Automotive Artificial Intelligence Global Market Report 2024

Artificial intelligence (AI) refers to the simulation of human intelligence in machines, programmed to think and behave like humans. AI enables the completion of tasks quickly and with relatively few errors.

The main components of automotive artificial intelligence include hardware, software, and services. The hardware market involves the sales of hardware integrated into the field of automotive artificial intelligence. AI hardware coordinates computations among accelerators, serving as a differentiator in AI. Key components of AI hardware include CPU (Central Processing Units), GPU (Graphics Processing Units), FPGA (Field Programmable Gate Arrays), and ASIC (Application Specific Integrated Circuits). Automotive artificial intelligence encompasses various types, including automotive drive and Advanced Driver Assistance Systems (ADAS). Processes within automotive artificial intelligence include signal recognition, image recognition, and data mining. Technologies employed in automotive AI cover deep learning, machine learning, context awareness, computer vision, and natural language processing. Automotive artificial intelligence finds applications in semi-autonomous driving, autonomous driving, and human-machine interface.

The automotive artificial intelligence market research report is one of a series of new reports that provides automotive artificial intelligence market statistics, including automotive artificial intelligence industry global market size, regional shares, competitors with an automotive artificial intelligence market share, detailed automotive artificial intelligence market segments, market trends and opportunities, and any further data you may need to thrive in the automotive artificial intelligence industry. This automotive artificial intelligence market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The automotive artificial intelligence market size has grown exponentially in recent years. It will grow from $2.72 billion in 2023 to $3.82 billion in 2024 at a compound annual growth rate (CAGR) of 40.3%. The growth observed in the historic period can be attributed to several factors, including the rise of connected cars and the Internet of Things (IoT) in the automotive industry, the adoption of AI for predictive maintenance in vehicles, the implementation of AI in autonomous vehicle development, and an increasing emphasis on in-car personalization through AI. These factors collectively contributed to the growth of automotive artificial intelligence during the historic period.

The automotive artificial intelligence market size is expected to see exponential growth in the next few years. It will grow to $13.52 billion in 2028 at a compound annual growth rate (CAGR) of 37.2%. The anticipated growth in the forecast period can be attributed to several factors, including the increasing popularity and awareness of AI, a rising demand for premium vehicles, an increasing demand for fully digitalized electric vehicles, the integration of sensors and other components in AI systems, and the introduction of software support that makes vehicles fully autonomous. Major trends expected during this period include the development of AI chips specifically designed for automotive applications, an emphasis on explainable AI in automotive decision-making, the integration of AI for gesture and emotion recognition in vehicles, the adoption of AI in fleet management and logistics, and the use of AI for enhanced human-machine interaction in vehicles. These trends collectively contribute to the continued growth and advancement of automotive artificial intelligence in the forecasted period.

The burgeoning demand for autonomous vehicles is poised to drive the expansion of the automotive artificial intelligence market. This technology, widely integrated into the automotive industry, has revolutionized driving by enabling advancements toward autonomous driving. Utilizing AI, self-driving cars navigate locations sans human intervention, employing an array of sensors, radars, cameras, and AI capabilities. For instance, as per Deloitte's insights, the global automotive AI market is projected to reach approximately $27 billion by 2025. Hence, the escalating desire for automotive autonomy propels the growth of the automotive artificial intelligence sector.

The increasing interest in electric vehicles (EVs) is anticipated to fuel the progression of the automotive artificial intelligence market. AI plays a crucial role in electric vehicles, managing aspects like battery temperature and charge cycles to optimize efficiency and prolong battery lifespan. According to the International Energy Agency's data in July 2023, electric vehicle sales surged to 10 million in 2022, with a projected increase to 14 million in 2023. Thus, the rising demand for EVs significantly drives the expansion of the automotive artificial intelligence market.

Strategic collaborations between companies are emerging as a notable trend within the automotive artificial intelligence sector. Firms specializing in automotive AI are forging partnerships and collaborations to innovate and develop new technologies and products. For instance, in May 2021, a Chinese mobile transportation company and Sweden-based Volvo entered a partnership to deploy autonomous driving vehicles. Concurrently, Volkswagen, a German automaker, and Microsoft, a US-based technology corporation, joined forces in February 2021 to co-create self-driving car software, establishing the 'Volkswagen Automotive Cloud. ' This collaborative effort will support a range of digital and mobility products, including shared mobility services. These strategic alliances reflect a growing trend in the automotive industry to advance AI-driven innovations through collaborative endeavors.

Prominent players within the automotive artificial intelligence market are dedicated to technological innovation, exemplified by the development of cutting-edge solutions like the ADAS (Advanced Driver Assistance Systems) roof module. This module serves as a pivotal component housing various sensors and cameras, enabling crucial safety features such as adaptive cruise control, lane-keeping assistance, and collision avoidance systems. An illustration of this innovation is the launch of the ADAS roof module by Webasto Group in August 2023. Integrated into a vehicle's panoramic sunroof, this technology amalgamates 14 cameras and lidar sensors, delivering functions including obstacle detection, lane departure warning, automatic emergency braking, adaptive cruise control, and traffic sign recognition. Its design emphasizes safety optimization, visual appeal, space utilization, and simplified maintenance.

In another significant development within the industry, in June 2023, Magna International Inc., a leading Canadian manufacturer specializing in advanced mobility technologies, completed the acquisition of Veoneer Inc. 's Active Safety Business for an undisclosed sum. Through this strategic acquisition, Magna International Inc. aims to bolster its global standing as a premier supplier of active safety solutions while amplifying its expertise in sensor technology, software, and systems engineering within the automotive sector. Veoneer Inc., a Swedish-based company, is known for its proficiency in developing automotive safety technologies empowered by artificial intelligence. This acquisition signifies Magna's commitment to expanding its capabilities and solidifying its foothold in the automotive artificial intelligence domain.

Major companies operating in the in the automotive artificial intelligence market report are DiDi Chuxing Technology Co. Ltd., Otto Motors, Waymo LLC, Microsoft Corporation, Intel Coroporation, NVIDIA Corporation, BMW AG, International Business Machines Corporation, Harman International Industries Inc., Xilinx Inc., Qualcomm Inc., Tesla Inc., Volvo Car Corporation, Micron Technology Inc., Toyota Motor Corporation, Uber Technologies Inc., Arbe Robotics Ltd., Cerence Inc., Cognata Ltd., Optibus Ltd., Pony. ai Inc., Seeing Machines Ltd., Anduril Industries Inc., Nauto Inc., Veritone Inc., Matterport Inc., Iterative Health LLC, Piaggio Fast Forward Inc., Radar Inc., Streem Inc., Evolv Technology Inc., Descartes Labs Inc.

North America was the largest region in the automotive artificial intelligence market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive artificial intelligence market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the automotive artificial intelligence market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The automotive artificial intelligence market includes revenues earned by entities by offering automotive artificial intelligence. It refers to solutions that can collect and process massive volumes of vehicle data, deliver actionable insights, and improve privacy and data security. Automotive artificial intelligence is at the heart of autonomous driving, allowing for real-time recognition of items in the vehicle's environment and improved maintenance and fleet management used in the production of self-driving automobiles. AI automotive solutions improve navigation systems, improve voice command understanding, and streamline regular activities, all of which lead to improved business processes and have the potential to improve user experience, accelerate innovation cycles, and optimize the overall manufacturing and maintenance workflow. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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