Artificial Intelligence (AI) in Automotive Market Analysis

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.