Your browser does not support JavaScript!

Steering into the Future: Autonomous Vehicles, AI, and the Evolving Mobility Market in 2025

General Report June 1, 2025
goover

TABLE OF CONTENTS

  1. Global AI Market Outlook and Its Role in Mobility
  2. Advances in Autonomous Vehicle Simulation Solutions
  3. EV Industry Dynamics: Discontinuations and Intelligent Tire Demand
  4. Tesla’s Robotaxi and Self-Delivery Revolution
  5. Emerging EV OEMs Expand into New Markets: Vinfast’s India Roadmap
  6. AI-Powered Supply Chain Breakthroughs: Kinaxis in Tokyo
  7. Conclusion

1. Summary

  • As of June 1, 2025, the mobility landscape is undergoing an unprecedented transformation driven by significant trends in artificial intelligence (AI), autonomous driving, and the electrification of vehicles. The global AI market is projected to exceed $2.4 trillion by 2032, with a remarkable compound annual growth rate (CAGR) of 30.6%. This acceleration is underpinned by the rapid adoption of autonomous technologies, advancements in deep learning, and enhanced computational capabilities. These factors are enabling industries to leverage AI in ways that bolster innovation, streamline operations, and enhance service delivery, all while changing the very fabric of mobility. Major players like Microsoft, Google, and IBM are leading the charge in AI investment, thereby fostering a vibrant ecosystem poised for substantial growth.

  • Amid this backdrop, Tesla’s imminent robotaxi launch in Austin on June 12 epitomizes a pivotal moment in driverless mobility, positioning the company as a frontrunner in redefining urban transportation paradigms. Emerging players like Vinfast are also set to make their mark in the automotive sector, particularly with their calculated entry into the Indian market, targeting various consumer segments with their electric offerings. This reflects a broader shift in consumer preferences towards electric vehicles (EVs) amidst increasing regulatory pressures favoring sustainability and innovation.

  • Furthermore, the evolution of logistics through generative AI is anticipated to significantly bolster efficiency, with a projected market growth from $1.3 billion in 2024 to $7.0 billion by 2030. This advancement is largely driven by e-commerce and the critical need for sustainable logistics solutions, showcasing how integral AI has become in shaping future supply chain strategies. Industry leaders such as Kinaxis, through their AI-powered planning, are poised to become pivotal players in this rapidly evolving ecosystem, reflecting a departure from traditional approaches to logistics and supply chain management.

2. Global AI Market Outlook and Its Role in Mobility

  • 2-1. CAGR trajectory of AI market through 2032

  • The global Artificial Intelligence (AI) market is experiencing significant growth, projected to reach approximately $2.4 trillion by 2032, marking a compound annual growth rate (CAGR) of 30.6% from its current value of $371.71 billion in 2025. This remarkable increase is propelled by several factors, including the widespread adoption of autonomous AI technologies, advancements in deep learning and machine learning, and improvements in computational power. These advancements have made it possible for industries to leverage AI in ways that streamline operations, drive innovation, and enhance service delivery. Major players in the US such as Microsoft, Google, and IBM are at the forefront of this rapid expansion, investing heavily in AI-related research, development, and deployment strategies which contribute to the overall market growth.

  • 2-2. Key US players driving AI investment

  • The United States remains a leader in the global AI market, largely due to its robust innovation ecosystem and significant investment inflows into technology. Major companies like Microsoft, IBM, Google, and NVIDIA are leading the charge, each contributing to the development of cutting-edge AI solutions ranging from AI-as-a-Service (AIaaS) platforms to advanced machine learning applications. These corporations are also pivotal in establishing standards and frameworks that govern AI development, ensuring safe and responsible usage while maintaining momentum in technological advances. The Executive Order on Safe, Secure, and Trustworthy AI and initiatives from organizations like NIST emphasize a balanced regulatory approach, fostering innovation without imposing heavy compliance burdens. Such environments not only encourage the growth of established firms but also support the burgeoning startup landscape, creating a vibrant AI economy that is poised for future growth.

  • 2-3. Generative AI applications in logistics and cross-border trade

  • Generative AI is revolutionizing logistics through its capacity to enhance efficiency, accuracy, and decision-making across the supply chain. The global market for generative AI in logistics is expected to grow substantially, from $1.3 billion in 2024 to $7.0 billion by 2030, reflecting a CAGR of 32.5%. This growth is driven by rising e-commerce activities and an increasing need for cost-effective and sustainable logistics solutions. AI technologies allow for better demand forecasting, inventory management, and dynamic pricing strategies that respond to real-time market conditions. The integration of IoT devices enhances these efforts by providing real-time data that aids in route optimization and fleet management, ultimately leading to reduced operational costs and improved customer satisfaction. In the realm of cross-border trade, generative AI facilitates more streamlined customs processes and supply chain transparency, enabling businesses to navigate complex regulatory landscapes with greater ease.

3. Advances in Autonomous Vehicle Simulation Solutions

  • 3-1. Market Segmentation by Application and Product

  • The autonomous vehicle simulation solutions market is experiencing substantial growth, projected to reach approximately $4.61 billion by 2035, driven by a compound annual growth rate (CAGR) of 12.03%. This growth reflects an increasing reliance on advanced driver-assistance systems (ADAS) and autonomous vehicles, which require sophisticated simulation technologies for effective testing and validation. The market segmentation covers end users, levels of autonomy, products, deployment types, and geographical regions, catering to distinct needs and functionalities within the industry.

  • End users of simulation solutions include automotive original equipment manufacturers (OEMs), autonomous driving technology developers, component manufacturers, and research institutions. OEMs, in particular, are anticipated to dominate this segment by 2035, leveraging simulation tools at early vehicle design stages to minimize development costs and expedite product validation processes. These capabilities are paramount as the automotive landscape shifts toward automation with vehicles increasingly equipped with features that promote safety and convenience.

  • By levels of autonomy, the focus is on partially assisted (Level 1 and Level 2) and higher autonomous systems (Levels 3 to 5). Currently, the market is witnessing a significant uptake of Level 1 and Level 2 vehicles, which utilize advanced driver-assistance features, demonstrating their widespread acceptance in everyday driving. These systems are increasingly integrated into vehicles by leading manufacturers such as Tesla and BMW.

  • Product segmentation highlights software and services as primary categories. Software solutions from companies like Applied Intuition and aiMotive are essential for developers to simulate driving scenarios, enabling them to validate and assure vehicle performance safely. Services augment these software solutions by providing necessary support and expertise that ensure effective deployment and usage.

  • Deployment types are categorized into on-premises and cloud solutions, with on-premises offerings gaining traction due to enhanced data security and operational control, essential in an industry where intellectual property is critical.

  • 3-2. Country-Level Analysis and Regional Growth Drivers

  • Geographically, the North American region has emerged as a frontrunner in the autonomous vehicle simulation solutions market. This dominance is attributed to substantial research and development investments, a concentration of technology and automotive industry leaders, and favorable regulatory environments. The technological infrastructure in North America supports sophisticated simulation, bolstered by high-speed connectivity and advanced AI capabilities.

  • Key growth drivers in North America include dedicated pilot programs and government incentives that cultivate an ecosystem conducive to testing and advancing autonomous vehicle technologies. Having an established base of safety standards at both federal and state levels fosters innovation and risk mitigation within simulation processes, enhancing testing efficiency and trust in autonomous functionalities.

  • In addition to North America, Europe and the Asia-Pacific regions are also witnessing developments bolstered by regional policies supporting smart city initiatives and connectivity improvements. These markets are notable due to their ongoing advancements in vehicle automation and infrastructure development, which collectively enhance the deployment of simulation solutions.

  • 3-3. Profiles of Leading Simulation Providers

  • The landscape of autonomous vehicle simulation solutions is shaped by several leading providers recognized for their innovative offerings. Companies such as ANSYS, Applied Intuition, and aiMotive lead the market with cutting-edge software solutions tailored to meet the growing demands of the industry.

  • ANSYS has recently made strides with the integration of its AVxcelerate Sensors into NVIDIA DRIVE Sim, enhancing high-fidelity sensor simulation capabilities that are vital for validating autonomous driving features across varying environmental conditions. This collaboration exemplifies the importance of cross-industry partnerships in advancing simulation technologies.

  • Applied Intuition specializes in providing comprehensive simulation tools that facilitate the creation of highly accurate and safe virtual environments for testing autonomous systems, significantly aiding automotive manufacturers in their development efforts. Its tools are increasingly being adopted across various global automakers, further underscoring the company’s role in advancing the sector.

  • AiMotive, on the other hand, offers a virtual simulation environment known as aiSim, which supports testing in diverse road conditions and scenarios, thereby enhancing the safety and reliability of autonomous vehicle features. Such tools not only bolster product validation but also enhance consumer trust in the nascent autonomous driving sector.

4. EV Industry Dynamics: Discontinuations and Intelligent Tire Demand

  • 4-1. List of nine models discontinued in 2025 and market implications

  • As of June 1, 2025, several prominent automotive brands have announced the discontinuation of nine vehicle models due to a variety of market pressures, including changing consumer preferences toward electric vehicles (EVs). Notable examples include the Lexus LS, which had a storied production history of 35 years, and the Mazda MX-30, which faced criticism for its limited range and functionality. These discontinuations indicate a broader trend where traditional combustion engine vehicles are making way for more innovative electric alternatives, responding to increasing regulations and a competitive landscape inclined toward sustainability.

  • The discontinuation of models like the Ford Focus ST, Nissan GT-R, and the Porsche 718 series highlights the industry's rapid pivot toward electric mobility. As these iconic nameplates retire, manufacturers are investing heavily in electric and hybrid models, suggesting a significant shift in the market's focus. This transition could reshape brand identities as consumer expectations evolve towards more sustainable and technologically advanced offerings.

  • 4-2. Rising EV adoption fueling demand for low-rolling-resistance tires

  • The growing adoption of electric vehicles is significantly driving the demand for low-rolling-resistance tires, which optimize vehicle efficiency and enhance driving range. According to the 'Advanced Tires Industry Report 2025, ' the shift towards EVs has spurred manufacturers to develop tires that not only meet safety and durability standards but also contribute to better energy efficiency. Evidence suggests a correlation between the reduction of rolling resistance and improved battery life, making such tires essential in the current automotive landscape, where every inch of efficiency counts for electric models.

  • These low-rolling-resistance tires are often equipped with advanced technologies such as intelligent monitoring systems that provide real-time data on tire conditions, potentially reducing maintenance costs and enhancing safety. The market for these tires is projected to grow at a compound annual growth rate (CAGR) of 8.8% through 2034, further uniting the outcomes of technology and market performance in the evolution of electric vehicles.

  • 4-3. Forecasts for the advanced tires market through 2034

  • The advanced tires market is experiencing robust growth, currently valued at USD 1.8 billion in 2024 and expected to reach USD 4.2 billion by 2034. With the ongoing shift in the automotive industry toward electric vehicles, manufacturers are increasingly focused on integrating next-generation tires that enhance performance and meet new regulatory standards. These developments are not only reflective of market opportunities but also indicative of a transformative era in mobility where intelligent tire technology becomes standard rather than an exception.

  • Key market growth drivers include the rapid technological advancements in tire manufacturing and the rising consumer demand for sustainable transportation solutions. Smart tires equipped with sensor technology are becoming more prevalent, allowing for predictive maintenance and maximizing vehicle safety and performance. As automakers collaborate with tire manufacturers to innovate, the overall landscape for advanced tires will likely continue evolving, ensuring that they play a pivotal role in the future of mobility.

5. Tesla’s Robotaxi and Self-Delivery Revolution

  • 5-1. Confirmed June 12 launch in Austin and initial 10-vehicle fleet

  • Tesla is set to formally launch its much-anticipated robotaxi service on June 12, 2025, in Austin, Texas, conforming to recent internal timelines shared by CEO Elon Musk. The company plans to start this service with an initial fleet of about ten Model Y vehicles, marking a significant step forward in the realm of autonomous transportation. During a recent press announcement, Musk emphasized that current testing of these driverless vehicles on Austin's public roads has been progressing smoothly, with no reported incidents during trials. This launch is a critical component of Tesla's broader strategy to redefine urban mobility through the integration of autonomous ride-hailing services.

  • The uniqueness of Tesla's robotaxi service lies in its potential to utilize privately-owned vehicles as part of the sharing economy. Vehicle owners will have the opportunity to switch their Model Ys into autonomous taxi mode during idle hours, thereby creating a revenue-generating platform that could dramatically alter traditional ownership models. The possibility of earning significant income from such a service could incentivize more users to adopt Tesla’s technology, further solidifying its market position.

  • 5-2. Regulatory scrutiny and NHTSA safety information request

  • As Tesla prepares to roll out its robotaxi service, regulatory scrutiny remains a crucial barrier to a smooth launch. Recent reports indicate that the National Highway Traffic Safety Administration (NHTSA) is closely monitoring Tesla’s autonomous vehicle operations, particularly concerning its Full Self-Driving (FSD) technology. While Tesla has showcased the FSD capabilities, the regulatory landscape for autonomous vehicles is still inconsistent across states, which may impede broader implementation efforts. Texas, which fosters a more accommodating environment for autonomous testing compared to other states like California, presents both opportunities and challenges for Tesla as it navigates these regulatory waters.

  • 5-3. Impact on Tesla stock and investor sentiment

  • The announcement of the robotaxi launch has exerted a positive influence on Tesla’s stock price, which saw a notable increase, reflecting investor optimism surrounding the upcoming service. As of late May 2025, shares of Tesla surged by 2.45%, driven in part by Musk’s renewed commitment to prioritizing the company’s autonomous strategies. Analysts speculate that the robotaxi initiative could unlock a $1 trillion market opportunity in the field of autonomy, further enhancing investor confidence in Tesla's future growth potential. This optimism is evidenced by equity analysts maintaining an 'Outperform' rating on Tesla with elevated price targets.

  • 5-4. Self-delivery capability timeline and customer experience

  • In addition to the robotaxi service, Tesla has announced plans for a self-delivery system that is expected to commence as early as June 2025, with the first vehicle deliveries facilitated through autonomous technology. This innovative approach aims to streamline the purchasing experience by allowing customers to receive their vehicles at home, without the need to visit a dealership. Musk tweeted that the readiness of self-delivery is a month ahead of schedule, portraying a significant leap toward enhancing the overall customer experience while further showcasing Tesla's technological advancements.

  • Such a self-delivery methodology not only optimizes operational efficiency but also positions Tesla as a frontrunner in creating a more user-friendly ecosystem for car buyers. By eliminating traditional dealership interactions, Tesla is addressing longstanding pain points in the car-buying process, thereby enhancing customer satisfaction and potentially attracting a broader customer base.

6. Emerging EV OEMs Expand into New Markets: Vinfast’s India Roadmap

  • 6-1. Vinfast’s phased entry strategy into India

  • Vinfast is strategically planning its entrance into the Indian automotive market, which is recognized as the world's fourth-largest car market. Beginning its operations with a phased approach, Vinfast aims to target the premium electric vehicle (EV) segment initially, launching the VF7 and subsequently the VF6. The VF7 is expected to compete in the Rs. 30 lakh to Rs. 35 lakh price segment, while the VF6 will target a slightly lower bracket of Rs. 18 lakh to Rs. 24 lakh. This preemptive segmentation places Vinfast in direct competition with established brands such as Maruti, Hyundai, and Tata, as well as potential rivals like BYD in the premium sector.

  • 6-2. Target segments and production localization plans

  • Central to Vinfast's entry strategy is the establishment of a new manufacturing facility near Tuticorin, Tamil Nadu. Production is projected to begin by the festive season of 2025, with plans to initially generate an annual output of 50, 000 vehicles, which could later scale up to 150, 000 units based on demand. This localization effort not only contributes to reducing costs associated with importing vehicles but also aligns with India's push for greater self-reliance in EV manufacturing. Additionally, as part of its market strategy, Vinfast will introduce its charging solutions through its subsidiary, V-Green Solutions, which will aim to install charging infrastructure across multiple locations in India.

  • 6-3. Strategic significance for global EV competition

  • Vinfast's entry into the Indian market represents a significant shift in the global EV competitive landscape. With an aggressive push towards electrification and sustainability, the company plans to introduce a green electric fleet aimed at capturing the growing demand for ride-hailing services. This move is not only beneficial for tapping into urban and suburban markets in India but also aligns with global trends towards greener mobility solutions. Furthermore, Vinfast's collaborations with local partners, such as Tata Power for charging infrastructure, underscore its commitment to building a robust operational framework that could serve as a model for other emerging OEMs looking to expand in diverse global markets.

7. AI-Powered Supply Chain Breakthroughs: Kinaxis in Tokyo

  • 7-1. Overview of Kinexions Japan 25 event

  • Kinexions Japan 25 is scheduled to take place on June 3, 2025, in Tokyo, representing a key event for Kinaxis, a leading force in supply chain orchestration. This event will convene supply chain leaders, decision-makers, and industry experts to discuss innovations in supply chain capabilities driven by artificial intelligence. The agenda emphasizes practical strategies for enhancing decision-making processes, collaboration, and operational scalability in response to prevailing challenges such as economic uncertainty and sustainability demands. Attendees can expect to gain insights into successful customer journeys and tactics that enhance responsiveness in dynamic supply chain environments.

  • 7-2. New AI-driven supply chain orchestration capabilities

  • At Kinexions Japan 25, Kinaxis will unveil innovative features of its AI-powered orchestration platform, Maestro™. These features are designed to improve scenario modeling speed, integrated planning capabilities, and real-time coordination across international operations. This focus aligns with current market trends demanding agility and resilience in supply chains. The enhancements in Maestro™ are particularly significant as they enable organizations to shift from traditional linear supply chains to more agile, web-based networks. This adaptability is critical for managing complexity and meeting real-time demands.

  • 7-3. Implications for global just-in-time logistics

  • The advancements showcased at Kinexions Japan 25 will have profound implications for just-in-time (JIT) logistics on a global scale. Companies using AI-driven solutions are better positioned to refine their supply chain operations by increasing visibility and mitigating risks associated with demand fluctuations and supply disruptions. The adoption of concurrent planning tools, as demonstrated through Maestro™, is unlocking new levels of agility and cooperation within supply chains—essential for navigating today's volatile market landscape. Long-term, these innovations are expected to catalyze transformative shifts in how organizations perceive and manage their logistics strategies, fostering a future where supply chains are not only resilient but also sustainable.

Conclusion

  • The intersection of AI and electrified mobility is catalyzing extensive market expansion and technological innovation, particularly in simulation technologies, component design, logistics, and autonomous services. With global AI investment expected to increase significantly alongside specialized markets for electric tires and vehicle simulators continuing to forecast growth through the 2030s, industry stakeholders must prioritize investment in scalable platforms and foster cross-industry collaborations to capitalize on these emerging trends. Tesla's upcoming robotaxi launch will serve not only as a benchmark for autonomous ride-hailing but also as a critical test case for validating regulatory frameworks and safety protocols essential for broader adoption.

  • Additionally, the entrance of new players like Vinfast into established markets highlights the heightened competitive landscape, which underscores the need for existing automotive manufacturers to innovate and adapt. As the demand for electric vehicles expands, so too does the imperative for supply chain leaders to leverage AI technologies as operational enablers. To successfully navigate this transformative period, OEMs, suppliers, and logistics providers ought to adopt modular AI solutions, engage in regulatory sandboxes for testing, and cultivate collaborative ecosystems. This strategic groundwork lays the foundation for a fully integrated and intelligent future characterized by driverless, zero-emission vehicles.

  • Looking ahead, it will be crucial for relevant stakeholders to remain agile and responsive to the rapidly changing technological realities of the mobility sector. Embracing these dynamics will not only shape the future of transportation but also define the competitive trajectories of global automotive players in a world increasingly reliant on sustainable and intelligent mobility solutions.

Glossary

  • Autonomous Vehicles: Vehicles capable of sensing their environment and operating without human intervention, utilizing technologies like computer vision, AI, and various sensors. Their development is essential for the future of transportation as they promise increased safety and efficiency on roadways.
  • Artificial Intelligence (AI): A subset of computer science aimed at creating systems that can perform tasks that typically require human intelligence. In the context of mobility, AI is pivotal for innovations in autonomous driving, logistics, and supply chain management, enhancing operational efficiencies and decision-making.
  • Robotaxi: A form of autonomous vehicle designated for ride-hailing services, allowing users to summon a vehicle through a smartphone application. Tesla's upcoming robotaxi service represents a significant evolution in urban mobility, potentially reshaping how consumers view vehicle ownership.
  • Electric Vehicles (EVs): Vehicles powered entirely by electricity or hybrid technologies that combine electric and traditional fuel sources. The rise of EVs is driven by a global push for sustainable transportation solutions to combat climate change and increase energy efficiency.
  • Simulations in Autonomous Driving: Computerized models that mimic real-world driving scenarios to test and validate autonomous vehicle technologies. This is crucial for ensuring safety and functionality before deployment on public roads, especially as regulations for autonomous vehicles become more stringent.
  • Supply Chain Orchestration: The alignment and integration of various functions along the supply chain to improve efficiency and responsiveness. Companies like Kinaxis are leveraging AI to automate and optimize supply chain management, particularly in dynamic market environments.
  • Logistics: The coordinated management of the flow of goods from origin to consumption. As logistics increasingly incorporates AI and automation, it is becoming more efficient and responsive to real-time market demands.
  • Advanced Tires: Innovative tire technologies designed to enhance vehicle performance, especially for electric vehicles. These include low-rolling-resistance tires which improve energy efficiency and range, vital for the growing market of EVs.
  • Market Forecast: Projections about future market trends and growth rates across industries. The current outlook for the global AI market shows significant expansion, expected to exceed $2.4 trillion by 2032, influencing various sectors including mobility.
  • Tesla: An American electric vehicle and clean energy company, widely recognized for its cutting-edge electric cars and advancements in autonomous driving technology. As of June 2025, Tesla is preparing to launch a robotaxi service, marking a pivotal moment in the evolution of urban transportation.
  • Vinfast: An emerging electric vehicle manufacturer from Vietnam, making strides to enter the Indian automotive market. As of June 2025, Vinfast plans to launch its EVs targeting various consumer segments, aiming to establish its footprint amidst established automotive giants.
  • Self-Delivery: An innovative delivery system allowing customers to receive vehicles at home utilizing autonomous technology. Tesla plans to initiate this capability in June 2025, aiming to streamline the purchasing experience and enhance customer satisfaction.

Source Documents