April 24, 2024
Artificial Intelligence in Automotive Market

Artificial Intelligence in Automotive Market is Driving Towards Autonomous Future

Artificial intelligence (AI) is playing a major role in transforming the automotive industry with new trends like autonomous driving gaining traction. AI is enabling car manufacturers to provide enhanced safety, convenience and infotainment features through machine learning and computer vision technologies. Self-driving cars use AI and sensors to navigate roadways and maneuver themselves without human input. AI also helps in advanced driver-assistance systems, speech recognition, better transportation systems and predictive maintenance.

The Global Artificial Intelligence In Automotive Market Size is estimated to be valued at US$ 10.72 Billion in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the artificial intelligence in automotive are BMW AG, AUDI AG, Intel Corporation, Tesla Inc, Uber Technologies, Volvo Car Corporation, Honda Motors, Ford Motor Company, NVIDIA Corporation, Tencent, Microsoft. Key players are investing heavily in developing autonomous vehicles and advanced driver-assistance systems using AI.
Growing traffic congestion, road accidents and increasing demand for autonomous vehicles are fueling the adoption of AI technologies in automobiles. AI assists drivers and enhances safety.
Leading automakers are expanding their autonomous driving businesses globally. Partnerships between tech companies and automakers will help advance AI capabilities and speed up the development of self-driving cars.

Market Key Trends

One of the major trends in the artificial intelligence in automotive market is autonomous valet parking. This uses AI to enable vehicles to park themselves without any human intervention. Using sensors and cameras, autonomous valet parking allows vehicles to navigate parking lots and garages on their own to find open spots and park precisely. This reduces parking challenges and opens up new possibilities for future parking systems. Automakers are rigorously testing autonomous valet parking with plans to deploy it on production vehicles over the coming years.

Porter’s Analysis

Threat of new entrants: Establishing a foothold in the autonomous vehicle industry requires massive capital investments and long-term R&D which poses significant barriers for new companies.

Bargaining power of buyers: Individual consumers have limited influence over pricing and product offerings in the autonomous vehicle market since products are largely customized as per the automakers.

Bargaining power of suppliers: Major technology players like Intel, NVIDIA, Microsoft who provide key hardware and software for autonomous functionality wield strong influence on automakers’ product development cycles and pricing.

Threat of new substitutes: Alternate modes of shared, electric and hybrid transportation can potentially divert consumer spending away from autonomous vehicles.

Competitive rivalry: Stable global giants like BMW, AUDI, Tesla as well as new market disruptors like Uber, Honda, Ford are fiercely competing to achieve technological breakthroughs and gain early dominance in the autonomous driving space.

Geographical regions

North America is currently leading the artificial intelligence in automotive market in terms of value, with the US being the major contributor. This is attributed to widespread testing and pilot projects of self-driving vehicles in states like California, autonomous shuttle services in various cities, and investments by automakers and technology companies in the region.

The Asia Pacific region is expected to be the fastest growing market for artificial intelligence in automotive during the forecast period. Countries like China, Japan, and South Korea are aggressively investing in developing autonomous driving technologies to stay ahead of the global competition. Local automakers are launching new self-driving models and collaborating with global tech giants to accelerate innovation.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it