Artificial Intelligence (AI) technology is displaying an increasing adoption & utilization across different verticals, where the automotive & transportation sectors are no exception. AI is majorly about language understanding, learning, problem-solving, reasoning, & others. As a result, it is augmenting developments across the automotive sector with numerous innovations.
Hence, many governments & automakers are actively investing & developing technology-driven vehicles facilitating users with better driving experiences, faster innovation cycles, improved workflow in fleet & transportation, etc.
The Global Artificial Intelligence (AI) in Automotive and Transportation Market is projected to grow at a CAGR of around 20% during the forecast period, i.e., 2021-26. It owes to the rapidly increasing adoption & utilization of advanced technologies like Artificial Intelligence (AI) in the automotive transportation sector to bring operational efficiency and safety of vehicles & drivers.
Additionally, mounting promotion of automated & Electric Vehicles (EVs) integrated with Advanced Driver Assistance Systems (ADAS) by governments of different countries worldwide to ensure vehicle safety is also projected to drive the global market during the forecast period. Besides, technologies like Deep Learning are swiftly gaining momentum across the automotive sector to develop autonomous vehicles with capabilities to see, think, drive, & learn.
Several prominent automakers are actively developing self-driven trucks equipped with these technologies for image processing, speech recognition, & data analysis, thereby contributing substantially to the overall market growth.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Regions Covered||North America: US, Canada, Mexico|
|Europe: Germany, UK, France, Italy, Spain, Others|
|Asia-Pacific: China, India, Japan, South Korea, Australia, Others|
|South America: Brazil, Argentina, Others|
|Middle East & Africa: UAE, Saudi Arabia, South Africa, Others|
|Key Companies Profiled||Continental AG, Denso Corporation, Nvidia Corporation, Intel Corporation, Harman International, AI Motive, Argo AI, Siemens, Thales Group, CarVi, Valeo, Optalert, Orbcomm Inc., Visteon Corporation|
|Unit Denominations||USD Million/Billion|
Key Trends in the Global Artificial Intelligence (AI) in Automotive and Transportation Market
Impact of Covid-19 on the Global Artificial Intelligence (AI) in Automotive and Transportation Market
The Covid-19 pandemic in 2020 had a decelerating impact on most industries worldwide, where the entire automotive & transportation sector was disrupted and hampered the Artificial Intelligence (AI) in the Automotive and Transportation Market globally.
Governments of different countries worldwide imposed stringent restrictions & lockdown to curb the spread of this dreadful disease, which led the global market to face several unprecedented challenges like supply chain disruptions, reduced demand for automated vehicles, shut down of manufacturing units, shortage of labor & skilled professionals, etc.
However, with the gradual betterment in the pandemic situation & a reducing rate of Covid-19 cases, governments have allowed the recommencement of business operations since 2021. It is enabling automotive manufacturers & leading AI providers to revitalize their usual operations & recover from losses.
Based on the Technology:
Of them all, Machine Learning is anticipated to dominate the global market with the largest share during the forecast period. It attributes primarily to its features like image recognition & anomaly detection used mainly to quickly detect & eliminate defective vehicle components before they begin creating issues in the vehicle manufacturing workflow.
As a result, it is generating a plethora of growth opportunities for the leading market players and enabling them to introduce innovations & upgrades in automobiles, thereby propelling the demand for Artificial Intelligence in the automotive & transportation sector through 2026.
On the other hand, the demand for Natural Language Processing (NLP) is projected to display rapid growth in the automotive & transportation sector worldwide during the forecast period. It owes principally to the increasing adoption of NLP across the industry to analyze & understand customer needs, preferences, buying behavior, & decision-making process, among other aspects.
It, in turn, is benefiting the sector with increasing vehicle sales using these technologies, thereby positively influencing the market growth. Besides, the rising adoption of NLP is also to enhance the automation & quality checks in vehicles, which shall further fuel the overall market growth in the years to come.
Nonetheless, Deep Learning is anticipated to demonstrate the fastest growth in the Global Artificial Intelligence (AI) in the Automotive and Transportation Market during the forecast period. It owes to its rapidly increasing adoption to enhance the capabilities of artificial neural networks to mimic human-like behavior and facilitate benefits like voice search, image recognition, sentiment analysis, motion detection, voice recognition, & recommendation engines in vehicles.
Based on the Application:
Here, Human-Machine Interface (HMI) is anticipated to contribute substantially to the market growth during the forecast period. It owes principally to its capabilities to inform drivers about the road or vehicle conditions, provide timely alarms & warnings, & help them make sound decisions, thereby contributing to the safer driving experience. Besides, several prominent automakers are now pre-installing HMI systems in vehicles for customers to enhance their overall driving experience.
Additionally, features like reliable messaging, easier management, accuracy in testing stimulations, & attaining visuals of inside the engine, among others, are further promoting the utilization of AI in HMI devices and augmenting the overall market growth.
Geographically, the Global Artificial Intelligence (AI) in Automotive & Transportation Market expands across:
Of all regions globally, North America dominated the Artificial Intelligence (AI) in Automotive & Transportation Market with the largest share in the recent years & is projected to prevail the same trend during the forecast period. North America is an early adopter of electric & autonomous vehicles with advanced technologies like Artificial Intelligence (AI), Machine Learning (ML), Natural Language Processing, Context-Aware Computing, Computer Vision & Deep Learning, etc. Hence, it is witnessing a mounting utilization of AI across its automotive & transportation sector. , i.e., assisting drivers with features like voice search, image recognition, & voice command, and others. Additionally, a robust financial base of the region stimulated its funding across leading technologies in the field of Artificial Intelligence.
On the other hand, Asia-Pacific is anticipated to acquire the second-largest market share during the forecast period, principally due to the increasing customer inclination toward luxury vehicles, including passenger cars, which, thereby, is propelling the demand for vehicles with the AI technology across the region. Additionally, escalating utilization of AI across different verticals, especially across countries like China, India, Japan, & South Korea, is stimulating governments in these countries to adopt AI technologies in the automotive & transportation industry.
Nonetheless, Europe is projected to attain a considerable market share during 2021-26. It owes to the stringent environmental norms in the region leading to the increasing shift of several countries toward adopting automated & Electric Vehicles (EVs) to reduce carbon emission & address the rapidly increasing concerns associated with environmental pollution.
Besides, escalating demand for vehicles with AI technology delivering Advanced Driver Assistance Systems (ADAS) & Adaptive Cruise Control (ACC) is another crucial aspect projected to boost the sales of intelligent vehicles & positively influence the regional market growth in the coming years.
Key Driver & Growth Opportunity: Mounting Inclination toward Autonomous Vehicles Worldwide
With the advent of AI in automobiles, the demand for autonomous vehicles is rising substantially, owing to features like self-driving, autopilot, & automatic parking, among others, to reduce human efforts while driving. The increasing inclination of major automakers toward creating autonomous cars & driving features and the surging number of tech companies & startups are forming the idea of self-driving vehicles for public transportation, ride-sharing, & personal requirements.
Prominent automakers like Tesla are the ideal example of autonomous vehicles with systems like keeping the vehicle within a lane while driving, self-parking, auto changing lanes whenever required, etc. Hence, these aspects are projected to be the major drivers for the Global Artificial Intelligence (AI) in Automotive and Transportation Market during 2021-26.
Possible Restraint: Concerns Associated with Security & Privacy
While manufacturers are integrating AI technologies in the automotive, threats & concerns like data breaches, security & privacy concerns, cyber-attacks, & driver distractions, among others, are a few aspects that might restrain the market growth during the forecast period. It includes threats like glitches in the dashboard computers that allow hackers to disable vehicles or implant malware in the car system. Hence, these cases & possibilities are intruding the customers to adopt AI-enabled vehicles.
According to MarkNtel Advisors, the key industry leaders in the “Global Artificial Intelligence (AI) in Automotive and Transportation Market” are Continental AG, Denso Corporation, Nvidia Corporation, Intel Corporation, Harman International, AI Motive, Argo AI, Siemens, Thales Group, CarVi, Valeo, Optalert, Orbcomm Inc., and Visteon Corporation.
Key Questions Answered in the Research Report:
Frequently Asked Questions
A. The Global Artificial Intelligence (AI) in Automotive and Transportation Market is projected to grow at a CAGR of around 20% during 2021-26.
A. Deep Learning is anticipated to emerge as an area of remunerative opportunities for the leading players in the Global Artificial Intelligence (AI) in Automotive and Transportation Market during the forecast period.
A. Active participation of several players & automakers for the development of AI technology to expand its utilization in the automotive & transportation is anticipated to drive the market & generate growth opportunities in the coming years.
A. Post the upliftment of lockdown, several manufacturers & leading players in the Global Artificial Intelligence (AI) in Automotive and Transportation Market have started investing substantially in the research & development on integrating AI technology in the automotive & transportation industry. Hence, this shall help the global market regain its usual operational pace in the coming years.