Vehicle Intelligence System Market

Vehicle Intelligence System Market Size (2023-2028):

The Global Vehicle Intelligence System Market was worth US$ 28 billion in 2022 and is anticipated to reach a valuation of US$ 58 billion by 2028 and is predicted to register a CAGR of 13% during 2023-2028.

Market Overview:

A vehicle intelligence system is a system that uses a combination of sensors, software, and artificial intelligence to improve the safety and performance of vehicles. Automobile manufacturers use a system to help the driver with lane departure warnings, adaptive cruise control, and automatic emergency braking. These smart features are very useful in critical situations like climbing a hill or while off-roading. Companies like Volvo and Tesla are the pioneers in implementing this system in their cars. Tesla has leveled up the technology with an autopilot feature in their cars, where a driver is not required to control a vehicle.

Market Drivers:

Growing demand for ADAS in the market: The increasing demand for advanced driver assistance systems (ADAS) is one of the prominent driving factors for the vehicle intelligence system market growth. ADAS systems are designed to help drivers avoid accidents and improve their overall experience of driving. They can be helpful in a variety of situations, like lane departure warnings, adaptive cruise control, and automatic emergency braking.

Increasing road safety awareness among citizens and governments: Consumers are demanding vehicles that are safest in the segment, and also governments all over the world are implementing strict laws for auto manufacturers to produce cars with passengers' safety being the first priority. 

Decreasing prices of the ADAS system; With technological advancements in the auto sector, the prices of ADAS systems are decreasing, and thus, manufacturers can provide improved technology at reasonable prices. 

Increased fuel efficiency: The vehicle intelligence system reduces the fuel consumption of a vehicle and also improves the performance of the vehicle. This acts as a driver for the vehicle intelligence system market., Hence, growing demand for ADAS among users, rising awareness about passenger safety, reduction in the price of ADAS, and increased fuel efficiency due to the implementation of vehicle intelligence systems are the major factors that led the vehicle intelligence system market towards growth.

Market Restraints:

Concerns about data privacy among users: Vehicle intelligence systems collect a vast amount of data about drivers and their surroundings. This data could be used to track drivers' movements, target them with advertising, or even be used for insurance purposes. This raises concerns about privacy, as drivers may not want their personal information to be shared without their consent. The location of the vehicle, cameras mounted in the vehicle, the gyroscope sensor in the vehicle, and the speed of the vehicle can be accessed, which is limiting the vehicle intelligence system market shares. 

Uncertainty about regulation: The regulating bodies are still working on the protocol for the usage of vehicle intelligence systems, and the authoritative regulations are still evolving in many countries; thus, it is difficult for manufacturers to implement these features in their cars. This uncertainty in regulations is likely to limit market demand. 

Vehicle intelligence systems are complex pieces of technology. This means that they are made up of many different components, such as sensors, software, and hardware. These components must all work together in order for the vehicle intelligence system to function properly. This can make it difficult to develop and deploy, as there are many potential points of failure. Like, damage due to physical damage or use in extreme conditions.

Market Opportunities:

The rising popularity of self-driven or autonomous vehicles is acting like a big opportunity for the vehicle intelligence system market. These are vehicles that use sensors and software that help the vehicle sense and analyze the road condition and traffic and navigate the vehicle on the road while avoiding the obstacles like dividers, signals, and other vehicles. Tesla is the brand that has popularized the concept of self-driving cars and named it Auto- piolet developed a system tailor-made for its cars.

As advancements in computing are occurring rapidly, the shares of the vehicle intelligence system market are also growing. More sophisticated software can be installed, which allows the vehicles to perform complex tasks like path planning and recognition and differentiation between objects.

Sensor technology is advancing rapidly, making it possible to develop more sophisticated vehicle intelligence systems and associated functions to simplify usage. For instance, Lidar sensors are now being used in vehicles as it has become more affordable and reliable than ever before, and thus their usage will increase. A lidar sensor is basically a sensor that uses light to measure distance. These sensors are very useful in avoiding accidents and detection of objects in the surrounding. 

Nowadays, people give preference to features like Advanced driver assistance systems (ADAS) rather than just the power and torque of the vehicle. The inclining interest of consumers toward safety features helps the vehicle intelligence system market to grow its market share and expand its consumer base.

VEHICLE INTELLIGENCE SYSTEM MARKET REPORT COVERAGE:

Market Segmentation:

Vehicle Intelligence System Market - By Type:

• (RTS) Road Tracking System
• (RSD) Road Sign Detection System
• (NVS) Night Vision System

The (RSD) Road Sign Detection System is leading the vehicle intelligence system market with around 35% of the share. The RTS system uses cameras and lidar sensors to analyze the traffic conditions around. The ADAS has applications of RSD in it. The stop signals and all kinds of sign boards are components of the RSD system.

The (RTS) Road Tracking system is holding second place in the vehicle intelligence system market with a 25% market share. It is used to navigate the road directions. It is also capable of showing turn-by-turn navigation.

The (NVS) Night Vision System has the lowest market share of the other counterparts in the list. NVS holds only 20% market share of the total market. NVS is used for visibility at night times.

Vehicle Intelligence System Market - By Application:

• Commercial vehicle 
• Passenger vehicle

Commercial vehicles are leading the vehicle intelligence system market with a 60% market share currently. The market share is expected to reach up to 65% at the end of the period forecast. Commercial vehicles need to face more extreme conditions as compared to passenger vehicles. 

The major usage of passenger vehicles is restricted to urban usage only, and thus, passenger vehicles have a lower market share than commercial vehicles in the vehicle intelligence system market. At present, the market share of passenger vehicles is around 40%, and the growth rate is also expected to remain low till the forecast period.

Vehicle Intelligence System Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Asia Pacific region is leading the vehicle intelligence system market with 45% of the market share. The demand for safety features in a car is increasing in the region, and governments are supporting the development of the market. Major auto giants like Toyota and Honda are operating in the region, which is one of the biggest reasons for the growth. However, the major part of the market in the region is captured by small and medium cars.

North America is next to Asia Pacific in leading with the dominant shares of the market due to the increasing popularity of luxury and electric cars.

In Europe, people’s preference has been increasing for using vehicles equipped with ADAS. The European region holds the third position in the vehicle intelligence system market.

COVID-19 Impact on the vehicle intelligence system market:

The COVID-19 pandemic had a positive impact on the market share of the vehicle intelligence system market, as the shares have grown many times after the COVID-19 outbreak. A vehicle compatible with smart features can help to reduce human contact, and thus consumers prefer these vehicles., Due to the pandemic, the global supply chain got disrupted completely, and the supply of raw materials was reduced. Also, the shipment of finished goods was at a halt., Along with that, all the classes of the economy were facing financial distress, which affected the market share of the vehicle intelligence system market growth., Though the vehicle intelligence system market faced a decline during the pandemic, in the post-pandemic era, growth has been prominent in the vehicle intelligence system market.

Market Key Players:

1. Continental
2. Delphi
3. Mobileye
4. Intel
5. Nvidia
6. Tesla
7. Bosch

Market Key Developments:

• Bosch invests $1 billion in artificial intelligence-based ADAS systems.
• Intel and Mobileye announced in March 2023 that they would merge in an all-stock deal valued at $15.3 billion.