Automotive AI Market Size worth over $12bn by 2026
Published Date: December 17, 2019 Authors: Preeti Wadhwani, Smriti Loomba
Automotive AI Market size is predicted to cross USD 12 billion by 2026; according to a new research report by Global Market Insights, Inc.
The automotive AI market demand from 2020 to 2026 due to rising demand for autonomous vehicles across the world. The adoption of automotive AI technology plays an important role in the navigation of autonomous vehicles through traffic without any collision. Automotive AI technology can take over full control of the vehicle without any human intervention that helps to reduce traffic accidents caused by human errors. The market growth is attributed to the growing demand for autonomous cars and ADAS systems to ensure driver safety and reduce traffic accidents. Many autonomous vehicle manufacturers such as Waymo, Audi, Tesla, and General Motors are testing their autonomous vehicles to accelerate the development of futuristic mobility solutions. These initiatives are contributing significantly to automotive AI market revenue.
Demand for improving in-vehicle experience is supporting the AI software market growth
Automotive AI software is expected to grow at the highest growth rate during the forecast time due to the increasing demand to improve in-vehicle infotainment systems. These software solutions also improve navigation in autonomous vehicles. Automotive AI solution providers are introducing innovative software solutions to detect different in-vehicle parameters. For instance, in March 2018, Affectiva, a Boston-based AI in Automotive startups, introduced Affectiva AI in Automotive software to track the emotional state of drivers and passengers. This new solution helped the company to allow vehicles to automatically adjust, improving the riding experience as per the condition & behavior of drivers and passengers. These initiatives by AI companies are also supporting the market rise.
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Machine learning technology is expected to lead the market size by 2026
Machine learning technology is expected to hold significant automotive AI market share with a CAGR of over 38% during the forecasted period due to the rising need to enable autonomous vehicles to react in real-time based on the analysis of sensor data using automotive AI technology. Machine learning technology is already being used in autonomous cars that are being developed. It helps autonomous vehicles for its continuous movement under different road circumstances including heavy traffic. Machine learning algorithms help in overcoming potential challenges in developing autonomous vehicles. Major autonomous vehicle manufacturing companies operating in the market are acquiring promising machine learning startups to enhance their autonomous driving capabilities. For instance, in October 2019, Tesla, a leading autonomous vehicle manufacturer, acquired DeepScale, a machine learning startup based in the U.S. to develop self-driving technologies.
Browse key industry insights spread across 200 pages with 257 market data tables and 27 figures & charts from the report, “Automotive AI Market Size By Component (Hardware, Software, Service), By Technology (Computer Vision, Context Awareness, Deep Learning, Machine Learning, Natural Language Processing (NLP)), By Process (Data Mining, Image Recognition/Signal Recognition), By Application (Semi-autonomous Vehicles, Fully Autonomous Vehicle), Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Germany, France, Italy, Russia, Spain, China, India, Japan, Australia, South Korea, Brazil, Mexico, Saudi Arabia, UAE, South Africa), Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Data mining is expected to lead the market share during the forecast timeline
Data mining is expected to grow at the CAGR of over 40% in the automotive AI market during the forecast period due to rising adoption of different sensors such as LiDAR and AI cameras in the automotive industry. Data mining allows autonomous & semi-autonomous vehicles to collect the data from different sensors to assist vehicles in the detection and recognition of obstacles, images, and various on-road situations. Major autonomous vehicle companies are focusing on collecting huge data sets of the vehicle-related information to predict and improve the autonomous vehicle performance. For instance, Tesla’s Autopilot program is actively collecting data from hundreds of thousands of vehicles to predict how its vehicles might perform autonomously. This acquired data is helping the company develop advanced autonomous vehicles to sustain in the growing market competition.
Semi-autonomous vehicles held the major automotive AI market share in 2019
Semi-autonomous vehicles held 100% share in 2019 due to the increasing adoption of Advanced Driver Assistance System (ADAS) by automotive manufactures to improve the driving experience and on-road safety. Currently, major automotive solution providers operating in the market, such as Tesla, Audi, and Cadillac, have already developed semi-autonomous vehicles. In 2015, Tesla launched Tesla Model 3, which was equipped with an autopilot mode. This was the first time when semi-autonomous technology of such level was being offered in commercial vehicles. Semi-autonomous vehicle manufacturers have accelerated the development of semi-autonomous vehicles from level 1 to level 3.
APAC industry is expected to hold the highest CAGR over the forecast period
Asia Pacific automotive AI market is expected to grow at a highest growth rate of over 40% during the forecast timeline due to the rising investments in AI technology. For instance, Baidu, a leading technology company in China, invested over USD 1.5 billion in AI research in the past two years, in addition to the USD 200 million investment by the company for the development of its new R&D facility. The growing demand for smart mobility services in developing countries including India and China is also fueling the market demand. The major AI technology companies in the country are partnering with major auto brands to accelerate the adoption of smart mobility. For instance, in June 2019, Alibaba’s AI research division partnered with major auto brands including Audi, Renault, and Honda to drive smart mobility adoption in China. The rising adoption of autonomous vehicles in the region is another factor contributing to the market share. The proliferation of IoT in the automotive sector is also fueling the market value. Sophisticated onboard AI algorithms are enabling automotive manufacturers to collect & analyze vehicle data to improve the design and performance parameters of the current generation autonomous cars in the industry.
The companies operating in automotive AI industry includes both service providers and automotive manufacturers. The major automotive AI service providers operating in the market are focusing on strategic partnerships with automotive manufacturers to develop advanced mobility services. For instance, in May 2019, IBM partnered with Volkswagen to offer cloud computing and AI services for the acceleration of Volkswagen’s autonomous vehicle development. Under the partnership, IBM provides AI-based solutions to enable autonomous mobility, connected vehicles, and to reduce mileage-based fraud in Volkswagen’s vehicles. The other companies operating in the automotive AI market are Audi AG, Daimler AG, Ford Motor Company, Harman International Industries, Inc., Intel Corporation, Microsoft Corporation, Qualcomm Inc., Toyota Motor Corporation, Volvo Car Corporation, Xilinx Inc., Uber Technologies, Inc., Tesla, Inc., NVIDIA Corporation, IBM Corporation, Honda Motors Co., Ltd., General Motors Company, Didi Chuxing, BMW AG, and Alphabet Inc.