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What Is the Forecasted Market Size of the Automotive Artificial Intelligence Market by 2029?
The automotive artificial intelligence market size has grown exponentially in recent years. It will grow from $3.75 billion in 2024 to $5.2 billion in 2025 at a compound annual growth rate (CAGR) of 38.4%. The growth in the historic period can be attributed to rise of connected cars and IoT in automotive industry, adoption of ai for predictive maintenance in vehicles, implementation of ai in autonomous vehicle development, increasing emphasis on in-car personalization through ai.

The automotive artificial intelligence market size is expected to see exponential growth in the next few years. It will grow to $18.13 billion in 2029 at a compound annual growth rate (CAGR) of 36.7%. The growth in the forecast period can be attributed to increasing popularity, awareness, rising demand for premium vehicles, rising demand for fully digitalized electric vehicles, integration of sensors and other components in ai systems, introduction of software support to vehicles that make them fully autonomous. Major trends in the forecast period include development of ai chips specifically for automotive applications, emphasis on explainable ai in automotive decision-making, integration of ai for gesture and emotion recognition in vehicles, adoption of ai in fleet management and logistics, use of ai for enhanced human-machine interaction in vehicles.

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What Are the Significant Market Forces Driving the Automotive Artificial Intelligence Market Performance?
The growing demand for autonomous vehicles is expected to propel the growth of the automotive artificial intelligence market. Artificial intelligence has a wide range of applications in the automotive industry. As technology evolves, the automobile industry has taken advantage of discoveries to provide new ways to make driving more autonomous. Using artificial intelligence to develop self-driving automobiles is one of them. A self-driving car (also known as an autonomous car or driverless car) is a vehicle that travels to locations without the need for a human driver by utilizing a variety of sensors, radars, cameras, and artificial intelligence. For instance, according to Deloitte, the global automotive AI market will culminate in a total volume of around $27 billion in 2025. Therefore, a rise in demand for automotive cars drives the growth of automotive artificial intelligence.

What Are the Primary Market Segments in the Automotive Artificial Intelligence Market?
The automotive artificial intelligencemarket covered in this report is segmented –

1) By Component: Hardware, Software, Service
2) By Type: Automatic Drive, ADAS
3) By Process: Signal Recognition, Image Recognition, Data Mining
4) By Technology: Deep Learning, Machine Learning, Context Awareness, Computer Vision, Natural Language Processing

Subsegments:
1) By Hardware: Processors And Microcontrollers, Sensors (LiDAR, Cameras, Radar), Edge Computing Devices, Connectivity Modules
2) By Software: Machine Learning Algorithms, Computer Vision Software, Natural Language Processing (NLP), Autonomous Driving Software, Predictive Analytics Tools
3) By Service: AI Integration Services, Data Management And Analytics Services, Maintenance And Support Services, Consulting Services



What Are the Most Prominent Trends Impacting the Automotive Artificial Intelligence Market?
Major companies operating in the automotive artificial intelligence market are focusing on innovating technology, such as an AI-led diagnostics platform for the aftermarket car segment, to enhance vehicle performance and optimize maintenance in the aftermarket car segment. An AI-led diagnostics platform for the aftermarket car segment refers to a system that utilizes artificial intelligence to analyze vehicle data and diagnose issues in cars that are no longer under the manufacturer's warranty. For instance, in August 2024, Mytvs-ki Mobility Solutions, an India-based vehicle repair and maintenance company, launched Drivenostics, an AI-led diagnostics platform designed for the aftermarket car segment. This innovative service enables customers to monitor their vehicle's health in real-time through a network of 1,000 service outlets. Targeting around 10–12 million vehicles, particularly those over 4 meters in length, Drivenostics offers tailored maintenance recommendations based on AI-driven diagnostics.

Who Are the Established and Emerging Companies Competing in the Automotive Artificial Intelligence Market?
Major companies operating in the automotive artificial intelligence market include DiDi Chuxing Technology Co. Ltd., Otto Motors, Waymo LLC, Microsoft Corporation, Intel Coroporation, NVIDIA Corporation, BMW AG, International Business Machines Corporation, Harman International Industries Inc., Xilinx Inc., Qualcomm Inc., Tesla Inc., Volvo Car Corporation, Micron Technology Inc., Toyota Motor Corporation, Uber Technologies Inc., Arbe Robotics Ltd., Cerence Inc., Cognata Ltd., Optibus Ltd., Pony. ai Inc., Seeing Machines Ltd., Anduril Industries Inc., Nauto Inc., Veritone Inc., Matterport Inc., Iterative Health LLC, Piaggio Fast Forward Inc., Radar Inc.

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Which Region Is Expected to Dominate the Automotive Artificial Intelligence Market During the Forecast Period?
North America was the largest region in the automotive artificial intelligence market in http://2024.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive artificial intelligence market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

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