Artificial Intelligence (AI) in Automotive Market Size By Component (Software, Hardware, Service), By Technology (Computer Vision, Context Awareness, Deep Learning, Machine Learning, Natural language Processing (NLP)), Process, Application, 2018-2032

Artificial Intelligence in Automotive Market Size

AI in Automotive Market size exceeded USD 6 billion in 2022 and is projected to expand at over 55% CAGR from 2023 to 2032. Rising adoption of autonomous vehicles across worldwide will drive the industry growth.
 

The growing consumer awareness of the benefits of autonomous technology has boosted the demand for self-driving automobiles. The major automobile firms consider AI technology a necessary tool for developing and designing self-driving vehicles. Moreover, several governments and automakers across the globe have been undertaking numerous strategic initiatives to promote innovation in the autonomous vehicle landscape.
 

Furthermore, Advance Driver Assist System (ADAS) level 2 technology is becoming increasingly popular. The rising need for ADAS systems that aid human drivers in making smart driving decisions is promoting the application of AI in the automobile industry. Automotive manufacturers are increasingly adopting AI technology to foster productivity and maximize production capacity. The growing need for AI in automotive is opening up several opportunities for industry participants and startups, which will benefit them in the long run.
 

Threat to cybersecurity may limit the product acceptance

The proliferation of embedded technologies in connected & autonomous vehicles has raised data breach concerns and resulted in increased incidences of cyberattacks. Additionally, terrorists might hijack public transport by disabling light detection and ranging sensors, posing threats to national security which is a major factor restricting the product acceptance rate. However, the increasing penetration of 5G data networks and the growing flexibility of cloud orchestration to use ML to secure autonomous cars and improve their computing capabilities, enabling them to recognize threats and respond in milliseconds, may assist in overcoming this limitation during the estimated timeframe.
 

Artificial Intelligence in Automotive Market Analysis

Based on components, the AI in automotive market from software segment is anticipated to reach USD 200 billion by 2032. In addition to other ML capabilities, advanced pre-built algorithms in the AI platforms may incorporate image identification, natural language processing, voice recognition, recommendation systems, and predictive analytics. The increasing demand for superior in-vehicle infotainment systems and human-machine interfaces is likely to facilitate the adoption of AI automotive software platforms.
 

In terms of technology, the deep learning segment held over 20% of the AI in automotive market share in 2022. Deep learning enables autonomous cars to make precise and safe navigation by utilizing deep neural networks, belief networks, and recurrent neural networks inspired by information processing and communication patterns in biological nervous systems. The rising use of extremely advanced versions of ML algorithms that function by learning data representation models is expected to escalate industry demand.
 

In terms of process, the AI in automotive market from data mining segment amassed around USD 2 billion in 2022. Data mining enables autonomous and semi-autonomous cars to collect data from multiple sensors to assist vehicles in identifying and recognizing objects, pictures, and various on-road scenarios. The surge in massive vehicle data created by an expanding number of automobiles is bolstering demand for data mining techniques in the automotive industry.
 

In terms of application, the fully autonomous segment in the AI in automotive market is predicted to record more than USD 30 billion by 2032. Level 4 cars, or fully autonomous vehicles, can manage starting, braking, steering, and monitoring of their surroundings in a variety of conditions. As per a report by Securing America's Future Energy (SAFE), the autonomous vehicles market is foreseen to create potential prospects of around $800 billion for automakers and technology companies by 2050.
 

Asia Pacific AI in automotive market size is slated to observe at over 55% gains through 2032. The regional industry growth is attributable to the strong growth of the automotive sector across regional economies such as China and the rapid adoption of AI technology in autonomous and electric cars. In addition, the growing adoption of AI technology in the automotive insurance sector across India.
 

Artificial Intelligence in Automotive Market Share

Top companies operating in the artificial intelligence in automotive market are:

• IBM Corporation
• BMW AG
• Honda Motors
• Volvo Car Corporation
• Ford Motor Company
• NVIDIA Corporation
• Tencent
• Microsoft
• AUDI AG
• Intel Corporation
• Tesla Inc
• Uber Technologies Inc
• Intel Corporation

For instance, in November 2022, the technology company, Google, and leading automobile manufacturer, Renault, extended their partnership to develop and implement the "Software Defined Vezzhicle" (SDV) architecture and expedite the firm's digitalization which consists of cloud software for digital twin and in-vehicle software for SDV platform.
 

Impact of COVID-19 Pandemic

Lockdown measures imposed during the coronavirus outbreak severely disrupted the automotive sector. Future mobility solutions like driverless cars have been severely hampered by company strategies to limit corporate expenditures and technological advancements to reduce costs. However, the pandemic has accelerated digitalization development across the automotive sector. The growing inclination of the auto industry towards electrification and autonomy, prioritizing green choices and electrification and the increased adoption of autonomous technologies is set to enhance revenue growth in the post covid scenario.
 

The artificial intelligence (AI) in automotive market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032, for the following segments:

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Market Insights, By component

• Hardware
• Software
• Services

Market Insights, By technology

• Computer Vision
• Context Awareness
• Deep Learning
• Machine Learning
• Natural Language Processing (NLP)

Market Insights, By Process

• Data Mining
• Image/ signal recognition

Market Insights, By Application

• Semi-Autonomous Vehicles
• Fully Autonomous Vehicles

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• LAMEA
  • Brazil
  • Mexico
  • Saudi Arabia
  • UAE
  • South Africa