How Has the Artificial Intelligence In Automotive Market Evolved Historically and What is its Current Size?
The artificial intelligence in automotive market has seen considerable growth due to a variety of factors.
• There has been a significant increase in the size of the artificial intelligence automotive sector in the recent past. The market value is anticipated to surge from $10.88 billion in 2024 to approximately $17.56 billion in 2025, with a Compound Annual Growth Rate (CAGR) of 61.5%.
Factors that have contributed to this growth during the historic period include an increased appetite for improved user experience and convenience facets, heightened awareness surrounding these vehicles, an expansion in the implementation of AI in the automotive supply chain, a rise in demand for self-driving vehicles, and an increment in the use of car manufacturing.
What Does Future Hold for The Artificial Intelligence In Automotive Market By 2029?
The artificial intelligence in automotive market is expected to maintain its strong growth trajectory in upcoming years.
• Anticipated to witness impressive growth in the coming years, the artificial intelligence in automotive market is forecasted to reach a size of $98 billion by 2029, expanding at a compound annual growth rate (CAGR) of 53.7%.
Factors fueling the growth during the forecast period comprise advancements in autonomous driving, the escalating demand for connected automobiles, increased attention towards vehicle safety, rising consumer interest for personalized in-car experiences, growing concerns about energy efficiency, as well as swift progress in computer vision. Furthermore, the major trends to watch for during the forecast period are stride in autonomous driving, customized user experience, predictive upkeep, improved vehicle connectivity, and integration of natural language processing (NLP).
What Are The Primary Growth Drivers In The Artificial Intelligence In Automotive Market?
The surging demand for self-driving vehicles is anticipated to boost the expansion of artificial intelligence in the automotive industry. Autonomous vehicles, capable of conducting their operations and carrying out necessary tasks without human involvement, leverage their ability to perceive their environments. The automotive industry employs artificial intelligence to engineer autonomous driving systems capable of environment perception, decision making, and vehicle control without human interference. As per the National Highway Traffic Safety Administration, a government agency based in the U.S., it is expected that by December 2022, the U.S. roads will accommodate 3.5 million autonomous vehicles by 2025 and this number will escalate to 4.5 million by 2030. As a result, the escalating demand for autonomous vehicles is fueling the growth of artificial intelligence in the automotive industry.
What Is The Segmentation Of The Global Artificial Intelligence In Automotive Market?
The artificial intelligence in automotive market covered in this report is segmented –
1) By Component: Hardware, Software, Services
2) By Process: Data Mining, Image Or Signal Recognition
3) By Technology: Computer Vision, Context Awareness, Deep Learning, Machine Learning, Natural Language Processing (NLP)
4) By Application: Semi-Autonomous vehicles, Fully-Autonomous Vehicles
Subsegments:
1) By Hardware: AI Chips And Processors, Sensors (Lidar, Radar, Cameras), Embedded Systems
2) By Software: Advanced Driver-Assistance Systems (ADAS), Autonomous Driving Software, Vehicle-To-Everything (V2X) Communication Software
3) By Services: Consulting And Integration Services, Maintenance And Support Services, Data Management And Analytics Services
Pre-Book The Artificial Intelligence In Automotive Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
How Are Emerging Trends Reshaping The Dynamics Of The Artificial Intelligence In Automotive Market?
Leading businesses in the automotive AI sector are prioritizing the advancement of unique solutions like AI-infused digital products to bolster vehicle security, augment driver experience, and facilitate self-driving features. AI-based digital products are software solutions employing artificial intelligence to provide smart characteristics, automation, and personalized experiences within digital platforms or appliances. For instance, in February 2024, the Germany-based automobile manufacturing company Volkswagen Group, inaugurated an in-house AI lab to design and foster AI-driven digital products, including car infotainment and navigation applications. They aim to strengthen Volkswagen's product range by incorporating AI technologies that deliver surplus value, such as enhanced car infotainment, navigation systems, forecasted maintenance, and voice recognition. Additionally, the lab also intends to cultivate a more extensive digital ecosystem that links vehicles with external technological platforms.
Who Are the Key Players In The Artificial Intelligence In Automotive Market?
Major companies operating in the artificial intelligence in automotive market report are:
• Alphabet Inc.
• Toyota Motor Corporation
• Microsoft Corporation
• Ford Motor Company
• General Motors Company
• Bayerische Motoren Werke AG
• Honda Motor Co. Ltd.
• Tencent Holdings Ltd.
• Tesla Inc.
• Intel Corporation
• The International Business Machines Corporation (IBM)
• Audi AG
• Volvo Cars
• AB Volvo
• Qualcomm Technologies Inc.
• The Mercedes-Benz Group AG
• Mitsubishi Electric
• Uber Technologies Inc.
• Micron Technology Inc.
• NVIDIA Corporation
• Harman International Industries Inc.
• Waymo LLC
• Xilinx Inc.
• Argo AI
• Cognata ltd
What Are The Regional Insights Into The Artificial Intelligence In Automotive Market?
North America was the largest region in the artificial intelligence in automotive market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence in automotive market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
