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

For more information on companies in this article

Related Content

  • Report analyses multiple ITS projects to highlight cost and benefits
    March 16, 2015
    Every year in America cost benefit analysis is carried out on dozens of ITS installations and pilot studies and the findings, along with the lessons learned, are entered into the Department of Transportation’s (USDOT’s) web-based ITS Knowledge Resources database. This database holds more than 1,600 reports and periodically the USDOT reviews the material on file to draw conclusions from this wider body of evidence. It has just published one such review ITS Benefits, Costs, and Lessons Learned: 2014 Update Re
    Read More
  • Jenoptik aims for smart sustainability
    March 7, 2022
    Jenoptik will be at Intertraffic to highlight that it provides innovative and sustainable smart mobility solutions, including technology and services for road safety, public security, and road user charging. Visitors will be able to experience the company’s brand-new video-based camera family covering a wide range of applications in road safety, civil security and commercial use.
    Read More
  • Jenoptik zooms in on smarter mobility
    March 30, 2022
    As visitors to Jenoptik’s stand will see, the company provides innovative and sustainable smart mobility solutions, including technology and services for road safety, public security and road user charging. They can experience the company’s brand new video-based camera family covering a wide range of applications in road safety, civil security and commercial use.
    Read More
  • Zuora: MaaS comes to the masses
    April 28, 2020
    The shift from ownership to usership in the subscription economy provides opportunities for the whole of the mobility sector for the next decade and beyond, says John Phillips of Zuora
    Read More

Highlighted Content