Automotive Artificial Intelligence (AI) Market (By Offering: Hardware, Software, Service; By Technology: Computer Vision, Context Awareness, Deep Learning, Machine Learning, Natural Language Processing; By Application: Autonomous Driving, Human–Machine Interface, Semi-autonomous Driving; By Process: Signal Recognition, Image Recognition, Voice Recognition, Data Mining; By Component) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022-2030


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.

Automotive Artificial Intelligence Market Size 2022 To 2030

Market Overview

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.

Key Takeaways:

  • The hardware segment is projected to dominate the market with a share of over 58%. 
  • The Asia Pacific accounted for a revenue share of more than 80% of the overall market in 2021.
  • By application, the semi-autonomous segment held 53% revenue share in 2021
  • By technology, computer vision segment accounted highest revenue share of over 34% in 2021.

Market Dynamics

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

Report Coverage Details
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%
Base Year 2021
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.

Automotive Artificial Intelligence Market Share, By Offering, 2021 (%)

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 (%)
North America 15%
Asia Pacific 47%
Europe 28%
Latin America 6%
MEA 4%

 

By Geography

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.

COVID-19 Impact

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.

Recent Developments

  • In February 2021, Volkswagen Group and Microsoft are planning to increase their collaboration concerning the cloud computing technology of the American software giants to include stepping up the advancement of automatic driving.
  • In May 2021, Volvo Cars, a world leader in automotive safety, and Didi Chuxing, the top mobility technology platform in the world, announced a strategic partnership agreement on autonomous cars for DiDi's self-driving test fleet. Volvo Cars will collaborate with DiDi Autonomous Driving to implement the additional software and hardware necessary to make the XC90 cars completely prepared for autonomous driving. These cars will be equipped with the backup systems required for operations like steering and braking.
  • In Dec 2019, Tesla teamed up with Nvidia to further develop its AI-coordinated semiconductors. A portion of Nvidia's most brilliant personalities teamed up with Tesla to foster AI chips sufficiently shrewd to control vehicles with full self-driving capacity. These chips will guarantee that vehicles navigate motorways, yet additionally nearby roads and traffic lights.

Key players:

  • Intel Corporation
  • Waymo, LLC.
  • IBM Corporation
  • Microsoft Corporation
  • Nvidia Corporation
  • Xilinx, Inc.
  • Micron Technology, Inc.
  • Tesla, Inc.
  • General Motors Company
  • Ford Motor Company

Segments Covered in the Report

(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)

By Offering

  • Hardware
  • Software
  • Service

By Technology  

  • Computer Vision
  • Context Awareness 
  • Deep Learning
  • Machine Learning
  • Natural Language Processing

By Application  

  • Autonomous Driving
  • Human–Machine Interface
  • Semi-autonomous Driving

By Process

  • Signal Recognition
  • Image Recognition
  • Voice Recognition
  • Data Mining

By Component

  • Graphics processing unit (GPU)
  • Field Programmable Gate Array (FPGA)
  • Microprocessors (Incl. ASIC)
  • Image Sensors
  • Memory and Storage systems
  • Biometric Scanners
  • Others

By Geography

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa (MEA)

Frequently Asked Questions

What is the current size of automotive artificial intelligence (AI) market?
The global automotive artificial intelligence (AI) market size was accounted at USD 2.9 billion in 2021 and it is expected to reach around USD 19.1 billion by 2030.
The global automotive artificial intelligence (AI) market is poised to grow at a CAGR of 23.3% from 2022 to 2030.
The major players operating in the automotive artificial intelligence (AI) market are Intel Corporationm, Waymo, LLC., IBM Corporation, Microsoft Corporation, Nvidia Corporation, Xilinx, Inc., Micron Technology, Inc., Tesla, Inc., General Motors Company, Ford Motor Company.
The development in the auto business and increasing market revenue due to the technological advancements are driving the growth of the automotive artificial intelligence (AI) market.
Asia Pacific region will lead the global automotive artificial intelligence (AI) market during the forecast period 2022 to 2030.
  • Report Code:2165
  • Category:Automotive
  • No. of Pages:150+
  • Format:PDF/PPT/Excel
  • Status:Published

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