Automotive Artificial Intelligence Market Size

Automotive Artificial Intelligence Market Analysis

The Automotive Artificial Intelligence Market is valued at USD 2.3 Billion and is expected to reach USD 16.2 Billion by 2026 exhibiting a growth of over 30% during the forecast period (2021-2026)

• The increase in global demand for autonomous driving is driving the automotive artificial market. By 2030, nearly 12% to 17% of total vehicle sales will comprise of autonomous vehicles. Stringent rules and regulations regarding safe driving is making OEMs across the globe to make huge investments in Advanced driver assistance system (ADAS), computer vision and connected car systems.
• The disposable income of customers in emerging economies such as China and India is increasing and they are opting for luxury segments that comes installed with advanced driver assistance and autonomous systems such as automatic parking, automatic emergency braking, etc.
• Artificial Intelligence (AI) is driving the latest trends in automotive industry viz. ridesharing and electrification. For instance, in shared mobility, AI helps in fleet management, pricing to match demand and supply. Many big technology companies such as Intel Corporation, Nvidia are now entering the mobility space.
• Asia Pacific is the biggest market for automotive artificial intelligence. In China, the number of OEMs deploying AI in China went up by 4 percentage points from 5% to 9% during 2017-2018. This growth is fueled by open source platform for AI technology by major technology companies. For instance, Internet giant Baidu developed an open source platform, Apollo, that saw partnership from well over 130 companies.