Automotive artificial intelligence market projected to reach $10 billion by 2025
The artificial intelligence (AI) market is estimated to be valued at $782.9 million in 2017 and is expected to reach $10 billion by 2025, growing at a CAGR of 38.46% between 2017 and 2025, according to market research. The report, “Automotive Artificial Intelligence Market – Global Forecast to 2025,” published by MarketsandMarkets, states that factors expected to contribute to the growth of the automotive AI market are the emergence of autonomous vehicles and industry-wide standards such as adaptive cruise control (ACC), blind spot alert, and advanced driver assistance systems (ADAS). The growing demand for convenience and safety also presents an opportunity for OEMs to develop new and innovative artificial intelligence systems that would attract customers.
Software holds a major share of the overall AI market in the automotive industry because of developments of AI software and related development kits. In recent years, major advancements have occurred in AI software solutions, platforms, and related software development kits. Companies such as Alphabet Inc. (US), Microsoft Corporation (US), IBM Corporation (US), and Intel Corporation (US) are among the frontrunners in the development of AI software. These companies are investing heavily in start-ups or acquiring them to maintain a strong position in the automotive AI ecosystem. On example is the March 2017 acquisition by Intel Corporation (US) of Mobileye (Israel) for approximately $15 billion.
Most AI hardware and software include a combination of technologies and are used in various applications. Deep learning technology is expected to be the largest and the fastest-growing technology in the automotive AI market and is used in voice recognition, voice search, recommendation engines, sentiment analysis, image recognition, and motion detection. Deep learning technology is widely used in autonomous car applications. Many companies are investing in the development of self-driving cars in which deep learning technology is used for image processing, speech recognition, and data analysis. For instance, Google is heavily investing in autonomous vehicles through its spin-off Waymo and has an active system integrated into its self-driving vehicle which uses deep learning technology to detect pedestrians in different situations.
The presence of incentives and high level of funding from governments plays a major role in the development of this technology. For instance, in 2016, the U.S. government spent $4.00 billion to accelerate the acceptance of autonomous vehicles on U.S. roads. The automotive industry in the U.S. is a highly advanced industry, with the "big three," Ford Motor Company, General Motors, and Fiat-Chrysler Automotive, continuously upgrading their product portfolios. Vehicles in the U.S. are equipped with advanced features such as adaptive cruise control, lane departure warning systems, voice recognition systems, gesture recognition, and blind spot detection.
The companies covered in the automotive AI market study are NVIDIA Corporation (US), Alphabet Inc. (US), Intel Corporation (US), IBM Corporation (US), Microsoft Corporation (US), Harman International Industries Inc. (US), Xilinx Inc. (US), Qualcomm Inc. (US), Tesla Inc. (US), Volvo Car Corporation (Sweden), BMW AG (Germany), Audi AG (Germany), General Motors Company (US), Ford Motor Company (US), Toyota Motor Corporation (Japan), Hyundai Motor Corporation (South Korea), Uber Technologies Inc. (US), Honda Motor Co. Ltd. (Japan), Daimler AG (Germany), and Didi Chuxing (China). Some important start-ups from the automotive AI market have also been included: AImotive (Hungary), Nauto Inc. (US), nuTonomy (US), Argo AI (US), and drive.ai (US).
For more information about the study, visit http://www.marketsandmarkets.com/Market-Reports/automotive-artificial-intelligence-market-248804391.html.