In-vehicle AI Robot Market

In-Vehicle AI Robot Market Outlook (2024 to 2034)

The global in-vehicle AI robot market is set to reach a value of US$ 45.7 million in 2024 and thereafter increase at a remarkable CAGR of 17.3% to end up at US$ 225.6 million by 2034.

Automobile manufacturers are progressing in the development of artificial intelligence (AI) and self-driving technologies, alongside numerous tech companies and start-ups. While it is largely believed that self-driving cars are the future, AI and machine learning are already being integrated into vehicle design and operation in diverse ways. Incorporating AI into cars aims to enhance vehicle safety, increase fuel efficiency, and expand driver connectivity options.

Key Market Growth Drivers

• Increasing focus on road safety and accident prevention is driving demand for advanced driver assistance systems (ADAS). In-vehicle AI solutions play a crucial role in these systems by offering real-time assistance and enhancing overall vehicle safety.
• In-vehicle AI systems are extending their applications beyond personal vehicles to include commercial fleets and autonomous vehicles, broadening their market appeal.
• Growing adoption of ADAS is a significant catalyst in the automotive industry. Modern vehicles increasingly integrate ADAS functionalities such as lane-keeping assistance, adaptive cruise control, and collision avoidance systems.
• These systems enhance road safety, reduce accidents, and assist drivers in navigating roads. In this context, in-vehicle AI systems play a crucial role in augmenting and enhancing ADAS capabilities.
• AI-driven vehicles utilize multiple sensors to regulate overall vehicle performance. With AI integration, manufacturers can swiftly identify and address vehicle performance issues, reducing the need for extensive manpower and time investment.
• Artificial intelligence functions as a virtual brain, alerting drivers to even minor vehicle defects, thereby reducing future repair costs for end users. These manufacturer-provided features are beneficial to both consumers and manufacturers, positioning them as future market drivers.
• In-vehicle AI robot market growth is largely driven by rising consumer demand for better driving experiences and safety features. The integration of AI robots into vehicles is benefiting market players to a great extent.

Report Attributes	Details
In-vehicle AI Robot Market Size (2024 E)	US$ 45.7 Million
Projected Market Value (2034 F)	US$ 225.6 Million
Global Market Growth Rate (2024 to 2034)	17.3% CAGR
China Market Growth Rate (2024 to 2034)	19% CAGR
Sales in the United States (2034)	US$ 40.2 Million
Sales in Japan (2034)	US$ 11.7 Million
Passenger Cars Segment Share (2024)	77.9%
Key Companies Profiled	AutoX; Bosch; Morris Garage; Nauto; Predii; Motional Inc.; Refraction AI; Optimus Ride; Waymo; Zoox Inc.; Refraction AI Inc.; MG Motor India Pvt. Ltd. (SAIC Motor Corp. Ltd.).

Why is Artificial Intelligence Being Extensively Incorporated into Vehicles?

“Heightened Focus on Driver and Passenger Safety”

Significant portion of the global population relies on private or public vehicles for transportation. Artificial intelligence is increasingly integrated into the automotive industry. Ensuring the safety of drivers and passengers has become a paramount concern in this sector.

Manufacturers are incorporating technologies like automated braking, drowsiness alert systems, speed control alerts, and internal and external monitoring systems to enhance driver safety and prevent accidents. Car monitoring systems assess vehicle performance and warn drivers of nearby emergencies. These safety measures are specifically aimed at personal vehicle users.

• McKinsey & Co., a global management consulting firm, forecasts that by 2030, only 12% of new passenger vehicles will feature advanced auto-drive technologies. This figure is projected to rise steeply to 37% by 2035, according to McKinsey's estimates.

What is Restraining Sales Growth of In-Vehicle AI Robots?

“Heavy Dependence on Robust Internet Connectivity for AI Functionality”

AI-powered vehicles heavily rely on robust Internet connectivity to establish and utilize neural networks for data gathering and processing. Autonomous and semi-autonomous vehicles necessitate well-defined and properly constructed road infrastructure to operate safely. Many developing countries face shortages in such resources, causing manufacturers to limit their market presence to developed nations. This restriction can potentially hinder vehicle sales and impede the expansion of the in-vehicle AI robot market size.

Country-wise Insights

Market expansion in Asia Pacific is being driven by the increasing use of AI robots to improve vehicle safety, connectivity, and infotainment systems. Government initiatives, infrastructure development, and growing demand for smart vehicles are all contributing to Asia Pacific's role in shaping the future of in-vehicle AI technology.

Which Key Trend in the United States is In-vehicle AI Robot Manufacturers Leveraging?

“Extensive Integration of AI in Vehicle Manufacturing Processes”

Attribute	United States
Market Value (2024E)	US$ 7.9 Million
Growth Rate (2024 to 2034)	17.7% CAGR
Projected Value (2034F)	US$ 40.2 Million

Automakers in the United States are integrating artificial intelligence (AI) across nearly every facet of vehicle manufacturing. This is one of the key in-vehicle AI robot market trends in the country that manufacturers are capitalizing on. Robots employing machine learning and vision assemble essential components of both traditional and autonomous vehicles, ensuring safe navigation through traffic and generating substantial revenue for North American companies. The growing adoption of AI suggests a rising future demand for autonomous vehicles.

How is AI Transforming the Automobile Industry in China?

“Rising Adoption of AI-driven Advancements in Driver Risk Assessment and Infotainment Systems”

Attribute	China
Market Value (2024E)	US$ 8 Million
Growth Rate (2024 to 2034)	19% CAGR
Projected Value (2034F)	US$ 45.7 Million

Automobile manufacturers in China are updating their vehicle offerings to meet evolving consumer demands in anticipation of significant changes.

• BMW, for example, partnered with Chinese tech giant Tencent to develop level 3 or semi-autonomous vehicles in China.

Original equipment manufacturers (OEMs) are projected to increase partnerships, acquisitions, and collaborations within the automotive sector in the near future. AI is revolutionizing transportation with advancements in driver risk assessment, enhanced infotainment systems, and autonomous vehicles. Technology firms, leveraging their AI expertise from sectors like ICT, are at the forefront of shaping the autonomous vehicle market in China.

Category-wise Insights

AI robots optimize routes, perform predictive maintenance, and improve fuel efficiency in commercial vehicles. Commercial vehicles are poised to hold 22.1% of the in-vehicle AI robot market share in 2024. The primary driving force for the growth of this segment is the ongoing pursuit of cost-effective and efficient operations.

As AI technology advances, it is expected to up new opportunities for improving logistics, fleet management, and passenger safety, making commercial vehicles a significant player in the in-vehicle AI robots market alongside passenger cars.

What are the Advantages of Incorporating In-vehicle AI Robots into Passenger Vehicles?

“In-vehicle AI Robot Incorporation Enhancing Convenience and Safety for Drivers and Passengers”

Attribute	Passenger Cars
Market Value (2024E)	US$ 35.6 Million
Growth Rate (2024 to 2034)	16.4% CAGR
Projected Value (2034F)	US$ 162.2 Million

Passenger vehicles are prevalent worldwide, driven by rising living standards that emphasize comfort, both in daily environments and within vehicles. Major automotive giants like Tesla, BMW, and MG are leading the integration of Artificial Intelligence into passenger vehicles. In-vehicle AI systems incorporate innovative products and features aimed at enhancing convenience and safety.

Why Do Autonomy Levels 2 & 3 Remain the Preferred Choice among Users?

“Growing Demand for Adaptive Cruise Control and Lane Assistance to Ensure Safety”

Attribute	Level 2 & 3
Market Value (2024E)	US$ 33.4 Million
Growth Rate (2024 to 2034)	16.9% CAGR
Projected Value (2034F)	US$ 159.5 Million

Levels 2 and 3 of in-vehicle AI systems occupy a substantial portion of the market, offering varying degrees of automation. Level 2 features partial automation, including adaptive cruise control and lane-keeping assistance, necessitating driver oversight.

Level 3 introduces conditional automation, enabling the vehicle to handle certain tasks autonomously with the driver ready to intervene when necessary. Consumer demand for advanced driver assistance systems (ADAS) is propelling these trends in the in-vehicle AI system market, aiming to enhance safety, convenience, and semi-autonomous driving capabilities.

Competitive Landscape

Key players in the in-vehicle AI robot industry are actively engaging in a variety of strategic initiatives to maintain their positions and drive innovation. These companies are constantly investing in R&D to improve the capabilities of their AI robots and to provide advanced features such as natural language processing, real-time vehicle diagnostics, and enhanced driver assistance systems.

• Predii Inc. launched Co-Pilot, a game-changing AI tool for the automotive service and repair industry, on October 26, 2023. This generative AI co-pilot promises to transform the way service and repair businesses operate. By leveraging AI, it helps automotive professionals diagnose problems, recommend solutions, and optimize repair processes, ultimately improving efficiency and service quality in the automotive industry.
• Nauto Inc. launched a new telematics solution on October 17, 2023, that combines AI-powered fleet safety, risk management, and operations into a single solution. By integrating these critical aspects, Nauto hopes to improve fleet management, and driver safety, and streamline operations for businesses that rely on a fleet of vehicles. This comprehensive offering promises to improve fleet management, driver safety, and operations, highlighting the growing importance of integrated and data-driven approaches to maximizing efficiency and safety in businesses that rely on vehicle fleets.
• On August 16, 2022, Motional Inc. and Lyft launched the first electric IONIQ-5 autonomous vehicle. The newly launched vehicle is classified as a level 4 autonomous vehicle. Furthermore, their historic 10-year partnership with Uber to provide autonomous ride-hailing and delivery services demonstrates a significant commitment to reshaping the future of autonomous mobility and transportation services.

Segmentation of In-Vehicle AI Robot Market Research

• By Vehicle Category :

  • Passenger Cars
  • Commercial Vehicles

• By Autonomous Level :

  • Level 2 & 3
  • Level 4 & 5

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • South Asia & Pacific
  • East Asia
  • Latin America
  • Middle East & Africa