The global automotive artificial intelligence (AI) market size was estimated at USD 2.9 billion in 2021 and is projected to reach USD 19.1 billion by 2030, registering a CAGR of 23.3% from 2022 to 2030.
The automotive value chain, which includes manufacturing, design, supply chain, production, post-production, "driving assistance" and "driver risk assessment" systems, is effectively implemented in AI. Automotive manufacturing services like part manufacturing & designs and work with humans to assist them in producing AI automobiles. AI use human data and algorithms to replicate human decision or thinking ability. Automobile manufacturers can simplify their decision-making process to ensure a high-quality customer experience. AI tools and equipment are already present in modern cars including an anti-lock braking system (ABS) and adaptive cruise control. Self-driving technology, which depends mainly on AI, is the next milestone that the automotive industry is driving toward.
One of the major factors driving the growth of the global automotive artificial intelligence market is the increase the R&D development in the automobile industry within the forecast period. Data science and machine learning technology help keep automobile organizations competitive by improving everything from research to design to manufacturing to marketing processes and automobile data analytics is not limited to self-driving cars. For instance, it is equipped with cameras, multiple sensors and radars and lidar which help in path planning and a better understanding of the surroundings are the factors that positively affect the market. Furthermore, for car manufacturers, the main goal of research and development on alternative fuels is to decrease reliance on fossil fuels by switching to the use of primary energy sources that are renewable, secure, adequately abundant, and more ecologically friendly these factors significantly drive the global automotive artificial intelligence market during the forecast period.
In addition, growing awareness of the autonomous industry is substantially driving the market. Customer demand for driverless vehicles has increased significantly, and autonomous features are much desired as some negative media reporting customers also expect semi-autonomous features for safety. For instance, according to Cox Automotive Mobility Solutions Group, 54% of people want semi-autonomous features for better and safe driving which noticeably drive the automotive artificial intelligence market.
Also, rising government initiatives for vehicle and road safety, automotive technology, telematics, and artificial intelligence can help to reduce the number of traffic accidents and improve road safety. For instance, data collection on vehicles on the road and the condition of the roads. In addition, real-time weather information and alerts may be mobile network and fast data transfer options. ultimately an effort to decrease accidents such type of initiatives tokened by government accelerate the automotive artificial intelligence market.
However, high-tech technologies increase the cost of vehicles which hamper the market growth to some extent. Furthermore, the increasing government initiatives to promote AI technology is one of the lucrative opportunities for the growth of the market during the forecast period.
Report Scope of the Automotive Artificial Intelligence (AI) Market
|Market Size in 2022||
USD 3.58 Billion
|Market Size by 2030||
USD 19.1 Billion
|Growth Rate from 2022 to 2030||CAGR of 23.3%|
|Forecast Period||2022 to 2030|
|Segments Covered||Offering, Technology, Application, Process, Component, and Geography|
|Companies Mentioned||Intel Corporationm, Waymo, LLC., IBM Corporation, Microsoft Corporation, Nvidia Corporation, Xilinx, Inc., Micron Technology, Inc., Tesla, Inc., General Motors Company, Ford Motor Company|
By Offering Insights
Based on the offering, the automotive artificial intelligence market is segmented into hardware, software and service. The hardware held a significant share in the offering segment in the year 2021. The growth in the segment is attributable to the surge in the adoption of new processor cars in countries such as China, Japan and South Korea.
The service segment is the quickest developing sub-segment including the establishment, up-gradation, and maintenance significantly rise the service sector. In addition, the software sector is substantially driving the market due to the cost of deploying cloud-based software solutions gradually decreasing the need for seamless process integration rises.
By Technology Insights
Based on technology, the global automotive artificial intelligence market is segmented into computer vision, context awareness, deep learning and Natural Language Processing. Computer vision held a significant share in the technology segment in the year 2021. In autonomous or semi-autonomous applications, several companies around the world have started to use image recognition as one of the artificial intelligence-based solutions which are expected to reshape their business.
By Application Insights
Based on application market is segmented into the human-machine interface, autonomous driving and semi-autonomous driving. The semi-autonomous held a significant share in the application segment in the year 2021. The market is expected to grow as a result of factors such as the increased use of gesture recognition and voice recognition systems in semi-autonomous luxury vehicles.
Automotive Artificial Intelligence (AI) Market Share, By Region, 2021 (%)
|Regions||Revenue Share in 2021 (%)|
The Asia Pacific dominated the market with highest revenue share in 2021. The growing sales of AI cars in countries such as South Korea, China, Japan and India are the primary factor for the growth of the automotive artificial intelligence market in this region. Furthermore, China is the major producer of automobiles and is continually developing AI in the automotive sector. For Instance, China plans to modify its automotive industry by 2025 under the "Made in China 2025 strategy," which demands the advanced key technologies for smart driving and to build an ecosystem for the development, manufacture, and use of smart connected automobiles. The Asia-Pacific automotive artificial intelligence is expected to increase during the forecast period which includes increased sales of premium passenger vehicles, increased positive perception of AI among consumers and rising disposable income.
The market for artificial intelligence in the automotive sector has been experiencing a significant decrease over the previous two years during the COVID-19 era. For instance, according to the International Organization of Motor Vehicle Manufacturers, global vehicle production in 2020 was severely hit by the COVID-19 crisis with a 16% drop across the globe. However, the market grow significantly in the coming years.
Segments Covered in the Report
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