July 23, 2024
Artificial Intelligence in Automotive Market

Artificial Intelligence in Automotive Market Is Estimated To Witness High Growth Owing To Increasing Adoption of AI-enabled Technologies

The Global Artificial Intelligence in Automotive Market is estimated to be valued at US$2.99 billion in 2022 and is expected to exhibit a CAGR of 22.7% over the forecast period from 2023 to 2030, according to a new report published by Coherent Market Insights.

Market Overview:
The Artificial Intelligence in Automotive Market involves the application of AI technologies in various aspects of the automotive industry. These technologies include machine learning, computer vision, natural language processing, and deep learning. The market offers a wide range of use cases for AI-enabled products in the automotive sector, such as autonomous driving systems, smart manufacturing, predictive maintenance, and intelligent traffic management systems. AI integration in the automotive industry enhances safety, efficiency, and convenience.

Market Dynamics:
The Artificial Intelligence in Automotive Market is driven by two main factors. Firstly, the increasing adoption of AI-enabled technologies, such as advanced driver-assistance systems (ADAS) and autonomous vehicles, by automotive manufacturers and consumers contributes to the market growth. Secondly, the growing opportunities in the development and deployment of autonomous vehicles, which rely heavily on AI technologies, fuel the market expansion. These factors are expected to drive significant investments and innovations in the AI automotive industry, leading to future growth.
Segment Analysis

The global Artificial Intelligence in Automotive Market is segmented on the basis of technology, process, application, and region.

In terms of technology, the dominating segment is machine learning, which is expected to witness the highest growth over the forecast period. Machine learning technology in automotive applications enables the vehicles to learn from data and make informed decisions, thereby enhancing the overall driving experience. The increasing adoption of machine learning algorithms by automotive manufacturers for various purposes such as advanced driver assistance systems, predictive maintenance, and autonomous driving is driving the growth of this segment.

PEST Analysis

Political: The political factors influencing the Artificial Intelligence in Automotive Market include government regulations and policies regarding autonomous vehicles and data privacy. Governments across the globe are formulating regulations to ensure the safe and ethical use of AI in automobiles.

Economic: The economic factors influencing the market include the cost of implementing AI technologies in vehicles. The high initial investment required for integrating AI systems in automobiles may hinder the growth of the market for smaller automotive manufacturers.

Social: The social factors include consumer acceptance and trust in AI-powered vehicles. The increasing awareness and acceptance of autonomous driving technology among consumers are driving the market growth.

Technological: The technological factors include advancements in AI technology and the availability of robust computing systems. The rapid advancements in AI algorithms and computing power have enabled the integration of AI systems in automobiles.

Key Takeaways

The Global Artificial Intelligence In Automotive Market Demand is expected to witness high growth, exhibiting a CAGR of 22.7% over the forecast period. This growth can be attributed to the increasing demand for autonomous vehicles and the need for advanced driver assistance systems. The market is driven by factors such as the increasing focus on vehicle safety, the emergence of connected and autonomous cars, and the advancements in AI technology.

In terms of regional analysis, North America is the fastest-growing and dominating region in the Artificial Intelligence in Automotive Market. This can be attributed to the presence of key players and the high adoption rate of advanced technologies in the automotive industry.

Key players operating in the Artificial Intelligence in Automotive Market include Qualcomm Inc., Tesla Inc., Volvo Car Corporation, BMW AG, Audi AG, General Motors Company, Ford Motor Company, Toyota Motor Corporation, Hyundai Motor Corporation, Uber Technologies Inc., and Apple Inc. These key players are investing in research and development to enhance their AI capabilities and gain a competitive edge in the market.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it