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Top Trends Transforming the Artificial Intelligence In Automotive Market Landscape in 2025: Advance In-Vehicle AI Technology Boost Market Growth
Artificial Intelligence In Automotive
What Will the Artificial Intelligence In Automotive Industry Market Size Be by 2025?
The market size of artificial intelligence in the automotive sector has seen considerable expansion in recent years, starting from $10.88 billion in 2024 and expected to reach $17.56 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 61.5%. The historical growth is largely due to factors such as the increased requirements for improved user experience and convenience features, a rising understanding about these vehicles, a surge in the incorporation of AI into the automotive supply chain, growing demand for autonomous vehicles, and an uptick in the employment of car manufacturing.
What's the Long-Term Growth Forecast for the Artificial Intelligence In Automotive Market Size Through 2029?
Expectations indicate a surge in the size of the artificial intelligence in automotive market over the upcoming years. It is projected to reach $98 billion by 2029, boasting a compound annual growth rate (CAGR) of 53.7%. The projected growth during this period can be related to the progress in autonomous driving, heightened demand for smart cars, an increased focus on vehicle safety, demand for personalized in-car experiences, stronger focus on energy efficiency, and swift developments in computer vision technology. Notable trends expected during the forecast period encompass improved autonomous driving, customized user experiences, predictive vehicle maintenance, amplified vehicle connection, and the incorporation of natural language processing (nlp).
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What Are the Key Growth Drivers Fueling the Artificial Intelligence In Automotive Market Expansion?
The rising demand for self-driving vehicles is anticipated to drive the expansion of artificial intelligence in the automotive industry. A self-driving vehicle that can function and perform necessary operations independently without human input is possible through its surroundings' sensing capabilities. The role of AI in the automotive industry includes developing autonomous driving systems that can comprehend and respond to the environment, make decisions, and navigate the car without the need for human assistance. For example, in December 2022, the National Highway Traffic Safety Administration, a governmental agency in the U.S, predicted that by 2025 there would be 3.5 million autonomous vehicles on U.S. roads, with that number reportedly increasing to 4.5 million by 2030. Thus, the escalating demand for self-driving vehicles is fuelling the expansion of artificial intelligence in the automotive industry.
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What Are the Key Trends Driving Artificial Intelligence In Automotive Market Growth?
Major players in the automotive AI industry are concentrating their efforts on creating advanced solutions like AI-driven digital products to escalate vehicle safety, enrich the driver's experience, and facilitate self-driving features. AI-driven digital products embody software solutions that harness the power of artificial intelligence to offer intelligent features, automated functions, and customized experiences within digital frameworks or apparatus. In a recent development in February 2024, Volkswagen Group, an automobile manufacturing giant from Germany, inaugurated an AI lab within their organization to foster and develop AI-enabled digital products, encompassing vehicle entertainment and navigation applications. The primary aim is to upgrade Volkswagen's portfolio by introducing AI technologies that offer added benefits like enhanced vehicle entertainment, navigating systems, predictive maintenance, and voice recognition. The lab also has the objective to cultivate an extensive digital ecosystem that correlates vehicles with external technological platforms.
How Is the Artificial Intelligence In Automotive Market Segmented?
The artificial intelligence in automotive market covered in this report is segmented -
1) By Component: Hardware, Software, Services
2) By Process: Data Mining, Image Or Signal Recognition
3) By Technology: Computer Vision, Context Awareness, Deep Learning, Machine Learning, Natural Language Processing (NLP)
4) By Application: Semi-Autonomous vehicles, Fully-Autonomous Vehicles
Subsegments:
1) By Hardware: AI Chips And Processors, Sensors (Lidar, Radar, Cameras), Embedded Systems
2) By Software: Advanced Driver-Assistance Systems (ADAS), Autonomous Driving Software, Vehicle-To-Everything (V2X) Communication Software
3) By Services: Consulting And Integration Services, Maintenance And Support Services, Data Management And Analytics Services
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Which Companies Are Leading the Charge in Artificial Intelligence In Automotive Market Innovation?
Major companies operating in the artificial intelligence in automotive market report are Alphabet Inc., Toyota Motor Corporation, Microsoft Corporation, Ford Motor Company, General Motors Company, Bayerische Motoren Werke AG, Honda Motor Co. Ltd., Tencent Holdings Ltd., Tesla Inc., Intel Corporation, The International Business Machines Corporation (IBM), Audi AG, Volvo Cars, AB Volvo, Qualcomm Technologies Inc., The Mercedes-Benz Group AG, Mitsubishi Electric, Uber Technologies Inc., Micron Technology Inc., NVIDIA Corporation, Harman International Industries Inc., Waymo LLC, Xilinx Inc., Argo AI, Cognata ltd
Which Regions Are Leading the Global Artificial Intelligence In Automotive Market in Revenue?
North America was the largest region in the artificial intelligence in automotive market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence in automotive market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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