Automotive Artificial Intelligence (AI) Market by Component (Hardware, Software, and Services), by Technology (Machine Learning & Deep Learning, Computer Vision, and Natural Language Processing), and by Application (Semi-Autonomous and Fully Autonomous) –

Automotive Artificial Intelligence (AI) Market by Component (Hardware, Software, and Services), by Technology (Machine Learning & Deep Learning, Computer Vision, and Natural Language Processing), and by Application (Semi-Autonomous and Fully Autonomous) – Global Opportunity Analysis and Industry Forecast, 2024–2030

The automotive AI market was valued at USD 4.29 Bn in 2023, and is expected to reach USD 25.78 Bn by 2030, due to the rising government and safety regulations.

Automotive AI Market
Domain - Automotive and Transportation
Sub Domain - Automotive

The Automotive AI Market size was valued at USD 4.29 billion in 2023, and is predicted to reach USD 25.78 billion by 2030, with a CAGR of 29.2% during the forecast period, 2024-2030.

The rising advancements in artificial intelligence (AI) and its implementation within the automotive industry play a central role in propelling the market growth. Progress in areas including machine learning, computer vision, and natural language processing facilitates various vehicle applications. These innovations empower vehicles to better understand and interact with their surroundings. They lead to practical features such as autonomous driving, voice-activated functions, and advanced safety systems. The evolving AI landscape is reshaping the automotive industry, enhancing vehicle safety, convenience, and functionality. This ultimately provides consumers smarter and more advanced driving experiences than before. For instance, in June 2022, AI chipmaker Hailo collaborated with Renesas to enable automotive customers to scale from advanced driver assistance system (ADAS) to automated driving seamlessly. This collaboration aims to provide advanced AI solutions for the automotive industry.

Moreover, the government regulations and safety standards are key drivers in the automotive AI market. Around the world, regulatory bodies are placing a strong emphasis on vehicle safety and reducing emissions. As a result, automakers are increasingly turning to AI-driven solutions to ensure compliance with these standards. This push for compliance ensures that vehicles are safer and more environmentally friendly.

However, the concerns related to data privacy along with the high cost associated with the automotive AI market are restraining the growth of the market.

On the contrary, the growing integration of AI-enabled predictive maintenance and advanced driver assistance systems (ADAS) in the automotive industry is expected to create ample growth opportunities for the market in the future.

Segment Overview
The global automotive AI market is segmented on the basis of component, technology, application, and region.
 By component, the market is classified into hardware, software, and services.
 By technology, the market is segmented into machine learning & deep learning, computer vision, and natural language processing.
 By application, the market is divided into semi-autonomous and fully autonomous.
 Region-wise, the market is segmented into North America, Europe, Asia-Pacific, and the rest of the world (RoW).

The North American market is projected to hold the dominant share by 2030
North America dominates the global automotive AI market, and is expected to remain dominant throughout the forecast period. This is attributed to the growing interest in self-driving cars combined with a push for safer and more efficient transportation than before. These factors spurred automakers to invest heavily in AI-driven technologies in the region. According to the Insurance Institute for Highway Safety, there will be 3.5 million autonomous vehicles on American roads by 2025, with the number increasing to 4.5 million by 2030. These technologies, essential for autonomous navigation, enhance vehicle safety and performance. As a result, the pursuit of autonomous vehicles is fuelling the development and adoption of automotive AI in the U.S. This makes it a pivotal factor in the market's growth as it meets the evolving needs of American consumers.

Also, the presence of major market players such as NVIDIA and Tesla Inc. in the region is boosting the growth of the market. They are adopting various strategies, including partnerships. For instance, in May 2023, NVIDIA partnered with MediaTek to introduce MediaTek Intelligent Cabin Solutions, aiming to enhance in-car experiences for consumers. This collaboration integrates MediaTek's solutions with NVIDIA's automotive AI platform, leading to more interactive and personalized vehicle cabins. This partnership is a significant step in the development of AI-driven automotive technology, creating more intelligent and interactive capabilities for future vehicles.

Key Market Players
The key players in the automotive AI market include:
• NVIDIA Corporation
• Alphabet, Inc.
• Intel Corporation
• Microsoft Corporation
• IBM Corporation
• Qualcomm, Inc.
• Tesla, Inc.
• BMW AG
• Micron Technology
• Xilinx, Inc.

Recent Developments
September 2023
BMW extended its collaboration with Amazon Web Services (AWS) to enhance the intelligence and connectivity of its next-generation vehicles. These vehicles are set to launch in 2025. This partnership integrates the Internet of Things (IoT) and AI technologies to deliver advanced features and services in BMW's upcoming vehicles.

August 2023
Qualcomm collaborated with Hyundai Motor Group to develop purpose-built vehicle systems using Qualcomm's cutting-edge technologies. This partnership aims to create advanced in-car experiences, including rich infotainment, cockpit, and driver assistance systems. The collaboration highlights the growing significance of technology providers and automakers working together to innovate and enhance the capabilities of future vehicles.

June 2021
Xilinx launched a new Versal AI Edge series to bring advanced AI capabilities to automotive applications. This development highlights the increasing significance of AI in the automotive industry, enabling vehicles to utilize AI for a variety of functions, such as autonomous driving and advanced driver assistance systems (ADAS).

KEY BENEFITS
• The report provides quantitative analysis and estimations of the automotive AI market from 2024 to 2030. This analysis assists in identifying the prevailing market opportunities to capitalize on.
• The study comprises a detailed analysis of the automotive AI market trends, including the current and future trends to depict prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the automotive AI market is provided in the report.
• The competitive analysis of the players along with their market share is provided in the report.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
• The value chain analysis in the market study provides a clear picture of the roles of stakeholders.