April 15, 2024
Artificial Intelligence in Automotive Market

Artificial Intelligence in Automotive Market is Estimated to Witness High Growth Owing to Deep Learning Advancements

The artificial intelligence in automotive market involves the integration of AI technologies including machine learning and deep learning in automobile functions ranging from autonomous driving, advanced driver-assistance systems, medical assistance for driver monitoring, vehicle maintenance and repairs, communication with users, and management of journey and comfort. AI-powered applications allow refinement of navigation systems, road tracking, route optimization, and real-time traffic alerts. With advanced technologies such as deep learning, automobiles are able to recognize patterns and draw inferences by processing huge volumes of data. The rising demand for self-driving cars along with emergence of technologies such as 5G networks and edge computing is fueling the integration of AI in automobiles.

The Global Artificial Intelligence In Automotive Market Size is estimated to be valued at US$ 10.72 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the Artificial Intelligence in Automotive are BMW AG, AUDI AG, Intel Corporation, Tesla Inc, Uber Technologies, Volvo Car Corporation, Honda Motors, Ford Motor Company, NVIDIA Corporation, Tencent, Microsoft. These players are focusing on developing advanced AI systems for autonomous vehicles.

The market provides significant opportunities for OEMs, tech companies, startups, and other stakeholders to introduce innovative offerings and solutions. Emergence of technologies such as 5G, edge computing, and IoT sensors is enabling collection of automotive data on a larger scale.

Technological advancements such as deep learning and machine vision are allowing automobiles to efficiently process data and make improvements for autonomous driving capabilities. Application of computer vision and sensor fusion aids in perception of environment. Advancements in processing power, algorithms, and dedicated automotive-grade chips are supporting enhanced ADAS features.

Market drivers

Growing demand for enhanced user experience in vehicles: Customers expect personalized and Convenient services within vehicles such as AI-powered smart cockpits, virtual assistants, advanced navigation and multimedia. This is driving auto manufacturers to integrated AI.

Stringent safety and regulatory standards: Regulatory authorities have mandated incorporation of active and passive safety features such as automatic emergency braking, blind spot monitoring in new vehicles. AI assists in meeting these norms.

Falling costs of sensors and auto-grade hardware: Declining prices of LiDAR, cameras, radars and chips are making AI and ADAS affordable for mass market automobile models. This along with development of customizable automotive hardware platforms by chipmakers is fueling AI adoption.

Current Challenges in Artificial Intelligence in Automotive Market:

The artificial intelligence in automotive market currently faces several challenges such as in improvement in deep learning and neural network algorithms, lack of labeled data for training models, high costs involved in developing AI systems for vehicles, concerns around data privacy and security, lack of regulations around the use of AI in automotive industry. Resolving these challenges will be crucial for further growth in adoption of AI technologies in automobiles.

SWOT Analysis:

Strength: AI technologies can make driving safer by preventing accidents.

Weakness: Developing self-learning systems requires huge amounts of processing power and data which increases costs.

Opportunity: AI offers potential to optimize road usage and reduce traffic congestion.

Threats: Job losses in transportation sector if autonomous vehicles disrupt existing business models.

Geographical regions where market in terms of value is concentrated:

North America region currently accounts for the largest share in the artificial intelligence in automotive market in terms of value due to presence of major automotive companies and technology players. The North America market is followed by Europe and Asia Pacific region.

Fastest growing region for Artificial Intelligence in Automotive Market:
It is projected that Asia Pacific region will be the fastest growing market for artificial intelligence in automotive during the forecast period from 2024 to 2030. This is due to increasing automotive production and sales in major countries such as China and India coupled with focus of regional automakers to integration of advanced AI capabilities in vehicles.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it