Running a successful car dealership requires keeping up with the latest technologies, from artificial intelligence (AI) to autonomous vehicles. Whether you're a dealership owner or a general manager, you need to stay on top of emerging tech. Discover what you need to know about the latest automotive technology trends below.
3 Automotive Technology Trends to Follow in 2025
New car technology is constantly evolving. From AI to autonomous driving, a variety of cutting-edge tools are influencing modern car capabilities and what today's consumers are looking for. Here are some of the highlights.
1. Level 3 Autonomous Driving
The Society of Automotive Engineers (SAE) has defined six levels of autonomous driving, from 0 to 5. At Levels 0 to 2, the driver must still be engaged to ensure safe navigation on public roads. Levels 3 and up mark a turning point. At these levels, technology can take control of the vehicle, allowing for driving without human supervision. Still, the driver must be able to take control when alerted to do so1.
As of this writing, there is only one vehicle sold in the public marketplace that qualifies as a Level 3 vehicle: the Mercedes-Benz EQS1. Going forward, it's likely that more of these types of vehicles will be made available to the general public.
As exciting as this new technology is, it requires consumer education. Even if a vehicle is defined as Level 3, drivers still need to be alert and engaged while on the road. Dealerships must be prepared to meet the demand for such vehicles and educate consumers about their safe usage.
2. Growing Demand for Software-Defined Vehicles (SDVs)
SDVs rely on software to control critical vehicle functions, from steering to braking. The embedded operating system (OS) powering an SDV facilitates these general operations and can be updated regularly. It's similar to how a phone's OS can be updated: New functionality is made possible through an OS update, no new device needed2.
The SDV market is growing and expected to reach some 7.6 million units in 2025, up by more than 1 million compared to 20243. Savvy car dealers would do well to pay attention to this trend: In 2024, the SDV market was already valued at $49.3 billion4. It only makes sense that these numbers will grow, as consumers are growing increasingly accustomed to convenience. SDVs take the concept of hands-free driving to the next level.
3. Software Recalls Will Continue
As vehicles become more advanced, software recalls are rising sharply, jumping from 13% in 2023 to 42% in 20245. And though a portion of these updates can be done (Over the Air), some without having to step foot in a dealerships service bay, it’s still a frustrating experience for a customer to deal with when their vehicle has software glitches/updates that prevent them from doing simple expected tasks like opening a car door. It presents an opportunity for dealerships to better educate customers on these software updates.
Keeping Up With Technology Trends in the Automotive Industry
The automotive industry has come a long way since Henry Ford's heyday. Cutting-edge technologies are revolutionizing what modern vehicles are capable of. With modern consumers more informed than ever about the promise of new technologies, it's up to auto manufacturers to keep up with demand—and, by extension, car dealership owners and managers to deliver.
If you want to keep up with the competition, it's important to stay abreast of the latest trends. This will help ensure your inventory reflects consumer wants, helping you to stay one step ahead of the competition. With ACV Max's technology, you can rely on data-driven insights to keep your inventory current. Discover how ACV Max helps dealerships maximize inventory and retain their profits.
Sources:
- Nelson, P. (14 February 2025). The Six Levels of Autonomous Driving, Explained. J.D. Power. Retrieved April 24, 2025, from https://www.jdpower.com/cars/shopping-guides/levels-of-autonomous-driving-explain
- What Is a Software-Defined Vehicle? QNX. Retrieved April 24, 2025, from https://blackberry.qnx.com/en/ultimate-guides/software-defined-vehicle
- Singh, S. (January 13, 2025). Global Automotive Outlook: Predictions For 2025. Forbes. Retrieved April 24, 2025, from https://www.forbes.com/sites/sarwantsingh/2025/01/13/global-automotive-outlook-predictions-for-2025/
- (November 2024). Software-Defined Vehicle Market Size - By Vehicle, By Propulsion, By Level of Autonomy, By Offering and By Application, Growth Forecast, 2025 – 2034. Global Market Insights. Retrieved April 24, 2025, from https://www.gminsights.com/industry-analysis/software-defined-vehicle-market
- Tengler, S. (31 December 2024). 5 Predictions for the Auto Industry in 2025. Forbes. Retrieved May 16, 2025, from https://www.forbes.com/sites/stevetengler/2024/12/31/5-predictions-for-the-auto-industry-in-2025/
