Global Vehicle Intelligence Systems Market - 2023-2030

Overview

Global Vehicle Intelligence Systems Market reached US$ 8.5 billion in 2022 and is expected to reach US$ 23.2 billion by 2030, growing with a CAGR of 12.3% during the forecast period 2023-2030.

One of the major growth factors is the emphasis on safety. Adoption of advanced driver assistance like lane departure warning, automatic emergency braking and pedestrian detection using AI and sensor technologies that prevent from accidents and reduce fatalities. Various companies began investing in manufacturing self-driven cars that navigate without human intervention.

The rise in adoption of IoT has led to an increase in vehicle connectivity which enables vehicles to communicate through sensors in which there is vehicle-to-vehicle connectivity and vehicle-to-infrastructure connectivity. As the connectivity will improve traffic management and collision avoidance and improve overall efficiency. According to the report by Siemens, there is less than 15% of average traffic through the intersection and there is ease of traffic density.

During forecast period, North America is expected to be the dominant region in the global vehicle intelligence systems market covering more than 1/3rd of the market. The region has a rise of connected vehicles and Vehicle-to-Everything communication systems that enable vehicles to exchange information with other vehicles, infrastructure, pedestrians and traffic management systems and his connectivity improves traffic flow, reduces accidents and enhances overall road safety.

Dynamics

Adoption of Advanced Technologies by Government

Governments often implement safety regulations and standards for vehicles, including those equipped with intelligence and automation technologies and these regulations ensure that vehicle intelligence systems components, such as collision avoidance systems, automated braking and lane departure warning systems, meet specific safety criteria to reduce accidents and improve road safety.

For instance, on 15 April 2022, the Ministry of Electronics and Information Technology in India launched three innovative products as part of the Intelligent Transportation System Endeavor for Indian Cities Phase-II initiative and these products were developed through a collaboration between the Centre for Development of Advanced Computing, the Indian Institute of Technology Madras and industrial collaborator Mahindra and Mahindra.

The system incorporates vehicle-borne sensors to monitor the driver's behavior and vehicle surroundings. It delivers visual and acoustic alerts for driver assistance by interpreting sensor data in real-time, enhancing road safety.

Collaboration and Partnership Between Companies

Vehicle Intelligence Systems often require a combination of software, hardware and specialized expertise to create comprehensive solutions. Collaborating with different companies allows for the integration of various components and technologies to deliver complete and robust intelligence systems. Collaboration enables the creation of customized solutions by leveraging the strengths of different partners.

As part of a new worldwide collaboration, Waymo and the Volvo Cars Group decided to collaborate on the production of a self-driving electric vehicle for ride-hailing in June 2020. Waymo will focus on artificial intelligence and particular technology, like as cameras, lidar and radar, for the self-driving "driver." Volvo will design and build the vehicles.

Technology Advancement

The development of autonomous driving technology is a major driver of vehicle intelligence systems growth. Companies are working on levels of automation ranging from driver assistance to full self-driving vehicles. Autonomous vehicles require a sophisticated combination of sensors, AI algorithms and precise mapping technology. Cloud computing software allows vehicles to access and process data from the cloud, enabling services like remote diagnostics and software updates.

For instance, on 16 August 2023, connected vehicle platform company Sibros partnered with embedded systems provider iWave Systems to accelerate software-defined vehicle innovation for various vehicle architectures. Sibros' over-the-air platform will be integrated into iWave's Rugged Telematics Device to enable embedded intelligence in automotive, industrial, off-road and heavy-duty vehicles.

Malfunction and Complex Manufacturing

Vehicle intelligence systems heavily rely on software, sensors and communication networks. Any malfunction or failure in these components could lead to safety risks, accidents or system errors. Ensuring the reliability and safety of these intelligence systems is a critical challenge. As vehicles become more connected and reliant on software, they become susceptible to cybersecurity threats. Hackers potentially gain unauthorized access to vehicle systems, leading to risks of safety and privacy.

Implementing vehicle intelligence systems requires intricate systems, including sensors, processors and communication infrastructure and this complexity can lead to higher manufacturing and maintenance costs, which might deter widespread adoption. Many vehicle intelligence systems functionalities, such as V2X communication, depend on robust infrastructure like smart roads and communication networks. The lack of such infrastructure can hinder the full potential of these systems.

Segment Analysis

The global vehicle intelligence systems market is segmented based component, advanced driver assistance and driver monitoring systems, road scene understanding, Vehicle and region.

Adoption of Sensors for Navigation Purposes

During the forecast period, sensors are expected to hold majority of the global market share holding around 30.3% of the market. Sensors contribute majorly to vehicle safety by enabling real-time data access and the implementation of ADAS that use sensors to detect objects, pedestrians and other vehicles. It is also utilized to give a 360-degree view of the surroundings of the car, helping drivers to make better decisions.

On 24 February 2023, Mercedes-Benz and Google announced a partnership that will enhance its vehicle with advanced features and software systems. It also plans to integrate "supercomputers" into its vehicles. Mercedes-Benz partnered with Google for navigation services. Google Maps will be integrated into Mercedes-branded navigation systems, offering drivers real-time traffic information, automatic rerouting and the ability to access Level 3 autonomous driving mode.

Geographical Penetration

Rising Demand for Optimizing Traffic Flow and Collaborations in Asia-Pacific

Asia-Pacific is the fastest growing region in the global vehicle intelligence systems market covering about 1/4th of the market. The region is undergoing rapid urbanization and increasing traffic congestion and these features have a strong demand for vehicle intelligence system technology that optimizes traffic flow, improved road safety and it enhances overall transportation efficiency.

Automotive manufacturers, technology companies and startups are forming partnerships and collaborations that accelerate the development and deployment of intelligence systems. For instance, on 7 August 2023, Great Wall Motor, China's largest sport-utility vehicle assembler, partnered with Baidu, a search and AI giant, to integrate Baidu's AI-powered chatbot tool called Ernie Bot into its vehicles and this partnership aims to enhance the conversation and interaction between drivers and their vehicles.

Competitive Landscape

The major global players in the market include: Continental AG, Denso Corporation, Delphi Automotive, Robert Bosch GmbH, Autoliv Inc., Mobileye, Intel, Nvidia, Tesla and BMW AG.

COVID-19 Impact Analysis

The pandemic disrupted global supply chains, leading to shortages of components and parts needed for manufacturing vehicle intelligence systems and this resulted in delays in production and slowed down the rollout of new vehicles with advanced technologies. Many companies faced challenges in conducting research and development activities due to lockdowns, travel restrictions and remote work arrangements and this could have delayed the progress of new technologies and innovations in vehicle intelligence systems.

The pandemic hindered the ability to conduct real-world testing and validation of vehicle intelligence systems. Restrictions on movement and social distancing measures impacted the collection of data needed to refine and improve these systems. The pandemic led to fluctuations in market demand for vehicles. Economic uncertainty and changing consumer preferences impacted the adoption of advanced technologies, including vehicle intelligence systems.

Some companies temporarily shifted their focus from developing new technologies to addressing immediate challenges posed by the pandemic and this could have redirected resources away from the advancement of vehicle intelligence systems. Remote work arrangements affected collaboration among teams working on vehicle intelligence systems. Developing and integrating complex technologies requires close coordination, which could have been challenging in a remote work environment.

AI Impact

AI is a core technology in enabling autonomous driving capabilities. AI-powered intelligence systems, like computer vision and sensor fusion, allows vehicles to understand and interpret their surroundings. Machine learning algorithms help vehicles make real-time decisions based on complex data inputs from cameras, lidars, radars and other sensors. AI algorithms lead to analyze data from sensors and cameras to provide features like adaptive cruise control, lane-keeping assistance and parking assistance.

AI can analyze data from various vehicle sensors to predict and identify potential mechanical issues before they lead to breakdowns and this predictive maintenance approach reduces downtime, increases vehicle longevity and improves overall operational efficiency. AI-powered NLP enables voice recognition and natural language understanding in vehicles. Drivers and passengers can interact with infotainment systems, navigation and other features using voice commands, making the in-car experience more intuitive and hands-free.

For instance, on 21 August 2023, UAE-based electric car manufacturer NWTN introduced the Rabdan Muse, a luxury smart passenger vehicle, featuring advanced technology suitable for both business and family travel. Unveiled at the Pebble Beach Concours d'Elegance in California, the Muse offers autonomous driving capabilities, AI integration and personalized lifestyle features.

Russia- Ukraine War Impact

The conflict may disrupt supply chains that provide critical components and materials for VIS manufacturing and this could lead to shortages and delays in production, affecting the availability of vehicles equipped with advanced intelligence systems. Companies in the region directly affected by the conflict may face challenges in conducting research and development activities. Resources that would have been allocated to innovation and technology advancement could be diverted to address more immediate concerns related to the conflict.

The geopolitical tensions and economic instability resulting from the conflict could create uncertainty in the market and this uncertainty might impact consumer demand for vehicles and their associated technology, including VIS. Governments and industries in the affected regions might need to prioritize resources for national security and recovery efforts and this could result in reduced investments and attention allocated to the development and deployment of VIS.

By Component

• Sensor
• Analog ICs
• Processor
• Memory

By Advanced Driver Assistance and Driver Monitoring Systems

• Adaptive Cruise Control System
• Blind Spot Detection System
• Park Assist System
• Traffic Jam Assit Systems
• Drowsiness Monitoring

By Road Scene Understanding

• Road/Lane Tracking System
• Road Sign Detection System
• Night Vision System
• Pedestrian Detection System

By Vehicle

• Passenger Cars
• Commercial Vehicles

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• On 12 April 2023, BYD, a prominent global manufacturer of new energy vehicles introduced its first self-developed intelligent body control system, known as the DiSus Intelligent Body Control System and this system represents a significant milestone for BYD, solidifying its pioneering position in the industry.
• On 28 June 2023, ZTE Corporation and Tianyi Transportation Technology unveiled the industry's first 5G+ intelligent connected vehicle system with Vehicle-Road-Cloud integration at the Mobile World Congress Shanghai 2023 and this collaboration aims to enhance the capabilities of autonomous driving through comprehensive whole-road perception and collaborative decision-making.
• On 4 July 2023, Antolin is spearheading the GENIUS project, an innovative venture in Artificial Intelligence aimed at enhancing the user experience during journeys. the GENIUS project will employ sensors within the vehicle cabin, connected to intelligent systems, to interpret users' cognitive and emotional states.

Why Purchase the Report?

• To visualize the global vehicle intelligence systems market segmentation based on component, advanced driver assistance and driver monitoring systems, road scene understanding, vehicle and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of vehicle intelligence systems market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global vehicle intelligence systems market report would provide approximately 69 tables, 70 figures and 206 pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies