Automotive Artificial Intelligence will be worth 14 Billion Dollars by 2025
A 404 million dollar boom in 2016. And within three years the estimated number of connected vehicles will grow to 250 million. Predictive maintenance, algorithms and big data will change the nature of the industry.
In collaboration with Audi Artificial Intelligence- Wired.it
How much will Artificial Intelligence applied to the rather complex automotive world be worth? A lot. At least according to a report made by Tractica, a market intelligence company specialized in human-technology interaction, the total business volume, by 2025, will be stable at around 14 billion dollars. We are looking at the whole pie, of course: hardware and software able to epitomize the full potential of drive assist systems (or autonomous) and more, just as much as related services designed for both drivers and passengers.
Not bad at all, if we consider that last year, the same sector was still in its early stages, at around 404 million dollars. After all, the systems that will make full use of big data and algorithms to reproduce the cognitive functions of the human brain – including its ability to learn and solve problems and tackle a dilemma in full autonomy, including the ethical debate taking place around the subject – will make their way in every area, as seen during the special event dedicated to Artificial Intelligence at the latest Wired NextFest in Milan.
As a whole, currently circulating connected vehicles (able to delegate an increasing number of functions to an on-board computer) and future autonomous vehicles, will be the real test bed of the industry’s future profitability.
It is no coincidence then that even Apple, traditionally very secretive about its projects, has recently confirmed to be hard at work on a self-driving system.
The CEO, Tim Cook, restated the point in a recent interview with Bloomberg: for the first time Apple’s leading figure spoke about the company’s projects in the automotive field. In fact Mr. Cook depicted the industry in the following terms: “We view it as the mother of all AI projects and probably the most challenging to work on”.
But Artificial Intelligence will not be limited to autonomous driving only. Both manufacturers and suppliers (it seems that Apple’s intention is to belong to this second category, with the mysterious Project Titan fading away in the distance) are perfectly aware that the full potential of AI technology will reach well inside the vehicle, affecting both drivers and passengers. On-board instruments will be able to detect our mental and physical state, suggest where and when to stop or even take over if the driver should suddenly fall asleep. Meanwhile, Advanced Drive Assist Systems are already a reality: from Apple Car to the recently renewed Google Assistant, soon to become a standard feature on most four wheel vehicles.
A little patience and support will be needed to accompany the development of these vehicles through ad hoc legislative measures in each market, and this could produce a few understandable structural delays, but the road map appears to be perfectly clear, as confirmed by forecasts made by Tractica as well as other agencies. For example, as far as autonomous technologies are concerned, the total expected business volume in 2017 stands at around 4.5 billion dollars, but is expected to rise as more technologies become available. Nevertheless, not everything revolves around technology and legislative measures alone, in fact customers needs and expectations will also be crucial.
From detecting and overcoming obstacles to customized services, not to mention useful applications such as predictive maintenance, geo-localisation, increasingly complete and interactive maps, automatic road assistance, safety and everything else that revolves around the driver’s facial and emotional recognition.
These are just some of the issues that industry analysts have been placing under the magnifying lens, and according to recent forecasts a substantial number of these technologies will be already available on around 250 million connected vehicles by 2020. That means within just three years! If the current scenario isn’t quite what Elon Musk forecasted – “we will just need to get on board, and say where we want to go”, according to Tesla’s founder not long ago – financial forecasts point increasingly to a greater reliance on autonomous technologies both in and out of the car.