Market Trends Influencing the Growth of the In-Cabin Automotive AI Market

12 Aug 2021

Artificial intelligence (AI) systems continue to take over exciting new responsibilities that simplify and improve the driving experience. Automotive companies are seeing AI as a new model for increasing their profitability margins.

In-car experiences comprise the complete user experience, including the driver and all passengers, with the goal of improving the total in-cabin experience. This might include AI applications in intelligent driver assistance programs that improve safety or infotainment systems that can give instructions to the driver while providing content recommendations to passengers in the backseat.

Recently, in July 2021 Mercedes Benz partnered with Endel to develop a next-level experience to ensure that drivers stay calm and alert while on the road. This is likely to help control the road rage that can often be witnessed due to high stress levels in individuals. The AI technology developed by Endel is based on neuroscience and psychoacoustic findings that are being widely used, especially in collaborations of Grimes with Warner Music.

According to the recently published market intelligence on the in-cabin automotive AI market by BIS Research, the market is expected to reach $503.2 million by 2026. The market is expected to grow at a CAGR of 45.41% during the forecast period 2020-2026.

The market growth can be attributed to factors, including rising demand for the autonomous vehicle, increasing concerns of passenger and pedestrian safety, thereby fueling the demand for in-cabin automotive AI, and the rising demand for customized consumer experience.

The in-cabin automotive AI market is influenced by trends that can impact the growth of the market. These trends include:

  • Next-Generation In-Cabin Automotive AI: Advances in the in-cabin and out-of-car experience at all levels are important, particularly with respect to improving the customer experience and offering fast wins to companies looking to scale. This experience can be in the form of driver and passenger monitoring systems that can help drivers in paying attention to the road and are capable of safely driving the car. Predictive maintenance is also a part of this, as it helps in obtaining data using technologies to "predict" potential flaws in a device or piece of equipment before it breaks.
  • Growing Trend for Digital Cockpit: The digital cockpit of a vehicle allows for smooth communication between the automobile and other devices. In a digital cockpit system, driver safety and support are regarded to be of utmost importance. A digital cockpit consists of a high-end in-vehicle infotainment system, digital instrument cluster, heads-up display unit (HUD), Advanced driver-assistance systems (ADAS), and heating ventilation and air conditioning system (HVAC).

In-cabin sensing solutions support ADAS by collecting valuable information about the driver and the passengers. The objective is to personalize the in-cabin environment, various safety structures, and entertainment options in accordance with the real-time needs of the passengers. It is important to monitor what is going on inside the vehicle in order to enhance the experience of the driver.


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