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The Artificial Intelligence (AI) in automotive market is anticipated to record a robust CAGR of 55% between 2023 and 2033. The market is anticipated to cross a market share of US$ 9.3 billion in 2023, while it is expected to be valued at US$ 744.39 billion by 2033.

Advanced vehicles with self-driving and fully autonomous transmissions are in high demand. Hence, the AI-integration vendors are working on personalized solutions, fueling the demand for Artificial Intelligence (AI) in automotive.
The rising demand for EVs and hybrid vehicles is followed by the integration of AI units, as they enhance the operational capability, deliver ease, and protect the vehicle through systems like parks-guided systems.
The Advanced Driver Assistance Systems (ADAS), level 2, is getting popular among automotive enthusiasts, which further extends the research and development of ADAS integration.
The new car builders are delivering OEM-based AI chips that work on different functions of a vehicle. From AC, lights, and cruise control to guided parking and autonomous driving systems, AI supports each component.
The restoration of the automotive industry, coupled with the high-end AI and machine learning set-up, is fueling the demand for Artificial Intelligence (AI) in automotive. Advanced automatic emergency braking is regulated through AI chips.
The passive and active safety systems are specially designed to prevent human error while operating vehicles.
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Key Points

The United States market is another significant market. The market growth is attributed to the presence of EV giants like Tesla, which delivers advanced AI and ML integration. The increased acceptance of autonomous and self-driving vehicles is fueling the sales of AI in the automotive
Artificial intelligence (AI) in the automotive market in China is another significant market. The growth is attributed to the expanded manufacturing units, high-end research, and advanced experimentation.
Europe with its environmental compliance adopts EVs and Hybrid Vehicles, which further fuels the demand for AI-integration prospects.
The software segment is likely to thrive in the component category due to the common application and automotive implementation. It is expected to hold a value of US$ 200 billion by 2033.
The fully autonomous segment tops the application category with an anticipated value of US$ 30 billion by 2033. The growth is attributed to the advent of self-driving assistance systems.
For more insights: https://www.futuremarketinsigh....ts.com/reports/artif
Competitive Landscape

The key competitors focus on inclusivity, while adding sensors and smart software to enhance the guided systems. Companies follow the artificial intelligence innovation with the key competitors and merge, acquire, and partner with other companies to increase the network range, connectivity, supply chain, and distribution channel. The key players in the market are: BMW AG, AUDI AG, Intel Corporation, Tesla Inc, Uber Technologies, Volvo Car Corporation, Honda Motors, Ford Motor Company, NVIDIA Corporation, and Tencent

Recent Market Developments

Ford Motor Co is the leading patent filer when it comes to the neural network for radar-LiDAR. The company operates with Baidu in China to implement AI technology in automotive.
A technology company, Aptiv is promoting enhanced automated vehicles that are loaded with AI-based sensors, cameras, and other components.

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The global Automotive Engineering Services Market in 2022 was US$ 1.46 Billion and is estimated to be US$ 1.6 Billion in 2023. According to FMI, reports mentioned that the automotive engineering services market will expand at a CAGR of 7.17% between 2023 and 2033, totaling around US$ 3.2 Billion by 2033.

An increase in awareness and demand for technological solutions including connectivity, and collision avoidance sensors among others in automotive is driving the growth of the market. Rise in requirements for lightweight vehicles as governments and manufacturers are mainly focusing on the designs and development of lightweight vehicles for making more fuel-efficient vehicles.

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https://www.futuremarketinsigh....ts.com/reports/sampl

The increase in the requirements for safety-related systems because of government regulations is the major factor driving the automotive engineering services market. The growth in adoption of electric and hybrid vehicles is raising the production of these vehicles which is henceforth anticipated to propel the growth of the market over the forecast period.

Key Takeaways from the Market Study

The global automotive engineering services market expanded at a CAGR of 6.42% between 2018 and 2022.
India is forecasted to develop a 6.8% CAGR from 2023 to 2033.
China is anticipated to expand at a CAGR of 7.2% from 2023 to 2033.
North America has captured a market share of 43.2% in 2022.
European market bolstered at a market share of 48.2% in 2022.
Under the service segment, prototypes were registered at a market share of 56.2% in 2022.
“Demand for advanced and autonomous connectivity features is influencing innovation intensely and is one of the major key drivers of the automotive engineering services market”, commented a Future Market Insights analyst.

For more info: https://www.futuremarketinsigh....ts.com/reports/autom

Market Competition

Companies aim to develop cutting-edge solutions during the entire life cycle of a product, from the design and inception phase to the end of its service life. They also strategically locate their main factories in emerging markets to make it ideal to service the developing markets.

Key companies profiled in the Automotive Engineering Services Market

FEV Group GmbH
IAV
Ricardo
AVL
ALTEN Group
Bertrandt
ALTRAN
L&T Technology
Capgemini Service SAS
T-NET JAPAN Co., Ltd.
DesignTech Systems.
Tech Mahindra Limited
EDAG Engineering GmbH
Horiba, Ltd.
Some of the new developments in the automotive engineering services market are:

In May 2023, Tech Mahindra inaugurated Technology Development Center in Oman.
In August 2023, Temasek is planning to invest 12 billion rupees ($145 million) in Mahindra & Mahindra Ltd.'s electric vehicle unit, valuing it at US$ 9.8 billion.

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