In a new report, market intelligence firm Tractica forecasts that the market for automotive AI hardware, software, and services will reach $26.5 billion by 2025, up from $1.2 billion in 2017.

The automotive industry is among the industries at the forefront of using AI to mimic, augment, and support the actions of humans, while simultaneously leveraging the advanced reaction times and pinpoint precision of machine-based systems. Today’s semi-autonomous vehicles and the fully autonomous vehicles of the future will rely heavily on AI systems.

Beyond self-driving vehicles, AI can also be used to make life in the car more convenient and safer, for both the driver and the passengers. In-car assistants, driven by natural language processing (NLP) and machine learning techniques, allow the vehicle’s systems to respond to voice commands and infer what actions to take, without human intervention.

Despite the technological potential of both autonomous vehicles and in-car assistants, an abundance of caution relating to safety concerns, and a desire to ensure users enjoy a smooth, glitch-free experience, these AI systems likely will be deployed gradually, Tractica suggests.

This Tractica report provides detailed market forecasts for AI hardware, software, and services in the automotive market during the period from 2017 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 31 key participants in the emerging automotive AI market ecosystem.