppliers that specialize in EE systems(semiconductors, sensors, ECU, SW and Firmware, cybersecurity) will play a vital role in providing virtual artifacts for early system integration.
Advanced testing tools like virtualization and virtual vehicle will drive innovation while ensuring safety, reliability, and performance in an increasingly complex automotive landscape.”
- Sangeeta Theru, Director, Virtual Validation Platforms, Stellantis
“I believe the most significant trends and technologies in automotive technology over the next five years will revolve around the continued development and adoption of electric vehicles (EVs) and autonomous driving. With more vehicles incorporating advanced driver-assistance systems (ADAS) and moving towards full autonomy, this will not only transform the driving experience but also open up new possibilities for in-car services and entertainment. As cars become more autonomous, they will increasingly be seen as a second living room or office, providing drivers and passengers with the opportunity to work, relax, shop, and even pay bills while on the move.
When it comes to payments, I foresee a significant shift towards more seamless and secure transaction methods, enhancing convenience for users. The integration of in-car payment systems will become more widespread, enabling drivers to pay for services like parking, tolling, and fueling without leaving their vehicles.
Additionally, the connected car ecosystem will continue to expand, with vehicles becoming more integrated with smart city infrastructure and IoT devices. This will lead to improved traffic management, enhanced safety features, and a more personalized driving experience. Overall, these technologies will create a more efficient, enjoyable, and emotionally engaging automotive experience for consumers."
- Jana Breitkopf, Managing Director, Mercedes pay USA
“From the customer side, automotive manufacturers are wrestling with an aging world population that compels a deeper acceptance of inclusive design up front and generational shifts in consumer expectations and sentiment towards technology in various markets. There are strategies emerging that both embrace new tech and move far away from it to solve the issue of cost and affordability. From the technology side agentic systems on edge are unlocking new capabilities people are still trying to understand in-vehicle given data costs, privacy and hardware. Intelligent embodiment in robotics is driving innovations that OEMs have already begun to adapt with some big wins. This combination of a generational shift in sentiment, cost and emergent tech are what I am watching.”
- Amber Lundy, Product Design Director, Advanced Technology & Driver Assistance Systems - Electric Vehicle, Ford Motor Company
“Certainly, as we're seeing now, political dynamics, primarily driven by the White House, will have an enormous impact on the U.S. (as well as broader North American) automotive industry. The novel utilization of tariffs and other trade tools (to perhaps include investment screening mechanisms) creates new opportunities and challenges for American manufacturers, while also profoundly impacting the larger geopolitical landscape. I'll briefly switch gears and mention two technologies already starting to shake things up, which I think will only continue over the next 5-10 years: AI and battery development.”
- Adam Farris, Director for International Trade and Supply Chains, Toyota North America
“In the next few years, SDVs will rely heavily on the seamless integration and interpretation of data from diverse sensors like lidar, radar, cameras, and ultrasonic sensors. Advancements in sensor fusion algorithms will play a critical role for robust and reliable perception, enhancing the ability of AI algorithms to detect pedestrians, cyclists, and other vulnerable road users, particularly in challenging conditions like low light or heavy traffic. When we combine this enhanced perception with V2X communication, this will only further increase overall safety for drivers, passengers, pedestrians, and other road users.”
- Elizabeth Kao, Product Management Director for Automated Driving & Driver Assistance Systems, Bosch
“Over the next five years, the automotive industry will experience a transformative shift towards software-defined vehicles. This revolutionary concept is driving disruptive changes across multiple domains, including compute platforms, software platforms, connectivity, product organizations, and working methods. By embracing this shift, the industry can achieve continuous improvement, ensuring it remains both relevant and competitive in a dynamically evolving landscape.
To fully realize this vision, the automotive industry must cultivate unprecedented levels of collaboration and teamwork across the ecosystem - OEMs, Tier 1 suppliers, technology providers, consortia, and government entities. By working together, the industry can harness the potential of the software-defined vehicle and usher in a new era of mobility.”
- Brandy Goolsby, Director Business Development and Sales, Embedded Software, VECTOR North America