Global Automotive Artificial Intelligence Market to Reach US$16.8 Billion by 2030

The global market for Automotive Artificial Intelligence estimated at US$4.4 Billion in the year 2023, is expected to reach US$16.8 Billion by 2030, growing at a CAGR of 21.0% over the analysis period 2023-2030. Software, one of the segments analyzed in the report, is expected to record a 22.5% CAGR and reach US$10.9 Billion by the end of the analysis period. Growth in the Hardware segment is estimated at 18.5% CAGR over the analysis period.

The U.S. Market is Estimated at US$1.4 Billion While China is Forecast to Grow at 22.7% CAGR

The Automotive Artificial Intelligence market in the U.S. is estimated at US$1.4 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$2.4 Billion by the year 2030 trailing a CAGR of 22.7% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 16.4% and 18.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 19.8% CAGR.

Global Automotive Artificial Intelligence Market - Key Trends & Drivers Summarized

Automotive artificial intelligence (AI) is transforming the automotive industry by enhancing vehicle safety, efficiency, and user experience. AI technologies, including machine learning, computer vision, natural language processing, and deep learning, among others are being integrated into various automotive applications such as autonomous driving, advanced driver-assistance systems (ADAS), predictive maintenance, and in-car personal assistants. Autonomous vehicles leverage AI to interpret data from sensors, cameras, and radar systems, enabling them to navigate, detect obstacles, and make real-time decisions. ADAS features like adaptive cruise control, lane-keeping assist, and automatic emergency braking also rely heavily on AI algorithms to improve driving safety and convenience.

AI in automotive is not limited to driving functions; it also enhances the overall vehicle experience. Predictive maintenance systems use AI to monitor vehicle performance and predict potential failures, helping to reduce downtime and maintenance costs. In-car personal assistants powered by AI can interact with drivers and passengers, providing navigation assistance, entertainment, and connectivity to smart home devices. The automotive industry is also exploring the use of AI in manufacturing processes to optimize production, improve quality control, and streamline supply chain management. The integration of AI is expected to continue shaping the future of mobility with smarter, safer, and more efficient vehicles.

The growth in the automotive artificial intelligence market is driven by several factors. Firstly, the increasing demand for autonomous vehicles and advanced driver-assistance systems is a major driver, as AI is essential for their development and operation. Secondly, advancements in AI algorithms and computing power are enhancing the capabilities and reliability of AI applications in vehicles. Thirdly, the growing emphasis on vehicle safety and the need to reduce road accidents are driving the adoption of AI-powered safety features. Additionally, the rise of connected and smart vehicles is boosting the demand for AI-driven in-car personal assistants and infotainment systems. Furthermore, the automotive industry`s focus on predictive maintenance and operational efficiency is contributing to the adoption of AI in vehicle diagnostics and manufacturing processes. Lastly, significant investments by automakers and tech companies in AI research and development are further propelling the growth of the automotive AI market.