Artificial Intelligence in Automotive Market Overview
As per MRFR analysis, the Artificial Intelligence in Automotive Market Size was estimated at 10.29 (USD Billion) in 2022. The Artificial Intelligence in Automotive Market is expected to grow from 13.17 (USD Billion) in 2023 to 121.9 (USD Billion) by 2032. The Artificial Intelligence in Automotive Market CAGR (growth rate) is expected to be around 28.05% during the forecast period (2024 - 2032).
Key Artificial Intelligence in Automotive Market Trends Highlighted
Artificial Intelligence in the Automotive Market is rapidly evolving and is driven by advancements in computing power and the availability of vast amounts of data. Key market drivers include the need for improved safety, increased efficiency, and enhanced user experience.
Opportunities exist in the development of autonomous driving systems, predictive maintenance, and personalized navigation services.
Trends in recent times include the growing adoption of cloud-based AI platforms, the integration of AI with other automotive technologies, and the emergence of new AI-enabled business models.
As the market continues to mature, it is expected to see increased investment in R, the development of new AI applications, and the creation of a more robust ecosystem of players.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Artificial Intelligence in Automotive Market Drivers
-
Increasing Demand for Autonomous Vehicles
The increasing demand for autonomous vehicles is one of the major factors driving the growth of the Artificial Intelligence in Automotive Market. As technology continues to improve and costs decrease, more and more consumers are expected to purchase autonomous vehicles.
This will lead to a corresponding increase in demand for AI-powered systems that can power these vehicles. In addition to the growing demand, autonomous vehicles also offer several advantages over traditional vehicles.
They are more efficient, safer, and more environmentally friendly. As these benefits become more widely recognized, the demand for autonomous vehicles is expected to continue to increase. The increasing demand for autonomous vehicles is creating several opportunities for companies in the Global Artificial Intelligence in the Automotive Market.
Companies that can develop and produce high-quality AI-powered systems for autonomous vehicles are well-positioned to capture a significant share of this growing market. Furthermore, the increasing demand for autonomous vehicles is also expected to have a positive impact on the overall automotive industry.
As more and more consumers switch to autonomous vehicles, the demand for traditional vehicles is expected to decline. This will lead to a corresponding decrease in the production of traditional vehicles, which could have a negative impact on the overall automotive industry.
However, the increasing demand for autonomous vehicles is expected to more than offset the decline in demand for traditional vehicles, resulting in a net positive impact on the overall automotive industry.
Government Regulations
Government regulations are another major factor driving the growth of the Global Artificial Intelligence in the Automotive Market. Governments around the world are increasingly recognizing the potential benefits of autonomous vehicles. As a result, they are beginning to implement regulations that support the development and deployment of autonomous vehicles.
For example, the United States government has established several initiatives to support the development of autonomous vehicles.
These initiatives include the National Highway Traffic Safety Administration's (NHTSA) Self-Driving Vehicle Safety Framework and the Department of Transportation's (DOT) Automated Vehicle Policy. These initiatives are providing a clear path for the development and deployment of autonomous vehicles in the United States.
As other governments around the world follow suit, the Artificial Intelligence in Automotive Market is expected to continue to grow.
Technological Advancements
Technological advancements are also playing a major role in the growth of Global Artificial Intelligence in the Automotive Market. As technology continues to improve, the capabilities of AI-powered systems are increasing. This is making it possible to develop autonomous vehicles that are safer, more efficient, and more reliable than ever before.
For example, recent advancements in computer vision have made it possible to develop AI-powered systems that can see and understand the world around them in a way that is like humans.
This is making it possible to develop autonomous vehicles that can navigate complex environments and avoid accidents. As technology continues to advance, the capabilities of AI-powered systems are expected to continue to improve.
This will lead to the development of even safer, more efficient, and more reliable autonomous vehicles, which will further drive the growth of the Artificial Intelligence in Automotive Market.
Artificial Intelligence in Automotive Market Segment Insights:
Artificial Intelligence in Automotive Market Application Insights
The application segment of the Global Artificial Intelligence in the Automotive Market holds significant potential for growth, driven by advancements in technology and increasing demand for autonomous vehicles. Autonomous Driving, a key application, is anticipated to witness substantial growth, with a market valuation projected to reach USD 60.5 billion by 2024.
This growth is attributed to the rising adoption of self-driving cars, fueled by ongoing technological advancements and government initiatives. Advanced Driver Assistance Systems (ADAS) is another prominent application, expected to reach a market value of USD 35.2 billion by 2024.
ADAS enhances vehicle safety and comfort, leading to increased consumer demand. Vehicle Diagnostics, valued at USD 12.8 billion in 2024, plays a crucial role in vehicle maintenance and repair, leveraging AI for efficient diagnostics and predictive analytics.
Connected Car Services, estimated to reach USD 10.2 billion by 2024, enable seamless connectivity and access to various in-vehicle services, enhancing the driving experience.
Fleet Management, valued at USD 8.5 billion in 2024, utilizes AI to optimize fleet operations, reducing costs and improving efficiency for businesses.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Artificial Intelligence in Automotive Market Technology Insights
Machine Learning, Deep Learning, Computer Vision, Natural Language Processing, and Robotics are the five main technology categories in the Global Artificial Intelligence in the Automotive Market. The market for Machine Learning in the automotive industry reached USD 7.25 billion in 2023 and is anticipated to Register a CAGR of 29.5% to reach USD 32.41 billion by 2032.
The largest market share is held by Deep Learning, which reached USD 45.23 billion by 2032, expanding at a CAGR of 27.8%. Computer Vision is predicted to Register a CAGR of 26.7% to reach USD 28.97 billion by 2032.
Natural Language Processing is anticipated to reach USD 16.34 billion by 2032, expanding at a CAGR of 25.6%. The Robotics market is anticipated to reach USD 12.78 billion by 2032, growing at a CAGR of 24.9%.
The rising need for sophisticated driver assistance systems, navigation systems, and infotainment systems is a major factor driving the growth of Artificial Intelligence in the Automotive Market. The expansion of the market is also fueled by the rising popularity of autonomous vehicles and the growing use of AI in automotive manufacturing processes.
Artificial Intelligence in Automotive Market Vehicle Type Insights
The Vehicle Type segment in the Artificial Intelligence in Automotive Market is classified into Passenger Cars, Commercial Vehicles, Two-Wheelers, and Special Purpose Vehicles. Among these segments, Passenger Cars held the largest market share in 2023.
The increasing adoption of AI-powered features such as adaptive cruise control, lane-keeping assist, and automated parking systems in passenger cars is driving the growth of this segment. Commercial Vehicles are another significant segment, with AI-powered solutions being used for fleet management, predictive maintenance, and autonomous driving applications.
The growing demand for efficient and safe commercial vehicles is expected to contribute to the growth of this segment. Two-wheelers are a rapidly growing segment, with AI being used for features such as rider assistance systems, anti-lock braking systems, and traction control.
The increasing popularity of electric two-wheelers is also expected to drive the growth of this segment. Special Purpose Vehicles, which include vehicles such as military vehicles, construction vehicles, and agricultural vehicles, are a niche segment but are expected to witness growth due to the increasing adoption of AI for autonomous navigation and safety applications.
Overall, the Vehicle Type segment in the Artificial Intelligence in Automotive Market is expected to grow significantly, driven by the increasing demand for AI-powered features and solutions in various types of vehicles.
Artificial Intelligence in Automotive Market Deployment Model Insights
The deployment model segment of the Artificial Intelligence in Automotive Market is segmented into cloud-based, on-premises, and hybrid. The cloud-based segment is expected to hold the largest market share in 2023 due to its scalability, flexibility, and cost-effectiveness.
The on-premises segment is expected to grow at a faster CAGR during the forecast period due to the increasing need for data security and privacy. The hybrid segment is expected to gain traction in the coming years as it offers the benefits of both cloud-based and on-premises deployments.
In 2023, the cloud-based segment secured approximately 60% of the Artificial Intelligence in Automotive Market revenue, while the on-premises segment is expected to account for around 30%.
The hybrid segment is expected to account for the remaining 10% by 2032. The cloud-based segment is projected to account for over 70% of the market revenue, while the on-premises segment is expected to decline to around 20%.
The hybrid segment is expected to grow steadily during the forecast period. The growth of the cloud-based segment is attributed to the increasing adoption of cloud computing by automotive manufacturers and suppliers.
Cloud-based deployments offer several advantages, such as reduced infrastructure costs, increased flexibility, and access to the latest AI technologies. The on-premises segment is expected to grow due to the increasing need for data security and privacy.
On-premises deployments provide greater control over data and security, making them suitable for applications that require high levels of data protection. The hybrid segment is expected to gain traction as it offers the benefits of both cloud-based and on-premises deployments.
Hybrid deployments allow organizations to deploy AI applications on-premises while leveraging the scalability and flexibility of the cloud.
Artificial Intelligence in Automotive Market Revenue Model Insights
The Artificial Intelligence in Automotive Market is segmented by Revenue Model into Subscription-Based, Per-Use, and Outright Purchase. Subscription-based accounted for the largest revenue share in 2023 and is projected to continue to dominate the market throughout the forecast period.
The growth of this segment can be attributed to the increasing adoption of cloud-based AI solutions by automotive OEMs and Tier 1 suppliers. Per-Use revenue model is expected to witness the fastest growth during the forecast period, owing to the growing popularity of pay-as-you-go pricing models.
The Outright Purchase revenue model is expected to account for a significant share of the overall market throughout the forecast period, due to the high upfront costs associated with AI solutions.
Artificial Intelligence in Automotive Market Regional Insights
The regional segmentation of the Global Artificial Intelligence in the Automotive Market offers insights into the geographic distribution of market growth. North America is expected to hold a significant market share, driven by factors such as the presence of leading automotive manufacturers and the early adoption of AI technologies in the region.
Europe is another key market, with a growing focus on autonomous driving and vehicle safety. The APAC region is projected to witness substantial market growth due to rising automotive production and increasing investments in AI-based automotive solutions.
South America and MEA are emerging markets with potential for growth as AI adoption gains momentum in these regions. The market growth in these regions is supported by government initiatives, increasing disposable income, and rising demand for advanced automotive technologies.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Artificial Intelligence in Automotive Market Key Players and Competitive Insights
Major players in the Artificial Intelligence in Automotive Market are continuously investing in research and development, as well as strategic partnerships and acquisitions, to strengthen their position in the market.
Artificial Intelligence in the Automotive Market is also characterized by the presence of several startups that are developing innovative solutions in the field. The Leading Artificial Intelligence in Automotive Market players are focusing on developing autonomous driving systems, advanced driver-assistance systems (ADAS), and other AI-powered technologies.
Artificial Intelligence in Automotive Market development is being driven by the increasing demand for autonomous vehicles and the need to improve safety and efficiency in the automotive industry.
One of the leading competitors in the Artificial Intelligence in Automotive Market is Tesla. Tesla is known for its electric vehicles and its advanced Autopilot driver assistance system, which uses AI to enable semi-autonomous driving.
Tesla has also been investing heavily in developing fully autonomous driving technology and is expected to release a fully autonomous vehicle in the coming years.
Another major competitor in the Artificial Intelligence in Automotive Market is Waymo. Waymo is a self-driving technology company that was founded by Google in 2009. Waymo has been developing self-driving technology for over a decade and is widely considered to be one of the leaders in the field.
Waymo has partnered with several automakers, including Fiat Chrysler and Volvo, to test and deploy its self-driving technology.
Key Companies in the Artificial Intelligence in Automotive Market Include:
- Continental
- Daimler
- BMW
- NVIDIA
- Qualcomm
- GM
- Ford
- Baidu
- Tesla
- HERE
- Intel
- Audi
- Waymo
- Volkswagen
- Toyota
Artificial Intelligence in Automotive Market Developments
The increasing adoption of AI-powered technologies, such as autonomous driving systems, advanced driver assistance systems (ADAS), and predictive maintenance, is driving the market growth. Moreover, government initiatives to promote the development and deployment of AI in the automotive sector are further fueling market expansion.
Recent developments include the launch of AI-powered infotainment systems by major automakers, partnerships between tech giants and automotive companies to develop self-driving cars, and the emergence of AI-based fleet management solutions.
These advancements are expected to revolutionize the automotive industry and create significant growth opportunities for AI solution providers.
Artificial Intelligence in Automotive Market Segmentation Insights
Artificial Intelligence in Automotive Market Application Outlook
Artificial Intelligence in Automotive Market Technology Outlook
Artificial Intelligence in Automotive Market Vehicle Type Outlook
-
-
Passenger Cars
-
Commercial Vehicles
-
Two-Wheelers
-
Special Purpose Vehicles
Artificial Intelligence in Automotive Market Deployment Model Outlook
-
-
Cloud-Based
-
On-Premises
-
Hybrid
Artificial Intelligence in Automotive Market Revenue Model Outlook
-
-
Subscription-Based
-
Per-Use
-
Outright Purchase
Artificial Intelligence in Automotive Market Regional Outlook
-
-
North America
-
Europe
-
South America
-
Asia-Pacific
-
Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
10.29(USD Billion) |
| Market Size 2023 |
13.17(USD Billion) |
| Market Size 2032 |
121.9(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
28.05% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Continental, Daimler, BMW, NVIDIA, Qualcomm, GM, Ford, Baidu, Tesla, HERE, Intel, Audi, Waymo, Volkswagen, Toyota |
| Segments Covered |
Application, Technology, Vehicle Type, Deployment Model, Revenue Model, Regional |
| Key Market Opportunities |
ADAS System Optimization Smart Vehicle Technologies Predictive Vehicle Maintenance Autonomous Vehicle Development Cloud-based Automotive AI Solutions |
| Key Market Dynamics |
Automated driving and ADAS Increasing vehicle connectivity Growing demand for personalization Data security and privacy concerns Government regulations |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Artificial Intelligence in Automotive Market was valued at USD 13.17 billion in 2023 and is expected to reach USD 121.9 billion by 2032, exhibiting a CAGR of 28.05% during the forecast period.
North America is expected to hold the largest market share in the Artificial Intelligence in Automotive Market due to the presence of major automotive manufacturers and early adoption of advanced technologies.
Artificial Intelligence is used in a wide range of automotive applications, including autonomous driving, advanced driver-assistance systems (ADAS), predictive maintenance, and infotainment systems.
Key competitors in the Artificial Intelligence in Automotive Market include NVIDIA, Tesla, Alphabet, Qualcomm, and Autoliv.
The growth of the Artificial Intelligence in Automotive Market is driven by factors such as increasing demand for autonomous vehicles, rising adoption of ADAS, and growing focus on improving vehicle safety and efficiency.
Challenges faced by Artificial Intelligence in the Automotive Market include technical complexity, regulatory hurdles, and concerns over data privacy and security.
The Artificial Intelligence in Automotive Market is expected to Register a CAGR of 28.05% from 2024 to 2032.
Key factors influencing the adoption of Artificial Intelligence in the Automotive Industry include increasing safety concerns, rising demand for autonomous vehicles, and growing focus on improving vehicle efficiency.
Opportunities for growth in the Artificial Intelligence in Automotive Market include expanding applications in autonomous driving, increasing adoption of ADAS, and growing focus on improving vehicle safety and efficiency.
Potential risks associated with the adoption of Artificial Intelligence in the Automotive Industry include technical complexity, regulatory hurdles, and concerns over data privacy and security.
