Artificial Intelligence (AI) in Automotive Market Size By Component (Software, Hardware, Service), By Technology (Computer Vision, Context Awareness, Deep Learning, Machine Learning, Natural language Processing (NLP)), By Process (Data Mining, Image/Signa

Artificial Intelligence (AI) in Automotive Market Size By Component (Software, Hardware, Service), By Technology (Computer Vision, Context Awareness, Deep Learning, Machine Learning, Natural language Processing (NLP)), By Process (Data Mining, Image/Signal Recognition), By Application (Semi-Autonomous Vehicles, Fully Autonomous Vehicles), COVID- 19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2018 - 2032

Global AI in Automotive Market is poised to witness significant growth through 2032, primarily due to the increasing integration of AI in car manufacturing. Car manufacturers are trying to employ AI-powered robots, which help streamline their manufacturing process and boost their production capabilities.

Besides, the increased cognizance of the benefits of the CaaP (car as a platform) business model, including its ability to offer scalable and affordable service models and minimize overall capital investments, will further bolster market growth in the foreseeable future.

Overall, the AI in automotive market has been segmented on the basis of component, technology, process, application, and region.

In terms of the components, the market size from the services segment was valued at USD 1 billion in 2022 and is poised to expand at a noticeable growth rate through 2032. The demand for third-party service providers has gained significant momentum in recent years, which, in association with the lack of skilled professionals in the automotive industry will propel segment revenues during the analysis period.

Based on technology, the computer vision segment amassed more than 15% market share in 2022 and is set to record a sizeable valuation by 2032. The consistent rise in demand for improving the navigation of autonomous vehicles is fueling the adoption of computer vision technology across the automotive sector.

Similarly, the natural language processing segment is also slated to exhibit significant growth through 2032. NLP helps passengers interact with autonomous vehicles using voice commands for different applications, including route changing, virtual valet parking, and accessing in-vehicle infotainment systems. The ongoing increase in demand for improved in-vehicle experience will stimulate industry revenues between 2023 and 2032.

In the context of the process, the AI in automotive market is likely to be defined by the image/signal recognition segment. The increasing demand for semi-autonomous automobiles that deploy computer vision systems to enhance the night vision mode is likely to foster market growth through the analysis timeframe.

With respect to the application landscape, the market is likely to be characterized by the semi-autonomous vehicles segment. The growth of this segment is attributed to the current trend associated with the development of semi-autonomous vehicles from level 1 to level 3 by major automotive solution providers such as Audi, Tesla, and Cadillac.

From the regional context, the North America AI in automotive market will grow exponentially from 2023 to 2032. The regional growth is attributed to the flourishing automotive manufacturing sector in countries such as Canada. Besides, the rapid adoption of AI technology across the automotive industry in the U.S. will also facilitate market growth.