The rising demand for self-driving cars & efficient transportation and the increasing government initiatives focused on vehicle safety are significantly boosting the growth of the global automotive AI market.  

According to a new research report by Next Move Strategy Consulting, the global automotive AI market was valued at USD 4.29 billion in 2023, and is expected to reach USD 25.78 billion by 2030, with a CAGR of 29.2% during the forecast period, 2024–2030. 

The automotive AI market is experiencing significant growth, due to the growing interest in self-driving cars and a push for safer and more efficient transportation. This spurred automakers to invest heavily in AI-driven technologies.

According to the Insurance Institute for Highway Safety, there will be 3.5 million autonomous vehicles on American roads by 2025, with the number increasing to 4.5 million by 2030. These technologies, essential for autonomous navigation, enhance vehicle safety and performance. As a result, the pursuit of autonomous vehicles is fuelling the development and adoption of automotive AI, making it a pivotal factor in the market's growth. 

Moreover, the increasing government initiatives focused on vehicle safety are propelling the growth of the automotive AI market. Governments worldwide are implementing regulations and standards that encourage the integration of AI-driven safety features in vehicles.

This emphasis on safety, including requirements for technologies such as advanced driver assistance systems (ADAS), drives automakers to adopt AI solutions. In response to these initiatives, the automotive industry invests more in AI technology, leading to safer and more advanced vehicles that also align with regulatory requirements.

For instance, in July 2021, China introduced its inaugural national standards for classifying autonomous driving, establishing official terminology and definitions for self-driving vehicles. Several Chinese cities also authorized the operation of autonomous taxis in specific zones, subjected to approval from local authorities. These developments foster a favorable environment for the growth and integration of AI-driven solutions in the automotive sector.

Furthermore, in September 2023, BMW extended its collaboration with Amazon Web Services (AWS) to enhance the intelligence and connectivity of its next-generation vehicles. These vehicles are set to launch in 2025. This partnership integrates the Internet of Things (IoT) and AI technologies to deliver advanced features and services in BMW's upcoming vehicles. It exemplifies the growing integration of cloud computing, IoT, and AI in the automotive industry to create smarter and more connected vehicles.

However, data privacy concerns and substantial costs are the factors restraining the expansion of the automotive AI market. Consumers are concerned about how their personal data is managed by AI systems in vehicles, prompting calls for robust data protection measures. Moreover, the significant expenses associated with developing and incorporating AI in vehicles may lead to higher vehicle prices, potentially deterring budget-conscious consumers. Striking a balance between data privacy and cost factors is pivotal for the widespread adoption and advancement of AI technologies in the automotive sector.

On the contrary, the growing prevalence of AI, particularly in predictive maintenance and advanced driver assistance systems (ADAS), is poised to open up substantial growth prospects in the automotive industry. AI's ability to predict maintenance needs and enhance safety through ADAS systems is creating a promising avenue for market expansion in the future. This technology improves vehicle reliability and contributes to safer and more efficient driving than before, driving market opportunities for the growth.

Request a sample here: https://www.nextmsc.com/automotive-artificial-intelligence-market/request-sample

According to the report, leading players operating in the automotive AI market include NVIDIA Corporation, Alphabet, Inc., Intel Corporation, Microsoft Corporation, IBM Corporation, Qualcomm, Inc., Tesla, Inc., BMW AG, Micron Technology, Xilinx, Inc., and others.

Key Insights from the Automotive AI Market report: 

• The information related to key drivers, restraints, and opportunities and their impact on the automotive AI market is provided in the report.

• The value chain analysis in the market study provides a clear picture of the roles of each stakeholder.

• The market share of the players in the global automotive AI market and their competitive analysis are provided in the report.