Automotive Artificial Intelligence Market Report
Automotive Artificial Intelligence Market Size, Share, Trend, Forecast, Competitive Analysis, and Growth Opportunity: 2023-2029 See less
Automotive Artificial Intelligence Market Size, Share, Trend, Forecast, Competitive Analysis, and Growth Opportunity: 2023-2029
Global Automotive Artificial Intelligence Market, By Component Type (Microprocessors, Graphics Processing Unit (GPU), Field Programmable Gate Array (FPGA), Memory and Storage Systems, Image Sensors, Biometric Scanners), by Offering Type (Hardware, Software), by Technology Type (Deep Learning, Machine Learning, Computer Vision, Context Aware Computing, Natural Language Processing), by Process Type (Signal Recognition, Image Recognition, Data Mining), by Application Type (Human–Machine Interface (HMI), Semi-Autonomous Driving, Autonomous Driving, Identity Authentication, Driver Monitoring, Autonomous Driving Processor Chips), and Region – Russia-Ukraine War Impact Analysis and Forecast to 2029.
The global automotive artificial intelligence market is expected to grow from USD 2.15 billion in 2022 to USD 9.47 billion by 2029 at a CAGR of 23.6% during the forecast period.
Automotive Artificial Intelligence (AI) refers to the integration of AI technology in automobiles. This includes features such as advanced driver assistance systems (ADAS), self-driving capabilities, and intelligent infotainment systems. ADAS uses AI to assist drivers with tasks such as lane departure warnings, collision avoidance, and adaptive cruise control.
Self-driving cars rely on AI to analyze data from sensors, cameras, and other inputs to make decisions and navigate roads. Intelligent infotainment systems use AI to personalize the driving experience, providing recommendations based on user preferences and driving patterns. AI is transforming the automotive industry, making driving safer, more efficient, and enjoyable.
The market is expected to experience growth during the forecast period due to factors such as an increase in demand for improved user experience and convenient features, as well as the growing adoption of ADAS technology by OEMs.
The major players operating in the global automotive artificial intelligence market are:
Human-machine interface (HMI) solutions for the automotive industry have made it easier for users to control and operate, leading to an improved user experience. These solutions offer control over various applications such as music systems, vehicle lights, and infotainment systems.
In the past, the cost of electronics systems in a vehicle only accounted for 1-2% of the total vehicle cost. However, due to the increasing demand for enhanced user experience and convenience features, this share has risen to 8-12%.
Modern vehicles frequently incorporate driver assistance technology that heavily relies on AI. This technology accurately detects driver fatigue or drowsiness by monitoring their eyes. To enhance the driving experience and reduce fatigue, the car's AI system learns about the driver's preferences, such as preferred temperature settings, songs, and destinations. Automotive companies collaborate with software providers to ensure that AI creates an optimal interior atmosphere for the driver, resulting in a personalized and engaging user experience.
The high cost of introducing new commercialized technological systems is expected to make autonomous vehicles expensive, particularly since most advanced technologies are incorporated into luxury and premium cars with a limited customer base due to their high price.
As a result, the high cost of autonomous vehicles is expected to have a dampening effect on market growth. The demand for expensive autonomous vehicles is likely to be lower than that for semi-autonomous vehicles. For autonomous cars to be effective, the supporting infrastructure must also accommodate the technology. For instance, lane assist technology requires lane lines on the road for the system to detect and adjust vehicle position, which could increase infrastructure development costs.
The installation of advanced features such as blind spot detection (BSD), lane departure warning (LDW), adaptive cruise control (ACC), and forward collision warning system (FCWS) can increase the overall cost of a vehicle. While cost is not a significant concern for premium cars, the demand for small and medium segment cars is affected by the vehicle cost. Every automaker strives to provide efficient safety features at an affordable price. The increasing cost of vehicles due to enhanced safety features could hinder the growth of the automotive AI market.
The human-machine interface (HMI) application segment to account for the largest share of the automotive artificial intelligence market during the forecast period. HMI allows drivers and passengers to interact with the vehicle by delivering convenience, information, and entertainment in a seamless manner. Key components of HMI include electromechanical devices such as keypads, pointing devices, indicators, and alarms.
The infotainment category comprises of advanced features such as speech recognition, eye tracking, monitoring driving behavior, gesture recognition, and a database of natural languages. OEMs are integrating advanced HMI solutions to provide a unique and innovative user experience and differentiate their brand image. The intelligent car concept is evolving rapidly, with features such as self-braking, advanced cruise control, and self-parking becoming increasingly common. These developments will create numerous opportunities for automotive HMI systems.
Developed countries where people prefer to travel long distances in their own vehicles and where infrastructure is improving are also driving the demand for advanced HMI systems.
Machine learning to account for the second largest share of the automotive artificial intelligence market during the forecast period. By utilizing machine learning, vehicles are equipped with the capability to examine and understand diverse driving scenarios, resulting in fewer accidents and enhanced safety and efficiency. Through this technology, precise models can be created to provide direction for future actions, while also quickly detecting patterns at a previously unprecedented scale.
The machine learning field encompasses several different technologies, such as supervised learning, unsupervised learning, deep learning, and reinforcement learning. Within the automotive industry, where datasets are extensive, varied, and frequently evolving, machine learning approaches are especially effective in powering systems with novel insights.
By 2029, North America is projected to hold the largest portion of the automotive artificial intelligence market during the forecast period, and this growth trend is anticipated to persist. The moderate expansion of automotive artificial intelligence in this region is attributed to the swift advancement of autonomous vehicle technology, coupled with stringent government regulations pertaining to road safety.
Additionally, the presence of numerous major technological firms within the region facilitates the early introduction and widespread adoption of technologies, including automotive artificial intelligence.
Government incentives and funding serve as crucial drivers in the development of this technology. The automotive industry in the US is highly advanced, with industry leaders such as Ford Motor Company, General Motors, and Fiat-Chrysler Automotive continually updating their product portfolios. Vehicles in the US come equipped with sophisticated features such as adaptive cruise control, lane departure warning systems, voice recognition, gesture recognition, and blind spot detection.
This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
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The market is expected to grow at a CAGR of 23.6% during 2023-2029.
The market size is estimated to grow from USD 2.15 billion in 2022 to USD 9.47 billion by 2029.
The major players operating in the global Automotive Artificial Intelligence market are Alphabet Inc., Microsoft Corporation, NVIDIA Corporation, Intel Corporation, International Business Machines Corporation, Qualcomm Inc., Tesla, Inc., Bayerische Motoren Werke AG, Xilinx, Inc., Micron Technology, Harman International Industries, Inc., Volvo Cars, Audi AG, General Motors Company, Ford Motor Company, Honda Motor Coltd., Toyota Motor Corporation, Hyundai Motor Co., Ltd, Uber Technologies, Inc, Daimler AG, Didi Chuxing.
North America is projected to hold the largest portion of the automotive artificial intelligence market during the forecast period, and this growth trend is anticipated to persist.
The human-machine interface (HMI) application segment to account for the largest share of the automotive artificial intelligence market during the forecast period.
The study period of the market is 2017-2029.
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