Market Size of Automotive Artificial Intelligence Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 30.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Automotive Artificial Intelligence Market Analysis
The Automotive Artificial Intelligence Market is valued at USD 2.3 Billion and is expected to reach USD 16.2 Billion by 2026 exhibiting a growth of over 30% during the forecast period (2021-2026)
- The increase in global demand for autonomous driving is driving the automotive artificial market. By 2030, nearly 12% to 17% of total vehicle sales will comprise of autonomous vehicles. Stringent rules and regulations regarding safe driving is making OEMs across the globe to make huge investments in Advanced driver assistance system (ADAS), computer vision and connected car systems.
- The disposable income of customers in emerging economies such as China and India is increasing and they are opting for luxury segments that comes installed with advanced driver assistance and autonomous systems such as automatic parking, automatic emergency braking, etc.
- Artificial Intelligence (AI) is driving the latest trends in automotive industry viz. ridesharing and electrification. For instance, in shared mobility, AI helps in fleet management, pricing to match demand and supply. Many big technology companies such as Intel Corporation, Nvidia are now entering the mobility space.
- Asia Pacific is the biggest market for automotive artificial intelligence. In China, the number of OEMs deploying AI in China went up by 4 percentage points from 5% to 9% during 2017-2018. This growth is fueled by open source platform for AI technology by major technology companies. For instance, Internet giant Baidu developed an open source platform, Apollo, that saw partnership from well over 130 companies.
Automotive Artificial Intelligence Industry Segmentation
The automotive artificial intelligence market covers the latest trends and technological development in the automotive artificial intelligence, demand of the vehicle type, offering type, level of autonomy, technology, geography, and market share of major automotive artificial intelligence providers across the world.
The automotive artificial intelligence market is segmented by Vehicle Type, Offering Type, Level Of Autonomy, Technology, And Geography.
By Vehicle Type, the market is segmented as Passenger Cars and Commercial Vehicles.
By Offering Type, the market is segmented as Hardware and Software.
By Level of Autonomy, the market is segmented as Semi-Autonomous and Fully Autonomous.
By Technology, the market is segmented as Machine Learning, Deep Learning, Natural Language Processing, And Computer Vision.
and By Geography, the market is segmented as North America, Europe, Asia-Pacific, South America and Midle East and Africa.
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Automotive Artificial Intelligence Market Size Summary
The automotive artificial intelligence market is experiencing significant growth, driven by the increasing global demand for autonomous driving technologies. This surge is largely attributed to the rising disposable incomes in emerging economies, such as China and India, where consumers are increasingly opting for luxury vehicles equipped with advanced driver assistance systems (ADAS) and autonomous features. The market is further bolstered by stringent safety regulations that compel original equipment manufacturers (OEMs) to invest heavily in AI-driven technologies like computer vision and connected car systems. Major technology companies, including Intel and Nvidia, are entering the mobility space, enhancing the integration of AI in automotive applications. The Asia Pacific region, particularly China, stands out as a leading market due to its rapid adoption of AI technologies in vehicles, supported by open-source platforms and strategic partnerships among tech giants and automotive manufacturers.
The development of autonomous vehicles is categorized by varying levels of autonomy, with most current models operating at levels two and three, which still require human intervention. These vehicles utilize a multitude of sensors and AI-driven predictive analytics to enhance safety and efficiency. Companies like Waymo and Tesla are at the forefront, employing AI to improve navigation and driving capabilities. The market is also witnessing the emergence of shared mobility solutions, where AI plays a crucial role in fleet management and demand-supply matching. China's ambitious "Made in China 2025" strategy aims to dominate the intelligent driving technology sector, fostering a robust ecosystem for smart connected cars. Key players in the market, such as Waymo, Tesla, and BMW AG, are actively collaborating with tech companies to advance AI infrastructure and software, further propelling the growth of the automotive artificial intelligence market.
Automotive Artificial Intelligence Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Industry Attractiveness - Porter's Five Force Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Geography
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2.1.1 North America
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2.1.1.1 United States
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2.1.1.2 Canada
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2.1.1.3 Rest of North America
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2.1.2 Europe
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2.1.2.1 Germany
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2.1.2.2 United Kingdom
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2.1.2.3 France
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2.1.2.4 Russia
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2.1.2.5 Spain
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2.1.2.6 Rest of Europe
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2.1.3 Asia Pacific
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2.1.3.1 China
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2.1.3.2 Japan
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2.1.3.3 India
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2.1.3.4 South Korea
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2.1.3.5 Rest of Asia-Pacific
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2.1.4 South America
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2.1.4.1 Brazil
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2.1.4.2 Argentina
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2.1.4.3 Rest of South America
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2.1.5 Middle East and Africa
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2.1.5.1 United Arab Emirates
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2.1.5.2 Saudi Arabia
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2.1.5.3 Rest of Middle East and Africa
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Automotive Artificial Intelligence Market Size FAQs
What is the current Automotive Artificial Intelligence Market size?
The Automotive Artificial Intelligence Market is projected to register a CAGR of greater than 30% during the forecast period (2024-2029)
Who are the key players in Automotive Artificial Intelligence Market?
Waymo LLC (Alphabet Inc.), Microsoft Corporation, Intel Corporation, DiDi Chuxing Technology Co. and BMW AG are the major companies operating in the Automotive Artificial Intelligence Market.
