by Artificial intelligence plays a vital role in developing autonomous driving technologies for automobiles. Autonomous vehicles use AI and machine learning algorithms to perceive the surrounding environment and navigate without human input. Computer vision, sensors, radar and lidar systems collect real-time data which is analyzed by artificial neural networks and deep learning models to detect objects, read traffic signs and make decisions. This enables features like adaptive cruise control, automatic emergency braking and lane keeping assist.
The global artificial intelligence in automotive market is estimated to be valued at US$ 11.6 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Autonomous vehicles provide benefits like increased road safety, reduced traffic and enhanced mobility. They can smoothly navigate complex traffic scenarios and road conditions without human errors. This is boosting investments by automakers in AI-based self-driving cars. For instance, Tesla aims to develop fully autonomous driving by the end of 2022.
SWOT Analysis
Strength: Artificial Intelligence in automotive offers benefits like increased road safety, improved convenience and better driving experience. AI-based features like advanced driver assistance systems can help predict collisions and auto-brake to prevent accidents, keeping drivers and passengers safe. AI is also helping revolutionize infotainment, navigation and voice assistance for more convenient ride experiences. As vehicles get smarter with AI, they will drive themselves enabling mobility for people who otherwise cannot drive.
Weakness: Significant investments are required to develop and deploy AI systems in vehicles. Not all drivers may feel comfortable relinquishing control to AI initially. Data privacy and security concerns also exist regarding collection and use of personal driving data. Integration challenges arise bringing together AI, automotive electronics and mechanical systems.
Opportunity: As ADAS and autonomous driving features advance, more vehicles can offer partially or fully self-driving capabilities expanding addressable market. Mobility as a service opportunities also emerge with driverless fleets. Connected vehicles will generate huge amounts of data enabling new data-driven aftermarket services. Cities too see opportunities with intelligent traffic management systems using vehicular AI.
Threats: Stringent regulations and legal liability issues surround autonomous vehicles slowing widespread adoption. Technology companies and automakers face risks from cyberattacks and data breaches. Regulations on data usage could impact new business models. Battery life and power constraints of AI systems in vehicles also present technical challenges.
Key Takeaways
The Global Artificial Intelligence In Automotive Market Size is expected to witness high growth over the coming years aided by advancing autonomous driving technologies. According to a forecast, the market is projected to grow at a CAGR of over 12% during the forecast period.
Regional analysis: North America currently dominates the AI in automotive market owing to the presence of major tech firms and automakers developing self-driving vehicle programs in the US and Canada. However, Asia Pacific is emerging as the fastest growing region with China spearheading vehicle electrification and adoption of new mobility solutions powered by AI. Automakers in countries like South Korea and Japan are also heavily investing in AI-driven automotive research.
Key players: Major players operating in the Artificial Intelligence in the automotive market are Tesla, Ford, General Motors, BMW, Toyota, Volkswagen AG, Audi, Honda, Mercedes-Benz, Hyundai and Nvidia. These companies are investing heavily in developing AI chipsets, computer vision algorithms and neural networking technologies critical for autonomous driving systems. Some are also exploring mobility as a service models with fleets of self-piloting vehicles.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
