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Artificial Intelligence In Automotive Market Size Forecast: $97.69 Billion by 2029 | Global Outlook

09-09-2025 08:20 AM CET | Logistics & Transport

Press release from: The Business Research Company

Artificial Intelligence In Automotive Market

Artificial Intelligence In Automotive Market

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What Is the Projected Market Size Valuation of the Artificial Intelligence In Automotive Market by 2025?
Recent years have seen a massive increase in the size of the artificial intelligence in the automotive market. The market, which is projected to be $10.88 billion in 2024, is expected to surge to $17.51 billion in 2025, at a compound annual growth rate (CAGR) of 61.0%. This substantial growth during the historic period is due to factors such as the heightened demand for improved user experience and convenience features, a growing awareness of these vehicles, an increased application of AI in the automotive supply chain, a surge in the demand for driverless cars and an uptick in car manufacturing.

What Is the Estimated Market Growth Value for the Artificial Intelligence In Automotive Industry in 2029?
In the coming years, significant expansion is anticipated in the market size of artificial intelligence in automotive, with a projected value of $97.69 billion in 2029. This represents a compound annual growth rate (CAGR) of 53.7%. The forecasted surge is largely due to factors such as advancements in autonomous driving, the growing demand for smart vehicles, enhanced attention to vehicle safety, the appeal for personalized car settings, intensified focus on energy conservation, and swift progress in computer vision. Key trends during this period will encompass advancements in autonomous driving, individualized user experiences, predictive vehicle maintenance, improved vehicle connectivity, and integration of natural language processing (NLP).

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What Are the Growth Drivers and Opportunities in the Artificial Intelligence In Automotive Market?
The increasing demand for self-driving vehicles is predicted to boost the expansion of artificial intelligence within the auto industry. An autonomous vehicle has the ability to function and operate independently without any human control, as it possesses a sensory awareness of its environment. AI is being utilized within the automotive sector to establish self-driving systems that can comprehend their surroundings, make choices, and steer the vehicle without the need for people. As stated by the National Highway Traffic Safety Administration, a United States government agency, in December 2022, by 2025 there will be 3.5 million autonomous cars traversing US roads and 4.5 million by 2030. Consequently, the escalating demand for such autonomous vehicles is fueling the rise of artificial intelligence in the automobile industry.

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What Are the Primary Segments Covered in the Global Artificial Intelligence In Automotive Market Report?
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

What Are the Top Growth Trends in the Artificial Intelligence In Automotive Market?
Leading businesses in the automotive AI sector are prioritizing the creation of innovative solutions like AI-powered digital commodities to optimize vehicle safety, enrich driver interactions, and offer autonomous driving characteristics. Digital products empowered by AI refer to software applications that employ artificial intelligence to facilitate intelligent features, personalization, and automation within digital platforms or devices. For example, in February 2024, Volkswagen Group, an automobile manufacturing corporation based in Germany, inaugurated an internal AI lab to design and foster AI-embedded digital commodities, including car infotainment and navigation services. The principal objective is to boost Volkswagen's product proposition by incorporating AI technology that provides supplementary benefits, such as advanced vehicle infotainment, navigation systems, predictive maintenance, and voice recognition. Additionally, the lab aims to create a comprehensive digital environment that bridges vehicles with external tech platforms.

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Which Companies Are Shaping the Future of the Artificial Intelligence In Automotive Market?
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 Region Holds the Largest Market Share in the Artificial Intelligence In Automotive Industry?
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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With over 15,000+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Our flagship product, the Global Market Model delivers comprehensive and updated forecasts to support informed decision-making.

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