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October 2025
The next-generation vehicles market is booming, poised for a revenue surge into the hundreds of millions from 2025 to 2034, driving a revolution in sustainable transportation. The growing demand for luxury passenger vehicles from the HNIs coupled with numerous government initiatives aimed at developing the EV infrastructure has driven the market expansion. Additionally, rapid investment by automotive brands for opening up new R&D centers along with the increasing adoption of EVs in developed nations for lowering emission is playing a prominent role in shaping the industrial landscape. The rising emphasis of automakers to develop software-defined vehicles is expected to create ample growth opportunities for the market players in the upcoming years to come.
The next-generation vehicles market is generally driven by the rising demand for EVs in developed nations coupled with rapid investment by automotive brands for opening up new production units. The next-generation vehicles are a new range of future-oriented vehicles that are integrated with advanced features to enhance driving experience. There are several types of vehicles developed in this sector consisting of passenger cars, electric two-wheelers, light, medium, and heavy commercial vehicles, three-wheelers, off-road / specialty vehicles and some others. These vehicles are powered by different types of batteries such as li-ion batteries, solid-state batteries, nickel-hydride batteries and some others. It is integrated with numerous types of components including batteries & fuel cells, sensors, electric motors & power electronics and some others. This market is expected to rise significantly with the growth of the automotive sector around the globe.
The major trends in this market consists of partnerships, business expansions and EV initiatives.
The passenger cars segment dominated the market. The growing sales and production of passenger cars in numerous countries such as India, China, Germany, the U.S., France and some others has driven the market expansion. Also, rapid investment by automotive companies for developing autonomous cars along with increasing sales of luxury vehicles in developed nations is playing a prominent role in shaping the industrial landscape. Moreover, collaborations among technology providers and automotive companies for integrating advanced technologies in passenger cars is expected to propel the growth of the next-generation vehicles market.
The electric two-wheelers segment is expected to grow with the fastest CAGR during the forecast period. The growing adoption of electric-bikes in various nations such as Vietnam, Indonesia, UK, Italy and some others for lowering vehicular emission has driven the market expansion. Also, the rising demand for e-scooters from eco-friendly consumers along with rapid investment by two-wheeler companies for opening electric two-wheeler manufacturing units is contributing to the industry in a positive direction. Moreover, partnerships among battery manufacturers and two-wheeler companies to develop advanced batteries for e-bikes is expected to boost the growth of the next-generation vehicles market.
The battery electric vehicles (BEVs) segment led the market. The increasing sales and production of BEVs in several countries such as China, India, South Korea, Japan and some others has boosted the market expansion. Additionally, numerous government initiatives aimed at developing the EV charging infrastructure coupled with rise in number of EV startups in the APAC region is playing a prominent role in shaping the industrial landscape. Moreover, rapid investment by various automotive companies such as Tesla, Rivian, Tata Motors and some others for developing a wide range of EVs is expected to propel the growth of the next-generation vehicles market.
The fuel cell electric vehicles (FCEVs) segment is expected to rise with the fastest CAGR during the forecast period. The growing emphasis of automotive companies for developing different types of FCEVs has boosted the market growth. Also, rapid investment for developing the hydrogen-refueling infrastructure coupled with technological advancements in the FCEV sector is contributing to the industry in a positive direction. Moreover, partnerships among truck manufacturers and automakers to develop a wide range of FCEVs is expected to drive the growth of the next-generation vehicles market.
The level 2–3 segment held the largest share of the market. The growing demand for semi-autonomous vehicles in developing nations to assist drivers during emergency has driven the market expansion. Additionally, the integration of level 2 ADAS systems in mid-range vehicles to enhance vehicular safety coupled with technological advancements in the ADAS sector is playing a vital role in shaping the industry in a positive direction. Moreover, numerous advantages of level 3 ADAS system including reduced driver workload, improved situation awareness, reducing human errors, and some others is expected to accelerate the growth of the next-generation vehicles market.
The level 4–5 segment is expected to expand with the highest CAGR during the forecast period. The rising adoption of self-driving cars in technologically advanced nations such as the U.S., Germany, China and some others has boosted the market expansion. Additionally, rapid investment by numerous automakers such as BYD, Tesla, Rivian and some others for integrating level 4 ADAS systems in their cars is contributing to the industry in a positive manner. Moreover, the deployment of driverless taxis by several ride-hailing companies such as Waymo, Uber, Grab and some others is expected to propel the growth of the next-generation vehicles market.
The batteries & fuel cells segment led the market. The increasing demand for high-quality li-ion batteries from EV companies has driven the market growth. Also, numerous government initiatives aimed at developing the battery manufacturing center along with rapid investment by battery companies for opening up new production centers is playing a vital role in shaping the industrial landscape. Moreover, partnerships among battery companies and automotive brands to develop high-quality EV batteries is expected to foster the growth of the next-generation vehicles market.
The sensors segment is expected to rise with the fastest CAGR during the forecast period. The growing use of high-quality oxygen sensors for maintaining air-fuel ratio in modern vehicles has driven the market expansion. Also, the rising integration of LiDAR sensors and Radar sensors in autonomous vehicles coupled with rapid investment by sensor manufacturers for opening new production units is playing a vital role in shaping the industry in a positive direction. Moreover, collaborations among sensors companies and automakers to integrate IoT-based sensors in EVs to monitor battery performance is expected to accelerate the growth of the next-generation vehicles market.
Asia Pacific dominated the next-generation vehicles market. The growing adoption of electric vehicles in various nations such as India, China, Japan, South Korea and some others has driven the market expansion. Additionally, numerous government initiatives aimed at developing the EV infrastructure coupled with technological advancements in the automotive sector is playing a vital role in shaping the industrial landscape. Moreover, the presence of several market players such as Honda Motor Co., Ltd., Nissan Motor Corporation, BYD Company Limited and some others is expected to propel the growth of the next-generation vehicles market in this region.
The growing sales and production of passenger vehicles along with rapid deployment of robots in the automotive manufacturing sector has boosted the market expansion. Additionally, numerous government initiatives aimed at developing the EV sector coupled with availability of wide range of automotive components at less prices is playing a vital role in shaping the industrial landscape.
Europe is expected to grow with the highest CAGR during the forecast period. The increasing demand for luxury cars in numerous countries such as Germany, Italy, France, UK and some others has boosted the market growth. Also, rapid investment by automotive manufacturers for opening up new manufacturing units coupled with rise in number of automotive battery startups is contributing to the industry in a positive manner. Moreover, the presence of various market players such as Stellantis N.V., Volvo Cars, Mercedes-Benz Group AG and some others is expected to foster the growth of the next-generation vehicles market in this region.
The rising demand for autonomous trucks from various industries such as mining, construction, logistics, e-commerce and some others to reduce dependency on manual labors has boosted the market expansion. Additionally, rapid investment by market players for opening up new automotive R&D centers coupled with the growing popularity of sportscars is playing a prominent role in shaping the industrial landscape.
North America is expected to expand with a notable CAGR during the forecast period. The rising demand for PHEVs in the U.S. and Canada for lowering vehicular emission has driven the market expansion. Also, numerous government initiatives aimed at developing the battery manufacturing sector along with rapid investment by EV brands for designing numerous types of vehicles is playing a vital role in shaping the industrial landscape. Moreover, the presence of numerous market players such as Tesla, Rivian, Ford, General Motors and some others is expected to drive the growth of the next-generation vehicles market in this region.
The increasing consumer preference to purchase eco-friendly vehicles along with rapid investment by automakers for opening up new manufacturing plants has boosted the market growth. Additionally, surging deployment of autonomous cars by fleet operators to gain high profits coupled with growing sales of electric two-wheelers is playing a prominent role in shaping the industry in a positive manner.
| January 2024 | Announcement |
| Samkit Shah, the Co-Founder of Jitendra EV | The company’s objective to make the PRIMO accessible to a wide range of riders, not just a select few. The e-scooter is designed to be high on design and innovation while being affordable, aligning with the company’s vision of making electric mobility accessible to all. Shah highlighted the tireless efforts of the team in overcoming numerous challenges to make the transparent scooter ready for mass production. |
| September 2025 | Announcement |
| Eiichi Akashi, the Chief Technology Officer of Nissan | Our current ProPILOT 2.0 system has been well received, but Nissan’s next-generation ProPILOT technology will bring even more innovative features and deliver the feeling that a skilled human driver is behind the wheel. It will adapt to more complex traffic conditions and truly provide greater confidence and peace of mind enhancing safety not only for the driver, but for everyone using the road. |
| April 2025 | Announcement |
| Ralf Brandstätter, Volkswagen AG Group Board Member for China | The rapid progress in developing our new ADAS system highlights CARIZON’s technical capabilities and the implementation strength of our ‘In China, for China’ strategy. We are developing cutting-edge technology locally at ‘China Speed’ tailored to our Chinese customers, with the highest standards in driving performance, safety and quality. |
| October 2025 | Announcement |
| Amit Sikka, Head of IoT and Vehicle Software at Voi | Partnering with eBikeLabs allows us to explore how next-generation motor intelligence can make our e-bikes even more efficient and enjoyable to ride. Improving autonomy and ride comfort directly supports our sustainability and user-experience goals. |
| March 2025 | Announcement |
| Mr. Yash Khandelwal, Head International Business, Tata Passenger Electric Mobility Ltd | We are thrilled to introduce our electric vehicle portfolio in Mauritius, marking our first international expansion beyond the SAARC region. With the government’s strong commitment to sustainable mobility, Mauritius holds strategic importance in our EV journey. As a pioneer of the EV revolution in India and a proven success in SAARC markets, TATA.ev is well-positioned to support the country’s transition to electric mobility. Our diverse range of EVs spanning multiple body styles and battery options combined with an unmatched ownership experience and the strong partnership of Allied Motors, sets the stage for a transformative shift in Mauritius’ automotive landscape. |
| July 2025 | Announcement |
| Mr. Pham Sanh Chau, the CEO of VinFast Asia |
The first VinFast Showroom in Surat, Gujarat is a symbol of our deep commitment to India. We are excited to bring the VinFast experience closer to Indian consumers. With this dealership in Gujarat, we aim to offer not just electric vehicles, but a complete ownership journey built on quality, trust, and service excellence. With trusted partners like Chandan Car, we are building a future-ready EV ecosystem in the country. Their proven automotive expertise, combined with VinFast’s technology and vision, will help shape a premium EV experience for Indian customers. |
| April 2025 | Announcement |
| John Harris, Co-founder and CEO, Harbinger | Our ability to design and move our vehicle into production this quickly is a testament to the creativity and diligence of our world-class team. Completing production of 100 chassis is an important achievement for Harbinger. We chose to announce the start of production only after reaching this milestone to highlight that we are producing vehicles at a volume and scale that is truly impactful for our customers and the industry. |
| October 2025 | Announcement |
| Antonio Filosa, Stellantis CEO and North America COO | This investment in the U.S. – the single largest in the Company’s history – will drive our growth, strengthen our manufacturing footprint and bring more American jobs to the states we call home. As we begin our next 100 years, we are putting the customer at the center of our strategy, expanding our vehicle offerings and giving them the freedom to choose the products they want and love. Accelerating growth in the U.S. has been a top priority since my first day. Success in America is not just good for Stellantis in the U.S. it makes us stronger everywhere. |
| October 2025 | Announcement |
| Shaheem Musthafa, CEO of Evocargo Autonomous Logistic Services in UAE | This launch proves autonomous, zero-emission transport is no longer a concept, but a viable solution for daily commercial operations. It’s a transformative step for UAE’s logistics sector – enhancing supply chains, boosting efficiency, and reducing environmental impact. Our Robots-as-a-Service model makes this innovation accessible and scalable, offering businesses subscription-based access to autonomous vehicle without upfront costs. |
| June 2025 | Announcement |
| Mary Barra, Chair and CEO | We believe the future of transportation will be driven by American innovation and manufacturing expertise, Today’s announcement demonstrates our ongoing commitment to build vehicles in the U.S and to support American jobs. We're focused on giving customers choice and offering a broad range of vehicles they love. |
The next-generation vehicles market is a rapidly developing industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Tesla, Inc., Toyota Motor Corporation, Volkswagen AG, Hyundai Motor Group, Kia Corporation, BMW AG, Mercedes-Benz Group AG, Honda Motor Co., Ltd., Nissan Motor Corporation, General Motors Company, Ford Motor Company, BYD Company Limited, SAIC Motor Corporation Limited, Rivian Automotive, Inc., Lucid Motors, Stellantis N.V., Volvo Cars, NIO Inc. and some others. These companies are constantly engaged in developing next-generation vehicles and adopting numerous strategies such as acquisitions, partnerships, business expansions, launches, collaborations, joint ventures and some others to maintain their dominance in this industry.
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