Automotive AI market predicted to grow by nearly 40 per cent by 2025

According to the new market research report from MarketsandMarkets, the automotive artificial intelligence (AI) market is expected to be valued at USD 782.9 Million in 2017 and is expected to reach US$10,573.3 million by 2025, at a CAGR of 38.46 per cent between 2017 and 2025. The report indicates that emergence of autonomous vehicle and industry-wide standards such as the adaptive cruise control (ACC), blind spot alert and advanced driver assistance systems (ADAS) would trigger the growth of the automotive
August 30, 2017 Read time: 3 mins

According to the new market research report from MarketsandMarkets, the automotive artificial intelligence (AI) market is expected to be valued at USD 782.9 Million in 2017 and is expected to reach US$10,573.3 million by 2025, at a CAGR of 38.46 per cent between 2017 and 2025.

The report indicates that emergence of autonomous vehicle and industry-wide standards such as the adaptive cruise control (ACC), blind spot alert and advanced driver assistance systems (ADAS) would trigger the growth of the automotive AI market. The growing demand for convenience and safety also presents an opportunity for OEMs to develop new and innovative artificial intelligence systems that would attract customers.

Software holds a major share of the overall AI market in the automotive industry because of the various developments of AI software and related development kits. In recent years, major developments have occurred in AI software solutions, platforms and related software development kits. US companies such as Alphabet, 2214 Microsoft Corporation, 62 IBM Corporation and 4243 Intel Corporation are among the frontrunners in the development of AI software. All these major companies are investing heavily in start-ups or acquiring them, to maintain a strong position in the automotive AI ecosystem. For instance, in March 2017, Intel Corporation (US) acquired 4279 Mobileye (Israel) for approximately US$15 billion.

Most of the AI hardware and software includes a mixture of various technologies, which are used in various applications. Deep learning technology is expected to be the largest and fastest-growing technology in the automotive AI market and is used in voice recognition, voice search, recommendation engines, sentiment analysis, image recognition and motion detection. It is also widely being used in the developments of autonomous cars. Many companies are investing in the development of self-driving cars in which deep learning technology is used for image processing, speech recognition and data analysis. 1691 Google is heavily investing in autonomous vehicles through its spin-off 8621 Waymo and has an active system integrated into its self-driving vehicle with the deep learning technology to detect pedestrians in different situations.

The presence of incentives and high level of funding from governments plays a major role in the development of this technology. For instance, in 2016, the US government has spent US$4.00 billion to accelerate the acceptance of autonomous vehicles on US roads. The automotive industry in the US is a highly advanced industry, with the ‘big three of 278 Ford Motor Company, 948 General Motors and 1674 Fiat-1958 Chrysler Automotive continuously upgrading their product portfolios. Vehicles in the US are equipped with advanced features such as adaptive cruise control, lane departure, warning systems, voice recognition system, gesture recognition, and blind spot detection.

Location Based Systems

Related Content

  • June 17, 2016
    Artificial intelligence systems for autonomous driving on the rise, says IHS
    According to the latest report from market research firm HIS, Automotive Electronics Roadmap Report, as the complexity and penetration of in-vehicle infotainment systems and advanced driver assistance systems (ADAS) increases, there is a growing need for hardware and software solutions that support artificial intelligence, which uses electronics and software to emulate the functions of the human brain. In fact, unit shipments of artificial intelligence (AI) systems used in infotainment and ADAS systems are
    Read More
  • March 29, 2016
    Vehicle surveillance market accelerates
    A recently-released report from MarketsandMarkets indicates that the global vehicle surveillance market is expected to grow from US$49.93 billion in 2015 to US$103.21 billion by 2022, at a CAGR of 11.1 per cent between 2016 and 2022. Factors such as regulations in different countries for compulsory driver assistance or passenger safety products, the wide range of advantages of in-vehicle surveillance systems, increasing sales of premium cars and the increase in traffic fatalities demand greater traffic c
    Read More
  • September 19, 2017
    Vehicle analytics market ‘to grow by 26 per cent by 2022’
    A new market research report by MarketsandMarkets estimates that the market for vehicle analytics will grow from US$1124.1 million in 2017 to US$3637.4 million by 2022, at a Compound Annual Growth Rate (CAGR) of 26.5 per cent. According to the report, the major driving factor for this market remains advances in technologies, such as machine learning, artificial intelligence (AI) and predictive maintenance to enhance fleet management, as well as increasing use of real-time data collected from sensors and
    Read More
  • August 18, 2017
    Fiat Chrysler to join BMW Group, Intel and Mobileye in developing autonomous vehicles
    Fiat Chrysler Automobiles (FCA) is to join BMW Group, Intel and in developing an autonomous driving platform for global deployment. The cooperation allows the companies to leverage each other’s individual strengths, capabilities and resources to enhance the platform’s technology, increase development efficiency and reduce time to market. The platform will be scalable for Level 3 to Level 4/5 automated driving and can be used by multiple automakers around the world while maintaining their unique brand iden
    Read More

Highlighted Content