2025 Industry Trends Across Automotive, Aerospace, and High Tech

At Supplyframe, we work with leaders across the full spectrum of electronics manufacturers, suppliers, and distributors. This allows us to achieve a unique perspective on everything from automotive trends to aerospace & defense developments, to the latest innovations in high-tech and consumer electronics.

As part of this industry-wide perspective, we are pleased to present the 2025 trends we believe will be most impactful across the automotive, aerospace, and high-tech sectors of global manufacturing. Join us as we discover what challenges and opportunities await in the coming year!

Automotive & Transportation

Vehicle Manufacturers around the world are betting on NEVs

In the first half of 2023, China’s imports and exports exceeded 20 trillion yuan (281,052,800 US dollars) for the first time, according to the Guangming Daily, published by the People’s Republic.

New energy vehicles (NEVs), lithium batteries, and solar cells were among the sectors responsible for this mid-year milestone. According to Nanjing Customs, Jiangsu ports exported 311,000 vehicles in the year’s first half.

In July 2023, China’s NEVs set sail from the International Container Terminal of Taicang Port Area of Suzhou Port, carrying 2,797 new energy vehicles destined for South America.

According to Nanjing Customs, Jiangsu ports exported 311,000 cars in the first half of the year.

In the first half of 2024, China’s automakers exported over two million vehicles, a year-on-year increase of 75.7%, according to China’s Association of Automobile Manufacturers. Among the cars were 534,000 NEVs. Over the same period, China’s exports of EVCs, solar cells, and lithium batteries increased by 61.6%.

The class of vehicles in the NEV family includes battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel-cell electric vehicles (FCEVs). According to data from China’s customs and industry associations, most Chinese NEVs produced, sold, and exported are BEVs and PHEVs.

China’s Shift in Manufacturing Focus

China’s automotive industry, including NEVs, is shifting from the dominant “old three” top industry sectors of clothing, home appliances, and furniture to the next generation of low-carbon transportation.

Many NEV manufacturers also produce power semiconductors. For example, automaker BYD manufactures automobile chips in China to meet the demand of NEV companies.

The rapid growth of NEV exports indicates China’s competitiveness in the global automobile industry. After decades of development, the electrification of China’s automobile manufacturing is raising the bar for rival automakers to challenge.

Independent trade development on the rise

With growing demand for NEVs worldwide, lithium batteries have become a hot-selling product for export. For example, newly commissioned lithium battery production by Chinese companies, such as Jiangsu Nantong Wotai Energy Co., Ltd., is very hectic.

In the first half of 2024, Nantong Wotai orders increased by more than 30% year-on-year. As market expectations improve, the company is adding more production capacity. When completed, its capacity will be six to seven times that of the previous level.

As a national-level specialized “little giant” enterprise, Nantong Wotai is among the private Chinese companies producing photovoltaic and energy storage systems.

The company has been serving the EU and other markets for many years. Thanks to independent innovation, research, development, and policy support, the overseas market is competitive, and the market share of lithium battery products has continued to improve.

The shift points to the future of low-carbon transportation. The General Administration of Customs reported that in the first half of 2024, the production of solar cells, electric vehicles, and lithium batteries increased by 61.6%, which drove exports up by 1.8%.

China puts Europe in the crosshairs

Chinese NEV companies have recently been racing to bolster their European electric vehicle business. The purpose is to accelerate geographical supply chain diversification because of tariff increases. The shift means Chinese manufacturers are accelerating their plans to target new global end markets.

The European Union’s attempt to protect its carmakers from the threat of Chinese electric cars flooding the EU and an invasion of vehicles from the East over the rest of this decade looks survivable.

The EU recently announced that all new cars must be electric by 2035. However, Europe’s automakers lag well behind the Chinese in their ability to make NEVs for the masses. The EU requires a massive increase in NEV sales to make its 2035 CO2 emissions-based targets. However, that goal appears to be challenging, given current market conditions.

One option for the EU is to make it more complicated, but not impossible, for Chinese NEV makers to sell in the EU, which benefits the European industry. However, ambitious NEV targets require a ready-made mass market to increase. Unfortunately, there’s no sign of dramatic growth.

One report about Chinese auto manufacturers in Western Europe forecasts that Chinese sales of NEVs will reach 200,000 in 2024 for a market share of 9.9%. That’s just 30,000 over the 170,000 EVs in 2023 for a market share of 8.8%. The report forecasts that EU sales of NEVs will reach an 11% market share by 2030.

By the end of the first half of 2024, China’s automakers had exported 2.14 million vehicles, a year-on-year increase of 75.7%, according to China’s Association of Automobile Manufacturers. Among them were 534,000 NEVs.

This year has challenged Chinese NEV manufacturers to diversify their geographical supply chains thanks to sudden tariff increases. “The result is Chinese manufacturers are significantly accelerating their current plans and announcing fresh sites in new territories,” said Yu Du, China Research Lead at Rho Motion.

Between 2027 and 2030, market watchers will likely see China’s share of the total regional EV market stagnate from between 10% and 12%. Also, they expect volumes to rise to just over 900,000 by 2030 and a 55% fall in EU CO2 fleet emissions levels compared to 2020/21.

Confidence in the accuracy of the long-term forecast will hinge on the 2026 mid-term review, which still needs to confirm the projected goal. Some Brussels-based think tanks expect some adjustments will be allowed for vehicles powered by e-fuels, which will be part of the 2026 review.

Shenzhen-based BYD is one of the leading Chinese automotive contenders to establish a European presence and perhaps become Europe’s leading Chinese EV brand by 2027. Of course, a lot can happen in three years.

The European Union’s attempt to protect its carmakers from an existential threat from Chinese electric cars seems to have succeeded, and the expected incursion from the East over the rest of the decade looks survivable.

There will be a price, though. The EU needs a massive increase in EV sales to make its 2035 CO2 emissions-based targets. That looks impossible under current conditions.

The EU has painted itself into a corner by decreeing all new cars must be electric by 2035 and close to 80% of sales by 2030. But its automakers lagged well behind the Chinese ability to make EVs for the masses. Should it stand behind its decree, make things easy for the Chinese, and bankrupt its own industry?

China would appear to have given a lifeline to the European industry by making it more difficult, but not too difficult, for the Chinese EV makers. But the hugely ambitious EV targets require a mass market and fast, and there’s no sign of that. If the current arrangements stand, its CO2-based EV targets might be diluted.

A recent report on Chinese manufacturers in Western Europe by Schmidt Automotive Research forecasts sales of Chinese EVs will reach 200,000 in 2024 for an EV market share of 9.9%. This projection compares to an 8.8% market share of just over 170,000 EVs last year. Sales are forecast to hit just over 900,000 EVs by 2030 for an 11% market share.

Aerospace and Defense

Sustainability

Concerns about climate change are forcing aerospace and aviation companies to reduce their carbon footprints and transition to more sustainable operations, for example, shifting to biofuels from fossil fuels to reduce carbon emissions.

Similarly, alternative energy sources such as electric flight technology enable the industry to curb emissions further. Integrating more energy-efficient and novel designs also improves fuel efficiency, reduces emissions, and lowers fuel costs.

Artificial Intelligence

Adopting AI is a significant step forward for aerospace companies because AI automates manual processes and eliminates human error. AI, machine learning (ML), computer vision, and others provide insights into the data by revealing new operation patterns, such as optimizing routes and improving fuel efficiency and asset utilization.

Another benefit of using AI is that it can handle more complex problems than humans in less time and delivers ideal outcomes. The technology also improves critical decision-making during autonomous flight operations. AI also assists human pilots in creating a perfect environment of both human and autonomous maneuverability.

Digitization

The aerospace and aviation industry relies on digital technologies to ensure efficient production and accelerate the pace of design to delivery. Digitizing processes enables companies to stay agile. Besides enabling efficient supply chain operations, digitization advances spacecraft and aircraft operational systems. For instance, it eliminates data silos between internal systems and improves communication between stakeholders.

Concurrently, the data optimizes engineering processes and enables data-intensive solutions such as advanced analytics, digital threads, and digital twins. These processes allow aerospace and aviation manufacturers to avoid bottlenecks and improve efficiency.

Additive Manufacturing

Until recently, additive manufacturing has been limited to non-essential aerospace parts, such as interior components. However, with advances in 3D metal printing, additive manufacturing has become a vital aerospace manufacturing technology, enabling aviation companies to leverage low-volume production runs cost-effectively.

In addition, intelligent materials ensure manufacturers can deliver more substantial and lighter alternatives compared to parts sourced from conventional materials. Additive manufacturing also enables aerospace companies to develop prototypes quickly, eliminating any roadblocks in development and improving efficiency.

Advanced Satellite Technology

Most commercial space activities today are satellite launches, and the pace will continue. Lower costs, higher efficiency, and the steady need for geospatial intelligence and satellite imagery are the primary drivers of the rapid pace of satellite launches.

Another critical factor is the growth of pico and nanosatellites, which are easier to launch and scale. The demand for global digital connectivity of the Internet of Things (IoT) is another factor for the accelerating pace of launching satellite-based communication systems. Furthermore, additive manufacturing optimizes satellite production and maintenance while enabling in-orbit services.

Blockchain

As the aerospace industry relies on increasingly complex supply chains, blockchain helps improve access to and visibility into supply chain data. Blockchain uses public-key encryption for data security and network resilience to avoid a single point of failure.

Access rights and entitlement management are automated by leveraging blockchain to enable more in-depth tracking and traceability. Also, blockchain allows aerospace manufacturers to secure, trace, and share records with supply chain partners. These services help manufacturers identify inefficiencies and mitigate potential bottlenecks.

Aerial Mobility

Advances in aerial mobility include air taxis and drones for hyperlocal deliveries and emergency services. Fast flight technologies, such as supersonic and hypersonic speeds, are in the vanguard of companies aiming to reduce air travel time.

Furthermore, electric vertical take-off and landing (eVTOL) technology has rapidly developed in recent years. Operating in small confined spaces reduces aircraft carbon footprint and drives novel use cases. It includes short-route transportation, military applications, last-mile delivery, and more.

Immersive Technologies

Immersive technologies are used in aerial military operations to train aerospace engineers. They visualize navigation and air traffic control systems, airspace weather information, and other workflows.

VR and AR provide operators with environments and composite structures. AR provides an added layer of information in the pilot’s helmet and assists in operating the aircraft, reducing the chance of mishaps.

High-Tech and Consumer Electronics

Growth Led by Geopolitical Tensions

As tensions between nations increase, they invest in defense capabilities and weapon systems. (e.g., Israel’s war with Islamic countries in the Middle East). With weapons stock depletion heightening the need for new and advanced technologies, the defense industry is poised to see significant growth in the coming years.

Manufacturers of high-tech and consumer equipment and their supply chain partners are preparing for significant changes in 2025. These changes encompass how electronic components are sourced, managed, and delivered. 

Neuromorphic Computing

The next emerging technology trend is neuromorphic computing, which involves designing computer chips that mimic the human brain’s neural structures and processing methods. These chips process information in ways that are fundamentally different from traditional computers, leading to more efficient handling of tasks like pattern recognition and sensory data processing. This technology can produce substantial energy efficiency and computational power improvements, particularly in applications requiring real-time learning and adaptation.

Green Energy Technologies

Innovations in green energy technologies focus on enhancing efficiency and reducing the costs of renewable energy sources such as solar, wind, and bioenergy. Advances include new photovoltaic cell designs, wind turbines operating at lower wind speeds, and biofuels from non-food biomass. These technologies are crucial for reducing the global carbon footprint and achieving sustainability goals.

Sustainability in Electronics Supply Chains

Sustainability is no longer just a buzzword—it is becoming a critical priority for manufacturers and consumers. As the global focus on reducing carbon footprints grows, the electronics supply chain will be pressured to adopt greener practices. By 2025, widespread efforts are expected to make electronic component sourcing and manufacturing more sustainable.

Circular Supply Chains

A circular supply chain refers to products designed for reuse, repair, and recycling—will become more prevalent. Manufacturers will focus on designing and producing products that have longer lifecycles and are easier to disassemble at the end of their use. This process reduces waste and minimizes the need to source new components, making inventory management more sustainable and cost-efficient.

Neuromorphic Computing

The next emerging technology trend is neuromorphic computing, which involves designing computer chips that mimic the human brain’s neural structures and processing methods. These chips process information in ways that are fundamentally different from traditional computers, leading to more efficient handling of tasks like pattern recognition and sensory data processing. This technology can produce substantial energy efficiency and computational power improvements, particularly in applications requiring real-time learning and adaptation.

Green Energy Technologies

Innovations in green energy technologies focus on enhancing efficiency and reducing the costs of renewable energy sources such as solar, wind, and bioenergy. Advances include new photovoltaic cell designs, wind turbines operating at lower wind speeds, and biofuels from non-food biomass. These technologies are crucial for reducing the global carbon footprint and achieving sustainability goals.

New Year, New Opportunities

As 2024 comes to an end, the new year creates numerous opportunities for organizations to harness new innovations, accelerate their digital transformation, and fortify their digital thread across the product lifecycle.

A great way to set your goals for the coming year is to benchmark your organization’s digital maturity. Supplyframe’s free self-assessment takes less than 10 minutes and provides unique results on where you stand in relation to your competitors. Take the self-assessment today!