[email protected]   📞 +1 (855) 661-4441(US)   📞 +44 1720 412 167(UK)   📞 +91 2269738890(APAC)
Certified Global Research Member
Isomar 1 Iso 1
Key Questions Answered
  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major players’ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
Why Choose Market Research Future?
  • Vigorous research methodologies for specific market.
  • Knowledge partners across the globe
  • Large network of partner consultants.
  • Ever-increasing/ Escalating data base with quarterly monitoring of various markets
  • Trusted by fortune 500 companies/startups/ universities/organizations
  • Large database of 5000+ markets reports.
  • Effective and prompt pre- and post-sales support.

Automotive Artificial Intelligence Market Analysis

ID: MRFR//2905-HCR | 111 Pages | Author: Swapnil Palwe| September 2025

Automotive Artificial Intelligence Market (Global, 2022)

Introduction

The market for artificial intelligence in the field of automobiles is undergoing a period of great transformation, a result of the rapid development of the sector and the integration of advanced technology. The demand for AI-based solutions is rising as cars become increasingly sophisticated and intelligent. Artificial intelligence is being used in a number of areas: self-driving cars, predictive maintenance, virtual assistants and enhanced safety features. These are changing the driving experience. The combination of artificial intelligence and automobiles is not only enabling greater efficiency but also introducing new business models and services. Artificial intelligence is a powerful tool for car manufacturers and technology companies. The industry is becoming increasingly competitive as the industry focuses on delivering smarter, safer and more connected vehicles. This report provides an in-depth analysis of the trends, challenges and opportunities in the automobile artificial intelligence market, and a comprehensive understanding of the factors driving its development.

PESTLE Analysis

Political
In 2022 the automobile industry was under increasing regulatory pressure in regard to the integration of artificial intelligence. The European Union proposed to require all AI-based systems to be tested and certified, with an estimated cost of one million euros per manufacturer. In the United States the government set aside one billion dollars for the development of AI for the safety of transportation, indicating a strong political commitment to the development of safe and efficient AI-based vehicles.
Economic
The development of the car industry is closely related to the development of the economy. In 2022, the world's automobile industry will reach $2.5 trillion in turnover. Artificial intelligence has been a major trend in the industry, mainly due to the need for safety and automation, and the demand for artificial intelligence has been driven by the need for artificial intelligence. The development of automobile companies. The number of employees in the automobile industry has also changed, and more than 200,000 jobs have been created in the field of artificial intelligence, which has also reflected the impact of this trend on the economy.
Social
The public's attitude towards the use of artificial intelligence in automobiles has changed greatly. In a survey in 2022, 7 out of 10 consumers said they would be willing to adopt AI-driven features for the sake of greater convenience and safety. The resulting demand for advanced driver-assistance systems and driverless vehicles has been crucial. And the rise of electric vehicles, which often incorporate AI, has brought an increasing number of consumers to the cause of environmentalism, with 40 percent of new car buyers in 2022 indicating a desire to buy sustainable products.
Technological
The state of the art in 2022 was characterized by rapid developments in machine learning and computer vision. Almost all companies had put a great deal of effort into developing the ability to process the huge amounts of data from sensors and cameras. By the end of the year there were an estimated 15 million vehicles equipped with AI. 5G was now enabling a direct data link between vehicles and roadside equipment, which in turn enhanced the capabilities of the AI systems and paved the way for smarter solutions to traffic problems.
Legal
The law concerning the application of artificial intelligence to the automobile industry was still in its infancy. In many countries laws were being drafted to determine the liability of an operator in case of an accident. In 2022 the State of California passed a law requiring all automobile manufacturers to reveal their artificial intelligence and the data they used. This affected the more than 1,000 auto companies operating in the State. The National Highway and Motor Vehicle Administration also issued guidelines for the testing and implementation of self-driving cars, emphasizing the need to meet safety standards and ethical considerations.
Environmental
In 2022, the automobile industry's use of AI to reduce emissions and increase fuel efficiency was a matter of great concern. It was estimated that about thirty percent of all new models introduced that year contained some form of AI-based energy-saving technology. Moreover, the AI-based systems of the electric vehicles used by the industry had contributed to the reduction of emissions by some 1.2 million tons of CO2, thus demonstrating the potential for AI to contribute to the achievement of the automobile industry's environmental goals.

Porter's Five Forces

Threat of New Entrants
The market for vehicle-based artificial intelligence is moderately difficult to enter because of the need for significant investment in technology and research. However, as the field of artificial intelligence is developing, the barriers to entry are being reduced. However, the market is dominated by large companies with strong brand names and existing relationships with vehicle manufacturers. The increasing demand for vehicle-based artificial intelligence is likely to attract new companies seeking to take advantage of the opportunity for innovation.
Bargaining Power of Suppliers
The bargaining power of suppliers in the AI-market is relatively low. There are many suppliers of AI-components and software, which creates a competitive market. The car manufacturers are able to easily switch suppliers or develop their own solutions, which lowers the influence of any single supplier. The fast technological development also means that suppliers have to keep innovating to stay relevant.
Bargaining Power of Buyers
The buyer’s power in the automobile AI market is high because of the growing availability of AI solutions and the competitive landscape. In the meantime, the manufacturers are seeking cost-effective and effective AI solutions, which gives them the ability to bargain with suppliers. Furthermore, as the number of vendors in the market increases, the buyer has more choices, which increases the bargaining power of the buyer.
Threat of Substitutes
The threat of substitutes in the automobile AID market is moderate. The automobile industry's traditional technology can be used as a substitute for AID, but the growing trend of automation and smart vehicles makes it unlikely that the industry will turn back to old technology. Nevertheless, new products such as advanced sensors and simple automation systems may be able to replace AIDs.
Competitive Rivalry
The competition in the automobile market is very keen. The number of established players and new entrants is very great. In order to stay ahead of the game, companies are constantly investing in research and development. The race for advanced AI for self-driving, predictive maintenance and enhanced customer experience is resulting in more aggressive marketing and price wars.

SWOT Analysis

Strengths

  • Rapid advancements in AI technology enhancing vehicle safety and efficiency.
  • Increased consumer demand for smart and connected vehicles.
  • Strong investment from automotive manufacturers and tech companies in AI research and development.

Weaknesses

  • High costs associated with the development and integration of AI systems.
  • Limited understanding and acceptance of AI technology among some consumers.
  • Regulatory challenges and concerns regarding data privacy and security.

Opportunities

  • Growing market for autonomous vehicles and smart transportation solutions.
  • Potential for partnerships between automotive and technology firms to innovate AI applications.
  • Expansion into emerging markets with increasing vehicle ownership and demand for advanced features.

Threats

  • Intense competition among automotive and tech companies leading to market saturation.
  • Rapid technological changes that may outpace regulatory frameworks.
  • Potential cybersecurity threats targeting AI systems in vehicles.

Summary

The Auto-AI Market in 2022 is characterized by a number of strengths such as technological progress and high investment, but also by some weaknesses such as high development costs and regulatory challenges. Opportunities include the rising demand for smart vehicles and the potential for cooperation. Threats include the fierce competition and the security risks. The strategic focus of the market players is on innovation and consumer education.

Covered Aspects:
Report Attribute/Metric Details
Segment Outlook By Technology, By Process, By Application, By Vehicle Type, and by Region
Leading companies partner with us for data-driven Insights
clients
Kindly complete the form below to receive a free sample of this Report
Please fill in Business Email for Quick Response

We do not share your information with anyone. However, we may send you emails based on your report interest from time to time. You may contact us at any time to opt-out.

Purchase Option
Single User $ 4,950
Multiuser License $ 5,950
Enterprise User $ 7,250
Compare Licenses
Tailored for You
  • Dedicated Research on any specifics segment or region.
  • Focused Research on specific players in the market.
  • Custom Report based only on your requirements.
  • Flexibility to add or subtract any chapter in the study.
  • Historic data from 2014 and forecasts outlook till 2040.
  • Flexibility of providing data/insights in formats (PDF, PPT, Excel).
  • Provide cross segmentation in applicable scenario/markets.