July 25, 2024
Artificial Intelligence in Automotive Market

Artificial Intelligence in Automotive Market to Achieve Steady Growth by 2030

The Artificial Intelligence in Automotive Market is estimated to be valued at US$ 2.3 Bn in 2022 and is expected to exhibit a CAGR of 24.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Artificial intelligence in automotive refers to implementation of AI and machine learning technologies in vehicles. AI systems help in enhancing vehicle safety, comfort, and overall experience for vehicle occupants. Advanced driver-assistance systems (ADAS) features such as adaptive cruise control, automatic emergency braking, and lane centering are becoming increasingly common in modern vehicles. AI systems enable autonomous driving capabilities by analyzing surroundings in real-time through sensors, cameras, and advanced algorithms.

Market key trends:

Autonomous vehicles represent one of the major trends currently shaping the artificial intelligence in automotive market. Major automotive manufacturers are heavily investing in development of self-driving vehicles through strategic partnerships and internal R&D efforts. For instance, Tesla aims to develop “Full Self-Driving” capability by the end of 2020 with goal of producing fully autonomous vehicles without need for human intervention. Model 3 vehicles produced from April 2021 include upgraded hardware for full self-driving. In addition, rapid adoption of AI technologies such as computer vision, machine learning, and deep learning is fueling development of advanced driver assistance systems. Enhancements in ADAS features such as lane centering, automatic emergency braking, and adaptive cruise control using AI are expected to gain widespread adoption in upcoming vehicle models.

Porter’s Analysis

Threat of new entrants: Low capital requirements and established brands make entry difficult in this market. Bargaining power of buyers: Buyers have high bargaining power due to availability of substitutes and undifferentiated products. Bargaining power of suppliers: A few dominant suppliers control this market giving them high bargaining power. Threat of new substitutes: Emerging technologies in AI and connected vehicles pose threat of substitution. Competitive rivalry: Intense competition exists among key players to gain market share through investment in new technologies.

SWOT Analysis

Strength: Growing investment in R&D of AI technologies. Increasing demand for autonomous, connected and electric vehicles. Weakness: High investment needs, data privacy and security concerns. Lack of regulation and infrastructure. Opportunity: Scope for AI in enhancing in-vehicle experience, predictive maintenance, and traffic management. Growth in sales of luxury vehicles. Threats: Changing consumer preferences, economic slowdown, and trade wars impacting automotive industry. Stringent emissions norms hindering adoption of technologies.

Key Takeaways

Global Artificial Intelligence In Automotive Market Size is expected to witness high growth, exhibiting CAGR of 24.1% over the forecast period, due to increasing demand for autonomous driving technologies. North America dominates the market currently due to presence of major automotive companies and technology players in the region. The Asia Pacific region is expected to grow at a high pace due to increasing production and adoption of autonomous vehicles in countries like China and Japan.

Key players operating in the Artificial Intelligence in Automotive market are Qualcomm Inc. (U.S.), Tesla Inc., Volvo Car Corporation, BMW AG, Audi AG (Germany), General Motors Company (U.S.), Ford Motor Company (U.S.), Toyota Motor Corporation (Japan), Hyundai Motor Corporation (South Korea), Uber Technologies Inc. (U.S.), and Apple Inc.

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