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Automotive AI Market Size to Worth USD 19.09 Billion by

Ottawa, April 25, 2024 (GLOBE NEWSWIRE) — The global automotive AI market size accounted for USD 6.32 billion in 2023 and is predicted to hit around USD 17.67 billion by 2031, according to a study published by Towards Automotive a sister firm of Precedence Research.

The increasing demand for autonomous vehicles worldwide is bolstering the commercial vehicle market, with autonomous vehicles projected to comprise 12% to 17% of all vehicle sales by 2030. Stringent regulations on driving safety are driving OEMs globally to invest significantly in driver assistance systems (ADAS), computer vision, and connected vehicles to enhance vehicle safety and compliance. Growing customer preference for luxury vehicles equipped with advanced driver assistance and automatic driving systems, such as automatic parking and emergency braking, is contributing to market growth.

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Ride-sharing and electrification trends are influencing the commercial vehicle market, with AI-driven fleet management and pricing strategies helping to optimize operations and meet demand.

Major technology companies like Intel and Nvidia are actively involved in advancing AI technologies for autonomous vehicles, contributing to the integration of AI into commercial vehicle systems.

China has seen a notable increase in the adoption of AI by OEMs, with the percentage of OEMs using AI rising from 5% to 9% between 2017 and 2018. This growth is attributed to the availability of smart technology through open-source platforms like Baidu’s Apollo, which has partnerships with over 130 companies, facilitating collaboration and innovation in the industry.

Artificial intelligence (AI) is poised to revolutionize the automotive industry by transforming manufacturing processes and driving job growth through technological advancements.

  • AI-driven developments are aimed at enhancing passenger traffic and safety within vehicles, with a focus on providing customers with an elevated driving experience and improved ease of operation.
  • While AI technology offers features that enhance driving comfort and convenience, it still necessitates the driver’s attention to ensure safe operation.
  • The integration of AI in automotive manufacturing processes streamlines production, increases efficiency, and enables innovative solutions that contribute to the industry’s evolution.
  • Job growth within the automotive sector is expected to accelerate as AI adoption expands, creating opportunities for skilled professionals in AI development, data analysis, and vehicle technology.
  • AI-powered advancements in vehicle safety systems, autonomous driving capabilities, and in-car entertainment enhance the overall driving experience, attracting consumers to AI-enabled vehicles.

Despite the automation and intelligence AI brings to vehicles, drivers remain responsible for maintaining situational awareness and exercising caution while operating AI-equipped vehicles. Driverless vehicles rely on a combination of sensors, including cameras, radar, and lidar, to detect objects such as pedestrians, cyclists, and vehicles on the road. These sensors collect data about the surrounding environment and measure the speed and distance of objects to make informed decisions about driving maneuvers. However, adverse weather conditions such as snow, fog, or heavy rain can significantly impair the effectiveness of these sensors. Reduced visibility in inclement weather conditions poses a challenge for driverless vehicles, as the accuracy of sensor data may be compromised, leading to potential safety risks.

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The inability of sensors to function optimally in adverse weather conditions can jeopardize driving safety. Driverless vehicles may struggle to accurately perceive and respond to hazards on the road, increasing the risk of accidents. Addressing the challenge of sensor blindness in varying weather conditions is crucial to ensuring the safety and reliability of autonomous driving technology. Despite the challenges posed by sensor blindness, autonomous driving technology holds the potential to revolutionize transportation and improve people’s lives. Autonomous vehicles have the potential to enhance road efficiency, reduce accidents, increase productivity, and minimize negative environmental impacts.

By leveraging advanced AI algorithms and sensor technologies, driverless vehicles aim to offer safer, more efficient, and more convenient transportation options for individuals and communities. Graphics processing units (GPUs) play a significant role in the automotive AI industry, particularly in the development of autonomous driving and advanced driver assistance systems (ADAS). GPUs are essential for processing the vast amounts of sensor data collected by driverless vehicles and making real-time decisions based on that data. Modern cars are equipped with GPUs to support digital dashboards with high-resolution displays, enabling the visualization of maps, forecasts, and other visual information while driving. As display technology advances, GPUs are increasingly utilized to power higher-resolution screens, with 4K displays becoming more common in luxury and executive vehicles.

Automotive Exhaust Analyzer Market Trends

Shift in Regulations to Drive Growth in Technological Advancements

Significant advancements in artificial intelligence (AI) technologies such as machine learning, computer vision, and natural language processing are pivotal for the automotive industry, enhancing vehicle safety, comfort, and driving experience. AI enables vehicles to better understand their environment and interact seamlessly with it, from advanced driver assistance systems (ADAS) to autonomous driving capabilities, thereby providing customers with improved and smarter driving experiences.

Partnerships between AI chipmakers like Hailo and technology companies like Renesas Electronics facilitate the integration of AI into automotive systems, enabling the transition from ADAS to autonomous driving. AI is utilized across various facets of the automotive industry, including post-production, supply chain management, design, manufacturing, driver support, and measurement, driving growth in the automotive intelligence sector. Governments worldwide are implementing stringent safety measures and promoting the adoption of AI-powered safety systems such as pedestrian recognition and collision avoidance, further fueling demand for automotive AI solutions.

AI technology optimizes electric vehicle battery life, predicts driving patterns, and facilitates payment control, contributing to the increasing demand for automotive AI solutions. Regulatory frameworks governing AI-driven technology enhance trust and security in the automotive industry, fostering business growth and innovation. Entrepreneurs must adapt to and comply with regulatory requirements to leverage growth opportunities and maintain competitiveness in the automotive AI market.

Self-driving cars are categorized based on their level of autonomy, with Level 5 representing vehicles capable of operating without human intervention, while Level 3 and Level 4 vehicles can perform certain tasks autonomously but still require human oversight for safe operation. Leading companies like Google and Uber utilize a combination of sensors, including cameras, radar, lidar, and GPS, to collect data from the vehicle’s environment and enable autonomous driving capabilities. Advanced artificial intelligence (AI) programs process the data collected by sensors to analyze and predict pedestrian and vehicle movements, enhancing the vehicle’s ability to navigate safely in various driving conditions.

Driverless cars equipped with AI have the potential to address transportation challenges, particularly in regions with aging populations, by providing safe and convenient transportation options for elderly and disabled individuals. AI technology enables vehicles to gather information from various sources, including social media and daily behavior patterns, to personalize activities and suggest relevant locations or services. AI-powered systems in self-driving cars can monitor fuel levels and identify the nearest gas stations or charging stations, enhancing convenience and efficiency for drivers.

Asia-Pacific Is Expected to Be the Leading Market

China, the largest automotive market globally, is embracing artificial intelligence (AI) in the automotive sector, with OEMs’ adoption of AI technologies increasing from 5% to 9% between 2017 and 2018. Funding for new startups in China’s autonomous driving sector surged, with the number of startups receiving funding rising from 8 to 31, representing a remarkable 288% increase from 2014 to 2015. Alibaba has partnered with SAIC to develop connected cars, while Baidu has formed partnerships with over 90 companies, including Daimler, through its driverless car support platform Apollo, showcasing China’s commitment to fostering innovation and collaboration in the automotive industry.

China aims to master core technologies by 2025 and promote the development of smart driving, creating an ecosystem for research, development, production, and usage of smart connected vehicles, signaling its dedication to advancing the automotive sector. Leading automotive companies in China are leveraging AI to enhance customer experiences, with one company’s mobile application using AI to predict optimal transportation options and destinations for users with up to 90% accuracy, indicating a focus on providing convenient and efficient mobility solutions. Chinese automotive firms are expanding internationally, with plans to expand operations to 10 more cities and securing contracts to operate buses in Greece and supply buses to Bangkok, demonstrating the country’s global ambitions and leveraging technological advancements, investments, and strategic partnerships to drive innovation and growth in the automotive industry.

Insight into the Automotive AI Industry

Human-machine interface (HMI) applications are integral to the automotive AI industry as they facilitate communication between drivers/passengers and vehicles. HMIs enable users to interact with vehicles, providing them with convenience, information, and entertainment while on the move. These interfaces are crucial for translating the concept of smart cars into reality, allowing automotive manufacturers to enhance their brand image and deliver innovative experiences to users.

HMIs play a pivotal role in transitioning the smart car concept from theory to practice, allowing automotive companies to implement advanced features and functionalities. By integrating sophisticated HMI systems, manufacturers can differentiate their brand image and offer unique experiences to users, thereby staying ahead in the competitive automotive market. Advanced features like adaptive cruise control and self-parking create numerous opportunities for automotive HMI systems. These features enhance the overall driving experience and cater to the evolving demands of consumers who seek more convenience and automation in their vehicles.

Machine learning (ML) is a fundamental aspect of automotive AI, enabling vehicles to learn from data and make informed decisions. ML encompasses various learning approaches, including supervised, unsupervised, deep, and reinforcement learning, empowering cars to develop accurate models and recognize patterns effectively. The diverse and rapidly changing nature of data in the automotive industry provides ample opportunities for machine learning to drive innovation and growth. By leveraging ML algorithms, automotive companies can extract valuable insights from data, fueling advancements in vehicle technology, safety, and performance.

Automotive AI Market Leaders

  • Alphabet Inc.
  • Intel Corporation
  • Microsoft
  • NVIDIA Corporation
  • IBM Corporation
  • Qualcomm Technologies, Inc.
  • Tesla
  • AB Volvo
  • BMW AG
  • AUDI AG.

Automotive AI Market News

  • In August 2023, AVL List GmbH introduced the AVL PEMS i60, an advanced portable emissions measurement system designed to accurately monitor real-world vehicle emissions during on-road testing, addressing evolving regulatory requirements.
  • In November 2022, TSI Incorporated launched the TSI 3795, a compact particle counter specifically designed for automotive applications, enabling precise measurement of exhaust particulate matter to meet stringent emissions standards.
  • In March 2022, HORIBA Automotive Test Systems unveiled the MEXA-ONE, a next-generation emissions measurement system capable of analyzing exhaust gases from various vehicle types with enhanced accuracy and efficiency.
  • In September 2022, Testo SE & Co. KGaA released the Testo 350 XL, an advanced emissions analyzer equipped with state-of-the-art sensors and software for comprehensive exhaust gas analysis in compliance with global emissions regulations.
  • In December 2022, AVL List GmbH launched the AVL M.O.V.E iSYS 2100, a cutting-edge mobile emissions measurement system designed to provide precise data on vehicle emissions during real-world driving conditions, aiding in emission reduction efforts.

Browse More Insights of Towards Automotive:

  • The automotive electric drivetrain components market was valued at USD 72.11 billion in 2023 and is expected to grow by USD 528.31 billion at a CAGR of around 17.60% from 2024 to 2032.
  • The automotive fuel tank market size was valued at USD 25.08 billion in 2023 is projected to reach USD 38.04 billion by 2032, expanding at CAGR of 4.74% during the forecast period.
  • The automotive front-end module market size was valued at USD 147.69 billion in 2023 and is expected to reach USD 226.29 billion by 2032 registering a CAGR of above 4.86% during the forecast period.
  • The small boats market was valued at USD 12.67 billion in 2023 and is expected to grow by USD 42.55 billion at a CAGR of around 16.55% from 2024 to 2032.
  • The x-by-wire system market size to surge from USD 300 million in 2023 and is predicted to hit USD 5025 million by 2032, growing at a CAGR of 36.77% from 2023 to 2032.
  • The deck boat market was valued at USD 1.68 billion in 2023 and is expected to grow USD 7.15 billion by 2032, expanding at a CAGR of around 13.5% from 2024 to 2032.
  • The heavy-duty tire market size reached a value of USD 26.28 billion in 2022 and is projected to reach USD 36.83 billion by 2032, with a compound annual growth rate (CAGR) of 3.37% during the forecast period.
  • The automotive energy recovery system market was valued at USD 19.11 billion in 2023 and is expected to grow by USD 67.6 billion at a CAGR of around 11.95% from 2024 to 2032.
  • The Adaptive Cruise Control (ACC) and Blind Spot Monitoring (BSD) market size reached a value of USD 5.30 billion in 2022 and is projected to grow at a CAGR of 7.73% during the period of 2022 to 2032, reaching USD 11.58 billion by 2032.
  • The automotive spark plugs and glow plugs market size was valued at USD 8.89 billion in the year 2022. It is anticipated to grow to USD 12.35 billion by the year 2032, registering a CAGR of 3.28% in terms of revenue during the forecast period.

Market Segmentation

By Component

By Level of Autonomy

  • Level 1
  • Level 2
  • Level 3
  • Level 4

By Technology

  • Machine Learning
  • Natural Language Processing
  • Computer Vision
  • Context-aware Computing
  • Others

By Vehicle Type

  • Passenger Vehicles
  • Commercial Vehicles.

By Geography

  • North America
    • United States
    • Canada
    • Rest of North America
  • Europe
    • Germany
    • United Kingdom
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia-Pacific
    • India
    • China
    • Japan
    • South Korea
    • Rest of Asia-Pacific
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East and Africa
    • South Africa
    • Rest of Middle East and Africa

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Towards Automotive is a premier research firm specializing in the automotive industry. Our experienced team provides comprehensive reports on market trends, technology, and consumer behaviour. We offer tailored research services for global corporations and start-ups, helping them navigate the complex automotive landscape. With a focus on accuracy and integrity, we empower clients with data-driven insights to make informed decisions and stay competitive. Join us on this revolutionary journey as we work together as a strategic partner to reinvent your success in this ever-changing packaging world. 

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