The Automotive AI market was valued at $4.14 billion in 2024 and is expected to grow at a compound annual growth rate (CAGR) of 29% from 2024 to 2032. The report is 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.”
AI application in the automotive industry does not limit itself; rather, it goes far beyond the development, logistics, production, engineering, supply chain, customer experience, marketing, sales, after-sales, and mobility services in the automotive industry. Artificial intelligence is a new stepping stone towards a new future of value for the automotive industry.
Artificial Intelligence (AI) is undergoing a significant transformation in the automotive industry. While self-driving cars are often brought up when discussing AI about cars, their effects extend much further and affect the foundation of the industry as a whole.
The emergence of autonomous vehicles will be made possible by artificial intelligence, which will also revolutionize project management, business support services, and most areas of research and development in the auto industry.
Machine Learning Remains the Top Segment in the Automotive AI Market Within the Technology Sector.
The automotive artificial intelligence market is divided into five technology segments: computer vision, natural language processing, deep learning, machine learning, and context-aware computing.
The majority of manufacturing processes in the automotive industry rely on human decision-making experiences. Improved object recognition is one benefit of machine learning’s widespread integration in the automotive industry. Supervised learning, for example, can be trained on copious amounts of data to precisely identify objects like traffic signals, pedestrians crossing the street and moving cars. Predictive capabilities are also made possible by machine learning’s regression algorithms, which can forecast continuous values based on a variety of inputs.
This feature makes driving smoother and safer by enabling self-driving cars to determine the appropriate speed based on traffic, weather, and road conditions. As a result, the machine learning segment is rapidly dominating the technology segment within the automotive artificial intelligence industry.
The Automotive AI Market is Anticipated to Be dominant in North America by 2024.
The Automotive AI market is dominated by the North American region. Since the automobile industry is the epitome of global economic leadership, the manufacturing sector contributes around 11% of the U.S. GDP. With a total value added of $2.64 trillion in 2021, the manufacturing sector in the United States alone ranked as the sixth largest in the world. The production of automobiles and their parts accounts for 6% of total manufacturing.
The Automotive AI market has shown substantial growth due to the growing investment in the region. The significant investments that automakers continue to make in America serve as evidence of its leadership in the industry. Modern technologies are produced via this manufacturing, which has a good knock-on impact that creates long-term, sustainable jobs globally.
Automakers have said that they will be investing over $75 billion in the United States from the beginning of 2021. This investment includes retooling as well as new assembly and battery operations. The market’s growth has also been significantly influenced by the import of automobiles and their parts. For example, in 2021, U.S. auto exports were over $21 billion, an increase of 113% over 2006’s almost $9.9 billion in vehicle and part sales.
The sale, production, and maintenance of automobiles generated more than $220 billion in federal and state revenue annually, which is significantly driving up the automotive artificial intelligence business in the area.
