Global Automotive Artificial Intelligence (AI) Market Size to worth USD 27.45 Billion by 2033: Market Statistics Report

Global Automotive Artificial Intelligence (AI) Market Size to worth USD 27.45 Billion by 2033

According to a research report published by Spherical Insights & Consulting, the Global Automotive Artificial Intelligence (AI) Market Size is Expected to Grow from USD 3.48 Billion in 2023 to USD 27.45 Billion by 2033, at a CAGR of 22.94% during the forecast period 2023-2033.  

Browse key industry insights spread across 210 pages with 110 Market data tables and figures & charts from the report on the Global Automotive Artificial Intelligence (AI) Market Size, Share, and COVID-19 Impact Analysis, By Component (Hardware and Software), By Vehicle Type (Passenger Vehicles and Commercial Vehicles), By Technology (Machine Learning, Natural Language Processing, Computer Vision, Contest-Aware Computing, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033.           

Automotive artificial intelligence (AI) facilitates vehicle design, optimizes manufacturing processes, ensures a superior driving experience, and helps automakers, dealerships, and insurers drive sales and improve customer service. It includes the use of machine learning and artificial intelligence technologies in the design, development, and operation of vehicles and related systems within the automotive industry. The growing application of AI, particularly in advanced driver assistance systems (ADAS) offers lucrative market growth opportunities. The growing need for autonomous vehicles, high-speed internet & 5G technology, and increasing demand for enhanced user experience & convenient features are driving the market for automotive artificial intelligence (AI). Further, the growing demand for self-driving vehicles, the use of AI in traffic management, and supportive government policies are significantly contributing to propelling the market. On the contrary, concern regarding data privacy and the increased cost of automotive AI are the factors restraining the market growth.

The hardware segment dominated the market with the largest revenue share in 2023.

Based on the components, the global automotive artificial intelligence (AI) market is divided into hardware and software. Among these, the hardware segment dominated the market with the largest revenue share in 2023. Sensors including cameras, radar, ultrasonic sensors, and Inertial Measurement Units (IMUs) are examples of hardware used in automotive artificial intelligence. These devices are used to gather information on the internal and external conditions of vehicles.

The passenger vehicles segment is expected to dominate the market during the forecast period.

Based on the vehicle type, the global automotive artificial intelligence (AI) market is divided into passenger vehicles and commercial vehicles. Among these, the passenger vehicles segment is expected to dominate the market during the forecast period. Features like automated braking, lane assistance, and autonomous driving are made possible by AI-powered technology in passenger cars, increasing customer convenience and safety.

The machine learning segment dominated the market with the largest market share in 2023.

Based on the technology, the global automotive artificial intelligence (AI) market is divided into machine learning, natural language processing, computer vision, contest-aware computing, and others. Among these, the machine learning segment dominated the market with the largest market share in 2023. Improved safety features, increased vehicle performance and efficiency, cost savings, and the encouragement of more environmentally friendly practices are among the several advantages of using machine learning in the automotive industry.

North America is projected to hold the largest share of the global automotive artificial intelligence (AI) market over the forecast period.

North America is projected to hold the largest share of the global automotive artificial intelligence (AI) market over the forecast period. The increased development of autonomous vehicle technology and government regulations on road safety are driving the market. The presence of leading technology firms in the region leads to the adoption of innovations like automobile artificial intelligence resulting in regional market growth.

Asia-Pacific is predicted to grow at the fastest CAGR in the automotive artificial intelligence (AI) market over the forecast period. The increasing government initiatives and safety concerns are contributing to driving the market growth in the region. Further, the rising demand for electric vehicles is expected to drive the market demand.

Competitive Analysis

Major key players in the automotive artificial intelligence (AI) market include Aptiv, Cruise LLC, Mobileye, NVIDIA Corporation, Qualcomm Technologies, Inc., Robert Bosch GmbH, Tesla, The Ford Motor Company, TOYOTA RESEARCH INSTITUTE, Waymo LLC, and Others.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• In August 2024, Intel unveiled its first discrete graphics processing unit (dGPU), the Intel Arc Graphics for Automotive, at its AI Cockpit Innovation Experience event in Shenzhen. The product would be commercially deployed in vehicles as soon as 2025, accelerating automobile technology and unlocking a new era of AI-driven cockpit experiences and enhanced personalization for manufacturers and drivers alike.

• In June 2024, MORAI partnered with Automotive Artificial Intelligence (AAI) to enhance Autonomous Driving Innovations. This strategic partnership was announced with AAI and signed at the ADAS/AV Technology Expo Europe. This collaboration unites MORAI’s extensive network with AAI’s innovative environment-centric simulation tools to enhance the development of autonomous driving technologies.

• In March 2024, Arm announced New Automotive Technologies to accelerate the development of AI-enabled vehicles by up to two years.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the global automotive artificial intelligence (AI) market based on the below-mentioned segments:

Global Automotive Artificial Intelligence (AI) Market, By Component  

• Hardware
• Software

Global Automotive Artificial Intelligence (AI) Market, By Vehicle Type

• Passenger Vehicles
• Commercial Vehicles

Global Automotive Artificial Intelligence (AI) Market, By Technology

• Machine Learning
• Natural Language Processing
• Computer Vision
• Contest-Aware Computing
• Others

Global Automotive Artificial Intelligence (AI) Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa