Automotive Artificial Intelligence Market By Component (Hardware, Software, Services), By Technology (Machine Learning and Deep Learning, Computer Vision, Natural Language Processing, Others), By Application (Semi-Autonomous, Autonomous): Global Opportunity Analysis and Industry Forecast, 2023-2032
The global automotive artificial intelligence market size was valued at $13.8 billion in 2022, and is projected to reach $405.3 billion by 2032, growing at a CAGR of 40.7% from 2023 to 2032.
Automotive artificial intelligence refers to the use of AI technology in automobiles to increase various aspects of the automobile system, including efficiency, safety, convenience, and to improve the overall driving experience. The automotive industry has witnessed the advent of artificial intelligence and is among the major industries that uses AI to augment and mimic the action of humans. Furthermore, emergence of modern automobile functions such as advanced driver assistance system (ADAS), adaptive cruise control (ACC), blind spot alert, autonomous driving, predictive maintenance, intelligent traffic management, and surge in demand for convenient features attract automotive manufacturers toward AI.
The automotive artificial intelligence market growth is driven by surge in demand for autonomous vehicles, growth in high-speed internet & 5G technology, and rise in demand for enhanced user experience & convenience features. However, factors such as a rise in security and privacy concerns and a stringent regulatory landscape are anticipated to hinder the market growth rate. Furthermore, the increase in demand for premium vehicles and growth in connected vehicle technology are forecasted to provide lucrative growth market growth opportunities.
In recent years, autonomous vehicles have gained popularity due to various additional features it offers such as self-driving, automatic parking, and a variety of other features. Autonomous vehicles minimize human efforts and make driving safer and more convenient. Moreover, major global companies such as Nvidia Corporation, Intel Corporation, and Tesla, Inc., have invested heavily in R&D for the development of the technology.
For instance, the Tesla, Inc. autopilot system has features such as keeping the vehicle within a lane while driving, auto changing the lanes whenever required, and self-parking, which is one of the most advanced systems available in the market currently. Moreover, autonomous vehicles are anticipated to reduce human intervention and are of vital importance in industries that have a shortage of manpower, especially in the transportation and logistics sector. This, in turn, is expected to drive the growth of the automotive artificial intelligence market.
Autonomous vehicles have made vehicle driving for consumers safe and convenient. However, there are certain threats that are faced by the manufacturers that are related to security and privacy concerns such as safety of personal data, cyber-attacks, and data breaches.
For instance, on May 12, 2023, Toyota Motor Corporation announced that due to a human error, the vehicle data of 2.15 million customers in Japan, or approximately the entire customer base that signed up for its primary cloud service platforms since 2012, had been publicly available. The data included vehicle location as well as identification numbers of vehicle devices. These types of instances of intruding on a customer’s privacy are some of the major restraints in the market.
Furthermore, the demand for premium luxury vehicles is driven by a rise in global standards of living and increase in disposable income among people. It is evident that the premium automobile market has seen an increase in sales recently, and as the majority of premium cars on the road now are equipped with artificial intelligence technology, there is an enormous amount of opportunity for expansion in artificial intelligence in the automotive market. The largest manufacturers of luxury automobiles include General Motors, BMW, Honda Motor Co., Ltd., Tesla, Inc., and others are continuously focusing on development of the technology to enhance AI features in their products.
The automotive artificial intelligence market is segmented on the basis of component, technology, application, and region. On the basis of component, the market is divided into hardware, software, and services. On the basis of technology, the market is classified into machine learning & deep learning, computer vision, natural language processing, and others. By application, the global market is segregated into semi-autonomous and autonomous. On the basis of the region, the market has been analyzed across North America, Europe, Asia-Pacific, and Latin America and Middle East and Africa.
The key companies profiled in the report include Nvidia Corporation, Alphabet Inc., Intel Corporation, IBM, Microsoft Corporation, BMW AG, Uber Technologies, Inc., Tesla, Inc., Toyota Motor Corporation, AB Volvo
Key Benefits For StakeholdersThis report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the automotive artificial intelligence market analysis from 2022 to 2032 to identify the prevailing automotive artificial intelligence market opportunities.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the automotive artificial intelligence market segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global automotive artificial intelligence market trends, key players, market segments, application areas, and market growth strategies.
Key Market SegmentsBy ComponentHardware
Software
Services
By TechnologyMachine Learning and Deep Learning
Computer Vision
Natural Language Processing
Others
By ApplicationSemi-Autonomous
Autonomous
By RegionNorth America
U.S.
Canada
Mexico
Europe
Germany
France
UK
Spain
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
Latin America
Brazil
Argentina
Rest of Latin America
Middle East and Africa
GCC Countries
South Africa
Rest of Middle East And Africa
Key Market Players
Uber Technologies, Inc
Tesla, Inc.
Toyota Motor Corporation
Nvidia Corporation
Alphabet Inc
Intel Corporation
IBM
Microsoft Corporation
BMW AG
AB Volvo