Artificial Intelligence (AI) in Automotive Market Size, Share, Demand & Trends Analysis Report by 2024-2032

Artificial Intelligence (AI) in Automotive Market Insights

According to a report from Zion Market Research, the global Artificial Intelligence (AI) in Automotive Market was valued at USD 14.15 Billion in 2023 and is projected to hit USD 734.97 Billion by 2032, with a compound annual growth rate (CAGR) of 55.1% during the forecast period 2024-2032. This report explores market strengths, weakness, opportunities, and threats. It also provides valuable insights into the market's growth drivers, challenges, and the future prospects that may emerge in the Artificial Intelligence (AI) in Automotive Market industry over the next decade.

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Global Artificial Intelligence (AI) in Automotive Market: Overview

Artificial Intelligence (AI) is one of the emerging technologies of computer science. Artificial intelligence is related to human intelligence through similar skills including reasoning, language understanding, problem-solving, learning, and others.

The growing consumer awareness of the benefits of autonomous technology has boosted the demand for self-driving automobiles. The major automobile firms consider AI technology a necessary tool for developing and designing self-driving vehicles. Moreover, several governments and automakers across the globe have been undertaking numerous strategic initiatives to promote innovation in the autonomous vehicle landscape.

Global Artificial Intelligence (AI) in Automotive Market: Growth Factors

The global artificial intelligence (AI) in automotive market expansion is due to the surging popularity and preference for self-driving vehicles as they provide better comfort and also assist in lessening the risk of an accident. Hence, the expansion of the automotive industry will also help the development of global artificial intelligence (AI) in the automotive market size.

As customers are increasingly adopting technologies that help the driver by ensuring road safety and alleviating driving strains on long trips, the need for self-driving automobiles will witness a drastic positive change in the near future.

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Furthermore, prominent industry names in the industry such as Intel, NVIDIA, and Microsoft are increasingly emphasizing on enhancing deep learning solutions that consume lesser power and are also energy-efficient to decrease fuel consumption.

For instance, Bosch collaborated with NVIDIA for building an advanced AI self-driving vehicle computer. This advanced system has been designed for processing thirty trillion deep learning activities and operations in under a second by utilizing only 30 Watts of power. Such technological breakthroughs are certain to push artificial intelligence (AI) in the automotive market.

Global Artificial Intelligence (AI) in Automotive Market: Segmentation

The global artificial intelligence (AI) in the automotive market can be differentiated by component, technology, process, application, and by region. On the basis of components, the market has been bifurcated into software, hardware, and service.

Based on technology, the global artificial intelligence (AI) in the automotive market is segregated into context awareness, machine learning, computer vision, deep learning, and natural language processing (NLP). The deep learning segment of the global artificial intelligence (AI) in the automotive market is poised to exhibit the highest growth rates in the forecast timeframe owing to the wide-scale adoption and usage of deep learning services & solutions for training the neural network software to imitate the driving behavior of humans.

It is possible to improve AI algorithms with the help of enhanced deep learning methods to enable protection throughout the journey. Furthermore, because these systems operate with the help of AI technologies, the risk of errors throughout the trip is lessened.

By process, the global AI market for automotive applications has been classified as image/signal recognition and data mining. On the basis of application, the market can be categorized into fully autonomous vehicles, semi-autonomous vehicles, and human-machine interfaces.

Artificial Intelligence (AI) in Automotive Market: Report Scope

Global Artificial Intelligence (AI) in Automotive Market: Regional Analysis

The Europe artificial intelligence (AI) market for the automotive market is poised for significant expansion over the forthcoming timeline. This is because the semi-autonomous vehicles category is expected to develop at a remarkable CAGR in the upcoming years due to the large-scale requirements for driver-assistance services and technologies for helping the driver reach his destination through traffic congestion. The prominent automotive companies in this region including BMW and Toyota are providing drive cruise control and semi autopilot with their recent automobile models.

North America is also likely to command a substantial industry share as semi-autonomous technology production has been initiated and is expected to gain impetus over the forecast period. Innovative solutions such as road condition awareness, lane tracking, and driver behavior monitoring have emerged with the application of AI technology in semi-autonomous cars and other vehicles. Moreover, the favorable policies, plans, and initiatives undertaken by the government authorities in this region to implement semi-autonomous vehicle technology in the forthcoming years will affect the market growth in a positive manner.

Global Artificial Intelligence (AI) in Automotive Market: Competitive Players

Some of the leading players in the global market include

• Tesla Inc.
• NVIDIA Corporation
• Audi AG
• Ford Motor Company
• IBM Corporation
• Alphabet Inc.
• Microsoft Corporation
• Qualcomm Inc.
• Toyota Motor Corporation
• Volvo Car Corporation
• Didi Chuxing
• BMW AG
• Harman International Industries Inc.
• General Motors Company
• Intel Corporation
• Honda Motor Co. Ltd.
• Xilinx Inc.
• Uber Technologies Inc.

The market participants dominating the global artificial intelligence (AI) in the automotive market are increasingly aiming to strengthen their R&D capacities and build profitable associations with the other major organizations to speed up the development cycle of technology. New market entrants are targeting to raise funds by taking in investments and developing newer & more advanced products to increase their foothold in the global market for artificial intelligence (AI) in the automotive market. For example, an autonomous automobile startup, ARGO AI raised capital and assets with the help of Volkswagen Group. This investment aided the establishment to extend its manpower and administer the autonomous technology enhancement division of the Volkswagen Group.

The global artificial intelligence (AI) in the automotive market is segmented as follows:

By Component

• Software
• Hardware
• Service

By Technology

• Context Awareness
• Machine Learning
• Computer Vision
• Deep Learning
• Natural Language Processing

By Process

• Image Recognition
• Signal Recognition
• Data Mining

By Application

• Autonomous Vehicles
• Semi-Autonomous Vehicles
• Human–Machine Interface

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa