Before we witness the stabilization of economic growth in Europe and North America, Asia Pacific is estimated to bounce back progressively with countries such as China, India, South Korea and Japan witnessing more opportunities to recover from the losses sustained during COVID-19.
Being the biggest market in Eastern Europe, Russia is estimated to take the lowest hit, offering a sigh of relief to the businesses operating in the country. Whereas, GCC is estimated to observe low investments due to the sliding prices of crude oil.
We evaluate the strategies and commitment of the Giant Players in the market towards creating products and services that customers value and rely on.
In an attempt to control and eliminate the surge of coronavirus cases and meet the demand for required medical devices along with providing efficient medical services, there is a drastic shift of investments from authoritative bodies towards the healthcare sector. Where the aftermath of this pandemic may take years to be measured, Research Nester estimates notable expansion of e-health, gaming, and media and entertainment industries till the whole situation is contained and the plan of action for the recovery process is determined. There is an estimated probability of the growth in businesses going back a year if the condition is controlled in the next 2-3 months. Request Insights
Introductory Overview
Artificial Intelligence (AI) is a sub-field of computer science, the idea of which is centered on performing tasks that can be normally performed by humans. The test of the ability of a machine or computer to think and act like a human is what drives the basic foundation of artificial intelligence. AI systems try to understand the human mind and imitate them, while also being able to learn and solve problems independently. AI in automotive industry is being embraced slowly and is being seen as another alternative available to the traditional manual methods that were being deployed earlier.
Market Size and Forecast
The growth of the global automotive artificial intelligence market is driven by several factors such as the provision for advanced safety features that provides confidence to all the stakeholders that human life can be protected. Besides, the features of AI that can help to identify driver’s behaviour by driver identification, recognition and monitoring as well as the alert systems present in the vehicle that can alert the driver or take control in case of emergencies, in order to protect the vehicle from any accidents are anticipated to drive the demand for artificial intelligence systems in automotive market.
The global automotive artificial intelligence market is anticipated to grow at a moderate CAGR over the forecast period i.e. 2020-2027, owing to the fact that the technology is comparatively new and may require more time in order to see enough rise in demand from the population. Moreover, the stakeholders are required to be educated and trained about its adoption and uses, including the benefits arising from adoption of AI technology. The market is segmented by component type into hardware and software, out of which, the software segment is anticipated to hold the highest market share, on account of various technological developments being introduced in the form of AI software solutions and other software related developments taking place in the market.CLICK TO DOWNLOAD FREE SAMPLE REPORT
Growth Drivers
Growing Personal Disposable Incomes
With the rise in disposable incomes of the global population, the number of premium vehicles fitted with advanced technology have entered the global market and there is a huge demand from the technically skilled working population for luxury and tech savvy products. Using AI, manufacturers have been able to design new products that are being preferred by customers for their use.
Growing Demand For Self Driving Vehicles & Personalized Driving Experiences Of Users
There is a growing demand for self-driving vehicles from among the majority of global population which is coupled with expectations of personalized experiences for the driver as well as the passengers in vehicles unlike the traditional modes prevalent earlier. Moreover, there are a number of functions that automotive AI performs, some of them being allowing driverless cars and trucks on roads, customer service during on-road journey, identification of any object, recognition in the form of gestures and many more functions, all of which are anticipated to drive the demand for AI in vehicles, thereby expected to contribute to the growth of the market over the forecast period.
Growing Need For Safety Of Individuals & Better Control Of Vehicles
With introduction of AI in automobiles, the vehicles are fitted with multiple features that accompany a vehicle powered by AI such as identifying and recognizing driver behaviour and regulating the movement of vehicle accordingly. Besides, many other functions are performed such as identification of any danger and alert the driver including taking control of the vehicle in certain cases to avoid accidents. AI technology present in automobiles perform sensing including mapping which help in protecting AI powered vehicles from any danger.
Multiple Utilities of AI in Automobiles
There are cases for possible use of AI for multiple purposes in automotive industry. Autonomous driving or self-driving is one aspect where the uses of AI will come into effect such as providing assistance in the form of advanced driver assistance systems. There is a significant amount of data that will be generated when cars are being used for R&D purposes. Besides, there is scope for use of AI in connected vehicles in the form of voice assistants, predictive maintenance, shifting of car manufacturers towards creation of delivery services and many more which makes AI more demanding among the consumers.
Restraints
Reluctance of Individuals To Embrace New Technology & Threat Of Cyber Attacks
With the introduction of AI in automotive market, there would be an initial reluctance by individuals to embrace AI powered vehicles, due to several factors deciding the demand by individuals who may want to understand about the technology and its working including the benefits and problems that may arise, before taking a decision about its adoption.
Moreover, the issue of loss of privacy, cyber threats and the problems faced by AI in certain cases such as while handling irregular objects, decision-making biases and a few others could worry the users who might be concerned with its performance. These factors are anticipated to hinder the growth of the market over the forecast period.
Market Segmentation
Our-in depth analysis of the automotive artificial intelligence market includes the following segments:
By Component
By Technology
By Application
By Region
On the basis of regional analysis, the automotive artificial intelligence market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in North America is anticipated to occupy the highest market share, owing to the presence of various leading market players and high disposable incomes of the population in the region. The market in Europe is predicted to achieve a significant growth rate, owing to the preferences of the population towards technologically advanced luxury products.
The automotive artificial intelligence market is further classified on the basis of region as follows:
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