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Driving Generative AI in Autonomous Vehicles Market Growth in 2025: The Role of Growth Of Connected Cars Driving Expansion In generative AI For Autonomous Vehicles
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.Generative AI in Autonomous Vehicles Market Size Growth Forecast: What to Expect by 2025?
The market size for generative AI in autonomous vehicles has seen a fast-paced growth in the recent past. The market which was valued at $2.66 billion in 2024, is projected to scale up to $3.16 billion in 2025, marking a compound annual growth rate (CAGR) of 18.9%. The growth observed in the historical period is owing to factors such as the surge in big data, an escalation in AI research, enhancement in computational power, increase in connectivity and the progress in edge computing.
How Will the Generative AI in Autonomous Vehicles Market Size Evolve and Grow by 2029?
Over the coming years, the market size of generative AI in autonomous vehicles is set to undergo rapid expansion. The projected growth will lead it to reach $6.25 billion in 2029, with a compound annual growth rate (CAGR) of 18.6%. This escalation in the forecast period can be linked to the escalating consumer interest in efficient transportation, growth in data annotation services, the expanding deployment of 5G, an increased focus on personalized experiences, and the rise in testing of autonomous vehicles. The forecast period will also see major trends like technological development, digital twins, natural language processing, the incorporation of generative adversarial networks, and autonomous delivery services.
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What Drivers Are Propelling the Growth of Generative AI in Autonomous Vehicles Market Forward?
The upward trajectory of the connected cars phenomena is predicted to boost the expansion of generative AI within the autonomous vehicle sector. The term "connected cars" relates to vehicles equipped with technology that facilitates communication with other vehicles, infrastructure, and the internet, thus improving navigation, diagnostics, and updates functionalities. The shift towards connected cars is gaining momentum due to technological advancements facilitating car interaction with each other and their surroundings, thus enhancing safety, practicality, and functionality. Within autonomous vehicles, generative AI upgrades connected cars by creating and predicting intricate driving situations, bettering immediate decision-making and vehicle-to-everything (V2X) communication for optimal safety and efficiency. For example, as indicated in the October 2024 report from US transportation and logistics company Road Genius, more than 192 million connected cars were in operation globally by 2023, and 80% of new cars sold in the U.S. incorporated this technology. The figures for connected vehicles are predicted to rise to 367 million by 2027, as the connectivity factor becomes a standard feature in more car models. Thus, the growing trend of connected cars is creating momentum for the expansion of generative AI in the autonomous vehicle industry.
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Which Emerging Trends Are Transforming the Generative AI in Autonomous Vehicles Market in 2025?
In the generative AI for autonomous vehicles industry, leading firms are prioritizing the development of innovative advancements, like deep teaching technology, to enhance the cognitive and decision-making capabilities of self-driving cars. Deep teaching technology is an advanced form of machine learning that allows systems to mimic human teaching methods to learn intricate tasks, bolstering their efficiency and adaptability over time. For example, in July 2024, Helm.ai, a tech firm based in the US, rolled out VidGen-1, a generative video model intended for autonomous vehicles and robots. The VidGen-1 model generates lifelike driving videos using innovative deep learning technologies and neural networks. It is capable of efficiently training on a large array of driving footage, recreating various situations, weather environments, and traffic movements. VidGen-1 significantly improves autonomous driving by providing accurate predictions of real-world visuals, intent, and planned routes, which are of utmost importance for safe autonomous driving technology.
What Are the Key Segments in the Generative AI in Autonomous Vehicles Market?
The generative AI in autonomous vehiclesmarket covered in this report is segmented -
1) By Component: Solution, Services
2) By Vehicle Type: Passenger Vehicles, Commercial Vehicles
3) By Application: Training And Data Augmentation, Simulation And Testing, Perception Systems Enhancement And Sensing, Localization And Mapping, Safety Verification And Testing, Behavior Prediction And Decision Making, Other Applications
4) By End Users: Automotive Manufacturers, Research And Development Organizations
Subsegments:
1) By Solution: Software Platforms, Simulation Tools, Data Management Systems, Computer Vision Systems, Natural Language Processing (NLP), Sensor Fusion Solutions
2) By Services: Consulting Services, Integration Services, Maintenance and Support Services, Training and Development Services, Data Annotation Services
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Who Are the Key Players Shaping the Generative AI in Autonomous Vehicles Market's Competitive Landscape?
Major companies operating in the generative AI in autonomous vehicles market are Bayerische Motoren Werke AG, Honda Motor Co. Ltd., Tesla Inc., Nissan Motor Co. Ltd., Intel Corporation, International Business Machines Corporation, NVIDIA Corporation, Baidu Inc., Aptiv PLC, Ansys Inc., Faraday Future Intelligent Electric Inc., Cruise LLC, Waymo LLC, Samsara Inc., Argo AI LLC, Renovo Motors Inc., Aurora Innovation Inc., AImotive Inc., Nuro Inc., Zoox Inc., Applied Intuition Inc., DeepMap Inc., Cognata Ltd.
What Geographic Markets Are Powering Growth in the Generative AI in Autonomous Vehicles Market?
Europe was the largest region in the generative AI in autonomous vehicles market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative AI in autonomous vehicles market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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