Automotive Artificial Intelligence Revenue to Reach $14 Billion by 2025, According to Tractica

Investment in AI Software, Hardware, and Services Will Enable Autonomous Driving in Addition to Personalized Services, Predictive Maintenance, Localization and Mapping, and Numerous Other Automotive Use Cases

The automotive industry has seen the promise of artificial intelligence (AI) technology, and is among the industries at the forefront of using AI to augment human actions and to mimic the actions of humans, while also harnessing the advanced reaction times and pinpoint precision of machine-based systems. According to a new report from Tractica, both semi-autonomous and the fully autonomous vehicles of the future will rely heavily on AI systems

“Artificial intelligence is not restricted to autonomous driving, however,” says principal analyst Keith Kirkpatrick. “Suppliers and automakers realize that AI can also be used to make life in the car more convenient and personalized, for both the driver and the passengers, in addition to enabling greater automation for a range of areas including vehicle maintenance, customer service, fleet management, and navigation, among others.”

Tractica forecasts that the top use cases for automotive AI applications, in order of revenue potential, are as follows:

  1. Machine/vehicular object detection/identification/avoidance
  2. Personalized services in cars
  3. Building generative models of the real world
  4. Predictive maintenance
  5. Localization and mapping
  6. Sensor data fusion in machinery
  7. Predicting demand for on-demand taxis
  8. Simulating worlds for AI training
  9. Automated on-road customer service
  10. Truck platooning
  11. Vehicle network and data security
  12. Surge pricing for on-demand taxis
  13. Virtual testing and simulation for racing cars
  14. Driver face analytics and emotion recognition
  15. Gesture recognition

Tractica forecasts that, together, these use cases will drive AI hardware, software, and services revenue in the automotive industry from $404 million in 2016 to $14.0 billion by 2025, representing a compound annual growth rate of 48.3%.

Tractica’s report, “Artificial Intelligence for Automotive Applications”, provides detailed market forecasts for AI hardware, software, and services in the automotive market during the period from 2016 through 2025. The technologies covered include machine learning, deep learning, NLP, computer vision, machine reasoning, and strong AI. The forecast covers 15 key use cases for automotive AI, segmented by world region. Profiles are also included for 30 key participants in the emerging automotive AI market ecosystem. An Executive Summary of the report is available for free download on the firm’s website.

About Tractica

Tractica is a market intelligence firm that focuses on human interaction with technology. Tractica’s global market research and consulting services combine qualitative and quantitative research methodologies to provide a comprehensive view of the emerging market opportunities surrounding Artificial Intelligence, Robotics, User Interface Technologies, Wearable Devices, and Digital Health. For more information, visit or call +1.303.248.3000.

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