July 13, 2024
Artificial Intelligence in Automotive Market

Artificial Intelligence in Automotive is Expected to be Flourished by Increased Connected and Autonomous Vehicles

Artificial intelligence is playing a significant role in transforming the automotive industry. AI assistants like Alexa and Siri are becoming important features in cars to provide users convenience. Advanced driver-assistance systems are incorporating AI technologies to enhance vehicle and road safety. Full self-driving cars rely entirely on artificial intelligence and machine learning algorithms to navigate traffic. Developments in computer vision, neural networks, and deep learning are enabling autonomous vehicles to perceive their surroundings and safely maneuver on roads with little to no human intervention. These connected and autonomous vehicles collect huge amounts of data that assist in developing more sophisticated AI systems for vehicles.

The global Artificial Intelligence in Automotive Market is estimated to be valued at US$ 9.3 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Increased Connected and Autonomous Vehicles: The development of connected and autonomous vehicles is a major driver propelling the artificial intelligence in automotive market. AI technologies allow vehicles to communicate with external infrastructure and other vehicles on the road. This connectivity assists in functions like car sharing, emergency response, predictive maintenance, and remote diagnostics. Fully autonomous vehicles rely entirely on artificial intelligence and machine learning for navigation without human intervention. Rising investments by automakers in developing self-driving technologies are helping reinforce AI applications in autonomous driving.

Development of advanced technologies: Advancements in cognitive computing, deep learning, computer vision, and sensor fusion are boosting the application of artificial intelligence in vehicles. The integration of AI with technologies like 5G, edge computing, and cloud computing is enabling real-time data processing capabilities for automobiles. Emergence of solutions like in-cabin virtual assistants, predictive maintenance, and over-the-air updates based on AI are fueling the automotive AI market.

Segment Analysis

The artificial intelligence in the automotive market is dominated by the self-driving car sub-segment. This sub-segment accounts for over 30% of the total market share as OEMs and tech giants are heavily investing in developing autonomous vehicles. The increasing demand for enhanced safety and convenience features is accelerating the adoption of self-driving cars.

PEST Analysis

Political: Governments across regions are formulating safety regulations to test and commercialize autonomous vehicles. For instance, the US DOT has released guidelines for the testing and deployment of self-driving cars.

Economic: The rising per capita income and spending capability on premium vehicles equipped with the latest driver-assistance technologies are fueling the AI investment in the automotive industry.

Social: Younger consumers are exhibiting high potential for advanced in-vehicle experiences and voice commands which is prompting automakers to integrate more AI functionalities.

Technological: Significant improvements in deep learning algorithms, high-performance processors, and affordable sensor technologies have enhanced the processing capabilities for autonomous driving applications.

Key Takeaways

The Global Artificial Intelligence in Automotive Market Growth is expected to witness high over the forecast period driven by the massive R&D in self-driving technologies. The global Artificial Intelligence in Automotive Market is estimated to be valued at US$ 9.3 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030.

Regional analysis: North America accounts for over 35% value share due to rapid adoption of advanced driver-assistance systems (ADAS) in the US and Canada. Europe and Asia Pacific also provide lucrative opportunities for AI suppliers and automakers.

Key players: Key players operating in the artificial intelligence in automotive market are BMW AG, AUDI AG, Intel Corporation, Tesla Inc, Uber Technologies, Volvo Car Corporation, Honda Motors, Ford Motor Company, NVIDIA Corporation, Tencent, Microsoft. Tesla is a pioneer in integrating AI into EVs and driver-assistance systems. BMW, AUDI, and Mercedes-Benz are investing heavily in building autonomous electric fleets.

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