The global Artificial Intelligence in Automotive Market is estimated to be valued at US$ 2.3 Bn in 2022 and is expected to exhibit a CAGR of 24.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Artificial intelligence (AI) technologies have the potential to transform the automotive industry by making vehicles smarter and more autonomous. AI in automobiles allows the vehicles to process huge amount of data collected from sensors installed in vehicles and the surroundings to take appropriate actions such as emergency braking, lane departure warning and adaptive cruise control. AI offers various advantages to automobiles such as improved vehicle and road safety, enhanced driving experience, reduced traffic congestion and fuel efficiency. The need for AI in vehicles has risen greatly in recent years owing to surge in demand for advanced driver assistance systems and self-driving vehicles.
Market key trends:
One of the key trends in the artificial intelligence in automotive market is growing adoption of deep learning technologies. Deep learning enables machines and systems to learn from large and unstructured data without being explicitly programmed. Automakers are increasingly adopting deep learning algorithms to power autonomous driving systems. For instance, Tesla uses deep learning to enhance Autopilot capabilities of its vehicles. Another major trend is increasing collaboration between tech companies and automakers. Companies like Apple, Google, IBM, Microsoft etc. are partnering with vehicle manufacturers to integrate their AI technologies in cars. Such collaborations are helping automakers leverage advanced AI capabilities for developing autonomous vehicles. Furthermore, rising demand for AI infotainment systems is also leading automakers to integrate various AI-powered features like virtual assistants, advanced navigation and digital cockpits in vehicles.
Porter's Analysis
Threat of new entrants: The threat of new entrants is moderate due to high R&D costs for developing AI technologies. However, existing tech giants can enter the market easily.
Bargaining power of buyers: The bargaining power of buyers is high due to availability of various product options from different automakers integrated with basic AI technologies.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key components such as sensors and processors require specialized expertise.
Threat of new substitutes: The threat of new substitutes is low as AI brings revolutionary changes in automotive industry and establishes itself as an important part of automobile technology.
Competitive rivalry: Intense competitive rivalry exists among key automakers to gain competitive edge through advanced AI integration in vehicles.
Key Takeaways
Global Artificial Intelligence In Automotive Market Size is expected to witness high growth, exhibiting a CAGR of 24.1% over the forecast period, due to increasing autonomous driving applications. North America dominated the market with over 35% share in 2022 due to presence of major automakers and tech companies.
The market size for 2022 was US$ 2.3 Billion. Increasing adoption of ADAS features and autonomous driving technology are propelling the demand for AI in automotive industry. Regions like Europe and Asia Pacific are also emerging at a significant pace owing to substantial government investments to develop self-driving infrastructure.
Key players operating in the Artificial Intelligence in Automotive market are Qualcomm Inc. (U.S.), Tesla Inc., Volvo Car Corporation, BMW AG, Audi AG (Germany), General Motors Company (U.S.), Ford Motor Company (U.S.), Toyota Motor Corporation (Japan), Hyundai Motor Corporation (South Korea), Uber Technologies Inc. (U.S.), and Apple Inc. The major players are focusing on product launches and partnerships to strengthen their presence in the high growth automotive AI market.
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