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

  • December 22, 2016
    Honda and Waymo in discussions on self-driving technology
    Honda R&D the R&D subsidiary of Honda Motor is entering into formal discussions with Alphabet’s Waymo, with a view to integrating its self-driving technology with Honda vehicles. This technical collaboration between Honda researchers and Waymo's self-driving technology team would allow both companies to learn about the integration of Waymo's fully self-driving sensors, software and computing platform into Honda vehicles. As part of the discussion on technical collaboration, Honda could initially prov
    Read More
  • January 16, 2019
    Ordnance Survey and Mobileye to deliver roadside infrastructure data in UK
    National mapping agency Ordnance Survey (OS) has joined forces with Mobileye, an Intel company, to deliver high precision road network location data in the UK. OS’ geospatial and technology resources will be paired with Mobileye’s automotive camera-based mapping capabilities to offer a location information service. The partnership, unveiled at Consumer Electronics show 2019 in Las Vegas, also seeks to use the data to support the rollout of connected autonomous vehicles, intelligent mobility and 5G.
    Read More
  • April 22, 2014
    Growth of ITS market 2013 to 2019
    According to the latest report from Transparency Market Research, the intelligent transportation systems (ITS) market is expected to reach a value of US$30.2 billion by 2019, at a CAGR of 11.1 per cent from 2013 to 2019. The demand of ITS systems is rising globally due to increased congestion in metropolitan areas. Development and deployment of intelligent transportation system not only reduces traffic, but also reduces number of accidents and improves quality of life by controlling vehicle emission leve
    Read More
  • August 4, 2017
    Survey finds varied autonomy and safety technology preferences for new vehicles
    New research on consumer preferences for full autonomy in new vehicles finds the technology is not yet popular among a broad audience, according to analysts at IHS Markit. Ironically, the same audience ranked it among the very features they would be willing to pay the most for in their next new vehicle purchase. Blind spot detection ranked highest as the most desired features among all audiences, young and old, and propensity to pay for it varied by region, with the US respondents reporting they would be wi
    Read More

Highlighted Content