Automotive Artificial Intelligence Market Poised for Robust Growth, Set to Reach $18.43 Billion by 2029
21 Jan, 2025
What has been the Past and Current State of the Automotive Artificial Intelligence Market?
In recent years, the Automotive Artificial Intelligence Market has experienced exponential growth.
• The market had a value of $3.75 billion in 2024 and saw growth to $5.22 billion in 2025, marking an impressive CAGR of 39.1%.
Key drivers behind the historic surge include the rise of connected cars, the integration of the Internet of Things (IoT) in the auto sector, the adoption of AI for predictive maintenance, and increased focus towards in-car personalization with AI.
What is the Projected Future Size and Growth Rate for the Automotive AI Market?
The automotive artificial intelligence market is predicted to witness an extraordinary growth trajectory in the upcoming years.
• It's projected to reach a market size of $18.43 billion in 2029, with a compound annual growth rate (CAGR) of 37.1%.
The predicted boom is driven primarily by increasing awareness and popularity of AI in automotive, rising demand for premium and fully digitalized electric cars, integration of new software introducing full autonomy to vehicles, and various other components. Key trends include the development of AI chips specifically for automotives, utilization of AI for emotion recognition in cars, and application of AI in fleet management and logistics.
What are the Key Drivers further fueling the growth of the Automotive Artificial Intelligence Market?
The growing sequence in autonomous vehicles is anticipated to significantly propel the overall automotive artificial intelligence market. One major technological application developing in the automotive industry is the self-driving car, set to change public transportation's landscape. For instance, Deloitte estimates the global automotive AI market to reach approximately $27 billion in 2025. Thus, the escalating demand for autonomous cars continues to drive the growth of automotive artificial intelligence.
How is the Automotive Artificial Intelligence Market Segmented?
The automotive artificial intelligence market comprises the following segments:
1) By Component: Hardware, Software, Service
2) By Type: Automatic Drive, ADAS
3) By Process: Signal Recognition, Image Recognition, Data Mining
4) By Technology: Deep Learning, Machine Learning, Context Awareness, Computer Vision, Natural Language Processing
What trends are shaping the Automotive Artificial Intelligence Market?
Companies in the automotive artificial intelligence market are striving for innovation, focusing on technology such as the AI-led diagnostic platform for the aftermarket car segment, benefiting vehicle performance and optimizing maintenance. For example, in August 2024, India-based vehicle repair company Mytvs-ki Mobility Solutions launched Drivenostics, an AI-led diagnostic platform for the aftermarket car segment. This service allows customers to monitor their vehicle's health in real-time, marking a significant trend in this market.
Who are the Key Players in the Automotive Artificial Intelligence Market?
Key players contributing extensive innovation in this market are:
• DiDi Chuxing Technology Co. Ltd
• Otto Motors
• Waymo LLC
• Microsoft Corporation
• Intel Coroporation
• NVIDIA Corporation
• BMW AG
• International Business Machines Corporation
• Harman International Industries Inc.
• Xilinx Inc., Qualcomm Inc., Tesla Inc., Volvo Car Corporation, Micron Technology Inc., Toyota Motor Corporation, Uber Technologies Inc., Arbe Robotics Ltd., Cerence Inc., Cognata Ltd., Optibus Ltd., Pony. ai Inc., Seeing Machines Ltd., Anduril Industries Inc., Nauto Inc., Veritone Inc., Matterport Inc., Iterative Health LLC, Piaggio Fast Forward Inc., Radar Inc.
What are the influential geographic regions in the Automotive Artificial Intelligence Market?
North America was the largest contributor to the automotive artificial intelligence market in 2024. The forecast predicts Asia-Pacific to outpace other regions, expected to be the fastest-growing in future years. This study covers regions include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.