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

  • January 26, 2017
    Fully autonomous vehicles ‘spur LiDAR sensors mass adoption’
    Cost-effective, high-resolution light detection and ranging (LiDAR) sensors capable of long-range object detection will be necessary for high to fully-automated driving applications. Demand for 3D mapping and imaging, better overall performance, automated processing of graphic data gathering and self-sufficient sensor with best-in-class performance in low-visibility conditions are factors driving the development and adoption of LiDAR sensors within the advanced driver assistance systems (ADAS) sensor suite
    Read More
  • October 3, 2013
    Global ITS market expected to reach US$ 30.2 billion by 2019
    According to a new market report published by Transparency Market Research, "Intelligent Transportation System (ITS) Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019," the global market for ITS is expected to reach a value of USD 30.2 billion by 2019, at a CAGR of 11.1 per cent from 2013 to 2019. The demand for ITS systems is rising globally due to increased congestion in metropolitan areas. Development and deployment of intelligent transportation system not only r
    Read More
  • May 24, 2017
    Start-ups ‘steering growth and innovation in global automotive and mobility industry’
    From devising driver monitoring systems to mapping services and driver safety data on the go, start-ups are rapidly emerging in every technological vertical in the automotive space, say Frost & Sullivan researchers. Over 1,700 start-ups are focusing on developing technologies that enable electrification, autonomous cars and mobility solutions to reduce the cost of ownership and enhance user experience. Meanwhile, original equipment manufacturer (OEM) start-up initiatives such as BMW Start-up Garage, the JLR
    Read More
  • May 22, 2014
    Self-driving cars ‘a US$87 billion opportunity in 2030’
    The latest research from Lux Research indicates that automakers and technology developers are closer than ever to bringing self-driving cars to market, with basic Level 2 autonomous behaviour already coming to market, in the form of relatively modest self-driving features like adaptive cruise control, lane departure warning, and collision avoidance braking. With these initial steps, automakers are already on the road to some level of autonomy, but costs remain high in many cases. It is the higher levels
    Read More

Highlighted Content