Market Overview:
Artificial intelligence in the automotive industry has the potential to enhance driver and passenger safety, reduce traffic congestion, increase vehicle productivity and efficiency, and offer better customer experience. Some key uses of artificial intelligence in automobiles include autonomous vehicles, advanced driver assistance systems, biometric vehicle access, in-car cognitive digital assistants, predictive maintenance and vehicle repair recommendations.
Market Dynamics:
Growing adoption of advanced driver assistance systems (ADAS) such as adaptive cruise control, automatic emergency braking, lane departure warning, and blind spot monitoring systems is expected to drive the growth of artificial intelligence in automotive market over the forecast period. ADAS uses technologies such as sensors, cameras and radar to assist and augment a driver's driving capabilities by detecting nearby vehicles, pedestrians and obstacles on the road. According to Company A, annual shipments of ADAS systems are expected to reach 120 million units by 2030, up from 60 million units in 2020.
Second key driver for growth is proliferation of autonomous vehicles technology. Automakers are increasingly integrating artificial intelligence for advanced features like automatic parking assist and partially autonomous highway driving capabilities which is expected to fuel the demand. However, high implementation costs and technological challenges associated with autonomous vehicles still remain key restraints for full scale adoption of autonomous vehicles technology.
The global Artificial Intelligence In Automotive Market Demand is estimated to be valued at US$ 9.3 Bn in 2023 and is expected to exhibit a CAGR of 55% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
SWOT Analysis
Strength: Artificial intelligence in automotive market has strong growth potential due to increasing demand for autonomous and semi-autonomous vehicles. AI helps improve vehicle safety and driver experience. It enables advanced driver-assistance systems for accident prevention.
Weakness: High research and development cost required for developing AI technologies is a major challenge for market players. Lack of standard protocols and safety measures inhibits wide adoption of autonomous vehicles.
Opportunity: Growing need for infotainment, navigation and telematics boosts the AI market. Collaboration of automakers with smart device makers expands the scope of in-vehicle experience.
Threats: Stringent regulations for testing and deployment of autonomous cars restrains market growth. Cyber threats to connected vehicles endanger data privacy and security.
Key Takeaways:
The global artificial intelligence in automotive market is expected to witness high growth, exhibiting CAGR of 55% over the forecast period, due to increasing demand for advanced driver-assistance systems and infotainment solutions. This rapid development offers lucrative opportunities for automotive AI technology providers and key industry players.
Regional analysis: North America dominates the global AI in automotive market currently, attributed to heavy investments by major automakers in developing autonomous vehicles. The Asia Pacific region is anticipated to demonstrate the fastest growth due to rising automobile production and sales in China, Japan and India. Automakers are actively collaborating with tech giants and startups to enhance research in AI-driven technologies for new platforms.
Key players operating in the artificial intelligence in automotive market include BMW AG, AUDI AG, Intel Corporation, Tesla Inc, Uber Technologies, Volvo Car, CorporationHonda, MotorsFord Motor, CompanyNVIDIA Corporation, Tencent, Microsoft. These companies utilize AI for computer vision, machine learning, and natural language processing to develop automotive solutions for autonomous driving, predictive maintenance, entertainment, marketing, and manufacturing.
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