Market Challenges And Opportunities

Artificial Intelligence is increasingly being adopted in the automotive sector, in order to reduce human errors and human intervention. Artificial intelligence autonomously enhances visual perception, decision making, and speech recognition. The increasing government regulations for vehicle safety become one of the major driver for the growth of the market.

Increasing demand for autonomous vehicles is a major factor driving growth of the artificial intelligence in automotive market

Increasing demand for autonomous vehicles is expected to support growth of the artificial intelligence in automotive market. Increasing number of road accidents and fatal injuries, due to human errors has led to increasing demand for autonomous vehicles. For instance, according to the World Health Organization (WHO), 2015, fatalities of 1.25 million people were reported and 50 million people were injured, due to road accidents globally. Therefore, using autonomous vehicles could reduce accidents due to human errors. Key automakers are focusing on developing autonomous vehicles, which is expected to aid in growth of the market. For instance, Volkswagen is expected to launch self-driving cars by 2019 and BMW is expected to launch autonomous iNext by 2021. Moreover, fleet operators are also focusing on deploying self-driving cars, in order to enhance their market share. For instance, 2016, NuTonomy—a U.S.-based company, announced its plans to deploy self-driving taxi services in Singapore by 2018, and plans to be operational with fleets of self-driving taxies in 10 cities of the world by 2020.

Deep learning segment is expected to hold the largest share in the market over the forecast period

Deep learning segment held the largest share in 2016 and is projected to retain its dominance throughout the forecast period. Increasing use of deep learning by automotive manufacturers such as Audi, Delphi, Ford, and Volkswagen for various applications such as data analysis, speech recognition, image processing has led to growth of this segment.