AI in Automotive Manufacturing Market Emerging Trends by 2034

AI in Automotive Manufacturing Market Innovations and Key Players

The AI in Automotive Manufacturing Market is set for significant expansion between 2025 and 2034, driven by rapid technological advancements, increasing automation, and the need for improved efficiency and cost reduction in vehicle production. AI-powered solutions, including machine learning, computer vision, predictive maintenance, and robotics, are revolutionizing the manufacturing landscape by optimizing production lines, enhancing quality control, and reducing downtime.

Introduction

The AI in automotive manufacturing market is a prominent branch of the automotive industry. This industry deals in developing AI-based platforms for enhancing the efficiency in the automotive sector. The automotive manufacturing companies are investing heavily in advanced technologies such as AI, IoT, blockchain and some others to gain a competitive edge in the industry. AI has been integrated in automotive production facilities to improve quality, efficiency of workers and safety. Also, AI-enabled platform helps in analyzing data for identifying consumer preferences and design personalized in-car experiences. Moreover, AI-driven automation and robotics optimize assembly lines and helps in reducing human error. Furthermore, AI helps in improving supply chain management and predictive maintenance needs in the automotive industry. The growing developments in the electric vehicle industry is expected to boost the growth of this market. This market is projected to rise significantly with the growth of the AI industry across the automotive world.

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According to the India Brand Equity Foundation, the global EV market was valued at US$ 250 billion in 2021 that is projected to reach US$ 1318 billion in 2028.

Highlights of the AI in Automotive Manufacturing Market

• Asia Pacific held the highest share of the automotive manufacturing market due to the presence of several automotive brands such as Toyota, Hyundai, Kia, Tata, Mazda and some others.
• North America is projected to grow with a significant CAGR due to the increasing demand for EVs along with technological advancements in automotive sector.
• Europe held a notable share of market due to the rising investment by automotive companies for adopting advanced technologies such as AI, IoT and some others.
• The Middle East and Africa held a considerable share of the market due to the growing development in automotive sector along with advancements in AI technology in this region.

AI in Automotive Manufacturing: Trends & Insights

• The AI companies are developing advanced tools for enhancing the designing of automotives along with improving the efficiency of workers in the manufacturing plant. For instance, in June 2024, Matador AI launched an AI-enabled platform for automotive designing. This platform helps in providing cutting-edge AI technologies to automotive dealerships across Canada.
• The automotive brands are investing heavily for developing AI-based platforms to enhance the vehicle designing process and other processes in manufacturing plants. For instance, in June 2023, The Toyota Research Institute (TRI) launched a new generative AI tool. This tool is developed for automobile engineers to facilitate automotive designing.
• According to the Invest India, around 54% of the Indian automotive companies have integrated AI for enhancing their operational capabilities.
• According to a report by McKinsey, AI-based platforms can help in reducing forecasting errors by 30% to 50% in the automotive industry.

Industry Leader Announcement

In January 2024, Michael Zacharski, the CEO of BEN made an announcement stating that, “We are committed to delivering AI solutions that improve customer experience, productivity and results for the automotive vertical, BEN is thrilled to deliver these unique AI Assistants, in collaboration with AFG and their expertise servicing 1000+ car dealerships, with the launch of BENAuto. Our goal is to support customer-facing automotive business and operational teams. For dealers, we enhance customer service and vehicle maintenance through our proprietary AI solutions. By pushing and pulling relevant data in and out of dealer systems, we empower our AI Assistants to reduce repetitive manual processes, augment key functions and complete tasks.”

Competitive Landscape

The AI in automotive manufacturing market is a developing industry with the presence of numerous dominant players. Some of the important market players in this industry consists of Monolith AI, Tata Elxsi, Nvidia, Intel, Cognizant, IBM, Cadence, and some others. These market players are constantly engaged in developing advanced AI-platforms to sustain their position in this highly competitive industry.

• According to the annual report of Cadence, the revenue of services segment in 2022 was US$ 53997 thousand that increased to US$ 86636 thousand in 2023.