Global Artificial Intelligence (AI) in Automotive and Transportation Market Research Report: Forecast (2024-2030)

Market Insights & Analysis: Global Artificial Intelligence in Automotive & Transportation Market (2024–30):

The Global Artificial Intelligence in Automotive & Transportation Market is valued at USD 12.18 billion in 2023 and is estimated to grow at a CAGR of about 20.22% during the forecast period, i.e., 2024–30. 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 to vehicles & drivers. The 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 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, and learn. Several prominent automakers are actively developing self-driven trucks equipped with these technologies for image processing, speech recognition, and data analysis, thereby contributing substantially to the overall industry growth. In addition, autonomous vehicles, with their potential to revolutionize transportation & improve road safety, continue to be a primary driver of AI adoption in the automotive sector. Major companies, including tech giants & traditional automakers, are heavily investing in AI-driven self-driving technology. This innovation is pushing the boundaries of what's possible, with varying levels of automation from driver assistance to market growth globally.

Furthermore, innovative technologies are revolutionizing urban mobility by optimizing traffic flow, reducing congestion, and enhancing road safety. In today's increasingly urbanized world, where population density and traffic congestion are growing concerns, AI-based traffic management solutions offer a way forward. By leveraging real-time data from various sources, including sensors, cameras, and connected vehicles, these systems can make intelligent decisions to dynamically adjust traffic signals, reroute vehicles, and provide drivers with real-time navigation guidance. This results in smoother traffic flows, reduced travel times, and minimized gridlock, ultimately leading to less fuel consumption & environmental impact.

The market for AI-driven traffic management is expanding as cities seek sustainable and efficient transportation solutions. The adoption of smart city initiatives is driving significant demand for these technologies, creating opportunities for companies specializing in AI-powered traffic management systems, data analytics, and infrastructure solutions. Furthermore, the potential for cost savings and the ability to reduce accidents make these technologies compelling for governments and municipalities. As urban populations continue to grow, AI's role in improving traffic management is poised for continued growth & innovation, making it a key driver of urban transportation evolution.

Global Artificial Intelligence in Automotive & Transportation Market Driver

Mounting Inclination Toward Autonomous Vehicles Worldwide to Upscale the Global Industry – With the advent of AI in automobiles, the demand for autonomous vehicles is rising substantially, owing to features like self-driving, autopilot, and 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 & start-ups are forming the idea of self-driving vehicles for public transportation, ride-sharing, and 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 Global Artificial Intelligence (AI) in the Automotive and Transportation Market during 2024-30.

Global Artificial Intelligence in Automotive & Transportation Market Opportunity

AI-powered Fleet Management Creating Opportunities – In the rapidly evolving landscape of the automotive & transportation industry, the segment of fleet management presents a compelling market opportunity. The integration of AI-powered solutions is reshaping the way logistics & fleet companies operate. These solutions offer numerous advantages, including route optimization, real-time monitoring of vehicle health, and heightened overall operational efficiency. By leveraging AI, fleet managers can dynamically adjust routes to account for traffic, weather, and other variables, resulting in reduced fuel costs and quicker deliveries.

Moreover, AI-driven predictive maintenance ensures that vehicles remain in peak condition, minimizing unexpected breakdowns and associated downtime. This contributes to substantial cost savings and improved customer satisfaction. As the demand for efficient, sustainable, and cost-effective transportation solutions continues to grow, AI-powered fleet management is poised to be a transformative force in the industry, offering companies a competitive edge and streamlining their operations.

Global Artificial Intelligence in Automotive & Transportation Market Challenge

Security & Privacy Concern Hampers the Market Growth – 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 Artificial Intelligence in Automotive & Transportation 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.

Global Artificial Intelligence in Automotive & Transportation Market Trend

AI-powered Innovations Transforming the Automotive Landscape – In the ever-evolving Automotive & Transport Market AI-powered systems have taken center stage, revolutionizing the driving experience. These advanced systems are seamlessly integrated into vehicles, enabling a new era of connectivity and convenience. From sophisticated infotainment systems that provide passengers with a wealth of entertainment and information options to advanced navigation tools that offer real-time traffic updates & optimized routes, AI is reshaping the way of interaction with vehicles.

Moreover, predictive maintenance capabilities driven by AI ensure that vehicles run smoothly by proactively identifying & addressing maintenance needs, reducing downtime & operational costs. Additionally, AI facilitates vehicle-to-vehicle communication, enhancing safety & efficiency on the road by enabling cars to exchange critical information. As AI continues to permeate the automotive industry, it's not only improving our driving experience but paving the way for a smarter, safer, and more connected future in transportation.

Global Artificial Intelligence in Automotive & Transportation Market (2024–30): Segmentation Analysis

The Global Artificial Intelligence in Automotive & Transportation Market study by MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment & includes predictions for the period 2024–2030 at the global level. In accordance to the analysis, the market has been further classified as:

Based on Technology:

• Machine Learning
• Natural Language Processing
• Context-Aware Computing
• Computer Vision
• Deep Learning

Machine Learning is anticipated to dominate the Artificial Intelligence in Automotive & Transportation Market with the largest share during the forecast period. It is attributed 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, enabling them to introduce innovations & upgrades in automobiles, thereby propelling the demand for Artificial Intelligence in the automotive & transportation sector through 2030.

Based on Application:

• Human Machine Interface
• Driver Monitoring
• Driver/Identity Authentication
• Autonomous Driving Processing Chips
• Intelligent Traffic Management System

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, and help them make sound decisions, thereby contributing to a safer driving experience. Nevertheless, 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, and attaining visuals inside the engine, among others, are further promoting the utilization of AI in HMI devices, augmenting the overall growth of the Artificial Intelligence in Automotive & Transportation Market.

Global Artificial Intelligence in Automotive & Transportation Market (2024–30): Regional Projections

Geographically, the Global Artificial Intelligence in Automotive & Transportation Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

North America dominated the Artificial Intelligence (AI) in the Automotive & Transportation Market with the largest share in recent years and is projected to prevail in the same trend during the forecast period. The country 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 sectors., 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 AI, thus augmenting the North America Artificial Intelligence (AI) in the Automotive & Transportation Market.

Global Artificial Intelligence in Automotive & Transportation Industry Recent Development:

• 2023: Continental AG collaborated with Ambarella Partner for perception solutions and full-stack systems for advanced driver assistance and highly automated driving.

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