The automotive industry stands at a pivotal juncture in 2025, poised for transformative changes driven by technological innovation, environmental pressures, shifting consumer preferences, and evolving regulatory landscapes. Over the next decade, as with any other decade in the past 100 years, we can expect seismic shifts that will redefine how vehicles are designed, manufactured, powered, and used. Below are ten possibilities about how the auto industry might evolve over this period, each exploring the forces at play and their potential implications for manufacturers, consumers, and society at large.

While it is not possible to accurately predict the future, we do know that significant amounts of money are flowing into each of these developments.

1. Electric Vehicles Will Dominate, but Battery Technology Will Evolve Beyond Lithium-Ion

By 2035, electric vehicles (EVs) are likely to account for over 70% of new car sales globally, driven by stricter emissions regulations, declining battery costs, and improved charging infrastructure. However, the dominance of lithium-ion batteries may wane as solid-state batteries and alternative chemistries, such as sodium-ion or graphene-based solutions, take center stage. Solid-state batteries, with their promise of higher energy density, faster charging times (potentially under 15 minutes for a full charge), and enhanced safety due to the absence of flammable liquid electrolytes, could become commercially viable by 2030. Companies like Toyota and QuantumScape are already investing heavily in this technology, and their breakthroughs could reduce reliance on scarce materials like cobalt and lithium, addressing supply chain vulnerabilities exposed in the mid-2020s. This shift will not only make EVs cheaper and more accessible—potentially dropping the average price below that of internal combustion engine (ICE) vehicles by 2032—but also extend vehicle ranges beyond 500 miles, alleviating range anxiety and accelerating the phasing out of gasoline-powered cars.

2. Autonomous Driving Will Reach Level 4 Ubiquity in Urban Areas

Self-driving technology will mature significantly over the next decade, with Level 4 autonomy—where vehicles can operate without human intervention in specific conditions—becoming commonplace in urban environments by 2035. Tesla, Waymo, and emerging players like China’s Baidu Apollo are pushing the envelope, leveraging artificial intelligence (AI), advanced sensor suites (LIDAR, radar, and cameras), and 5G connectivity to refine autonomous systems. By 2030, expect major cities like San Francisco, Shanghai, and London to designate “autonomous zones” where human-driven cars are restricted, reducing traffic accidents (which studies suggest could drop by 80% in such areas) and optimizing traffic flow. However, rural areas may lag, stuck at Level 2 or 3 autonomy due to infrastructure challenges and lower investment. This urban-rural divide could reshape car ownership patterns, with city dwellers increasingly favoring shared autonomous fleets over personal vehicles.

3. Car Ownership Will Decline as Mobility-as-a-Service (MaaS) Takes Over

The rise of Mobility-as-a-Service platforms—think Uber or Lyft on steroids—will erode traditional car ownership, especially among younger generations. By 2035, subscription-based models offering access to a fleet of EVs, autonomous shuttles, and even e-scooters could account for 40% of personal transportation in developed markets. Companies like GM (with its Cruise division) and Volkswagen (via MOIA) are already pivoting to become “mobility providers” rather than just automakers. This shift will be fueled by the high cost of owning an advanced EV or autonomous vehicle, coupled with the convenience of on-demand transport. Cities will adapt by reducing parking spaces—potentially freeing up 15% of urban land for green spaces or housing—and implementing dynamic pricing for MaaS to manage peak demand. However, this could exacerbate inequality, as rural areas with limited MaaS penetration may leave residents reliant on older, less efficient vehicles.

4. Hydrogen Fuel Cells Will Gain Traction for Heavy Duty and Luxury Segments

While EVs will dominate the passenger car market, hydrogen fuel cell vehicles (FCVs) will carve out a niche in heavy-duty trucking, buses, and high-end luxury cars by 2035. Advances in hydrogen production—particularly green hydrogen made using renewable energy—will lower costs, while refueling infrastructure expands beyond current hubs like California and Japan. Companies like Hyundai (with its Xcient Fuel Cell truck) and Toyota (Mirai) are betting on FCVs for applications where battery weight or charging downtime is impractical. By 2033, hydrogen-powered semi-trucks could capture 25% of the long-haul market, reducing freight emissions significantly. In the luxury segment, brands like BMW might offer hydrogen-powered models as a premium alternative to EVs, appealing to buyers who value rapid refueling (under 5 minutes) and a distinct eco-friendly identity. The challenge? Scaling hydrogen infrastructure will require massive public-private investment, potentially lagging behind EV charging networks.

5. 3D Printing Will Revolutionize Manufacturing and Customization

Additive manufacturing, or 3D printing, will transform how cars are built by 2035, enabling on-demand production of parts, reducing waste, and allowing unprecedented customization. Already in 2025, companies like Ford and BMW are experimenting with 3D-printed components, but by the early 2030s, entire vehicle chassis or body panels could be printed using advanced materials like carbon-fiber composites or metal alloys. This shift will shrink supply chains, as automakers move from sprawling factories to localized “micro-factories” capable of producing vehicles closer to consumers. For buyers, this means bespoke designs—imagine ordering a car with a custom interior or unique aerodynamic features, delivered in weeks rather than months. By 2035, 3D printing could cut production costs by 20% and enable rapid prototyping of new models, though traditional assembly lines will still dominate for mass-market vehicles.

6. Software Will Define Vehicle Value, Turning Cars into Rolling Computers

By 2035, the value of a car will increasingly lie in its software rather than its hardware. Over-the-air (OTA) updates, pioneered by Tesla, will become standard, allowing manufacturers to continuously improve vehicle performance, safety, and features post-sale. This shift will turn cars into platforms akin to smartphones, with app ecosystems for navigation, entertainment, and productivity. By 2030, expect premium models to offer AI-driven personal assistants that anticipate driver needs—say, rerouting to avoid traffic or pre-heating the cabin based on weather data. Automakers will monetize this through subscriptions, with features like advanced autonomy or enhanced infotainment locked behind paywalls. However, this could spark backlash over “right to repair” issues, as consumers demand control over their vehicles’ software, potentially leading to new regulations by 2035.

7. Climate Regulations Will Force a Reckoning for Legacy Automakers

Stringent climate policies, such as the EU’s planned 2035 ban on new ICE vehicle sales or China’s carbon-neutrality goals, will push legacy automakers like Ford, Stellantis, and Toyota to either adapt or decline by 2035. Those slow to transition from ICE to EV or hydrogen platforms may face hefty fines or lose market share to nimble competitors like Rivian or NIO. Expect a wave of mergers and acquisitions as struggling giants consolidate—imagine a 2032 headline about Volkswagen absorbing a faltering American brand. Meanwhile, circular economy principles will take root, with regulations mandating that 90% of a vehicle’s materials be recyclable by 2035. This will spur innovations like biodegradable interiors or modular designs that allow easy part replacement, reshaping production and disposal processes.

8. Augmented Reality Windshields Will Enhance Driving and Safety

By 2035, augmented reality (AR) windshields will become a standard feature in mid-to-high-end vehicles, overlaying real-time data onto the driver’s view. Think navigation arrows projected onto the road, hazard warnings highlighting pedestrians, or even night-vision enhancements. Companies like Panasonic and Hyundai Mobis are already developing AR heads-up displays, and by 2030, these could integrate with autonomous systems to provide a seamless transition between manual and self-driving modes. For drivers, this means safer, more intuitive navigation—reducing distraction-related accidents by an estimated 30%—while passengers might enjoy AR entertainment, like interactive games tied to the passing scenery. Privacy concerns, however, could arise if AR systems collect driving data, prompting debates over surveillance by 2035.

9. Urban Air Mobility Will Complement Ground Vehicles

While not replacing cars, urban air mobility (UAM)—think electric vertical takeoff and landing (eVTOL) aircraft—will emerge as a premium extension of the auto industry by 2035. Companies like Joby Aviation and Archer, backed by automakers like Toyota and Stellantis, aim to launch commercial “flying taxi” services in cities like Los Angeles and Dubai by 2030. These vehicles, powered by electric motors and offering ranges of 150-200 miles, will cater to affluent commuters or emergency services, cutting travel times dramatically (e.g., a 60-minute car trip reduced to 15 minutes). Integration with ground-based EVs via shared apps will create a multi-modal transport ecosystem, though high costs and airspace regulations will limit UAM to niche markets, with perhaps 5% of urban trips airborne by 2035.

10. The Rise of “Smart Roads” Will Redefine Vehicle-Infrastructure Interaction

By 2035, “smart roads” equipped with sensors, wireless charging pads, and vehicle-to-infrastructure (V2I) communication will enhance the driving experience and support EV adoption. Imagine highways that charge your car as you drive, eliminating the need for lengthy stops—technology already being tested in Sweden and Israel in 2025. These roads will also relay real-time data to vehicles, optimizing speed and spacing to cut congestion by 25% and emissions by 15%. Governments will prioritize smart infrastructure in high-traffic corridors, with the U.S., China, and the EU investing billions by 2030. For automakers, this means designing cars with compatible systems, potentially standardizing V2I protocols. However, funding disputes and cybersecurity risks—like hacked roads disrupting traffic—could slow deployment outside major economies.

Conclusion

The auto industry’s next decade will be a whirlwind of innovation and adaptation, blending electrification, autonomy, and connectivity into a new vision of mobility. Consumers will enjoy safer, greener, and more personalized transport, but challenges like equity, infrastructure, and regulatory alignment will test the industry’s resilience. By 2035, the car as we know it—a standalone, gas-powered machine—may be a relic, replaced by a networked, multi-purpose device that reflects the technological and societal priorities of a rapidly changing world. Whether automakers, governments, and consumers can navigate this transition harmoniously remains the great unknown—but the road ahead promises to be anything but dull.