Artificial intelligence (AI) in the automotive industry is rapidly transforming various applications such as autonomous driving, predictive maintenance, HMI, and driver monitoring. AI powers autonomous vehicles by augmenting computer vision and machine learning algorithms that allow vehicles to navigate through their environment and detect other vehicles and objects autonomously. The benefits of AI-powered vehicles include reduced accidents, improved safety, and self-driving capabilities.
The Global Artificial Intelligence in Automotive Market is estimated to be valued at US$ 10.72 Billion in 2024 and is expected to exhibit a CAGR of 12% over the forecast period from 2024 to 2031.
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. Key players are investing heavily in developing advanced AI systems for self-driving vehicles. For instance, Tesla is a pioneer in introducing AI capabilities like auto steer, summon, and auto park in its vehicles.
The Artificial Intelligence in Automotive Market Demand As AI enables driverless cars, consumers are increasingly adopting autonomous driving technology for safety, convenience, and mobility on demand. Self-driving capabilities reduce accidents caused by human errors.
Geographically, North America dominated the artificial intelligence in automotive market in 2024 due to large investments by automakers in developing AI-enabled vehicles. However, Asia Pacific is expected to witness the fastest growth during the forecast period owing to the expanding electric vehicle market in China and growing consumer demand for autonomous driving technology in countries like Japan and South Korea.
Market Key Trends
One of the key trends in the Artificial Intelligence In Automotive Market Size And Trends is the shift towards self-learning systems. Earlier AI systems had to be constantly retrained with new data but now self-learning systems can learn on their own from experiences. This enables vehicles to quickly learn from their environment and enhance their decisions. Such continual learning capabilities are crucial for handling complex driving scenarios. This trend is allowing automakers to develop advanced self-driving cars that can navigate streets safely without much human supervision.
Porter’s Analysis
Threat of new entrants: Low because of high investment requirements for R&D and presence of established players.
Bargaining power of buyers: Moderate as automotive OEMs have some influence over AI solution providers due to their large procurement power.
Bargaining power of suppliers: Moderate due to presence of many suppliers providing advanced AI solutions.
Threat of new substitutes: Low as AI is becoming integral part of connected and autonomous driving experience.
Competitive rivalry: High among technology companies providing autonomous driving, infotainment and advanced driver assistance solutions.
Geographical Regions
Currently, North America dominates the artificial intelligence in automotive market in terms of value due to presence of technology giants and focus of automakers ondevelopment of autonomous vehicles in the region.
The Asia Pacific region is expected to witness highest growth during the forecast period owing to significant growth of automotive industry led by China and increasing investments by OEMs as well as tech firms in developing autonomous driving solutions. Countries like India and Japan are also emerging as hotspots for testing and adoption of self-driving cars.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
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