Automotive AI Market size is set to cross USD 600 billion by 2032, according to a new research report by Global Market Insights Inc.
The growing adoption of AI in the automotive sector to mitigate risks and improve auto supply chain resiliency will drive the automotive AI industry growth. Due to supply-chain vulnerabilities, production shutdowns, and semiconductor shortages, businesses are adopting ML and AI-based systems to improve transparency and accurate prediction and to solve problems faster. Furthermore, the rising use of AI in car manufacturing is impacting the market growth. Designers and development teams of automobile companies are using AI to offer extraordinary products and services and address the end user's expectations and convenience through AI and ML-driven customizations.
Innovations in the AI hardware to supplement market expansion
The hardware segment of the automotive AI market is projected to exhibit over 55% CAGR through 2032. The growing adoption of autonomous vehicles is enabling companies to develop innovative AI hardware such as the CPU, Application-Specific Integrated Circuit (ASIC), LiDAR sensors, Field Programmable Gate Array (FPGAs), GPU chips, and memory units. The leading global chip companies, including NVIDIA, Intel, and AMD, are creating new product lines to support the growing use of AI in the automotive sector, which is likely to increase the segment share.
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Development of smart cities to favor context awareness segment growth
Based on technology, the automotive AI market from the context awareness segment is poised to attain nearly 50% gains from 2023 to 2032. With the help of context awareness technology, autonomous cars may use sensors to record the surroundings around them and respond in real-time to changing environment. The technology facilitates function customization while also requiring fewer user interactions. The rapid development of smart cities and the emerging need to create better transportation systems are estimated to fuel the context awareness segment growth through 2032.
Rising deployment of image/signal recognition in semi-autonomous cars to escalate segment development
The image/signal recognition segment will hold approximately 60% of the automotive AI market share by 2032. The image recognition process helps improve road safety for pedestrians and in-vehicle passengers. The rising deployment of image/signal recognition, such as computer vision systems in semi-autonomous vehicles to enhance the night vision mode to avoid any accidents at night, is expected to influence the business growth.
Browse key industry insights spread across 320 pages with 261 market data tables and 40 figures & charts from the report, “Artificial Intelligence (AI) in Automotive Market Size By Component (Software, Hardware, Service), By Technology (Computer Vision, Context Awareness, Deep Learning, Machine Learning, Natural language Processing (NLP)), By Process (Data Mining, Image/Signal Recognition), By Application (Semi-Autonomous Vehicles, Fully Autonomous Vehicles), COVID- 19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2018 – 2032” in detail along with the table of contents:
Growing initiatives by major industry participants to improve Semi-autonomous vehicle features
The semi-autonomous application segment is slated to witness 90% growth rate from 2023 to 2032. Semi-autonomous cars can operate autonomously utilizing a camera, sensors, and AI, although they still require human intervention in case of unforeseen circumstances. Leading manufacturers, including Tesla, Audi, and Cadillac, have already created semi-autonomous cars, and are taking initiatives to speed up the development of these vehicles from level 1 to level 3, resulting in a significant demand for AI solutions for automotive applications.
Rapidly expanding autonomous automobile market in the MEA to augment LAMEA market revenue
LAMEA automotive AI market will reach USD 60 billion by 2032. The UAE's rapidly expanding autonomous automobile market will generate remarkable growth possibilities for AI technology providers owing to the abundance of smart cities, including Dubai and Abu Dhabi. Additionally, it is predicted that the growing investment in AI startups specializing in automotive applications will boost the MEA market expansion.
Innovative product launches to define the competitive outlook
Companies involved in AI in the automotive industry are BMW AG, IBM Corporation, Honda Motors, Volvo Car Corporation, AUDI AG, Ford Motor Company, Intel Corporation, NVIDIA Corporation, Tencent, Microsoft, Intel Corporation, Tesla Inc, Uber Technologies, Inc., and many others. Several new developments and product range expansions by market players are anticipated to bring about lucrative growth to the market.
To cite an instance, in August 2022, a multinational technology company, NVIDIA, unveiled DRIVE THOR, a revolutionary autonomous driving technology that will incorporate assisted and automated driving, in addition to other digital features like in-car infotainment.