ARTIFICIAL INTELLIGENCE (AI) IN AUTOMOTIVE MARKET SIZE, BY COMPONENT (SOFTWARE, HARDWARE, SERVICE)

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) Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026

AI in Automotive Market

Artificial intelligence (AI) in automotive industry is expected to cause a profound disruption by streamlining production capabilities and augmenting business growth. The design and deployment of novel technologies including autonomous mobility, vehicle simulations, rapid prototyping, and AI-enabled automotive factories are creating a positive outlook for the autonomous technologies market. Auto manufacturers are rapidly upgrading their existing production systems by incorporating AI platforms and are increasingly focusing on the development of autonomous vehicles to improve passenger mobility. For instance, in October 2019, Tesla announced the early release of its fully autonomous vehicles by Q1 2020 for capturing early mover advantage.
 

The AI in automotive market growth is attributed to the increasing popularity of autonomous vehicles for increased driver comfort and reducing accidents. The U.S. National Highway Traffic Authority has estimated that the deployment of autonomous vehicles could save USD 300 billion by 2025, reducing collisions and enabling safe driving. The increasing positive perception among consumers regarding autonomous technologies will complement the market revenue. As consumers are rapidly adopting driver-assist technologies to reduce driving burden and ensure road safety, the demand for autonomous vehicles will surge prolifically over the forecast timespan. Automotive manufacturers are taking note of these trends and are offering innovative driver assistance solutions to gain a competitive advantage. In March 2019, BMW and Daimler entered into a strategic collaboration to develop new ADAS solutions and establish industry standards to influence future regulations on driver assistance technologies. Another factor contributing to the AI in automotive market share is the increasing demand for driver convenience and improving access to mobility. Autonomous technologies can help persons with disabilities and senior citizens have access to self-driven mobility, reducing long-distance truck & bus driver fatigue. For instance, in March 2018, the Netherlands government announced a partnership with Belgium and Germany to introduce truck platooning corridors, facilitating the movement of 100 self-driving trucks during the night. Similarly, in November 2018, Singapore announced the launch of driverless buses & shuttles to reduce peak traffic loads starting 2022. However, expensive autonomous technologies, issues concerning accidents of self-driving cars, and the risks of cyber-attacks on connected vehicles may hinder the market demand from 2020 to 2026.
 

Artificial Intelligence (AI) in Automotive Market Report Coverage
Report CoverageDetails
Base Year: 2019 Market Size in 2019: 1 Billion (USD)
Historical Data for: 2015 to 2018 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 35% 2026 Value Projection: 12 Billion (USD)
Pages: 200 Tables, Charts & Figures: 284
Geographies covered (23): U.S., Canada, UK, Germany, France, Italy, Spain, Russia, China, India, Japan, Australia, South Korea, Brazil, Mexico, Saudi Arabia, UAE, South Africa
Segments covered: Component, Technology, Process, Application, and Region
Companies covered (20): Alphabet Inc., Audi AG, BMW AG, Daimler AG, Didi Chuxing, Ford Motor Company, General Motors Company, Harman International Industries, Inc., Honda Motor Co., Ltd., IBM Corporation, Intel Corporation, Microsoft Corporation, NVIDIA Corporation, Qualcomm Inc., Tesla, Inc., Toyota Motor Corporation, Uber Technologies, Inc., Volvo Car Corporation, and Xilinx Inc.
Growth Drivers:
  • Growing need for autonomous vehicles
  • Increasing adoption of IoT in automotive industry
  • Growing trend of Advance Driver Assist System (ADAS) technology
  • Rising demand for enhanced driver convenience
Pitfalls & Challenges:
  • High cost of AI-enabled vehicles
  • Issues related to accidents of driverless cars
  • Threat to cybersecurity

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Growing uptake of AI optimized GPUs augmenting the hardware segment

The adoption of AI hardware will witness a rapid surge to enable self-driving technologies and improve AI algorithms through dedicated AI-enabled GPUs. The increasing importance of perception sensors including high-resolution cameras, LiDAR, and radar in providing accurate localization & context awareness to onboard AI systems is accentuating the growth of the hardware segment. Furthermore, the development of AI optimized processors and computing hardware will enable enterprises to design and deploy improved autonomous solutions. For instance, in September 2019, Horizon Robotics, a leading AI computing company, introduced its 2nd generation automotive AI processor – Horizon Journey 2. This new solution is helping automotive manufacturers to incorporate next-generation ADAS capabilities and intelligent cockpit experiences with limited power consumption and high efficiency.

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