Automotive market research: Trends for the next five years

An industry in transition

The next five years for the global automotive industry will be focused on continuing to navigate a dynamic market. Several factors will continue to drive change in the industry, including the rise of electric vehicles (EVs), the application of artificial intelligence (AI), and the commercial adoption of autonomous vehicles (AVs). The impact, however, varies globally because of differences in regulation, consumer behavior, and infrastructure. These changes are creating new challenges for automotive market research as original equipment manufacturers (OEMs) seek a deeper understanding of local consumer preferences before committing to vehicles, styles, and pricing.

EVs

In 2025, electric car sales reached 20M units globally, with 1 in 4 new cars sold worldwide being electric. Regional differences are significant. For example, in China, 55% of new car sales were electric vehicles, about 28% in Europe, and just under 10% in the United States. The data suggests what automakers already understand: there remains a segment of consumers who are strongly opposed to EVs. Hybrids are also not going away either. In the EU, they accounted for 34.5% of registrations versus 17.4% for pure EVs.

At the same time, automakers are increasingly shifting from the traditional one-time vehicle sale to a software platform that generates revenue further into the lifetime of the car. Software-as-a-service (SaaS)- like recurring revenue, subscriptions, and over-the-air (OTA) upgrades are quickly becoming part of the standard automotive model.

This is by no means limited to EVs, as software-defined vehicles (SDVs) are increasingly found on gasoline, hybrid, and pure electric vehicles too. General Motors announced in 2025 that its software platform is designed to provide features, apps, and services OTA, including performance features, software services, and Super Cruise—an advanced hands-free driving assist technology that handles steering, braking, and acceleration.

AI

AI implementation will also continue to advance across everything from manufacturing to continuous vehicle improvement. In 2025, Toyota announced its Global AI Accelerator (GAIA), which aims to significantly boost investment in research, development, human resource development, and implementation of AI systems throughout every part of Toyota. This includes design, manufacturing, quality, autonomous driving, in-car assistants and personalization, and predictive maintenance, to name a few.

Other car makers have similar initiatives, but they are not always moving towards increased use of AI. Ford, for instance, reported that it rehired human quality engineers after AI was unable to deliver the same level of service.

AVs

AVs are poised for rapid adoption in the United States, yet they have seemed to be at this point for the last couple of years. Mass adoption varies by state because of regulatory differences, availability, and supporting infrastructure. Differences also exist by country with the United Arab Emirates (UAE), Saudi Arabia, and Qatar aggressively investing in autonomous vehicles.

The chart below is based on Waymo’s public announcements of autonomous miles driven from 2023 to 2026 (blue), while the forecast miles (orange) are a linear trend projection for 2027.

Against this backdrop, Tesla plans to launch its Robotaxi in the 4^th quarter of 2026. If we assume Waymo’s adoption curve holds for Tesla and other new market entrants, then we’ll see the number of autonomous miles driven per year explode exponentially in the next 5 years.

Regional divides

Global automotive sales remain close to 2025, hovering around 91.8 million units in 2026. Like other trends discussed here, the global market is regionally disparate. A few of the major trends that differ in each geography are:

North America (NA): Internal combustion engines (ICE) remain dominant while battery electric vehicle (BEV) sales are stagnating. Hybrid electric vehicles (HEVs) are growing because a lower total cost of ownership appeals broadly to consumers. Tariffs are realigning US-based production strategies and keeping manufacturers in a state of continuous disruption.

Europe: Micromobility (bicycles, e-bikes, stand-up e-scooters, and mopeds) plays a bigger role than in NA. Domestic OEMs (Mercedes-Benz, Volkswagen, and BMW) face headwinds such as weak demand and strict EV transition guidelines.

Asia: Chinese OEMs are gaining traction in other markets as consumers are increasingly open to purchasing. The market overall faces a genuine competitor in the form of motorcycles and scooters, which are a primary form of transportation, especially in Southeast Asia.

Middle East: The Middle East markets are investing heavily in an autonomous future. This is evident in the UAE, where Dubai is targeting 25% of trips to be smart and driverless by 2030, while Abu Dhabi has already begun commercial level 4 AV operations.

These regional differences create a more fragmented automotive market. Brands may compete against other OEMs in one geography, but against motorcycles, public transportation, or AV services in another. This makes automotive market research even more critical for industry leaders.

Automotive market research is evolving

As vehicles become more technologically complex, automotive market research needs to test more than styling or purchase intent. Different methods can help manufacturers evaluate how customers respond to new designs, driving experiences, technologies, pricing models, and competitive positioning before committing to production or market entry.

Car clinics are one of the more established methods. There are two different types: static and dynamic. A static clinic allows participants to evaluate design elements like the car’s look and feel in a controlled environment. Dynamic clinics add a focus on the driving experience, creating a deeper connection with vehicles by enabling participants to consider the car’s handling, performance, and features such as advanced driver assistance (ADAS) and other connected car services.

Focus groups aim to provide brands with deeper insights into why consumers respond the way they do to vehicles and features. They provide qualitative data to test new concepts, evaluate consumer readiness for new technology, and gauge consumer response to pricing and value. Focus groups are evolving by using technology to perform research online, implementing eye-tracking technology to understand what consumers are focusing on, and simulating experiences with virtual reality environments.

Test drives allow researchers to observe how consumers interact with a vehicle in practice. Beyond traditional measures such as ride quality and performance, testing can examine infotainment systems, driver-assistance technologies, and user interfaces and experience.

Other methods such as quantitative surveys, in-depth interviews, competitive benchmarking, ethnographic research, and virtual or simulated testing remain relevant to automotive market research. The right approach depends on the decision or strategy to be evaluated. An OEM evaluating a new exterior design will need a different research program than one determining whether customers will pay a monthly subscription for advanced vehicle features.

From automotive change to market opportunity

The automotive industry has entered a period in which vehicles, technologies, and business models are all changing at the same time. EV adoption has diverged by region, software-defined vehicles (SDVs) are becoming increasingly popular with consumers, AI is moving deeper into automotive operations, and autonomous vehicles are moving from experimentation toward commercial use.

For manufacturers and mobility companies, the challenge is determining which changes matter most to their customers and markets. SIS International Research helps automotive companies evaluate new vehicle concepts, technologies, pricing, positioning, and market opportunities through car clinics, focus groups, test drives, quantitative research, and other customized research methods.

Contact SIS International Research to learn how automotive market research can support your next vehicle, technology, or market-entry decision.