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

  • April 24, 2017
    IoT fleet management market to grow by more than 20 per cent by 2021
    A new report by MarketsandMarkets estimates that the Internet of Things (IoT) fleet management market will grow fromUS$3.16 billion in 2016 to US$8.28 billion by 2021, at a CAGR of 21.26 per cent. According to the report, the key factors driving the growth of the IoT fleet management market are increased demand for optimised business operations, real-time fleet monitoring and a growing number of government mandates for fleet safety. Routing management accounted for the largest share of the IoT fleet managem
    Read More
  • June 10, 2013
    Smart transportation market expected to reach US$102.31 million by 2018
    According to a new market research report, Smart Transportation Market - by Solutions (Ticketing Management, Parking Management, Passenger Information, Traffic Management), Services (Traditional, Advanced, Software) Worldwide Analysis and Forecasts (2012 - 2018) published by MarketsandMarkets, the smart transportation market expected to reach more than US$102.31 billion by 2018, at a CAGR of 23.6 per cent. The market for smart transportation is fuelled by the advancements across the information and communic
    Read More
  • April 7, 2017
    Europe expected to hold the largest share in smart transportation by 2021 say researchers
    According to a new market research report from MarketsandMarkets, Europe is expected to hold the largest share of the smart transportation market, which is expected to grow from US$72.05 billion in 2016 to US$220.76 billion by 2021. The major drivers for an upsurge in demand for smart transportation include the rising requirement for integrated security and safety to enhance public safety and government initiatives to incorporate smart technologies into the existing transportation infrastructure. The
    Read More
  • February 12, 2014
    Tolling expected to be fastest growing application of ALPR, says report
    According to global information company, the growing adoption of automatic license plate recognition (ALPR) technology is having an adverse impact on the vehicle entrance control industry, specifically the vehicle barrier and off-street parking systems markets, according to IHS. The presence of ALPR technology is increasing the most for toll ways and off-street parking garages, which is negatively impacting the growth of vehicle barriers, the research firm reports. In ALPR mature markets such as the Amer
    Read More

Highlighted Content