Automotive Artificial Intelligence Market To Reach $14.92 Billion By 2030

Automotive Artificial Intelligence Market Growth & Trends

The global automotive artificial intelligence market size is estimated to reach USD 14.92 billion by 2030, registering a CAGR of 23.4% from 2025 to 2030, according to a new report by Grand View Research, Inc. The artificial intelligence (AI) in the automotive industry is driven by factors such as government initiatives to incorporate autonomously and the growing demand for autonomous vehicles. Furthermore, the automotive industry's expansion will likely drive the artificial intelligence market. The automotive sector has benefitted from artificial intelligence and is one of the primary industries that use AI to augment and replicate human action. For instance, in March 2023, RoboSense announced the launch of the RS-Fusion-P6 (P6) automotive-grade solid-state LiDAR perception solution. The P6 LiDAR system is designed explicitly for level 4 autonomous driving and integrates cutting-edge software and hardware support, ensuring efficient and reliable perception capabilities for autonomous vehicles.

The advent of standards such as Advanced Driver Assistance Systems (ADAS), blind-spot alert, Adaptive Cruise Control (ACC), and increased demand for convenience features are attracting automotive providers to AI. AI mission-critical occurrences necessitate analysis, warnings, and directives. Automotive ADAS comprises various advanced sensors, such as LiDAR, Inertial Measurement Units (IMUs), radar, and cameras, as well as data connectivity and pressure and temperature sensors for constant uploads and downloads of surrounding conditions. The signal chain necessitates proper conditioning of sensor outputs and detection and reliable low-latency communications within the vehicle and the surrounding infrastructure.

AI has enormous potential in the automobile industry when embedded within the industry's products, production and manufacturing processes, and value-added chains. AI deployment is expected to contribute significantly to a safer, cleaner, more efficient, and more reliable mobility ecosystem. For instance, AI applications in connected and automated vehicles improve driver safety, monitoring, situational awareness, comfort, and trajectory prediction. It can lead to significant gains in performance and efficiency, such as enhanced logistical flows, traffic fluidity, and reduced fuel or power consumption.

In recent years, businesses manufacturing Automated Driving Systems (ADS) technology have substantially invested in live testing autonomous vehicles operating in virtual environments to assure their dependability and safety. However, the Covid-19 pandemic, which began in March 2020, prevented, disrupted, and delayed the achievement of these new product development test objectives due to its sudden beginning and continued resurgent impacts. A study published by Adrian Chen Yang Tan on March 10, 2022, used data from the California Automated Vehicle Test Program to ascertain how the pandemic impacted testing trends, resumptions, and test conditions. The study emphasized how crucial it is for government measures to encourage and facilitate the development of autonomous vehicles in pandemic situations.

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Automotive Artificial Intelligence Market Report Highlights

• The software segment is anticipated to grow significantly in the coming years. ADAS or autonomous driving runtime software and the employment of specialized processing element types speed up specific algorithmic steps. The ongoing trend of AI adoption in the automotive industry will drive market growth in the coming years

• By level of autonomy, he level 2 segment led the market in 2024. Level-2 self-driving technology refers to a system that can handle certain driving tasks, such as acceleration, braking, and steering, but still requires the driver to be alert and ready to take control when needed

• The APAC region is anticipated to witness the highest CAGR during the forecast period. The region's increasing sales of premium passenger automobiles equipped with advanced AI features have attracted consumers seeking enhanced driving experiences. Consumers’ rise in disposable incomes to purchase technologically advanced vehicles is fueling the demand for AI-driven automotive solutions

• Automotive manufacturers investments in AI and LiDAR have responded to the growing demand for intelligent vehicles, which has driven growth across the entire industry.

Automotive Artificial Intelligence Market Segmentation

Grand View Research has segmented the global automotive artificial intelligence market based on component, level of autonomy, technology, vehicle type, and region:

Automotive Artificial Intelligence Component Outlook (Revenue, USD Million, 2017 - 2030)

• Hardware

• Software

Automotive Artificial Intelligence Level of Autonomy Outlook (Revenue, USD Million, 2017 - 2030)

• Level 1

• Level 2

• Level 3

• Level 4

Automotive Artificial Intelligence Technology Outlook (Revenue, USD Million, 2017 - 2030)

• Machine Learning

• Natural Language Processing

• Computer Vision

• Context-aware Computing

• Others

Automotive Artificial Intelligence Vehicle Type Outlook (Revenue, USD Million, 2017 - 2030)

• Passenger Vehicles

• Commercial Vehicles

Automotive Artificial Intelligence Regional Outlook (Revenue, USD Million, 2017 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

• Asia Pacific

  • China

  • India

  • Japan

  • Australia

  • South Korea

• Latin America

  • Brazil

• Middle East and Africa

  • UAE

  • KSA

  • South Africa

List of Key Players in the Automotive Artificial Intelligence Market

• Aptiv

• Cruise LLC

• Mobileye

• NVIDIA Corporation

• Qualcomm Technologies, Inc.

• Robert Bosch GmbH

• Tesla

• The Ford Motor Company

• TOYOTA RESEARCH INSTITUTE

• Waymo LLC