The IAA Mobility, held in Munich for the third time, showcased its capabilities to the industry and consumers with larger, more international, and more experience-focused e-mobility initiatives. The global automotive ecosystem reflected the transformation brought about by both autonomous vehicles and electric vehicles in Munich with impressive innovations. The automotive sector, with its strong and forward-thinking mindset, has seen major European manufacturers, in particular, provide consumers with a reassuring, "We're here for you" signal during this period of change. While consumers were previously presented with a vision of the future that occasionally stimulated real-world technological innovations in science fiction films, we are seeing an era of driverless cars and AI-assisted driving systems, which they see before, accelerating even further. The impact of artificial intelligence on the industry is particularly evident in the changes taking place in the automotive world, particularly the transition to software-defined vehicles.
While artificial intelligence offers us a very different future, its impact on technology demonstrates how creative ideas can shape the future of technological development. While the idea of navigating the city in a driverless car is innovative and futuristic, people are now starting to see beyond mere curiosity whether it's truly possible and, if so, how quickly technology will catch up. As modern vehicles transition from a distributed architecture where numerous electronic control units manage different functions to a more centralized, high-performance computing model, this transformation simplifies vehicle architecture, enabling over-the-air software updates, more efficient management, and reduced overall complexity. At the same time, many automakers are adopting vertical integration strategies, taking control of the entire software stack, from chip development to application integration. This approach helps automakers differentiate their products, and software becomes key to creating compelling customer experiences.
By 2030, 20 percent of passenger cars sold will incorporate autonomous technologies, and this share is expected to reach 57 percent by 2035. The market is projected to grow approximately 40 percent annually between 2030 and 2040. The impact of these technologies is reflected in the rapid growth of the Advanced Driver Assistance Systems (ADAS) global market, which is expected to reach $72.2 billion by 2030. This growth is primarily driven by the increasing integration of artificial intelligence technologies into vehicle safety and automation systems, highlighting the critical role AI plays in the future of automotive innovation. The economic value of AI in vehicles is expected to reach $400 billion by 2035. The market is expected to contribute to a total value pool of approximately $1.7 trillion by 2040. These projections point to a significant explosion in the popularity of autonomous vehicles in the future.
In 1939, Norman Bel Geddes created the first driverless car, an electric vehicle driven by radio-controlled electromagnetic fields, produced by metal spikes embedded in the road. In 1958, the manufacturer turned this concept into reality. Today, driverless vehicle technology is equipped with radar, GPS, and computer vision systems, making its way into traffic. Autonomous vehicles operate on autopilot, using sensors to locate braking and parked vehicles in traffic, and perform maneuvers such as steering, slowing down, and accelerating accurately and quickly. These sensors, equipped with distance-measuring capabilities, use cameras to detect signs, pedestrians, and all living and non-living objects. Therefore, using all this technology and historical data from recorded hours, the vehicle can create a map of its surroundings to know where it's going, what's around it, and which areas to avoid. It can also read traffic lights, traffic signs, and road markings, and even monitor other vehicles, cyclists, and pedestrians.
Autonomous driving creates significant value for consumers in products such as customer loyalty, financial products, and insurance. Within the automotive industry, I believe autonomous smart vehicles will lead to new initiatives in service, supply, infrastructure investment, R&D activities, particularly in developing new sales and business strategies with software and mobile operators, acquiring new technological capabilities, and addressing security concerns.