Automotive OEMs accelerate AI integration for in-cabin mobility

As automotive safety regulations become more stringent and autonomous technologies advance, the automotive sector is rapidly evolving from adoption of electrification to a genuine computing space.

With vehicles becoming more connected and autonomous, software-based multi-functional systems will play a crucial role in improving safety, convenience and overall driving experience, leading to automotive OEMs now making full use of software to enable advanced features, according to a study from IDTechEx.

As it examined the technologies, opportunities and commercial strategies currently shaping the domain, as well as the forthcoming evolving market landscape in its In-cabin sensing 2025-2035: technologies, opportunities and markets report, IDTechEx noted that manufacturers were increasingly integrating artificial intelligence (AI)-driven in-cabin sensing technologies into software-defined vehicle (SDV) architectures.

The analyst said that automotive OEMs were highly cost-sensitive, driving them to minimise hardware requirements while maximising functionality. To achieve this, manufacturers are increasingly shifting their focus toward software-driven solutions that enhance vehicle capabilities without adding extra physical components.

IDTechEx stressed that by using advanced software, OEMs can integrate multiple features into a single system, optimising the use of existing hardware. It cited the example of Hyundai, which has developed an in-car system capable of analysing and assessing more than 10 different parameters in real time, including the driver’s posture, seat belt usage and vital signs. This approach is said to not only reduces costs but also improve efficiency, flexibility and scalability.

Furthermore, as vehicles become more connected and autonomous, the analyst predicted that software-based multi-functional systems will play a crucial role in improving safety, convenience and overall driving experience. This trend is expected to continue as OEMs seek to enhance vehicle intelligence while keeping production costs under control.

Yet in “a pivotal moment” in the automotive industry as OEMs use hardware such as infrared and RGB cameras to develop new revenue streams and enhance user experiences, the new enforcement of frameworks such as the EU’s Advanced Driver Distraction Warning (ADDW) regulations are now seeing automotive OEMs integrate in-cabin sensing technologies with software-defined vehicle architectures.

In terms of the likely popular technologies of tomorrow, the report suggested that near-infrared (NIR) cameras are set to become the leading technology for driver monitoring systems (DMS) as the demand for active monitoring continues to grow.

Unlike traditional visible-light cameras, such cameras operate in low-light and nighttime conditions, making them ideal for continuous and reliable driver monitoring regardless of ambient lighting. They can also capture high-quality images without distracting the driver, making them see use in tracking eye movements, detecting drowsiness and identifying distracted driving behaviours.

Additionally, NIR cameras offer improved accuracy in recognising facial expressions and gaze direction, enhancing overall safety and compliance with regulatory standards.

As automotive safety regulations become more stringent and autonomous driving technologies advance, IDTechEx expects the adoption of NIR cameras in DMS to accelerate. Their ability to provide real-time, high-precision data will be crucial in reducing road accidents and improving driver awareness systems in modern vehicles. It did caution that while software enables sensors to perform multiple functions, additional hardware may still be required in certain situations, as one limitation of NIR cameras is an inability to penetrate physical obstacles, such as seats.

By combining NIR cameras with mmWave radar, IDTechEx believes that automakers can create a more comprehensive and reliable in-cabin monitoring system, enhancing safety and compliance with emerging regulations.

However, as occupant monitoring is not mandated by regulations as of early 2025, radars often come as an optional relatively high-cost add-on component for vehicles, IDTechEx predicts that radar modules will likely find usage in mid to high-end vehicles in the short term.