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(I-AutoNewsWire.com, December 18, 2019 ) Market Overview
The global Automotive Artificial Intelligence market is expected to grow at a CAGR of over 45 % during the forecast period (2019-2026).
Artificial intelligence (AI) is one of the most progressive technologies in computer science. This technology has enabled machines to develop cognitive functions of the human mind such as language understanding, reasoning, learning, and problem solving abilities and it has been extended to the automotive sector in recent years. Manufactures across the globe are adopting this technology for both enhancing manufacturing processes and product differentiation and the automotive industry is no exception.
While self-driving cars is the prime use case for modern AI, Companies are also using this technology to develop Smarter security system in automobiles, for developing driver monitoring system, traffic complexity estimation, etc. in order to bring innovation in products and provide better facilities to the customers.
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Drivers: Rise in demand for enhanced user experience as well as convenience features, has increased demand for the premium vehicle segment. For instance, the size of Global market for luxury cars has reached USD 553.85 billion in 2018. Also growing development in the area of autonomous vehicles, has fueled the growth of the global automotive AI market.
Restraints: The threat of hackers and rise in cybercrimes are expected to restrain the market growth. For instance, in 2015, Fiat Chrysler had to issue in terms of safety and recalled 1.4 million affected vehicles in the US, after security researchers showed that one of its cars could be hacked. There have been instances of casualties caused by self-drive cars such as, In March 2018, a pedestrian was killed by the prototype based Uber self-drive car in Arizona. Uber discovered that its self-driving software decided not to take any actions after the cars sensors detected the pedestrian
But due to exponential growth in R&D these loopholes and system failures are seem to rare phenomenon, for example in a paper published by MIT on Jan 25, 2019 identifies instances in which autonomous systems have 'learned' from training examples that don't match what's actually happening in the real world.
Based on the Applications, the Global Automotive Artificial Intelligence Market is segmented into AI Driving Features, AI Cloud Services, AI Automotive Insurance, and AI in Car Manufacturing. AI Driving Features can be further sub segmented into two levels based on functionality: driver assist and fully autonomous vehicles. The AI Driving Features segment accounts for the largest revenue share due to rise in demand for autonomous vehicles and enhanced user experience. The two companies with the largest market share in this segment are Google and Tesla. The demand for AI Cloud Services is a derived demand, the growth rate of this segment is largely dependent on growth rate of other segments like AI Driving Features and AI in Car Manufacturing. For instance, LG Electronics has started working with Microsoft to use Azure cloud and AI technologies to develop their autonomous automotive AI. Increasing use of AI has benefited Automotive Insurance companies as these companies have embraced the use of AI in cars to help make risk assessments in real time, for instance According to the Association of British Insurers, more than half a million insurance frauds, totaling USD 1.45 billion, were detected in the UK during 2017 using AI technology.
Based on the technology, the Global Automotive Artificial Intelligence Market can be segmented into, machine learning & deep learning, Computer Vision and Natural language processing. Computer vision segment is expected to have major growth in the forecast period. The technology of computer vision is being used by automotive industry for building artificial systems that obtain information from images or multi-dimensional data points in order to make the automobile to interact with the external environment (The traffic, the pedestrians, Constructions etc.). Waymo, a subsidiary of Google, a major player in this segment of Automotive AI industry claims to have developed 360 degrees movement detection sensors for making self-driving cars a lot safer.
In the area of Natural Language Processing, Nuance is a major player. It has partnered with automotive giants like BMW and Audi to develop hybrid voice and natural language processing technologies. In Machine learning, algorithms can accurately incorporate analysis results, these features are widely being used in the area of customer feedback analysis, detecting failure patterns and predictive maintenance.
By geography, the global Automotive AI market is segmented into North America, Europe, Asia Pacific, South America and ROW.
North America has the largest market share and is due to the rapid development of autonomous vehicle technology and the strict government regulation for road safety. For instance, in 2016, the government of United States had invested more than USD 4 billion to accelerate the acceptance of autonomous vehicles in the country.
Asia is anticipated to exhibit the fastest CAGR during the forecast period due to strong technological capabilities possessed by South Korea, Japan, China, and India, and this is the reason why major technology leader in the market are investing in these countries.
The Market currently has a presence of various big players from both the industries, Automobile as well as Artificial Intelligence and these companies are collaborating with each other to develop new products and services.
For example, On March 18, 2019 NVIDIA has collaborated with Toyota to deliver artificial intelligence hardware and software technologies that will improve the capabilities of autonomous driving systems. In August, 2016 Uber had partnered with Swedish car maker Volvo for a fleet of self-driving cars. Honda has joined hands with General Motors tech startup Cruise to develop autonomous vehicles. Mercedes-Benz and NVIDIA have announced a partnership to bring an NVIDIA AI-powered car to market. The competition is highly fragmented and companies are trying to survive in the market through innovations and new product launches.
Major Market Players in Automotive Artificial Intelligence are-
Argo AI Tractable
AI in Automotive Industry is expanding vastly in the recent years in various applications such as manufacturing, driver assistance and autonomous vehicle developments.
Growing demand for autonomous vehicle, have fueled the growth of the global automotive AI market, though rising cybercrimes is one of the strong restrain to the market growth but heavy investments by tech giants in R&D has increased the reliance of Automotive industries on AI.
The AI Driving Features segment accounts for the largest revenue share and the two companies with the largest market share in this segment are Google and Tesla
Asia is anticipated to exhibit the fastest CAGR during the forecast period due to strong technological capabilities possessed by South Korea, Japan, China, and India and currently North America has the largest market share.
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