Artificial Intelligence In Automotive Market Share

North America Market Analysis

North America is predicted to witness massive growth in the automotive artificial (AI) market during the forecast period. It is poised to capture the largest share of 39.0% by the end of 2037 and to hold USD 2.1 billion by 2025. Features such as cruise control, lane-keeping assist, and advanced parking systems are becoming standards for integrating AI into vehicles. Improved automobile performance and reduced data analysis downtime inspire automakers to invest in future developments. Shifting consumer expectations for enhanced functionality is creating scopes for innovation. Researchers are leveraging AI penetration for public usage through government funding. In March 2023, Mcity 2.0 was launched under the supervision of NSF and CCAT. This vehicle testing facility was run and optimized by the University of Michigan.

The U.S. is augmenting and experiencing massive growth in the automotive AI market. The collaboration of major tech companies and automakers is captivating investments in machine learning and computer vision in vehicles. The U.S. government is also shaping the standards of deployed autonomous transportation. In February 2023, the U.S. government introduced a 5-year SERI project, initiating a research facility NIST. This program was aimed to elevate the AI, cybersecurity, and communications in Avs. Increasing venture capital investment in the automotive sector is inspiring startups to adopt AI. In January 2024, Cerence collaborated with Microsoft to deliver AI-powered in-car experience to users. This model will simplify user access through the implementation of OpenAI ChatGPT.

Canada is also curating development in the automotive artificial intelligence market. The capability of maintenance prediction through analyzing vehicle data helps to reduce repair costs. Generative AI also helps automakers accumulate consumer preferences to offer them personalized solutions. Canada government is also funding research and development in this sector. They are focused on transitioning into smart transportation through machine learning technologies, including artificial intelligence. Such regulatory support is encouraging companies to introduce innovation in this industry. The strong industry presence of Canada is pioneering greater opportunities for investments.

APAC Market Statistics

Asia Pacific is portraying lucrative growth opportunities in the automotive AI market. Developing countries such as India, Japan, China, and South Korea are heavily investing in infrastructure development. Regional automakers are focusing on integrating smart technologies in manufacturing automobiles. Governments are focusing on implementing driverless traffic practices to reduce road fatalities. Automobile leaders are collaborating to develop more convenient user interfaces for drivers. In September 2024, Hyundai Motor allied with Kia and Samsung Electronics to enhance the SDV user experience. This partnership was aimed to improve the connectivity between the vehicle and smartphone for smoother operation. According to the agreement, Kia will develop an AI-powered platform by 2025 for seamless connection.

India is predicted to become a large consumer base for the automotive artificial intelligence market in upcoming years. Growing adoption of AI in industries including transportation has inflated the demand for autonomous driving. The adaptive landscape has created a thriving ecosystem for startups and innovation in this sector. Investments in building smart cities are inspiring domestic automakers to integrate AI. Push towards green transportation, autonomous solutions are implemented to manufacture energy-efficient vehicles. Rising consumer expectations for personalized driving experience is enlarging the market. In September 2024, Honda began a joint research facility with IIT Delhi and IIT Bombay. This collaboration will work on developing CI for societies to realize a complete AI-powered system.

China is also emerging to lead the automotive AI market in this region. Inflating demand for smart features including AI navigation, voice recognition, and personalized infotainment systems is influencing automakers. The strong tech ecosystem and government backing are driving the continued expansion. This is further, fueling technological innovation in autonomous transportation. Favorable subsidies and policies are contributing to the deployment of self-driving vehicles on public roads. Local companies are also introducing innovative automatic systems to stand out in global competition. In October 2024, XPENG introduced a new AI-defined vehicle, XPENG P7+. This automobile can challenge international competitors through its affordable price range.