Market Overview:
Artificial intelligence plays a crucial role in transforming the automotive industry. It assists in developing advanced driver assistance systems, autonomous vehicles, optimizing supply chain & manufacturing process, predictive maintenance, and enhancing the overall customer experience. Functionalities such as autonomous emergency braking, traffic jam assistance are being made available to consumer vehicles through integration of AI technologies.
Market key trends:
Artificial intelligence helps automakers provide advanced driving assistance systems to enhance road safety. Features such as automatic emergency braking uses AI algorithms in collision detection and prevention. Similarly, traffic jam assistance uses computer vision and deep learning to analyze traffic patterns and automate certain driving tasks like steering and acceleration/deceleration. Such advanced driver assistance systems have witnessed strong adoption as they make driving safer and more comfortable.
For example, Volkswagen’s latest Tiguan comes equipped with advanced driver assistance systems such as traffic sign recognition, adaptive cruise control, and automatic emergency braking. Rising demand for such safe and intelligent driving technologies is projected to drive the adoption of AI in the automotive sector.
The global Artificial Intelligence In Automotive Market Demand is estimated to be valued at US$ 9.3 Bn in 2023 and is expected to exhibit a CAGR of 55% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Porter’s Analysis:
Threat of new entrants: The threat of new entrants is moderate as there are high capital requirements due to intense R&D needed for AI technology. However, established tech companies as well as startups are developing AI solutions for automotive applications.
Bargaining power of buyers: The bargaining power of buyers is moderate to high as AI solutions for automotive sector are yet to mature and customers can opt between different technology providers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as large automotive manufacturers have developed in-house AI capabilities and also collaborate with key technology providers/suppliers.
Threat of new substitutes: The threat of new substitutes is moderate as self-driving technologies are also being explored for applications beyond passenger vehicles like trucks, buses etc.
Competitive rivalry: Intense competition exists among technology giants and automakers to gain market leadership in AI for automotive domain.
SWOT Analysis:
Strengths: Growing demand for autonomous vehicles, increasing investments in AI R&D by automakers.
Weaknesses: High R&D costs, issues regarding data privacy and cybersecurity.
Opportunities: Scope for AI in advanced driver-assistance systems, connectivity features. Emerging markets offer growth potential.
Threats: Stringent regulations for autonomous vehicles, technology obsolescence risks.
Key Takeaways:
The global Artificial Intelligence In Automotive Market is expected to witness high growth, exhibiting CAGR of 55.% over the forecast period, due to increasing demand for advanced driver assistance systems.
Regionally, North America dominated the market in 2023 with over 30% share owing to presence of major automakers and technology companies in the US and Canada actively developing AI solutions for vehicles. Asia Pacific is expected to grow at the fastest pace during the forecast period due to rising automobile production in China and India and focus of OEMs on autonomous driving technologies.
Key players operating in the Artificial Intelligence In Automotive Market are BMW AG, AUDI AG, Intel Corporation, Tesla Inc, Uber Technologies, Volvo Car, CorporationHonda, MotorsFord Motor, CompanyNVIDIA Corporation, Tencent, Microsoft. The companies are focused on advancing their AI capabilities organically as well as through collaborations and strategic acquisitions.
