Global Automotive Artificial Intelligence Market by Component (Hardware, Software & Service), Process (Signal Recognition, Image Recognition and Data Mining), Technology (Machine Learning, Deep Learning, Context Awareness, Computer Vision and Natural Language Processing) and Application (Fully-Autonomous, Human-Machine Interface, Semi-autonomous & Driver Monitoring) - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022-2030

Industry Prospective

Automotive Artificial Intelligence Market size was worth around USD 2.42 billion in 2021 and is predicted to grow around USD 8.48 Billion by 2030 with a CAGR of approximately 15.5% between 2022 and 2030. The report analyzes the market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the global market.

Market Overview

Artificial intelligence (AI) is regarded as one of the most advanced computer science technologies. It is comparable to human intelligence in terms of traits like as comprehension, learning, problem-solving, logic, and language. Several market-based OEMs face significant fundamental obstacles in the R&D of the technology. The market for automotive AI is projected to be driven by the rapid expansion of the automotive sector. During the forecast period, the market is projected to expand significantly due to the rising demand for semi-autonomous vehicle standards such as ADAS and ACC, which enhance safety and comfort.

Driverless cars are becoming a reality as the usage of AI in autonomous vehicles evolves from requiring driver assistance to having full autonomy, increased user experience, and convenience features. Autonomous vehicles use light detection & ranging (LiDAR), GPS, computer vision, and RADAR sensing technologies and sensors to function without human intervention.

Global demand for autonomous and semi-autonomous vehicles is driven by the need for a safe, efficient, and convenient driving experience, streamlined traffic infrastructure and regulations, a reliable transportation system, and improved automotive technologies. Increased demand for linked vehicles using the internet of things (IoT), reduced traffic congestion, and improved road safety contribute to the growth of the autonomous vehicles business.

In-car payments could change how people refuel, pay for parking or fees, and buy. Open Banking, which allows customers to pay directly from their bank and minimizes friction and security risks, could be utilised to develop in-car payment systems. Reducing the need for third-party payment networks by streamlining transaction fees and improving consumer experience. Fuel, tolls, and parking are three common in-vehicle payment applications.

Germany, France, and the UK are adopting connected vehicles quickly. AI for natural language processing and voice assistants in cars will boost in-car payments. Businesses can integrate in-car payments through strategic partnerships. Visa and Mastercard are working with automakers to build in-car payment solutions. For instance, in September 2019, Hyundai worked with connected-car technology company Xevo to develop a telematics platform with digital payment.

Key Insights

• As per the analysis shared by our analyst team, the global automotive artificial intelligence market is estimated to grow annually at a CAGR of around 15.5% over the forecast period (2022-2030).
• In terms of revenue, the global automotive artificial intelligence market size was valued at around USD 2.42 Billion in 2021 and is projected to reach USD 8.48 Billion, by 2030. Due to a variety of driving factors, the market is predicted to rise at a significant rate
• Based on component, the hardware segment was predicted to show maximum market share in the year 2021
• Based on process, the data mining segment was the leading revenue-generating type in 2021
• On the basis of technology, the deep learning segment was projected to show largest share in the year 2021
• On the basis of application, the semi-autonomous segment was dominating the market share in the year 2021
• On the basis of region, North America were the leading revenue generator in 2021 

COVID-19 Impact

The COVID-19 has had a negative effect on the development of the market growth. Europe witnessed the sharpest decline in the selling rate across the board. In this instance, supplies were a barrier to sales during the best month for the UK market, and the conflict between Russia and Ukraine badly impacted sales in both of these countries. Whereas, the market was similarly weak in North America, with the decline being driven mostly by continued supply problems.

Asia on the other hand had greater resiliency, with China's market maintaining a reasonable level of stability. However, lockdowns in Shanghai as a result of rising COVID rates pose a threat to such resilience and will also have economic ramifications for China and the rest of the world given the city's importance as a trade and economic center.

Increasing Adoption of Autonomous Vehicles to Propel Growth

Increased use of self-driving vehicles, strict laws and regulations for safe driving, and significant expenditures by key OEMs are anticipated to propel market expansion. In addition, as consumer spending power rises and electric vehicles become more prevalent, the market is anticipated to expand over the forecast period.

Concerns Pertaining to High Overall Cost of Vehicles Hampering the Market Growth

Autonomous vehicles are projected to be expensive due to the commercialization of new technology systems. The majority of innovative technologies are included into luxury and premium automobiles, which have a limited client base due to their high price. Therefore, a high car price is likely to inhibit market expansion.

Increasing R&D Investment on Connected Vehicles Will Create Opportunities for the Market Growth

The increasing spending on R&D activities in the automotive industry will be driving the global market for automotive artificial intelligence market. Data science and machine learning technology assist automobile companies remain competitive by enhancing research, design, production, and marketing procedures, and automobile data analytics is not restricted to self-driving vehicles.

Concerns Pertaining to Unfavorable Climatic Conditions Could Challenge Market Growth

The unfavorable climatic conditions like bad vision are likely to be challenge the growth of the automotive artificial intelligence market. Since adverse weather conditions have a significant bearing on the accuracy of the sensing capability, the driver's safety may be put in jeopardy as a result. 
Technological advances are likely to assist in overcoming these obstacles, allowing fully autonomous vehicles to function in all types of weather. It is projected that autonomous driving will revolutionize human existence by enhancing road efficiency, minimizing accidents, boosting productivity, and reducing negative environmental impact.

Segmentation Analysis

Based on offering, the hardware segment is dominating the market share owing to the growing implementation of application-specific chips. Autonomous driving will boost chip demand due to the heavy usage of sensors in automotive industry. The usage of memory, networks, and processors will continue to see technical advances in the next years.

On the basis of process, the market is trifurcated into signal recognition, image recognition and data mining. The data mining segment is dominating the market share owing to the growing usage of multiple sensors are utilized to collect data used to train vehicles to detect obstacles. Due to the volume of data acquired in cars, data mining will propel market growth.

Based on technology, the global market segments are machine learning, deep learning, context awareness, computer vision & natural language processing. The deep learning segment is dominating the market share owing to the several OEMs are investing heavily in the R&D of self-driving cars, which use deep learning for image processing, data analysis, and sound identification.

On the basis of application, the global market segments are fully-autonomous, human-machine interface, semi-autonomous & driver monitoring. The semi-autonomous driving is dominating the market share owing to increased deployment of voice recognition and gesture recognition technologies in semi-autonomous luxury automobiles is anticipated to propel the market's expansion.

Recent Development

January 2021- Cruise and General Motors made a strategic relationship with Microsoft expedite self-driving vehicle commercialization. The firms will combine software and hardware engineering, cloud computing, and manufacturing to provide safer, better, and cheaper transportation.

August 2022- Motional and Lyft launched Motional's new all-electric IONIQ 5-based robotaxi on the Lyft network in Las Vegas.

March 2021- KAR Global has made partnership with Ravin AI will enable smooth flow of inspection information, data, and photos throughout the remarketing lifecycle for customers.

February 2021- Volkswagen Group teamed up with Microsoft to accelerate the development of automated driving software for the agile development of automated driving functions.

August 2020- Hyundai Motor Group and Aptiv has established a joint venture under the brand name, Motional to advance the development and commercialization for the autonomous vehicles.

June 2020- Mercedes-Benz made a collaboration with NVIDIA to create in-vehicle computing system and AI computing infrastructure by 2024.

Regional Landscape

North America is Dominating the Market Share

North America is dominating the automotive artificial intelligence market share by 2030 owing to the increased spending of R&D activities and presence of major players including Microsoft, KAR Global and Tesla. For instance, General Motors (GM) invested in Oculii in September 2021. GM may use the latter's low-cost software to boost radar resolution for self-driving and semi-autonomous vehicles.

The factors such as an increasing number of people purchasing electric and self-driving cars, an increase in the number of people implementing driver-assist technologies such as voice command and ADAS systems, and an increase in the average income of consumers will drive the expansion of the market.

Competitive Landscape

The key players in this automotive artificial intelligence industry includes NetApp, AB Volvo, Alphabet Inc., Intel Corporation, IBM Corporation, Motional, Inc., Microsoft, Tesla, KAR Global, Aptiv, HARMAN International, Advanced Micro Devices, Inc amongst others. These companies are increasing their geographic reach and entering new markets in developing regions in order to increase their consumer base and bolster their market presence. The companies are also introducing new innovative products to cater to the growing consumer demands.

The global Automotive Artificial Intelligence market is segmented as follows:

By Component

• Hardware
• Software
• Service

By Process

• Signal Recognition
• Image Recognition
• Data Mining

By Technology

• Machine Learning
• Deep Learning
• Context Awareness
• Computer Vision
• Natural Language Processing

By Application

• Fully-Autonomous
• Human–Machine Interface
• Semi-autonomous
• Driver Monitoring

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America