Global In-Cabin Automotive AI Market to Grow at a CAGR of 45.21% During 2023–2031

Introduction

Automobile manufacturers view AI as a new method for expanding their profit margins. In-car experiences encompass the entire user experience, including the driver and all passengers, to enhance the overall cabin experience. AI applications in intelligent driver assistance programs that enhance safety or infotainment systems that instruct drivers while recommending content to passengers in the backseat are examples. AI and the in-car experience are one of the most effective aspects for automotive manufacturers in fostering customer loyalty.

Automobile manufacturers are collaborating with vital ecosystem providers to provide added value to their customers. The benefits of an AI-powered cabin include an enhanced driver experience, safety, and intelligent in-car assistance. Essential components of automotive AI that enable a smart cockpit include object categorization, scene understanding, location services, natural language understanding, face detection/fingerprint recognition, sensor processing and fusion, voice/noise cancellation, and voice/speech recognition.

Market Dynamics

Rising Demand for Autonomous Vehicles Drives the Global Market

The automotive industry is dynamic because technological innovations are causing change. Several industry leaders are making substantial investments in the research and development of technologies. In addition, the regulatory framework, government funding, and investment support for digital infrastructure influence self-driving car technology and would create market opportunities for in-cabin automotive AI. An autonomous vehicle combines various sensors, like radio detection and ranging (RADAR) and light detection and ranging (LiDAR) systems, to perform tasks automatically and without a driver's assistance. All functions are controlled from the cabin, creating a need for in-cabin automotive AI to improve performance. In addition, one of the most significant factors is the rise in safety concerns, which has led to the acceptance of autonomous vehicles facilitated by the development of automotive technologies.

Increasing Demand for Occupant Safety and Security Creates Tremendous Opportunities

The government has mandated that every automobile be equipped with an occupant protection system available every automobile. The occupant protection system has drastically reduced the number of accidents-related injuries. In recent years, occupant protection systems have integrated sophisticated electronic components with high-performance dependability. The market for safety systems, such as occupant protection systems, has reached saturation due to ongoing research and development in safety technologies and rising demand for safety. In addition, increased driver safety awareness and the growing influence of safety regulations enforced by the European Union and the U.S. Department of Transportation are expected to benefit the industry. Due to stringent regulations, automakers are compelled to implement the most modern sensor-based systems. In addition, the criteria for electronic safety systems in the automobile industry are becoming more stringent.

Regional Analysis

North America is the most significant global in-cabin automotive AI market shareholder and is anticipated to exhibit a CAGR of 42.49% during the forecast period. The demand for in-vehicle AI is expected to increase in this region due to consumers' preference for modern technologies that enhance comfort. Increasing investments in the automotive industry and rising consumer awareness of the vehicle's comfort and safety are also significant factors in the region's growing demand for in-vehicle artificial intelligence. In addition, Ambarella, ARM, Bitsensing Inc., Bosch (Robert Bosch GmbH), Caaresys, Denso Corporation, Edgetensor Technologies Inc., and Eyeris are prominent manufacturers and suppliers in North America.

Europe is projected to exhibit a CAGR of 47.89% over the forecast period. The government's growing concern for road safety has fueled the market's growth for in-car artificial intelligence components. In addition, Euro NCAP announced that five-star safety ratings are required for driver monitoring systems. The European General Safety Regulation mandates driver monitoring technology in all new cars, vans, trucks, and buses beginning in 2024. In addition, European motorists are more concerned with the safety of the driver and passengers. According to a study conducted by the European Commission, driver inattention is the likely cause of 10 to 30 percent of annual road accidents in Europe, creating market opportunities for in-cabin automotive AI applications.

Key Highlights

• The global in-cabin automotive AI market was valued at USD 112.39 million in 2022. It is estimated to reach USD 3,215.04 million by 2031, growing at a CAGR of 45.21% during the forecast period (2023–2031).
• Based on product type, the global in-cabin automotive AI market is divided into radar, camera, smart sensor, and voice assistant. The camera segment is responsible for the most significant market share and is expected to exhibit a CAGR of 46.73% over the forecast period.
• Based on application, the global in-cabin automotive AI market is segmented into the occupant monitoring system, driver monitoring system, conversation assistance, and smart HVAC. The driver monitoring system segment owns the highest market share and is estimated to exhibit a CAGR of 43.74% during the forecast period.
• North America is the most significant global in-cabin automotive AI market shareholder and is anticipated to exhibit a CAGR of 42.49% during the forecast period.

Competitive Players

Competitive Players

The key global in-cabin automotive AI market players are Visteon Corporation, Eyeris, Seeing Machines Limited, Ambarella, Eyesight Technologies (Cipia), Valeo, Robert Bosch GmbH, Faurecia, Hyundai Mobis, Denso Corporation, ZF Friedrichshafen AG, Aptiv plc, QUALCOMM Incorporated, NXP Semiconductors N.V., and Renesas Electronics Corporation.

Recent Developments

Market News

• In March 2023, Cipia, an AI computer vision in-cabin automotive consulting firm, announced a new Tier 1 design win for Chinese automaker Chery. The two new Chery models will be equipped with Cipia's Driver Sense driver monitoring system (DMS), which will be integrated into the vehicles' In-Vehicle Infotainment (IVI) system and powered by a Qualcomm SOC.

• In March 2023, Smart Eye, the global leader in AI for Human Insight, partnered with Texas Instruments (TI). The companies' technologies collaborate to provide automakers with an innovative interior sensing solution that enhances driver safety and enables enhanced comfort, wellness, and entertainment in the cabin.

Segmentation

Global In-Cabin Automotive AI Market: Segmentation

By Product Type

• Radar
• Camera
• Voice Assistance
• Smart Sensor

By Applications

• Occupant Monitoring System
• Driver Monitoring System
• Conversation Assistance
• Smart HVAC

By Regions

• North America
• Europe
• The U.K.
• China
• Asia-Pacific and Japan
• The Middle East and Africa
• South America