Automotive Artificial Intelligence Market Size, Share & Analysis Report By Component, By Level of Autonomy, By Technology (Machine Learning, Natural Language Processing), By Vehicle Type and Regional Forecasts, 2023 - 2030

Report Overview

The Artificial intelligence market was valued at 3.85 Billion in 2022 and expected to grow at CAGR of 25.1% over forecast period.

The advancement of self-driving vehicles is a significant driver of AI in the automotive industry. Machine learning and computer vision, for example, are critical in enabling self-driving cars to detect their environment, make judgments, and travel safely. ADAS technologies driven by AI, such as lane-keeping assistance, adaptive cruise control, and automated emergency braking, are increasingly being implemented into modern automobiles to increase safety and help drivers on the road.

The automotive AI market is expected to expand further as the automotive sector embraces AI technology to address safety, efficiency, and sustainability concerns while providing consumers with new and improved driving experiences. AI research, computing power, and sensor technology advancements will propel the usage and integration of AI in automotive applications even further.

Component Outlook

Based on Component, the automotive artificial intelligence is segmented into Hardware and Software. Hardware segment accounted for largest share in 2022. In automotive applications, AI algorithms are becoming more sophisticated and computationally intensive. To handle the complicated calculations and data processing required for AI inference and learning, high-performance hardware is essential.

Artificial intelligence software improves in-car infotainment systems by providing personalized content, recommendations, and voice-activated controls for a better user experience and seamless communication. AI systems assess user choices, activity, and historical interactions to produce personalized content like music playlists, podcasts, news updates, and suggestions based on the individual's tastes and interests.

Technology Outlook

Based on Technology, Automotive artificial intelligence market is segmented into Machine Learning and Natural Language Processing. Machine learning accounted for largest market share in 2022.

Machine learning is critical to the development of self-driving cars. It lets self-driving cars to learn from data, recognize patterns in their surroundings, and make judgments in real time based on that learning. Object detection and recognition algorithms are used in automobiles to identify and track other vehicles, pedestrians, bicycles, and numerous impediments in their environment. The rapid improvements in machine learning technology, as well as its capacity to enable increasingly sophisticated and intelligent automotive AI applications, are driving machine learning's expansion and adoption in the automotive industry. Machine learning will continue to be a crucial driver of innovation, safety, and efficiency in automotive artificial intelligence as AI continues to alter the future of transportation.

The advancement of NLP technology, as well as its integration with automotive AI systems, will revolutionize how drivers interact with their vehicles, making driving safer, more enjoyable, and personalized. As NLP capabilities improve, it will continue to be a primary driving force in the evolution of AI-powered automotive solutions.

Vehicle Type Outlook

Based on Vehicle Type, Automotive artificial intelligence market is segmented into passenger and commercial vehicles. Passenger vehicles accounted for largest share in 2022. Autonomous driving technology fueled by AI enables self-driving automobiles that can run without human interference. These vehicles observe their environment, make decisions, and maneuver safely on the road using AI algorithms, machine learning, computer vision, and sensor fusion.

Commercial vehicles are vehicles that are primarily utilized for moving goods or passengers as part of commercial or business operations in the context of automotive artificial intelligence (AI). These vehicles are used in a variety of businesses, including logistics, transportation, delivery services, and public transit. Artificial intelligence (AI) is changing the commercial vehicle industry, delivering multiple benefits and uses.

Regional Outlook

North America is emerged as leading region for automotive artificial intelligence market in 2022. North American corporations have been at the forefront of developing autonomous driving technologies, including traditional automakers and tech behemoths. Several companies have been testing self-driving vehicles on public highways, and pilot programs for autonomous ride-hailing services have been implemented in a number of locations. Numerous AI firms and academic institutions in North America are focusing on creating AI solutions for automotive applications. These startups frequently play a crucial role in stimulating market innovation and competitiveness.

The Asia Pacific area, which includes China, Japan, South Korea, India, and others, is a major player in the global automotive sector and has been actively implementing AI technology to revolutionize various elements of automobiles and mobility solutions. The Asia Pacific automotive AI industry is dynamic and ever-changing, with new innovations and advancements emerging on a daily basis which is expected to drive the market in coming years.

Automotive Artificial Intelligence Market Report Scope

Global Automotive artificial intelligence Market, Report Segmentation

Automotive artificial intelligence Market, By Components

• Hardware
• Software

Automotive artificial intelligence Market, By Technology

• Machine Learning
• Natural Language Processing

Automotive artificial intelligence Market, By Vehicle Type

• Passenger Vehicles
• Commercial vehicles

Automotive artificial intelligence Market, Regional Outlook

North America

• U.S.
• Canada
• Mexico

Europe

• Germany
• UK
• Spain
• Russia
• France
• Italy

Asia Pacific

• China
• Japan
• India
• South Korea
• Australia

CSA

• Brazil
• Argentina

MEA

• UAE
• Saudi Arabia
• South Africa