Revolutionizing the Automotive Industry: AI’s Explosive Growth at 55% CAGR – From $744.39Billion to $9.3Billion Market Share by 2033

The Artificial Intelligence (AI) in the automotive market size is anticipated to record a robust CAGR of 55% between 2023 and 2033. The market is anticipated to cross a market share of US$ 9.3 billion by 2033, while it is expected to be valued at US$ 744.39 billion in 2023.

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Fully autonomous and self-driving gearboxes are highly desired in contemporary automobiles. The development of tailored solutions by AI integration suppliers has increased the need for artificial intelligence (AI) in the automobile industry.

The deployment of AI units coincides with the rising popularity of EVs and hybrid cars. These cars benefit from attributes including park-guided systems, which boost operational efficiency, user comfort, and vehicle safety.

The growing interest in Level 2 ADAS (Advanced Driver Assistance Systems) among auto enthusiasts is advancing research and development of ADAS integration.

Various vehicle features are made possible by OEM-based AI processors used by the new automakers. Every part, including the lighting, cruise control, air conditioning, assisted parking, and others, is supported by artificial intelligence (AI).

Key Points

  1. The United States market is another significant market. The market growth is attributed to the presence of EV giants like Tesla, which delivers advanced AI and ML integration. The increased acceptance of autonomous and self-driving vehicles is fueling the sales of AI in the automotive
  2. Artificial intelligence (AI) in the automotive market in China is another significant market. The growth is attributed to the expanded manufacturing units, high-end research, and advanced experimentation.
  3. Europe with its environmental compliance adopts EVs and Hybrid Vehicles, which further fuels the demand for AI-integration prospects.
  4. The software segment is likely to thrive in the component category due to the common application and automotive implementation. It is expected to hold a value of US$ 200 billion by 2033.
  5. The fully autonomous segment tops the application category with an anticipated value of US$ 30 billion by 2033. The growth is attributed to the advent of self-driving assistance systems

Fully autonomous and self-driving gearboxes are highly desired in contemporary automobiles. The development of tailored solutions by AI integration suppliers has increased the need for artificial intelligence (AI) in the automobile industry.

The deployment of AI units coincides with the rising popularity of EVs and hybrid cars. These cars benefit from attributes including park-guided systems, which boost operational efficiency, user comfort, and vehicle safety.

The growing interest in Level 2 ADAS (Advanced Driver Assistance Systems) among auto enthusiasts is advancing research and development of ADAS integration.Various vehicle features are made possible by OEM-based AI processors used by the new automakers. Numerous elements are supported by artificial intelligence, such as illumination, cruise control, air conditioning, and assisted parking.

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Competitive Landscape

The key competitors focus on inclusivity, while adding sensors and smart software to enhance the guided systems. Companies follow the artificial intelligence innovation with the key competitors and merge, acquire, and partner with other companies to increase the network range, connectivity, supply chain, and distribution channel. The key players in the market are: BMW AG, AUDI AG, Intel Corporation, Tesla Inc, Uber Technologies, Volvo Car Corporation, Honda Motors, Ford Motor Company, NVIDIA Corporation, and Tencent

Recent Market Developments

  • Ford Motor Co is the leading patent filer when it comes to the neural network for radar-LiDAR. The company operates with Baidu in China to implement AI technology in automotive.
  • A technology company, Aptiv is promoting enhanced automated vehicles that are loaded with AI-based sensors, cameras, and other components.

Key Segments

By Component:

  • Hardware
  • Software
  • Services

By Technology:

  • Computer Vision
  • Context Awareness
  • Deep Learning
  • Machine Learning
  • Natural Language Processing (NLP)

By Process:

  • Data Mining
  • Image/signal Recognition

By Application:

  • Semi-autonomous vehicles
  • Fully-autonomous Vehicles

By Region:

  • North America
  • Latin America
  • Europe
  • Asia Pacific (APAC)
  • The Middle East & Africa (MEA)

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