Automotive Artificial Intelligence (AI) Market Accelerates, Projected to Surpass USD 12.5 Billion by 2030

According to a new research report by Next Move Strategy Consulting, the global automotive AI market was valued at USD 4.29 billion in 2023, and is expected to reach USD 25.78 billion by 2030, with a CAGR of 29.2% during the forecast period, 2024-2030.

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The automotive AI market is experiencing significant growth, due to the growing interest in self-driving cars and a push for safer and more efficient transportation. This spurred automakers to invest heavily in AI-driven technologies. According to the Insurance Institute for Highway Safety, there will be 3.5 million autonomous vehicles on American roads by 2025, with the number increasing to 4.5 million by 2030. These technologies, essential for autonomous navigation, enhance vehicle safety and performance. As a result, the pursuit of autonomous vehicles is fuelling the development and adoption of automotive AI, making it a pivotal factor in the market's growth.

Moreover, the increasing government initiatives focused on vehicle safety are propelling the growth of the automotive AI market. Governments worldwide are implementing regulations and standards that encourage the integration of AI-driven safety features in vehicles. This emphasis on safety, including requirements for technologies such as advanced driver assistance systems (ADAS), drives automakers to adopt AI solutions. In response to these initiatives, the automotive industry invests more in AI technology, leading to safer and more advanced vehicles that also align with regulatory requirements.

For instance, in July 2021, China introduced its inaugural national standards for classifying autonomous driving, establishing official terminology and definitions for self-driving vehicles. Several Chinese cities also authorized the operation of autonomous taxis in specific zones, subjected to approval from local authorities. These developments foster a favourable environment for the growth and integration of AI-driven solutions in the automotive sector.

Furthermore, in September 2023, BMW extended its collaboration with Amazon Web Services (AWS) to enhance the intelligence and connectivity of its next-generation vehicles. These vehicles are set to launch in 2025. This partnership integrates the Internet of Things (IoT) and AI technologies to deliver advanced features and services in BMW's upcoming vehicles. It exemplifies the growing integration of cloud computing, IoT, and AI in the automotive industry to create smarter and more connected vehicles.

However, data privacy concerns and substantial costs are the factors restraining the expansion of the automotive AI market. Consumers are concerned about how their personal data is managed by AI systems in vehicles, prompting calls for robust data protection measures. Moreover, the significant expenses associated with developing and incorporating AI in vehicles may lead to higher vehicle prices, potentially deterring budget-conscious consumers. Striking a balance between data privacy and cost factors is pivotal for the widespread adoption and advancement of AI technologies in the automotive sector.

On the contrary, the growing prevalence of AI, particularly in predictive maintenance and advanced driver assistance systems (ADAS), is poised to open up substantial growth prospects in the automotive industry. AI's ability to predict maintenance needs and enhance safety through ADAS systems is creating a promising avenue for market expansion in the future. This technology improves vehicle reliability and contributes to safer and more efficient driving than before, driving market opportunities for growth.

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Key Market Segments:

By Component
• Hardware
• Software
• Service

By Technology
• Machine learning and deep learning
• Computer vision
• Natural language processing

By Application
• Semi-autonomous
• Fully-autonomous

By Region:

North America
• The U.S.
• Canada
• Mexico

Europe
• The UK
• Germany
• France
• Italy
• Spain
• Denmark
• Netherlands
• Finland
• Sweden
• Norway
• Russia
• Rest of Europe

Asia-Pacific
• China
• Japan
• India
• South Korea
• Australia
• Indonesia
• Singapore
• Taiwan
• Thailand
• Rest of Asia-Pacific

RoW
• Latin America
• Middle East
• Africa

Key Players:

The competitive landscape features industry giants such as NVIDIA Corporation, Alphabet, Inc., Intel Corporation, Microsoft Corporation, IBM Corporation, Qualcomm, Inc., Tesla, Inc., BMW AG, Micron Technology, Xilinx, Inc., and others. These players employ strategic measures, including technological advancements and partnerships, to maintain their dominance.

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About Next Move Strategy Consulting:

Next Move Strategy Consulting is an independent and trusted third-platform market intelligence provider committed to delivering high-quality market research reports that help multinational companies triumph over their competition and increase their industry footprint by capturing a greater market share. Our research model is a unique collaboration of primary research, secondary research, data mining, and data analytics.

We have provided services to over 1000 customers globally, including 90% of Fortune 500 companies over a decade. Our analysts constantly track various high-growth markets and identify hidden opportunities in each sector or industry. We provide one of the industry's best-quality syndicate as well as custom research reports across ten different industry verticals. We are committed to delivering high-quality research solutions in accordance with your business needs. Our industry-standard delivery solutions range from pre-consultation to after-sales services; we provide an excellent client experience and ensure the right strategic decision-making process for businesses.

This release was published on openPR.