Automotive tech trends for 2026 and beyond

What technologies are driving the automotive industry forward?

Technology is rapidly changing the way vehicles are made and driven. Some of these advancements may be frustrating, like subscriptions for heated seats, while others are a boon to car shoppers, such as cheaper electric vehicles. Others, like automatic emergency braking and autonomous vehicles, can make roads safer, though it may be years before these technologies fully realize their potential.

Keeping up with all these advancements can be daunting. So we've put together a quick summary of some of the biggest technology trends shaping the automotive industry in 2026 and beyond.

Top auto tech trends for 2026 and beyond

  • Automakers are pivoting to lithium iron phosphate (LFP) batteries to offer more affordable electric vehicles (EVs).
  • Software-driven vehicles make it easier for manufacturers to fix and upgrade customer vehicles remotely, while also making it possible to charge subscriptions for certain features.
  • Robotaxis are rolling out in more cities, but current trends suggest they won't replace human rideshare drivers just yet.
  • Automatic emergency braking (AEB) technology has improved significantly over the past few years, capable of preventing collisions at higher speeds.

Trend #1: (Some) EV batteries are cheaper and safer

What's happening

U.S. automakers are increasingly using lithium iron phosphate (LFP) batteries in their lower range EVs instead of conventional lithium-ion batteries (either nickel-manganese-cobalt (NMC) or, to a lesser extent, nickel-cobalt-aluminum (NCA) batteries).

What it means for you

LFPs offer a range of benefits. For one, they're cheaper since they don't use cobalt and nickel, which are some of the most expensive ingredients found in conventional batteries. They're also more durable, able to be charged more times without losing significant charge capacity. Importantly, LFPs are also more chemically stable, reducing the risk of overheating and fire. That also makes the cells easier to handle and manufacture.

LFP Batteries are cheaper and have a longer lifespan than NMC batteries however they have a shorter driving range.

However, there are a few drawbacks. Range is one of them — LFP batteries are less energy dense so you can't drive as far between charges. That's why most automakers who use LFPs reserve them for their more affordable EV models, which typically have less driving range. They also charge slower in cold weather, but the difference in charge time may vary by make and model (i.e., some vehicle's battery management systems may be better at preconditioning or heating the battery in freezing temperatures).

Bottom line

If you're shopping for a shorter-range EV, it'll likely have an LFP battery pack. But you shouldn't hesitate to buy; LFPs are a proven battery technology that enables automakers to make more affordable EVs. Plus, the driving experience is nearly identical to that of an EV with a conventional battery pack.

Trend #2: Vehicle software offers more convenience and more revenue

What's happening

Automakers are increasingly building "software-defined vehicles" that allow greater control over virtually every part of a vehicle, offering more convenience for drivers and more potential revenue for automakers.

What it means for you

Embedding software deep within a vehicle's functions allows automakers to upgrade or fix your car remotely using over-the-air updates. In some cases, automakers can even fix hardware defects through code tweaks.

Person interacting with display screen in car.

But software-defined vehicles also enable something else: subscriptions. In 2022, BMW briefly required European customers to pay a subscription to use their vehicle's heated seats. The company quickly reversed course after consumer backlash, but it hasn't discouraged automakers from further experimenting with so-called Features on Demand (FoD).

Instead of charging for creature comforts, some automakers reserve subscriptions for newer technology, like self-driving or advanced driver assistance systems.

Ford, for example, offers a 90-day free trial of Ford BlueCruise before requiring drivers to sign up for a monthly or annual plan. Customers also have the option of buying a new Ford with BlueCruise activated for three to four years, depending on model and trim. Likewise, General Motors lets its drivers use Super Cruise for three years before requiring a subscription to OnStar.

Consumers seem to be more amenable to this approach, especially if they can trial a feature or use it without a long-term commitment, according to a study by Cox Automotive. But that same study reports that 69% of respondents said they would shop elsewhere if certain features, like heated seats, were subscription-only.

Bottom line

The next time you go shopping for a brand-new vehicle, make sure to research what features may cost extra. Your dealership should be able to verify what comes standard and what may require an additional one-time charge versus an ongoing subscription. Some features may come with a free trial for a certain amount of time, so you can see if it's worth it to you before paying for it.

Trend #3: Robotaxis are having a moment, but human drivers aren't going anywhere

What's happening

Driverless robotaxis, operated by Waymo and other tech companies, are routinely shuffling passengers around a few major cities. But so far, robotaxis haven't curbed the use of human ride-hailing services.

What it means for you

Though robotaxis are commonplace in the San Francisco Bay Area and a handful of other cities, they're still a novelty for most people. But that may be changing faster than most people think.

In April 2025, the largest robotaxi service provider, Waymo, was completing more than 250,000 paid rides per week. And in 2026, Waymo plans to expand to over 20 additional cities, including Tokyo and London.

Safety is certainly a top concern for people who've never been in a driverless car, but J.D. Power reports that many skeptical riders are far less fearful after taking a ride for themselves. And so far, the data backs up their peace of mind. According to a report Waymo submitted to the Traffic Injury Prevention Journal, their robotaxis have significantly fewer injury-causing crashes than a human driver:

Waymo reports: 92% fewer crashes with injured pedestrians, 82% fewer collisions with injuries involving motorcyclists and 82% fewer crashes with injuries to cyclist when compared to human drivers.

Though these statistics reflect just one company's safety record, they do show that driverless taxis can be safer than human drivers. Time will tell if this trend continues as Waymo and competing services scale up their operations.

Hold your horses robots

Despite Waymo's expansion, driverless cars haven't cut into the number of regular, human-driven rideshares in cities with robotaxi services. This is partly due to the fewer number of autonomous vehicles available, as well as some key technology limitations.

Many robotaxi companies rely on detailed 3D maps of the cities where they operate; data that takes time to gather and then train a vehicle fleet on. Weather is another obstacle, as rain and fog can easily interfere with the suite of sensors and cameras robotaxis use to navigate busy streets.

Bottom line

Despite advancements in driverless technology, autonomous vehicles are still ill-equipped to deal with the unexpected, such as power outages that take out traffic lights. But abnormal events aside, the data available so far suggests that catching a ride with an autonomous vehicle may be safer than catching a ride with a human driver.

Trend #4: Collision prevention tech accelerates

What's happening

Advances in automatic emergency braking (AEB) systems have made newer passenger vehicles safer, according to the Insurance Institute for Highway Safety (IIHS). In February 2025, IIHS announced that they had tested the AEB systems of 30 recent model-year vehicles at speeds ranging from 31 to 43 mph.

Of the 30 models tested, 22 received a good or acceptable rating. All vehicles that earned a "good" rating avoided running into a passenger vehicle, and most also prevented a collision with a motorcycle. Those marked "acceptable" succeeded in warning and preventing collisions in most of the trials, though their performance dropped off at higher speeds.

Graphic indicating how IIHS tests on AEB systems.

The collision targets included a car, motorcycle, and a semitrailer, with the car and motorcycle positioned in the center lane as well as offset to the right or left. Tests involving the semitrailer only looked at the effectiveness of front collision warnings.

What it means for you

David Aylor, vice president for active safety testing at IIHS, explains the significance of testing at these speeds: "About two-thirds of [front-to-rear crashes] happen in that speed range…on roads that are 40 to 45 mph [speed limit]." As for the different targets, Aylor says these were chosen due to the severity of collisions involving motorcycles and tractor trailers, which can be deadly for both riders and drivers.

Aylor says their next step is to test how well these systems prevent collisions with bicyclists, alongside ongoing tests involving pedestrians. "We're big proponents of these systems," says Aylor. "Our research shows that [AEB] is reducing [police-reported] front-to-rear crashes by 50 percent. It's reducing pedestrian crashes by about a third, and so, we're going to continue to push manufacturers and encourage consumers to buy vehicles with this technology."

Bottom line

AEB technology is having real-world impact, reducing the odds of both minor and major car accidents. And IIHS testing shows that this technology can scale up to prevent collisions at higher, and deadlier, speeds. If you're shopping for a newer vehicle, it is worth checking to see if it comes with AEB. Other vehicle safety tech can also help prevent collisions, such as front collision alerts and blind-spot warning.

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