by Artificial intelligence (AI) refers to technologies that perceive environment and take actions to maximize chances of achieving goals. In automotive, AI is enabling autonomous driving by assisting drivers during driving with functions like lane keep assist, emergency braking, adaptive cruise control etc. Fully autonomous vehicles that don’t require human intervention are also being developed which rely on deep learning, computer vision and other AI technologies to drive without any human input. These autonomous vehicles use cameras, ultrasonic sensors, lidars and radars to build cognitive maps of surroundings and drive themselves. They have potential to significantly reduce road accidents caused due to human errors.
The global AI in Automotive Market is estimated to be valued at US$ 9.3 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Key Trends:
One of the key trends in the market is wider adoption of deep learning techniques. Deep learning is an advanced branch of machine learning that utilizes neural networks with multiple layers to extract complex patterns from large amounts of unstructured data like images, videos and other sensor feeds from vehicles. Leading automakers like BMW, Audi, Tesla are applying deep learning to develop self driving capabilities that can identify objects, read traffic signs and make decisions like a human driver. Furthermore, development of autonomous vehicles requires high performance AI hardware as deep neural networks demand huge processing power especially during real time operation of vehicles. This is boosting partnerships between automotive and tech companies to develop AI chips customized for autonomous driving workloads. For instance, Intel has collaborated with BMW to jointly develop neural network ASICs for self driving systems. Overall, deep learning is playing a crucial role in transitioning AI from driver assistance functions to fully autonomous vehicles.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate due to the presence of major players and high initial investments required to set up infrastructure.
Bargaining power of buyers: The bargaining power of buyers is moderate as buyers have several options available in the automotive industry.
Bargaining power of suppliers: The bargaining power of suppliers is moderate due to the presence of several component providers and technology companies offering AI solutions in the automotive sector.
Threat of new substitutes: The threat of new substitutes is low as AI provides several functional and safety benefits to the automotive industry.
Competitive rivalry: The competition in the industry is high owing to the presence of major technology and automotive companies.
Key Takeaways
The Global Artificial Intelligence in Automotive Market Size is expected to witness high growth. The global AI in Automotive Market is estimated to be valued at US$ 9.3 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030.
Regional analysis: The Asia Pacific region holds the largest share in the global AI in automotive market mainly due to high vehicle production and sales in China, Japan and South Korea. These countries are witnessing significant investments by automakers for developing autonomous and electric vehicles integrated with advanced AI technologies.
Key players: Key players operating in the Artificial Intelligence in Automotive market are BMW AG, AUDI AG, Intel Corporation, Tesla Inc, Uber Technologies, Volvo Car Corporation, Honda Motors, Ford Motor Company, NVIDIA Corporation, Tencent, Microsoft. Tesla, BMW and Volkswagen are focusing on integrating advanced AI systems for developing fully autonomous vehicles.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
