The artificial intelligence revolution is moving from hype to reality, with CES 2025 demonstrating a clear shift toward practical AI applications across consumer technology, automotive, and smart living sectors. Industry analysts project global AI market size to exceed US$1 trillion by 2030, as major tech companies accelerate investments in AI infrastructure.
Market growth and opportunities
The adoption of AI technology is accelerating across consumer segments. Analysts project AI smartphone penetration to exceed 50% by 2026, while AI-enabled notebooks with over 40 teraflops of processing power are expected to see rapid growth starting in 2026-2027.
Taiwan's ICT supply chain is particularly well-positioned in this transition, with manufacturers able to develop high-performance computing solutions in half the time of traditional tier-one suppliers. "The focus has shifted from whether AI will be implemented to how quickly it can be deployed effectively," a DIGITIMES Research analyst notes.
Automotive AI takes center stage
The robotaxi sector is emerging as a key battleground. Traditional automakers like Mercedes-Benz and Hyundai took a backseat this year, leaving the spotlight to emerging players such as China's Geely and CNY100 million (US$13.63 million) and Great Wall Motors. Honda's Zero Series EV exemplifies this shift, blending futuristic design with near-term commercial viability.
Industry projections suggest autonomous vehicle sales could reach 68.8 million units by 2028, with penetration rates exceeding 80% in key markets like China by 2025.
Nvidia CEO Jensen Huang's keynote presentation at CES outlined the evolution of automotive AI through distinct stages: from basic perception AI to generative AI, and ultimately to physical AI embodied in fully autonomous vehicles. This progression is supported by three critical components: extensive data collection, advanced algorithms, and powerful computing capabilities.
Smart glasses: the next AI battleground
Smart glasses have become a focal point of AI device innovation, with dozens of companies preparing to launch products in 2025. Following Meta and Ray-Ban's success with their smart glasses, which have sold over 2 million units, competitors including Loomos, TCL, and Rokid are entering the market with advanced features like 4K photography, real-time translation, and AR displays.
Manufacturers are racing to stay under the critical 50-gram threshold, which a DIGITIMES Research analyst identifies as the maximum acceptable weight for commercial viability.
The competitive landscape is set to become even more crowded with major technology companies preparing their entries. Xiaomi is expected to launch its smart glasses in the second quarter of 2025, while Google, Samsung, and Apple are reportedly developing their versions. These companies bring significant advantages through their existing ecosystem integration and retail networks.
Meta, despite its early market leadership, faces growing challenges. The company plans to launch a new Ray-Ban model in September 2025 and introduce Chinese language real-time translation features in 2026. However, analysts point out that Meta's limited ecosystem integration compared to potential competitors could become a vulnerability.
Distribution strategy has emerged as a critical factor in the market. Unlike other wearable technology, smart glasses require precise fitting and measurements, making physical retail presence crucial. "Virtual try-ons have proven insufficient for consumer confidence," a DIGITIMES Research analyst says.
A DIGITIMES Research analyst projects smart glasses shipments could exceed 20 million units by 2030, driven by a projected 3.4 billion people requiring vision correction by that time.
Physical AI and robotics evolution
One of the most futuristic trends at CES 2025 was the emergence of physical AI embodied in humanoid robots. Three major players—Agility Robotics, Apptronik, and Unitree—showcased different approaches to humanoid robotics. Notably, Apptronik's Apollo robot introduced transformer-based imitation learning, allowing robots to replicate human movements through observation rather than manual programming.
Smart home integration advances
The integration of AI into home environments is reaching new levels of sophistication through the "Matter" standard—a universal protocol enabling seamless integration across smart home devices regardless of brand. Companies like NXP and GEO have leveraged AI agents in their energy management systems, optimizing power usage during peak demands.
Challenges ahead
Despite these advancements, significant challenges remain. Regulatory frameworks for autonomous driving lag behind technological progress, raising questions about liability in Level 3 and higher vehicles. The "black box" nature of AI decision-making complicates transparency and accountability.
Safety concerns continue to impact the deployment of autonomous vehicles and robotics, while privacy considerations affect AI device adoption. In smart living, interoperability and user adoption remain challenges, even as standards like Matter aim to simplify integration.
As AI technology matures, 2025 is expected to mark a critical turning point in adoption, with practical applications finally matching the technology's long-promised potential. The success of early market entries suggests growing consumer acceptance of AI-enabled devices, paving the way for broader adoption across multiple product categories.