- Asia-Pacific region is anticipated to emerge as the fastest-growing region during the forecast period
- Based on components, the software segment accounted for the largest share of the overall automotive artificial intelligence market in 2019
The global automotive artificial intelligence market is expected to grow at a compounded annual growth rate (CAGR) of 3.8 per cent to 2027 to reach $15.9 billion by 2027 as per a report by ResearchAndMarkets. The report titled, “Automotive Artificial Intelligence Market by Offering, Technology, Process, Drive, and Region – Global Forecast to 2027” said that factors like growth in the number of smart IoT devices, the proliferation of the internet, increase in demand for connected vehicles using the Internet of Things (IoT) and optimization of traffic efficiency are some of the contributing factors leading to this growth.
The report also added that shifting consumer preferences for premium vehicles to improve the driving experience and improving the vehicle and pedestrian safety have also increased the demand for artificial intelligence.
Machine learning
As per the report, based on components, the software segment accounted for the largest share of the overall automotive artificial intelligence market in 2019. This is due to a decrease in the cost of cloud-enabling technology deployment, an increase in the usage of learning analytics and awareness towards cloud computing. Another reason for this is the increasing demand for automated solutions to meet changing business needs in the automotive sector.
In terms of technology, the machine learning segment accounted for the largest share of the overall automotive artificial intelligence market in 2019. The report said that computer vision is expected to grow at the fastest CAGR during the forecast period. This is due to widespread implementation of computer vision in autonomous vehicles for signal recognition, image recognition, driver monitoring, spotting suspicious objects, and avoid vehicle collision.
Human-machine interface
Based on application, the human-machine interface segment took the largest share of the overall automotive artificial intelligence market in 2019. This was due to increasing demand for enhancing the in-car user experience, growth in terms of smart IoT devices, and proliferation of internet infrastructure as per the report. It also said that semi-autonomous driving application is expected to grow at the fastest CAGR during the forecast period.
The report said that North America took the largest share of global automotive AI market. It is followed by Europe, Asia-Pacific, Latin America, and the Middle East & Africa. It also said that Asia-Pacific region is anticipated to emerge as the fastest growing region during the forecast period. This is due to the rising acceptance of modern technologies, steady government initiatives to promote manufacturing activities. Other factors for this will be rising living standards, high rate of adoption of advanced features in vehicles, and gradually increasing digitisation in the region.
