Market Overview:
Artificial intelligence in the automotive industry refers to the integration of AI technology into vehicles, manufacturing processes, and supporting infrastructure. This includes applications of computer vision, machine learning, and embedded AI in advanced driver-assistance systems, autonomous vehicles, predictive maintenance, and personal assistance for drivers and passengers. AI is enabling automakers to build cars that are safer, more efficient, and provide enhanced mobility and connectivity. For example, AI is utilized for real-time adaptive cruise control, automated emergency braking, self-park assist systems, and intelligent transportation systems.
Market key trends:
One of the primary trends in the artificial intelligence in automotive market is the increasing adoption of artificial intelligence for developing self-driving vehicles. Major automakers are heavily investing in AI and robotics to develop autonomous vehicles that require no human intervention for driving. AI plays a critical role in processing data from cameras, lidars, radars to detect road conditions, obstacles and navigating through traffic in real-time. Another major trend is the integration of AI personal assistants into vehicles. Automakers are launching AI-based chatbots and digital assistants to provide information on navigation, media, vehicle performance and handle tasks through voice commands. This is enhancing the in-vehicle experience for drivers and passengers. Ongoing advancements in deep learning and neuromorphic computing are also expected to accelerate the development of more human-like AI systems for future vehicles.
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.
Porter’s Analysis
Threat of new entrants: Low barriers to entry due to increasing demand and technological advancement. However, presence of established players make market highly competitive.
Bargaining power of buyers: Buyers have high bargaining power due to availability of substitutes. Buyers can easily switch to alternatives based on quality and pricing.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of alternative suppliers and insignificant switching costs. Suppliers need to maintain quality standards to sustain in market.
Threat of new substitutes: Threat of substitution is high due to presence of alternative intelligent vehicle technologies. Connected vehicle technology is major substitute.
Competitive rivalry: Market competition is high among key players to gain major market share. Players focus on new product launches and partnerships to strengthen market presence.
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 autonomous and semi-autonomous vehicles. Advancing technologies and need for safety and convenience are major drivers.
The Asia Pacific region is expected to dominate the market during the forecast period. Presence of emerging economies like China and India with growing automotive industry and government support for autonomous vehicles will drive the regional market.
Key players operating in the Artificial Intelligence In Automotive market are BMW AG, AUDI AG, Intel Corporation, Tesla Inc, Uber Technologies, Volvo Car, CorporationHonda, MotorsFord Motor, CompanyNVIDIA Corporation, Tencent, Microsoft. Key players focus on developing AI chips and algorithms for autonomous driving technologies. For instance, NVIDIA provides DRIVE AGX platform for level 2 and level 3 autonomy.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it