April 17, 2024

Artificial Intelligence in Automotive Market Growth Accelerated by Increased Adoption in Autonomous and Connected Vehicles

AI offers improved speech recognition, computer vision and decision making capabilities in vehicles. These solutions are incorporated in various automotive systems such as predictive maintenance, advanced driver-assistance systems, autonomous driving features and connected vehicle applications. AI helps detect objects on roads, identify anomalies and interpret complex traffic situations enabling safe and reliable driving experience.

The global Artificial Intelligence in Automotive Market is estimated to be valued at US$ 7.5 billion in 2023 and is expected to exhibit a CAGR of 12.5% over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

The increased adoption of autonomous and connected vehicles is driving the growth of artificial intelligence in the automotive market. AI significantly enhances the self-driving capabilities of vehicles by processing real-time data from various cameras, radars and lidars for localized path planning, speed control, navigation and collision avoidance. With advances in machine learning, AI powered vehicles can learn from past experiences and continuously improve their decision making. This enables developing sophisticated self-driving cars that require minimal or no human intervention. OEMs are heavily investing in AI startups and forming partnerships with tech-giants to integrate advanced autonomous driving technologies into upcoming vehicle models.

Segment Analysis
The global Artificial Intelligence in Automotive market is dominated by the autonomous driving sub segment. Autonomous driving technology uses Artificial Intelligence and machine learning algorithms to perceive the surrounding environment and navigate without human input. This sub segment continues to attract major investments from automotive OEMs as well as technology companies owing to its potential to revolutionize transportation and make roads safer by reducing road accidents caused by human errors.

Key Takeaways

The Global Artificial Intelligence In Automotive Market Size is expected to witness high growth over the coming years. Technologies like artificial intelligence and machine learning will transform various functions in automobiles including infotainment, navigation, and autonomous driving.

Regional analysis shows that North America currently dominates the market due to the presence of major automotive technology players like Tesla, Ford and GM. However, China is emerging as the fastest growing regional market for AI in automotive due to government initiatives to develop autonomous and connected vehicle technologies.

Key players operating in the Artificial Intelligence in Automotive market include Tesla, Ford, GM, Volkswagen, Toyota, Nvidia, Intel, Micron, Xilinx, Qualcomm, Samsung, Audi, Mercedes-Benz, BMW, Hyundai, Honda, Garmin, TomTom. Many of these companies are forming strategic partnerships with AI technology providers and automotive equipment manufacturers to develop self-driving technologies and introduce advanced driver assistance features in vehicles.

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