According to the new report titled “Automotive AI Market by Offering (Hardware & Software), by Technology (Machine Learning, Deep Learning, Computer Vision, Natural Language Processing and Context-Aware Computing), by Autonomy (Autonomous Driving, Human–Machine Interface and Semi-autonomous Driving), by Vehicle Type (Passenger Cars & Commercial Vehicles), Global Analysis to 2024”, the valuation of the Automotive AI market was $4.14 Billion in 2024 and is projected to reach $31.11 Billion by 2032, at a CAGR of 29% from 2024 to 2032.
Artificial Intelligence being a new stepping stone towards a new future of value for the automotive industry, AI application within the automotive industry does not limit itself but extends far beyond the development, logistics, production, engineering, supply chain, customer experience, marketing, sales, after sales and mobility services in the automotive industry.
In the world of the automotive industry, AI is shifting itself to a new and greater transformation in a big way, oftentimes, when AI is mentioned in the context of automobiles, peoples relates it to self-driving cars based on AI in fact overlook that, it actually has a much wider and deeper impact on the entire foundation on the automotive industry.
Artificial Intelligence will enable autonomous vehicles to become dominant while transforming most aspects of research and development, business support functions and project management in auto manufacturing.
Within the Technology Segment, Machine Learning Continues to Be the Leading Segment in the Automotive AI Market.
By Technology, the Automotive AI Market is segmented into Machine Learning, Deep Learning, Computer Vision, Natural Language Processing and Context-Aware Computing)
Manufacturing operations in automotive industries mostly depended on experiences based on human choices. As due to the integration of machine learning in the automotive sector has benefited greatly for instance, improved object recognition; supervised learning can be initially trained on large amounts of data to accurately identify objects such as traffic signals, road crossing pedestrians and vehicles on the road also enabling the predictive capabilities; like the regression algorithms within the machine learning are able to predict continuous values based on various inputs.
This feature allows the self-driving cars to calculate the suitable speed based on road conditions, traffic and weather which allows a smoother and safer driving experience which is making the Machine learning segment dominate the Technology segment within the Automotive AI market significantly.
North America is Expected to Dominate the Automotive AI Market in 2024.
North American region is the dominating region within the Automotive AI market. As auto manufacturing is the hallmark of global economic leadership, manufacturing accounts for around 11% of the U.S. GDP. The manufacturing economy of just United States was the eighth largest economy in the world with $2.64 trillion in total value added in 2021. 6% of the manufacturing total is comprised of the manufacture of motor vehicles and parts alone.
The increasing investment in the region has boosted the Automotive AI market significantly. America being an auto leader is underscored by the major investments companies continue to make here. This manufacturing generates state of the art technologies with positive ripple effects including long term and sustainable jobs worldwide.
Since the beginning of 2021, the auto manufacturers have announced an investment of more than $75 billion in the U.S. that consists of everything such as the new assembly and battery plants to retooling. Importing of vehicles and their parts has also played a major role in the market growth for instance, in 2021, the U.S. had shipped approximately more than $21 billion in vehicles and parts a total jump of 113% compared to 2006 which was nearly $9.9 billion.
More than $220 billion in revenue in federal and state was generated yearly by the sale, manufacture, and maintenance of autos which is boosting the Automotive AI market within the region substantially.
Key market players operating in the market that are profiled in the report are Alphabet Inc., Intel Corporation, Microsoft, NVIDIA Corporation, IBM Corporation, Qualcomm Technologies, Inc., Tesla, AB Volvo, BMW AG, AUDI AG.
