In-Vehicle AI Robot Market Size, Share, Analysis, Trends, Growth, 2032

In-Vehicle AI Robot Industry Prospective:

The global in-vehicle AI robot market size was evaluated at $11 billion in 2023 and is slated to hit $21 billion by the end of 2032 with a CAGR of nearly 16% between 2024 and 2032.

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In-Vehicle AI Robot Market: Overview

An in-vehicle AI robot is referred to as a robotic tool that is integrated into a vehicle and performs a slew of operations along with improving the end-user experience. For the record, in-vehicle AI robots find their use as personal assistants and in the entertainment sector. Furthermore, the product monitors the health of the vehicle along with reducing vehicle downtime.

Key Insights

•  As per the analysis shared by our research analyst, the global in-vehicle AI robot market is projected to expand annually at the annual growth rate of around 16% over the forecast timespan (2024-2032)
• In terms of revenue, the global in-vehicle AI robot market size was evaluated at nearly $11 billion in 2023 and is expected to reach $21 billion by 2032.
• The global in-vehicle AI robot market is anticipated to grow rapidly over the forecast timeline owing to escalating demand for advanced driver assistance systems along with large-scale use of in-vehicle robots in commercial fleets and self-driven vehicles.
• In terms of autonomous level, the level 2 segment is slated to register the highest CAGR over the forecast period.
• Based on vehicle type, the passenger cars segment is predicted to contribute majorly towards the global industry size in the upcoming years.
• Region-wise, the Asia-Pacific in-vehicle AI robot industry is projected to register the fastest CAGR during the projected timespan.

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In-Vehicle AI Robot Market: Growth Factors

Growing use of ADAS in automotive fleets to boost the global market size over the forecast period

Escalating demand for advanced driver assistance systems along with large-scale use of in-vehicle robots in commercial fleets and self-driven vehicles will steer the expansion of the global in-vehicle AI robot market. The need for improving vehicle performance along with a rise in the customer demand for improved vehicle experience will drive the growth of the market globally. A huge need for personalized and interactive in-car AI assistants leading to growing capital funding of autonomous vehicle systems will prop up the expansion of the global market. Breakthroughs in the AI voice recognition systems along with a surge in the use of AI apps in cars are likely to provide impetus to the expansion of the market globally. Large-scale use of data analytics in the automotive sector along with humungous demand for AI-based automotive safety tools is likely to impel the expansion of the market globally.

In-Vehicle AI Robot Market: Restraints

Rising threat of data privacy can hinder the expansion of the industry globally over 2024-2032

Growing concerns related to data confidentiality and technical glitches can pose a huge threat to the growth of the global in-vehicle AI robot industry. Less availability of strong AI infrastructure facilities and complicated government laws can restrict the expansion of the industry globally.

In-Vehicle AI Robot Market: Opportunities

Surging use of smart vehicles can open new facets of growth or the global market by 2032

Humungous necessity of smart automotive tools in developing countries and the flourishing automotive manufacturing sector in countries such as Brazil and India will open new growth avenues for the global in-vehicle AI robot market. Need for improving commuter traveling experience along with security concerns of passengers is likely to scale up the growth of the market globally. Rise in the use of in-vehicle AI robots in commercial applications and its integration with smart cars will enlarge the scope of the global market in the upcoming years.

In-Vehicle AI Robot Market: Challenges

Rise in the expenditure on product maintenance can pose a big challenge to the global industry progress over analysis timeline

Growing need for real-time processing of information along with the necessity of using expensive high-quality sensors along with the scarce availability of sensors can prove to be a huge challenge in the growth path of the global in-vehicle AI robot industry. These products need regular maintenance & up-gradation, thereby increasing its operational costs. This factor can further dampen the growth of the industry across the globe.

In-Vehicle AI Robot Market: Segmentation

The global in-vehicle AI robot market is divided into autonomous level, vehicle type, and region.                                          

In terms of autonomous level, the in-vehicle AI robot market across the globe is bifurcated into level 2, level 3, level 4, and level 5 segments. Additionally, the level 2 segment, which gained approximately 46% of the global market revenue in 2023, is projected to record the highest CAGR in the forecast time interval. The expansion of the segment in the next few years can be due to the ability of level 2 to provide partially automated features to vehicles and this includes maintaining lane discipline, adopting cruise control, and supervising drivers.

Based on the vehicle type, the global in-vehicle AI robot industry is divided into passenger cars and commercial cars segments. Furthermore, the passenger cars segment, which gathered approximately three-fifths of the global industry earnings in 2023, is set to make major contributions towards the global industry size in the forecasting timeline. The expansion of the segment in the analysis timeframe can be credited to the massive deployment of the product in the passenger cars as passengers prefer infotainment, voice assistance, and ADAS systems during travel.

In-Vehicle AI Robot Market: Report Scope

In-Vehicle AI Robot Market: Regional Insights

North America is expected to maintain leadership rank in the global market during the forecast timeframe

North America, which accounted for 57% of the global in-vehicle AI robot market revenue in 2023, is projected to establish a key position in the global market in the coming eight years. In addition to this, the regional market expansion in the forecast timeline can be credited to technological innovations witnessed in the automotive sectors in countries such as Canada and the U.S. An increase in the investments in research projects related to the development of AI-based automotive will further scale up the market progression in the region. Escalating customer demand for advanced driver assistance systems and the need for self-driven vehicles will drive the regional market trends.

Asia-Pacific in-vehicle AI robot industry is predicted to register the highest growth rate annually in the coming eight years. The growth of the industry in the APAC region can be due to the rise in the production of electric and hybrid cars in countries such as India, China, Taiwan, Japan, and South Korea. Moreover, automotive manufacturing is one of the flourishing sectors in Asia, thereby contributing sizably towards the growth of the industry in the Asia-Pacific region.

Key Developments

• In the first half of 2022, Argo AI, a self-driven vehicle tech provider, launched autonomous vehicle testing supported by giant vehicle manufacturers such as Volkswagen and Ford.
• In the second quarter of 2022, Horizon Robotics signed a partnership deal with BYD, an EV manufacturer based in China, for equipping its vehicles with current automotive processors referred to as Journey 5.

In-Vehicle AI Robot Market: Competitive Space

The global in-vehicle AI robot market profiles key players such as:

• Waymo LLC
• MG Motor
• Robert Bosch GmbH
• Motional Inc.
• Horizon Robotics
• Refraction AI Inc.
• AutoX Inc.
• Argo AI
• Predii Inc.
• Nauto Inc.
• Optimus Ride
• Zoox Inc.

 The global in-vehicle AI robot market is segmented as follows:

By Autonomous Level

• Level 2
• Level 3
• Level 4
• Level 5

By Vehicle Type

• Passenger Cars
• Commercial Cars

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