Global Artificial Intelligence in Automotive Market Size, Share & Trends Analysis Report, By Vehicle Type, By Offering Type, By Level of Autonomy, By Technology, By Application, By Region Forecasts, 2024 - 2032

Global Artificial Intelligence in Automotive Market Size, Share & Trends Analysis Report, By Vehicle Type, By Offering Type, By Level of Autonomy, By Technology, By Application, By Region Forecasts, 2024 - 2032

Global Artificial Intelligence in Automotive Industry Market was valued at US $ 11.1 Billion in 2023 and is expected to reach US $ 487.9 Billion by 2032 growing at a CAGR of 52.25% during the forecast period 2024 – 2032.

The integration and deployment of artificial intelligence (AI) technology and algorithms within automobiles and automotive systems is referred to as AI in the automotive industry. This entails utilising AI-driven skills such as computer vision, machine learning, natural language processing, and others to improve several facets of the automotive industry. Advanced Driver Assistance Systems (ADAS), autonomous driving, predictive maintenance, traffic management, navigation, voice-activated controls, and entertainment systems are just a few of the features that the car industry uses artificial intelligence (AI) for. The objective is to enhance driving pleasure, safety, and efficiency by giving cars the ability to sense their surroundings, make wise judgements, and communicate with other cars and drivers in a more natural and flexible way. The development of new technologies, their incorporation into automobiles, and the supply of AI-driven products and services by suppliers, manufacturers, and tech firms involved in the automotive ecosystem comprise the market for AI in the automotive sector.

The increasing demand from consumers for safety and convenience features is a major driver of artificial intelligence's rapidly expanding business in the automotive sector. The growing use of Advanced Driver help Systems (ADAS), which use AI to improve overall safety and offer real-time help, is evidence of this paradigm change. In response to consumer demand for cars with proactive safety features, AI-powered object identification and collision avoidance systems help avert accidents. Convenience also includes AI-powered services like automated parking and parking assistance, which meet the growing need for hassle-free parking. Additionally, AI is essential to voice-activated controls and infotainment systems, allowing for hands-free interactions and improving the driving experience in general.

“Passenger Vehicles segment, by vehicle type, to be dominating market from 2023 to 2030.”

With a 79.42% market share, passenger vehicles now lead the automotive industry in the integration of AI technology. This trend is fuelled by strong consumer adoption and the need for cutting-edge features that improve driving safety and enjoyment. When it comes to the early adoption of AI, passenger cars have been leaders, creating a mature market with a wide range of options and fierce rivalry.

“Hardware segment, by offering, to be dominating market from 2023 to 2030.”

With a 72.41% market share, hardware leads the way as the fundamental infrastructure in the ever-changing AI environment of the automotive sector, serving as the backbone of AI applications. For tasks ranging from autonomous driving to advanced driver-assistance systems, safety, dependability, and computing efficiency are ensured by dedicated CPUs, GPUs, and specialised components. Software, on the other hand, is the fastest-growing industry, with a 29.41% CAGR.

“Semi-autonomous segment, by level of autonomy, to be dominating market from 2023 to 2030.”

With a 79.43% market share, semi-autonomous technology presently commands the highest level of autonomy in the automotive sector, balancing automatic aid with human control. This level has been widely adopted because of its instant benefits and incorporation into different car models. It is distinguished by technologies like adaptive cruise control and lane-keeping assistance. On the other hand, with a 28.53% CAGR, completely autonomous technology is the fastest-growing market and is moving quickly towards a time when cars run on their own without the need for human involvement.

“Computer Vision segment, by technology, to be dominating market from 2023 to 2030.”

With a 46.32% market share, Computer Vision leads the way in the automobile industry's use of AI integration. It offers vital visual intelligence that enables cars to see and comprehend their environment. Well-established and developed, computer vision is essential to the development of autonomous driving, object recognition, and advanced driver assistance systems (ADAS), greatly enhancing automation and safety. Driven by a spike in demand for in-car voice assistants, Natural Language Processing (NLP) emerges as the fastest-growing market at a 22.74% CAGR at the same time.

“Advanced Driver Assistance Systems segment, by application, to be dominating market from 2023 to 2030.”

With a 54.6% market share, Advanced Driver Assistance Systems (ADAS) is the industry leader in the AI-driven automotive sector currently in place, highlighting the little improvements in safety and comfort features built into contemporary cars. Global automakers have widely embraced ADAS technology, which have become standards thanks to customer and regulatory acceptance. As a result, they are widely seen on highways. With a 26.46% CAGR, self-driving automobiles are the industry segment that is expanding the fastest.

“North America to be largest region in Artificial Intelligence in Automotive market.”

With a 36.43% market share in the AI automotive sector, North America is now leading the world. This is mostly because of the region's developed technical ecosystem and the vast number of prominent tech companies that are actively engaged in AI research and development. The area has been a pioneer in the use of autonomous vehicle technology, and its thriving automotive sector easily incorporates artificial intelligence to improve efficiency and safety. North America's prominence is further enhanced by regulatory backing and frameworks that offer a favourable environment for testing and implementing AI solutions in the automobile industry.

Artificial Intelligence in Automotive Competitive Landscape

The competitive landscape of the Artificial Intelligence in Automotive market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Artificial Intelligence in Automotive technology holds the potential for further growth. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Artificial Intelligence in Automotive market is highly competitive, with numerous companies vying for market share. Prominent companies in the Artificial Intelligence in Automotive Market include:

Major Players:

Alphabet (Google), Apple, Amazon, Bosch, Baidu, Continental, Ford, Daimler, HERE Technologies, General Motors, Huawei, Nvidia, Intel, Samsung, Qualcomm, Sony, Tesla, Toyota

, Samsung, Volkswagen, ZF Friedrichshafe, Waymo and others.

Recent Developments:

In order to incorporate didi Gemini, a new self-driving hardware platform outfitted with NVIDIA DRIVE AGX Pegasus, into Volvo's autonomous drive-ready XC90 vehicles, Didi Chuxing and Volvo Cars formed a strategic collaboration in May 2021. These automobiles, which are a component of didi's autonomous test fleet, will eventually be used for robotaxi services.

BMW unveiled its cutting-edge idrive 8 infotainment system in March 2021 with the goal of being a smart, digital partner for drivers. Powered by 5G, AI cloud, machine learning, and natural language processing, idrive 8 will make its premiere in the future BMW ix and i4.

Volkswagen and Microsoft began working together in February 2021 to create software for self-driving cars with the goal of streamlining the development process, enabling quicker integration into the fleet of vehicles, and making software updates easier. In June 2020, Mercedes-Benz and NVIDIA collaborated to develop a cutting-edge in-car computer system and artificial intelligence infrastructure. This partnership allows for the integration of upgradeable automated driving features, which are scheduled to be included in the Mercedes-Benz fleet of 2024.