by Market Overview:
Artificial Intelligence (AI) in automotive refers to the integration of artificial intelligence technologies in vehicles, self-driving cars and automobile plants. Key applications of AI in automotive include computer vision, machine learning (ML), deep learning, assisted driving, autonomous driving and prognostics among others. Computer vision allows cars to process visual information from cameras to detect objects on roads while ML enables assisted driving features by processing huge volumes of driving data. Deep learning algorithms are used for tasks like collision avoidance, prediction and route optimization.
Market Dynamics:
One of the key driver for growth of artificial intelligence in automotive market is increasing demand for autonomous vehicles. Major automakers are investing heavily in development of autonomous vehicles which require incorporation of AI technologies like computer vision, ML and deep learning. For example, in 2021, GM invested $27 billion towards EV and autonomous vehicles development by 2025. Another major driver is increasing focus on prognostics and predictive maintenance. AI-based prognostics uses algorithms and past maintenance data to predict component failures and recommend repairs or replacements. This helps in reducing downtime and maintenance costs for automakers and fleet operators. Computer vision coupled with deep learning is enabling advanced driver assistance systems like automatic emergency braking, lane keeping assist and traffic sign recognition. Such systems are becoming common in new vehicles which is bolstering market growth.
The global Artificial Intelligence In Automotive Market Demand is estimated to be valued at US$ 9.3 Bn in 2023 and is expected to exhibit a CAGR of 55% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Segment Analysis
The Artificial Intelligence In Automotive Market can be segmented by application into autonomous vehicles, semi-autonomous vehicles, and human-assisted vehicles. The semi-autonomous segment currently dominates the market owing to the widespread adoption of advanced driver-assistance systems (ADAS) features like adaptive cruise control and lane departure warning in new cars. This segment is expected to maintain its dominance in the near future as well due to the higher acceptance of partially automated driving systems compared fully autonomous vehicles.
PEST Analysis
Political: Governments across the world are developing favorable regulations to test and commercialize self-driving cars. For example, states like California and countries like Germany have special permits for autonomous car testing.
Economic: The rising disposable incomes have increased the demand for luxury and premium cars equipped with advanced safety and autonomous features. Further, the use of AI can help reduce fuel consumption and vehicle maintenance costs.
Social: Younger consumers are more acquainted with emerging technologies and receptive towards autonomous driving technologies due to convenience and safety benefits.
Technological: Advancements in AI, ML, deep learning, computer vision, and sensor technologies have enabled the development of self-driving systems. Continued R&D is further enhancing the capabilities of autonomous vehicle technologies.
Key Takeaways
The global Artificial Intelligence In Automotive Market is expected to witness high growth at a CAGR of 55.% over the forecast period of 2023 to 2030. The market size is projected to increase from US$ 9.3 Bn in 2023 to XX Bn by 2030. Factors such as rising consumer demand for enhanced driving experience and safety features are expected to drive the demand for AI systems in automotive applications.
Regional analysis: North America currently dominates the global market owing to the presence of major players and startups focused on developing autonomous driving technologies in the US and Canada. Asia Pacific is expected to witness the fastest growth in the coming years led by China due to the increasing automotive production in the region and government support for new mobility solutions.
Key players operating in the Artificial Intelligence In Automotive Market are BMW AG, AUDI AG, Intel Corporation, Tesla Inc, Uber Technologies, Volvo Car, CorporationHonda, MotorsFord Motor, CompanyNVIDIA Corporation, Tencent, Microsoft. These players are focused on introducing advanced driver-assistance systems and advancing their R&D to develop fully autonomous vehicles in the long run.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
