Top 8 Automotive Industry Trends & Innovations in 2021


David Mudd

The automotive industry is advancing in many ways by adopting the latest technologies. In effect, car manufacturers tend to bring something innovative about their products.

As a result, conventional vehicles are transforming into modernized versions. Moreover, a recent survey in 2021 shows that information-centric technologies are the key players in this industry.

Additionally, car technology innovations are not limited to only artificial intelligence, Big Data or Cloud Computing. The newest trends like Internet of Things (IoT) and Blockchain are also gearing up the industry. The following article presents you with the top 8 automotive industry trends and innovations in 2021.

Top 8 New Technology In Automobile In 2021

No doubt, the automotive industry has gone through significant evolutions over the past few decades. Thanks to the new technology in automobile service to make this possible.

Let’s take a look at the following top trends in automotive technology.

Artificial Intelligence (AI)

Artificial intelligence or AI has considerably reshaped the automotive industry. AI technologies like machine learning, deep learning and computer vision have applications in robotic automation within the industry.

Additionally, AI has been implemented in different ways in automotive operations. That includes production, design, supply chain, post-production and cost mitigation, as well as predictive maintenance.

Furthermore, AI plays a major role in driver assistance technology as in Autonomous cars (self-driving). It guides the drives in order to manage fleets, ensure safety and improve services like car inspection and insurance.

Autonomous Vehicles (AV)

Self-driving or Autonomous Vehicles (AV) are the biggest innovation in automotive history. It nearly eliminates the need forhuman drivers to drive cars. At the same time, it makes transportation more efficient and easier while ensuring security and safety.

Most importantly, AVs are equipped with modern recognition technology to detect obstacles on roads or surroundings. For example, they use AI-enhanced computer vision to spot hurdles on routes. So, unnecessary accidents can be avoided.

The demand for autonomous cars is quite high in developed countries. Many companies get difficulties finding new employees often. Thanks to AVs, that solves the driver shortage.

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Another innovative automotive trend in 2021 is Blockchain development. It provides an innovative approach to manage data and execute transactions along with accuracy and reliability.

In addition, blockchain has countless applications in the automobile field, like

  • Seamless data distribution over a secured network.
  • Smart contract technology to accelerate processes, faster digital payments, automated leasing, maintenance, finance and other procedures.
  • Assign digital IDs to every vehicle part to track any forgery with real-time alerts.
  • Recall targeting by detecting defective vehicle parts.
  • With smart vehicles, record data like average speed or mileage to analyze driver behavior.
  • Regulatory compliance of cars.
  • Theft preservation by storing the identities of the drivers.
  • Reward drivers for maintaining safety and better behavior.


Nowadays, connecting your smart devices to the car has been much easier. It can be said as a new vision of mobility.

Connectivity provides many insightful benefits for a driver. Such as it tracks and measures vehicular data and send it to your mobile or laptop. Thedata can be used for better fleet management, predictive maintenance, driver safety and insurance.

This not only helps individual customers but also develops the mobility ecosystem.In a word, connected cars can be called smart cars.

As you can connect mobile and laptop to the car, it’s easy to make hand-free calls. You can further control the entertainment system, navigation, heating or cooling without takingyour eyes off the road. Isn’t it amazing?


The vehicle electrification market has been incredibly increased over the past few years. It is due to the high depletion rate of preserved fossil fuels and harms to the environment from using them.

Therefore, the new era of the auto industry is changing the manufacturing outlook with electric vehicles (EV). People across the world are preferring electric vehicles. What conventional cars can’t provide, EVs are outperforming them by followings,

  • Higher fuel economy.
  • Easy charging and refueling.
  • Lower carbon emission.
  • Low maintenance cost.
  • Smooth driving.
  • No sound from engines.

However, EVs still need to fix some major problems. Like a poor battery, higher costing, fleet electrification, insufficient charging manufacture and fueling renewable energy-based charging grids need to be improvised.

In 2019, there were 2.1 million record electric car sales globally. The market was valued at $70.14 million that year. Recently,it has been estimated that by 2027,EV sales will reach $140.29 million.

Internet of Things (IoT)

Internet of Things or IoT is kind of a thing in every field. The automotive industry also has adopted this latest tech innovation to boost business. IoT is just the beginning but already ruling the road.

IoT refers to the communication between vehicles, as well as vehicles and their infrastructure components. Complex devices like sensors, electronics, actuators and others interact over a wireless network. They share data with each other without human interventions.

Nevertheless, it finds various applications in this particular industry.

  • Fleet management, including route management, time and driver management, tracking traffic conditions etc.
  • Connected cars into 4 ways, i.e., Vehicle to vehicle (V2V), vehicle to infrastruature (V2I), vehicle to pedestrians (V2P) and vehicle to network (V2N).
  • Automotive maintenance system.
  • Real-time vehicle telematics.
  • In-vehicle infotainment.

Big Data And Data Analysis

Big data is presently expanding the information range for automakers. Earlier, the car manufacturers only had small information. Now using big data, they have developed a new model that provides brand-new services.

Advance data analysis additionally offers detailed insights into a vehicle life cycle. The followings are the major ways to use big data while collecting data from vehicles:

  • Quality predictive maintenance.
  • Alerts authorities about any accidents.
  • Notify managers about their fleet.
  • Helps in making decisions for annual sale purchase and production targets.
  • Customer automotive data improve supply chains, increase sales and upgrade new product’s design.

Human-Machine Interface

The biggest question is how drivers interactwith these latest vehicle technologies.As self-driving cars or connected cars are booming, the driver assistance system also needs to be advanced.

Therefore, a new trend comes named Human-machine interface (HMI) that the car manufacturing industry is implementing. It uses a voice-based system or haptic feedback to operate a car. So, it can understand what type of car the user is controlling.

Additionally, it offers a smart virtual assistant to help drivers interact with vehicles or other services. Consequently, this feature enables secure and safe driving while enjoying a road trip.


Whether it’s AI-based automation or using big data, the automation industry is taking a new turn. The newest trends and innovations are re-inventing the vehicle business model.

Further, digitization, additive manufacturing, shared mobility etc., are transforming the industry.Thus, vehicle manufacturers have a golden opportunity to reconstruct the products.