Artificial intelligence (AI) in the automotive market is set to cross the $12-billion mark by 2026, reports market research and strategy consulting firm Global Market Insights (GMI).
This growth will be driven by the steadily growing uptake of driver assistance technologies for increasing driving comfort and ensuring a safe driving experience.
Consumers are also increasingly exhibiting a “positive attitude” toward AI-powered vehicle driving systems, which further creates more and new avenues for market growth, says GMI.
According to GMI, automotive manufacturers are capitalising on the steadily growing industry by introducing new features in their vehicles including automated parking, lane assistance, driver behaviour monitoring and adaptive cruise control.
GMI points out that the AI hardware segment is expected to continue growing as a result of the increasing adoption of automotive AI components for implementation of AI solutions, alongside the use of energy-efficient system-on-chips and dedicated AI graphic processing units that enable enterprises to deploy highly sophisticated onboard computers with robust computing power.
Further, GMI says the growing uptake of sensors – including high-resolution cameras, remote sensing methods through the use of light detection and ranging (or LiDARs) and ultrasonic sensors for vehicle situational awareness – is fueling the growth of AI hardware.
The context awareness segment, meanwhile, is anticipated to register “impressive” growth, with a compound annual growth rate (CAGR) of over 35% from 2019 to 2026 owing to the rapid proliferation of driver assistance solutions and semi-automated cruise control.
“Context awareness systems provide situational intelligence through multi-sensory input and enable onboard computers to detect and classify on-road entities including pedestrians, traffic and road infrastructure,” GMI mentions.
It further points out that “customers are reaping the benefits” of context-awareness systems by deploying effective navigation assistance, which enables safe driving even during driver distraction.
Major technology companies are investing in innovative automotive technologies including context awareness. For instance, in November 2016, Intel announced an investment of $250-million in autonomous driving technology. This investment was focused on key technologies such as context awareness, deep learning, security and connectivity.
The image and signal recognition segment, meanwhile, is also growing, as a result of the importance of vehicle speed control for reducing on-road accidents.
Image and signal recognition technologies can detect traffic signs and speed limit indicators while reducing the vehicle speed accordingly without human intervention.
GMI says the technology is also expected to grow significantly as several government initiatives are promoting traffic sign recognition to ensure adherence to speed limits.
In March 2019, the European Commission made it mandatory for all vehicles manufactured from 2022 to have built-in image and signal recognition capabilities. This is expected to reduce rash driving, over-speeding and promote on-road safety.
The semi-autonomous vehicles segment will grow at a CAGR of over 38% by 2026 owing to the extensive demand for Advanced Driver Assistance Systems and facilitating driving during heavy traffic scenarios.
Semi-autonomous technologies have already been commercialised and are expected to gain significant AI in automotive market proliferation over the forecast timespan.
Major automotive manufacturers – such as Chrysler, Audi and Ford – have started integrating semi-autopilot and drive cruise control technologies into their latest models.
Driver behaviour monitoring, road condition awareness and lane tracking are a few of the innovative solutions that have been introduced through the implementation of AI technologies in semi-autonomous vehicles.
Additionally, GMI says supporting initiatives from various governments to incorporate semi-autonomous vehicle technologies by 2022 will positively impact on the demand for AI in the automotive market.
The increasing focus of automotive manufacturers on AI technologies, especially in Germany and the UK, is driving the adoption of AI across the European automotive sector, where supportive initiatives from the government to adopt AI for smart traffic control has propelled the development of automotive AI solutions.
In 2017, the UK government invested more than $75-million in the development of AI solutions and improved mobility.
“Companies operating in AI in the automotive market are focusing on various business growth strategies including investments in autonomous mobility solutions, strengthening partner networks and expanding research and development activities,” GMI comments.
GMI adds that, through such strategic moves, companies are trying to gain a broader market share and maintain their leadership in the market.