V2M Report

2 Driving Innovation: The Imperative for Automotive Companies to Embrace AI
INTRODUCTION & KEY FINDINGS

Welcome to our comprehensive report on the evolving landscape of Artificial Intelligence (AI) in the automotive
sector. This report provides an in-depth analysis of the various dimensions of AI implementation and its profound
impact on the automotive industry. Divided into five sections, each containing detailed subsections, we explore the
current state and future trends of AI technology adoption in the automotive sector. From the maturing landscape of AI
technology implementation to the anticipated market growth and the strategic responses of industry players, this
report offers valuable insights into the transformative role of AI in shaping the future of automotive technology. Join
us as we navigate through the intricate intersection of artificial intelligence and the automotive industry, uncovering
key trends, challenges, and opportunities along the way.
AI Adoption Accelerates: Automotive Sector Embraces New

Frontiers
The automotive industry is witnessing a transformative shift as it

rapidly embraces artificial intelligence (AI) technology. Once
considered a late adopter in the realm of AI adoption, the automotive
sector is now emerging as a one of the active sector in integrating AI
across various facets of its operations. From optimizing manufacturing
processes and streamlining supply chains to enabling autonomous
driving capabilities and advanced driver assistance systems, the
industry is harnessing the power of AI to drive innovation and
efficiency. This key finding underscores the significant potential that
lies ahead as automotive companies increasingly leverage AI to
navigate the evolving landscape of the automotive industry.
Rapid Growth Projected: AI's Ascendancy in the Automotive

Software Market
The automotive software market is poised for substantial growth,

with projections indicating an increase from $34 billion in 2020 to a
significant Compound Annual Growth Rate (CAGR) of approximately
9% by 2030. While AI's presence in the automotive software sector
was limited in 2020, forecasts suggest a transformative 29,2% CAGR
trajectory, it is expected on condition that both the Automotive
Software and AI in Automotive markets continue their upward trend
at the projected CAGR, AI is expected to surpass traditional
automotive software by 2033. This key finding highlights the
accelerating influence of AI within the automotive software landscape
and underscores its potential to reshape the industry in the coming
years.
Staying Ahead: Key Players' Imperative to Embrace

Emerging Technologies
The automotive landscape is evolving rapidly, with emerging

technologies such as AI reshaping industry dynamics. Automotive
players must adopt a proactive approach to seek out and integrate
these technologies, rather than relying solely on the innovations of
competitors. Market expectations for automotive technology are
soaring, yet production growth may not align, and pricing sensitivity is
on the rise. Therefore, OEMs face a critical imperative to integrate
new technologies to maintain market relevance. Failure to do so risks
jeopardizing their position in the competitive landscape, as
competitors aggressively pursue technological advancements to
secure their foothold in the market. This key finding underscores the
importance of players embracing emerging technologies to stay
ahead in an increasingly competitive automotive industry.
CONTENTS
Artificial Intelligence in the Automotive Sector
AI Technology Implementation Maturity: Automotive Sector Climbs as AI New Adopters 6
Automotive AI Technology Market Size is Expected to Grow Significantly
Increasing Impact: Artificial Intelligence on Car Design and Production 7
AI-Driven Efficiency: Enhancing Automotive Supply Chain Streamlining
Artificial Intelligence Revolutionizes the Future of Driving Support Systems 8
Artificial Intelligence Is Paving The Way For Advancements In Predictive Maintenance and
Malfunction Diagnosis.
Investigating the Trends of AI in Automotive Technology

Artificial Intelligence Is Expected to Dominates the Automotive Software Market by 2033 10
AI's Significance Across Future Automotive SoftwareDomains 11
AI Automotive Competition: Aligning with Customer Expectations for Affordability and 12
Market Price Sensitivity
Preference In choosing ICE Vehicles is Rebounding: Consumer Concerns on Affordability
Continue to Weigh Heavily on Forward Intentions
Strategic Adaptation and Industry Response

Emergence of Startups Fueling Automotive Technology Innovation 15
Charting the Course: Automotive Alliances Between Tech Companies
Innovating Together: OEMs and Startups Redefine Automotive Progress 16
Upcoming Automotive Technology Breakthroughs

Predictive Maintenance: Revolutionizing Vehicle Service and Reliability 18
Unlocking Stakeholder Benefits: Automotive AI Predictive Maintenance
Leading Players in Automotive Predictive Maintenance Technology 19
Advancing Car Architecture: Embracing Future Automotive Technologies
Unlocking Efficiency: The Benefits of Centralized Vehicle Architecture 20
Charting the Course: Projecting Automotive Sensor and Architecture Growth Amid
Predicted Sales Evolution
Strategies for Success in the Rapidly Evolving Automotive Technology

Landscape
Automotive OEMs 22
Tier 1 Suppliers & Tier 2 Suppliers 23
Navigating the Shifting Automotive Landscape: Key Steps for All Players 24
Contacts and Authors 26

Artificial Intelligence in the Automotive Sector
We delve into the current landscape and future prospects of AI

implementation in the automotive industry. Through a series of subsections,
we explore the growing maturity of AI technology adoption, the anticipated
market expansion, and the profound impact of AI on various aspects of car
design, production, and maintenance. Navigate through the transformative role
of artificial intelligence in shaping the future of the automotive sector.
The automotive industry is currently facing a significant technological transformation due to the rapid integration of
artificial intelligence (AI), marking a new era of progress and evolution. However, according to FutureBridge's analysis,
the maturity of AI technology in automotive industry still in its early phase which categorised between “Beginners”
and "New Adopters” group, behindhand other industries like Financial Services, ICT, Retail, and Healthcare.
Exhibit 1. AI Technology Implementation Maturity: Automotive Sector Climbs as AI New Adopters
High As AI continues to make its way into various

aspects of the automotive industry, it is evident
Financial Services that the landscape is shifting towards innovation
ICT
Matured Industries and efficiency like never before. The potential
applications of AI in this sector are vast and
promising, ranging from autonomous vehicles and
ytirutaM golonhceT IA
Life Science predictive maintenance to enhanced driver

Aspirational Industries
Healthcare Retail assistance systems and personalised in-car
experiences.
Industrial Machinery
Despite being categorised between "Beginners"
New Adopters
and "New Adopters" in the technological maturity
Automotives scale, the automotive industry is steadily advancing
towards greater integration of AI. Companies are
Oil & Gas
Chemicals
Beginners investing in research and development to harness
the power of machine learning, deep learning, and
natural language processing to drive
Agriculture
improvements in safety, performance, and
Food & Beverages Metals & Mining Strugglers
Low sustainability.
Source: FutureBridge Analysis and Insights.1
Exhibit 2. Automotive AI Technology Market Size is Expected to Grow Significantly
As technology continues to advance, the automotive

Automotive Artificial Intelligence (AI) Global Market Size (in billion U.S. dollars) industry is embracing the power of artificial intelligence
30
25.78
(AI) to revolutionise the driving experience. With the
25 Automotive AI Market already surpassing $4.29 billion in
19.95 2023, experts predict an impressive growth trajectory
20
15.44
ahead. Projections indicate that by 2030, this market is
15
11.95
expected to soar to a staggering $25.78 billion,
9.25 showcasing a remarkable compound annual growth rate
10
5.5
7.16
(CAGR) of 29.2% from 2024 to 2030. The integration of AI
5 4
in vehicles is not just a trend; it represents a shift towards
0
smarter, safer, and more efficient driving solutions for the
2024 2025 2026 2027 2028 2029 2030 future. From autonomous driving capabilities to enhanced
safety features, AI is steering the automotive industry
towards a new era of innovation and possibilities.
Source: Next Move Strategy Consulting Report.2
1. futurebridge.com, Article: “Artificial Intelligence Reshaping the Automotive Industry”

2. Move Strategy Consulting, Automotive Artificial Intelligence (AI) Market by Component (Hardware, Software, and Services), by Technology
(Machine Learning & Deep Learning, Computer Vision, and Natural Language Processing), and by Application (Semi-Autonomous and Fully
Autonomous) – Global Opportunity Analysis and Industry Forecast, 2024–2030
As AI continues to grow and lead the future outlook of the automotive technology, its various applications across the
industry are becoming increasingly prominent. From predictive maintenance to autonomous driving systems, AI is
revolutionizing how vehicles are designed, produced, and serviced. The growing demand for advanced features and
technologies in cars is driving innovation and competition among manufacturers, leading to the rapid adoption of AI-
driven solutions.
Increasing Impact: Artificial Intelligence on Car Design and Production
The automotive industry has undergone a significant change with the integration of artificial intelligence (AI) in car
design and manufacturing processes, leading to innovation and efficiency improvements.
In 2022, BMW employed AI to analyze decades of crash

test data, using machine learning to detect patterns and
reduce leg injuries utilizing crash test with 1,000
parameters involving 30,000 components hitting a wall at
60 mph (96.5 km/h) under varied conditions, with on board
1,300 sensors on the car at a sampling rate of 100 Hz per
second, 1.4 gigabytes of data per second were generated.
The analysis had succeeded significantly shortened the
development timeline, saving up to 50 percent of the usual
development time. 3
Porsche Digital, the subsidiary of the sports car

manufacturer headquartered in Stuttgart, is expanding its
product portfolio. The digital assistant 'Sounce' utilizes
preemptive detection to address production issues
promptly, avoiding faults from turning into costly future
repairs.4
Continental, a leader in automotive parts, has innovated

with an AI-driven virtual simulation tool. This advanced
system is capable of generating 5,000 miles worth of
vehicle testing data in just one hour. To put this in
perspective, achieving the same results through traditional
physical testing methods would typically take over 20
days.5
AI-Driven Efficiency: Enhancing Automotive Supply Chain Streamlining
As the automotive industry continues to evolve, the integration of Artificial Intelligence (AI) has become paramount in
optimizing operations. With the pressing challenges posed by labor shortages, AI solutions are proving to be
instrumental in boosting efficiency and curbing costs across the supply chain. Original Equipment Manufacturers
(OEMs) are at the forefront of this technological revolution, recognizing the potential of AI beyond production
processes. By harnessing the power of AI for strategic decision-making in logistics, OEMs are embarking on trials and
pilot projects that promise to reshape the future of the automotive supply chain. This innovative approach not only
streamlines operations but also paves the way for a more agile and responsive industry that is primed for continued
growth and sustainability. The synergy between AI and automotive supply chain sectors holds the key to unlocking
new levels of productivity and competitiveness in the market.
BMW and Skoda are the example of OEMs that have integrated
AI technology in logistics to improve efficiency. BMW used AI
to prevent empty container transportation, expanded AI use in
its value chain, and collaborated with NVIDIA to integrate AI
into small transport robots.6 Skoda utilized the Optikon AI
platform in 2020 to optimize pallet loading for maximum
capacity.7
3. monolithai.com, The Future of Engineering Crash Testing With BMW Group | AI for Automotive
4. porsche.com, Press Release: “Porsche Digital develops artificial intelligence for noise detection”
5. continental-automotive.com, Technology Trends -The CAEdge framework as a gamechanger
6. bmwgroup.com, Press Release: “BMW Group is making logistics robots faster and smarter”
7. automotivelogistics.media, Article: “Skoda uses AI application to optimise container usage”
Artificial Intelligence Revolutionizes the Future of Driving Support Systems
Al for
Safer Driving
Surround View
Cross
Traffic Signal traffic Blind Spot
Recognition Alert Detection
Sound Detection
Cruise Park Park

Emergency Park Assistance/
Control Assist Assist
Braking Surround View
Rear
Lane Cross Sound Detection Collision
Departure traffic
Warning
Long range radar Warning Alert
LIDAR Surround View
Camera
Ultrasound
Radar
Computer Hearing
Source: Markovate (edited).7
Artificial Intelligence (AI) has started revolutionizing road safety through advanced driving support systems. These
systems integrate cutting-edge sensor technologies such as Computer Hearing, LIDAR, radar, and high-resolution
cameras with sophisticated AI algorithms. By analyzing data from diverse sensors, AI enables crucial functionalities
like automatic emergency braking, lane-keeping assistance, and adaptive cruise control, ultimately reducing accidents
caused by human errors like distraction or misjudgment fostering a safer road environment for all.
With the constant evolution of AI, we can look forward to even more innovative features that will continue to make
our roads safer for everyone. The future of road safety is here, thanks to the power of Artificial Intelligence.
Artificial Intelligence is Paving the Way for Advancements in Predictive Maintenance and Malfunction
Diagnosis.
Rapid advancements in AI technology are revolutionizing the way predictive malfunction diagnosis is handled within
the automotive industry. By harnessing the power of sophisticated algorithms and machine learning, automotive
manufacturers are now able to predict potential issues before they escalate, ultimately enhancing safety standards,
optimizing maintenance schedules, and fostering a more sustainable approach to vehicle upkeep.
Hyundai Motor Co. asserts that it is the first automaker globally to create technology utilising
artificial intelligence (AI) and deep learning to identify and diagnose vehicle issues. Hyundai
intends to showcase the acoustic diagnosis system in all of its service centres in Korea, giving
local customers the opportunity to see AI scanning vehicles for malfunctions.8
Skoda Auto is currently developing AI-driven diagnostic tools for their vehicles. One of their
innovations is the Skoda Sound Analyser, an AI-powered application that identifies issues by
analyzing engine sounds. By capturing and converting the vehicle's running noises into a
spectrogram, this app visually represents the acoustic signals for accurate diagnosis.9
Ford has introduced an AI-driven predictive maintenance model that utilizes connected vehicle
data to anticipate potential vehicle breakdowns. Ford asserts that this model outperforms current
diagnostic systems by predicting 22% of failures, typically 10 days before they happen. By
leveraging this predictive maintenance solution, Ford has reduced downtime for their commercial
vehicle fleets, which play a vital role for various businesses, especially in delivery and logistics
industries.10
7. markovate.com, Blog: How AI is Driving Innovation in the Automotive Industry?

8. donga.com, Article: Hyundai develops world’s first artificial intelligence auto diagnosis system
9. theengineer.co.uk, News: Skoda app diagnoses faults by listening to engine noise
10. kortical.com, Predict auto failures in advance using connected vehicle data in real time
Investigating the Trends of AI in Automotive

Technology
Take a deep dive into the rapidly evolving landscape of artificial intelligence
within the automotive sector. From the global outlook of the automotive
AI/software market to the expected dominance of AI by 2033, we explore the
significance of AI across various domains and its impact on consumer
preferences and brand choices. Uncover the pivotal trends shaping the future
of AI in automotive technology and their implications for industry players.
The automotive industry is undergoing a profound transformation fuelled by technological advancements and shifting
market dynamics. Notably, the global automotive software market is experiencing exponential growth, driven by
increasing vehicle connectivity and autonomy. Concurrently, the convergence trend of Electronic Control Units (ECUs)
presents new opportunities and challenges for industry players. Additionally, non-traditional companies are entering
the AI automotive arena, reshaping industry dynamics. Through new partnership models, collaboration drives
innovation and market expansion. In this topic highlight, we delve into these trends, exploring their implications and
strategic imperatives for stakeholders within the scope of AI as an inseparable variable influencing the automotive
software market growth.
Global Automotive AI/Software Market Outlook
McKinsey, in their report, has forecasted that the value of the Automotive Software market will increase from $34
billion in 2020 with a Compound Annual Growth Rate (CAGR) of around 9% by 2030. Although AI had a slow start
with a limited presence in the automotive software sector in early 2020, on conidtion that both the Automotive
Software and AI in Automotive markets continue to grow at the same CAGR, AI is projected to have a significant
impact on the automotive software market by surpassing it in 2033 and completely dominating the industry by 2037,
all within less than 15 years from today, as shown in Exhibit 3 below.
Exhibit 3. Artificial Intelligence Is Expected to Dominates the Automotive Software Market by 2033
Automotive AI Market Automotive Software Market

$ 34 B $ 63 B $ 84 B $ 110 B $ 158 B
100
97.8%
80
60
50.1%
40
30.4%
20
11.3%
<1%
0
2020 2025 2030 2033 2037
Extended Forecast Period
AI's influence on the future of automotive technology is indisputable. To adequately prepare for AI's impact, it is
essential to grasp the critical technologies and sectors within the software industry. Automotive technology
encompasses a wide array of functionalities, including powertrain, chassis, energy, body, advanced driver assistance
systems (ADAS/AD), infotainment, middleware, operating systems (OS), connectivity, security, and connected
services. While not all aspects of automotive software development are expected to experience exponential growth,
McKinsey's projected 29.9% Compound Annual Growth Rate (CAGR) for the Automotive AI market indicates a
promising trajectory in terms of market value. McKinsey's report examines the distribution of automotive software
value across various functional domains, shedding light on key insights in this dynamic landscape. In the following
Exhibit 4, we adjust the value based on AI's anticipated influence on the automotive software market value, as
depicted in Exhibit 3.
Exhibit 4 AI's Significance Across Future Automotive Software Domains

ADAS & AD Connectivity Powertrain & Chassis
The rapid growth of artificial intelligence (AI) in
the automotive industry is intricately tied to the Body & Energy OS and Middleware
trajectory of software and electronic 25
components in the future. Electronic control
units (ECUs) and domain control units (DCUs) 20
play a significant role in the growth of the global
automotive market due to several factors.
Control units are crucial components in modern 15
vehicles, especially with the increasing demand
for connected and electric vehicles, as well as 10
the integration of advanced technologies such as
autonomous driving systems. Additionally,
stringent vehicle safety regulations necessitate 5
the use of advanced ECUs and DCUs to ensure
the safety and reliability of modern vehicles.
0
2020 2025 2030
The rise of electrical and electronic components sector is undoubtly linked to the advancement of AI functionalities
within vehicles, encompassing critical components such as object detection, sensor fusion, and path planning
algorithms essential for autonomous driving (AD) technology. The integration of AI into electrical and electronic
components is equally crucial for electric vehicles, as it serves to enhance energy conversion efficiency and bolster the
electric vehicle sector as a whole. Nevertheless, with the global automotive market continues to expand, electronic
control units (ECUs) and domain control units (DCUs) are poised to claim the largest market share within the
automotive software sector. However, as illustrated in Exhibit 5 below, the distribution of advanced domain
technologies is anticipated to exhibit varying growth trajectories contingent upon the segmentation of vehicles.
Exhibit 5. USD Allocation per Car: AI Software and Electronic Content Outlook
2030 2025 AI Content
Volume Car Premium Car
16 148 866 2888

Middleware/
OS Software
30 276 520 1732
98 894 1011 3371

ECU/DCU
90 822 944 3148
37 337 1096 3654

Sensors
37 339 938 3128
12 105 544 1812

Power
Electronics
18 162 529 1764

0 200 400 600 800 1000 0 1000 2000 3000 4000
Source: Mckinsey Analysis.11 (Updated)
11.Mckinsey & Company, Automotive Software And Electronics 2030 Report

AI Automotive Competition: Aligning with Customer Expectations for Affordability and Market Price
Sensitivity
In 2024 and beyond, consumers in the automotive sector are highly aware of the cost and value of vehicles.
Affordability remains a crucial factor influencing consumer decisions, as highlighted by findings from a Deloitte study
on Exhibit 7. Moreover, in certain markets, there is a resurgence of interest in internal combustion engine (ICE) vehicles
due to affordability concerns, underscoring the ongoing importance of this aspect in shaping consumer preferences.
Consumers increasingly seek vehicles that offer high performance, advanced features, and affordability. As the
automotive industry advances, manufacturers must find innovative ways to balance cutting-edge technology with
cost-effectiveness. This shift in consumer mindset emphasizes the importance for car companies to explore cost-
effective solutions without compromising quality and sustainability. By understanding and adapting to this trend,
businesses can better meet the evolving needs and preferences of consumers in the competitive automotive market.
Exhibit 6. Preference In choosing ICE Vehicles is Rebounding: Consumer Concerns on Affordability

Continue to Weigh Heavily on Forward Intentions
Source: Deloitte Analysis. 12
The resurgence of demand for ICE vehicles underscores the enduring significance of price sensitivity in the automotive
industry, with profound implications for customer preferences and the future trajectory of automotive technology,
notably artificial intelligence (AI). As the industry progresses towards advanced technologies like autonomous
vehicles and AI-driven manufacturing, the demand for AI-enabled features is expected to confront the constraints of
cost and affordability. This price sensitivity extends to the future of AI integration in automotive technology, affecting
areas such as integration, adoption, and market competition.
Cost of AI Integration: AI technology demands substantial investment in research, development, and

implementation. Automakers, mindful of consumer price sensitivity, must strike a balance between integrating AI-
driven technologies and maintaining competitive vehicle prices. Strategies may involve leveraging economies of
scale, forging partnerships with technology firms, or streamlining development processes.
Consumer Adoption: Price sensitivity influences consumer willingness to embrace AI-driven automotive
technologies. While consumers value the benefits of safety, convenience, and efficiency offered by AI, they may
hesitate due to perceived prohibitive costs. Automakers must devise pricing strategies to make AI-driven
technologies more accessible, fostering broader adoption and market penetration.
Market Competition: Price sensitivity fosters competition among automakers to offer AI-driven technologies at
competitive prices, leading to innovation and cost reduction in AI technology. This dynamic drives down prices,
making advanced features more affordable and widespread.
12.Deloitte, 2024 Global Automotive Consumer Study Report

Exhibit 7. Most Important Factors Driving the The Choice of Brand for Next Vehicle Purchase
Source: Deloitte Analysis. 12
Furthermore, as AI integration becomes more prevalent in vehicles, it has the potential to revolutionize vehicle
maintenance and servicing. With AI, maintenance tasks can be performed more efficiently, predictive maintenance
capabilities can be enhanced, and downtime can be reduced. This not only benefits consumers by improving the
reliability and longevity of their vehicles but also presents opportunities for service providers to innovate and optimize
their offerings in response to changing technological landscapes.
In the context of Porter's Five Forces, the increasing power of customers becomes evident in this scenario. As AI
technology enhances the efficiency and reliability of vehicles, consumers gain greater control over their choices. They
become more empowered to demand higher quality, advanced features, and competitive prices from automotive
manufacturers and service providers. This shift in power dynamics compels businesses to prioritize customer
satisfaction and innovation to remain competitive in the market.
In conclusion, the integration of AI into vehicles is expected to have far-reaching impacts on various aspects such as
quality, performance, features, security, and compliance. As AI capabilities expand and regulations evolve, ensuring
the trustworthy development and use of these technologies become paramount. This necessitates effective talent
management and organizational readiness to address technological, governance, and legal challenges. Overall, the
increasing power of customers, coupled with the advancements in AI technology, will continue to shape the future of
the automotive industry, driving innovation and consumer-centric solutions.
Strategic Adaptation and Industry Response
Here, we explore the emergence of tech companies and startups fueling

innovation in automotive technology, the strategic alliances shaping the
industry's trajectory, and the collaborative efforts between OEMs and tech
companies and startups redefining automotive progress. Join us as we
navigate through the evolving landscape of the automotive industry and the
dynamic responses of the automotive players to stay ahead in this dynamic
environment.
In the fiercely competitive and rapidly progressive landscape of the automotive market, where technology
advancements such as AI are paramount, the dynamics between OEMs and tier-1 suppliers are also undergoing a
significant transformation. The market demands for innovation is at an unprecedented pace while remaining sensitive
to pricing pressures. Consequently, a notable phenomenon has emerged, the relationship between tier-1 suppliers
and OEMs are tightening.
In this evolving paradigm, it is the suppliers who wield considerable influence. With technology driving the
automotive industry forward, suppliers are no longer merely responding to OEM demands but are actively providing
cutting-edge solutions and expertise. This shift in power dynamics has led to a scenario where suppliers hold a more
commanding position vis-à-vis OEMs.
Emergence of Startups Fueling Automotive Technology Innovation
As AI plays an increasingly crucial role in the automotive field, manufacturers and suppliers are realising the
importance of boosting their AI capabilities to ensure their future sustainability and prosperity. Meanwhile, startups
are leveraging their adaptability, creativity, and expertise to offer tailored solutions that align with the ever-evolving
technological landscape in the automotive sector.
These startups are swiftly responding to the shifting environment by utilising artificial intelligence to transform
various aspects of vehicle advancements such as autonomous driving, predictive maintenance, and personalised
driving experiences. By embracing AI technologies, the automotive startups are not only enhancing efficiency and
fostering innovation but also shaping the future of transportation in an intelligent and sustainable manner. Below are
some of the top AI startup example companies in the automotive sector.
We, V2M Inc., are a startup that has developed a novel AI vehicle
diagnostic technology that allows cars to hear the sound of a
malfunction and determine what exactly the problem is. The
technology, called V2M, uses electroacoustic and sound system
technologies to analyse the sounds produced by a car's
components and identify potential issues. The main goal of V2M is
to increase safety on the roads by providing real-time diagnostic
information and predicting potential malfunctions. 13
Luminar Technologies, founded in 2012 by Austin Russell and

Jason Eichenholz, specialises in vision-based lidar and machine
perception technologies for self-driving cars. Operating in the
infrared range for safety, their system uses a single laser to scan
images rapidly, detecting objects up to 200 meters away.14
Seeing Machines is an advanced computer vision technology

company that designs AI-powered systems to improve transport
safety. Their technology spans the critical measurement of where
a driver is looking, through to the classification of their cognitive
state as it applies to accident risk. The company's AI algorithms,
embedded processing, and optics power products that need to
deliver reliable real-time understanding of vehicle operators. 15
Charting the Course: Automotive Alliances Between Tech Companies
The automotive industry is witnessing a profound transformation propelled by the convergence of cutting-edge
technologies and unprecedented consumer demands. At the forefront of this revolution is the phenomenon of joint
ventures between tech company established players, particularly in the realm of artificial intelligence (AI).
By combining the research resources depth of multiple tech companies with, these joint ventures are also poised to
redefine the future of mobility, ushering in a new era of automotive technology. Below are a few examples of tech
companies' collaboration advancing AI in automotive technology.
13. V2Minc.com
14 luminartech.com
15. seeingmachines.com
South Korean tech startup BOS Semiconductors has partnered with U.S. artificial intelligence hardware company
Tenstorrent to develop semiconductors for use in vehicles and vehicle manufacturing. The goal is to use artificial
intelligence to accelerate the processing capabilities of automotive semiconductors. 16
Continental, a German automotive supplier, has partnered with China's edge Artificial Intelligence (AI) company,
Horizon Robotics, to set up a joint venture focused on hardware and software integrated solutions for advanced driver
assistance systems and autonomous driving. The joint venture, which will be located in Shanghai, will have about 200
employees and aims to accelerate the commercialisation of automotive AI technology.17
Innovating Together: OEMs and Startups Redefine Automotive Progress
In response to fierce competition in the race of automotive technology, car OEMs are increasing their investment into
collaboration with startups and tech companies. This strategic move aims to harness the innovation and agility of
technology providers amidst rapid technological advancements. By partnering with startups and tech companies,
OEMs gain access to specialised expertise and emerging technologies, accelerating their development efforts in areas
such as electric vehicles, autonomous driving, and connected car systems. Below are the outlook on how strategic
deals are made and examples of OEMs' cooperation with startups.
Exhibit 8. Auto & Mobility Strategic Deals Greater Than 100 Million USD
Source: Bain Global M&A Report 2024. 18
General Motors (GM) and Microsoft have invested in and partnered with Cruise, a self-driving technology startup, to
develop autonomous AI driving systems for its vehicles. This strategic relationship aims to bring together GM's
software and hardware engineering expertise, cloud computing capabilities, manufacturing know-how, and partner
ecosystem with Cruise's autonomous vehicle solutions.19
Founded in 2016 and headquartered in Shanghai, Black Sesame Technologies is an AI chip company focused on
image processing, perception algorithm, and SOC design. Since its start, Black Sesame has established strategic
cooperation with many tier-1 Chinese automobile manufacturers, including SAIC Motor, BYD, and NIO.20
Volvo has partnered with Veoneer, a supplier of automotive safety technology, to develop autonomous driving AI
systems for its vehicles. The partnership involves the transfer of Zenuity's operations and people based in
Gothenburg, Sweden, and Shanghai, China, to a new stand-alone company wholly owned by Volvo Cars.21
16. cbtnews.com, Article: New partnership to build AI-powered semiconductors for automotive sector
17. en.caam.org.cn, News: “Continental, Horizon Robotics to set up joint venture for commercializing auto AI technology"
18. Bain & Company, Global M&A Report 2024: Gaining an edge in a market reset
19. news.microsoft.com, Cruise and GM team up with Microsoft to commercialize self-driving vehicles
20. bst.ai
21. volvocars.com, Press Release: Volvo Cars and Veoneer complete divide of Zenuity
Upcoming Automotive Technology Breakthroughs
This section illuminates future Artificial Intelligence breakthroughs which are

predicted to significantly open doors and be pivotal for the automotive
technology landscape. We navigate through the intricate landscape of the
technological processes, and elucidate the manifold benefits that accrue to
stakeholders. We explore the evolution of car architecture, and project the
trajectory of automotive sensor and architecture growth amidst anticipated
sales evolution. Embark on a journey into the future of automotive technology,
where innovation and efficiency converge to shape the automotive landscape
of tomorrow.
Innovation within the automotive industry is on the brink of a transformative leap, with a wave of groundbreaking
technological advancements poised to revolutionize the way we drive, interact with vehicles, and envision the future
of mobility. As automotive manufacturers, tech companies, and startups alike continue to push the boundaries of
what's possible, anticipation mounts for the next wave of breakthroughs that will reshape the automotive landscape.
In this section, we take a closer look at the anticipated future technological breakthroughs set to propel the
automotive industry into a new era of innovation and advancement.
Predictive Maintenance: Revolutionizing Vehicle Service and Reliability
Predictive maintenance is a proactive approach to vehicle maintenance that involves using data analysis techniques to
predict when equipment is likely to fail, allowing maintenance to be scheduled at a time that minimises disruption and
reduces costs. This approach is also known as condition-based maintenance (CBM) and is in contrast to time-based
maintenance, where equipment is maintained regardless of its current condition.
Exhibit 8. Streamlining Predictive Maintenance: Common Technological Process Flow

OEM/Dealer Database
Predictive maintenance utilises factory/on-road
historical/real-time vehicle sensor data analytics by
adaptive machine learning algorithms to anticipate
equipment failures and schedule maintenance tasks
proactively. By analysing historical/real-time
OEM/Dealer Notification
analytics, including various sensor signals such as
AI acoustic signals, engine performance metrics,
component temperatures, and wear indicator
In-car Early Warning readings and records, these algorithms identify
Car Sensors
patterns indicating potential issues adapting to the
environment of the vehicle. This proactive approach
allows maintenance to be scheduled preemptively,
Real Time Alert minimising downtime and optimising operational
Vehicle Historical
Analytic Records efficiency.
Unlocking Stakeholder Benefits: Automotive AI Predictive Maintenance
In the dynamic automotive landscape, the implementation of predictive maintenance stands as a beacon of innovation,
offering a paradigm shift on how vehicle maintenance is approached. It becomes apparent that its proactive strategies
offer tangible advantages. Let us explore how predictive maintenance could provide a substantial advantage to the
automotive industry.
Car OEM Car Dealership Car Owners

Improve Product Quality Enhanced Customer Increased Reliability
. Satisfaction .
Enhanced Customer . Reduced Downtime
Satisfaction Differentiation in the Market
Lower Maintenance Costs
Reduced Warranty Costs Reduced Warranty Claims
Enhanced Safety
Data-Driven Design and Improved Inventory
Development Management Extended Vehicle Lifespan
Optimized Supply Chain Optimized Service Improved Resale Value
Management Department Operations
Opportunities for Aftermarket Additional Revenue Streams

Services
Competitive Advantage
A single predictive maintenance technology has the potential to benefit multiple stakeholders across the vehicle chain
simultaneously. From OEMs to car dealers, car owners, and service providers, it enhances product quality, reduces
costs, improves customer satisfaction, and streamlines operations. This technology acts as a unifying force, driving
efficiency and reliability throughout the automotive ecosystem.
Leading Players in Automotive Predictive Maintenance Technology
In the rapidly evolving landscape of automotive technology, several notable tech companies have emerged as
pioneers in the field of predictive maintenance. These companies are at the forefront of developing innovative
solutions that leverage data analytics, machine learning, and IoT technologies to revolutionize how vehicle
maintenance is conducted.
Our company, V2M Inc., focuses on

Blind spots and imperfect onboard diagnostics with lack computer hearing technology on cars
of experience leave drivers ill-equipped to accurately
dicern unfamiliar car noises or sounds.
applied to predictive diagnostic R&D. We
are developing a scoring model that can
predict potential malfunctions in vehicles
Wheel hub bearings Idlers
Wheels Pulleys
Shafts Rotors
Axels
Ball-joints
Pumps
Fasteners
based on the acoustic dynamics of the car.
Bushings
Control arms
Springs
Alternators
We utilize a technology that uses
Bottom mudflaps
Belts
Motor bearings
Anti-roll bar bushings and links
telematics to gather data from vehicles
Tensioners Shock absorbers
and analyse it to identify potential issues.
Garrett Motion has developed predictive maintenance software that

uses telematics to gather data from commercial vehicle fleets and
analyse it to identify potential issues. The system is designed to
learn with every route driven by every individual vehicle, giving
fleet managers greater ability to make proactive maintenance
decisions. 22
Graphen AI has developed an advanced AI Car Doctor system that

provides predictive maintenance for the automotive industry. The
system is built upon the Graphen Core Ardi AI foundation and is
capable of handling voice or text questions and answers,
interpreting car symptoms, and providing fix suggestions.23
Advancing Car Architecture: Embracing Future Automotive Technologies
Electronic Component
Generation High-Level Architecture
Advancing car architecture is crucial for accommodating future
Architecture
Vehicle Infotainment
technological advancements in the automotive industry. As AI and other
Centralized
forms of automotive technology become more prevalent, the readiness
5th
Central Gateway
of car architecture, including ECUs (Electronic Control Units) and DCUs
(Domain Control Units), is expected to grow to accommodate these
Sensor Actuator
advancements.
Domain
Centralized Central Gateway The evolution of car architecture progresses from decentralized systems,
Domain
Controller
like those seen in the 3rd generation, with independent ECUs and
isolated functions, to more centralized structures in the 4th and 5th
4th
generations. Dedicated domain controllers facilitate collaboration and
handle complex functions in these later generations. As we move further
Distributed into the 5th generation, architecture with virtual domains is expected to
Today Central Gateway
be utilized, where one control unit manages various functions across
domains.
3rd
In the current state of development towards the 4th generation, a
significant transformation in vehicle architecture is anticipated. This shift
Body/Comfort Chassis Powertrain moves away from numerous separate ECUs (approximately 100 ECUs
for complex vehicles) to a more streamlined approach. The new
2nd architecture will feature a few central DCUs, each covering a specific
vehicle domain, such as chassis or infotainment. DCUs consolidate non-
Infotainment
time-critical functionality from multiple ECUs and centrally process data
from various sources, while functions that require local processing, such
1st as data preprocessing and latency-critical I/O operations, are expected
to remain local.24
22. garrettmotion.com, Fleet Early Warning System

23. graphen.ai, AI Car Doctor
24. Mckinsey & Company, Automotive Software And Electronics 2030 Report
Further, in the 5th vehicle architecture development,

Artificial Intelligence through various algorithms,
sensors are concurrently analysed, ensuring a more
optimised decision through sensor fusion within the
gateway, aiming for more efficient software
processing. AI systems can also analyze driving
patterns and preferences to tailor assistance and
create a more personalised driving experience for each
user. This can lead to improved safety, comfort, and
overall satisfaction with the vehicle. Source: Frontiers. 26
Unlocking Efficiency: The Benefits of Centralized Vehicle Architecture
Reduction of hardware and software complexity. Transitioning to a centralized architecture simplifies both
hardware and software by dividing functions efficiently. Moreover, centralized architecture reduces redundant and
inefficient communication between individual ECUs, improving overall performance and responsiveness.
Reduced hardware cost. In a centralized architecture, each sensor doesn't necessarily carry its own silo algorithm.
Moreover, savings are expected to come not only from the reduction in ECU-related hardware costs, but also from
a reduction in secondary costs, e.g., the wiring harness.
Better support for latest automotive trends. Centralized architecture provides a better platform for advanced
driver assistance systems (ADAS), over-the-air (OTA) updates, and vehicle connectivity.
Improved performance and responsiveness. Enhanced scalability and easier management of vehicle functions,
centralization allows for easier software updates and reduces complexity and maintenance costs.
Transitioning to a centralized architecture offers numerous advantages in the automotive industry and is crucial to
support further rapid technological advancement in the future. As automotive OEMs face fierce competition and strive
to secure cost efficiency in response to cost-sensitive customer purchasing tendencies, a centralized architecture
provides a strategic advantage. Moreover, the pivotal role of AI in driving the shift towards centralized architecture
will leverage the process further steps ahead, ensuring that automotive technology remains at the forefront of
innovation.
Charting the Course: Projecting Automotive Sensor and Architecture Growth Amid Predicted Sales
Evolution
As the automotive industry advances into new technological frontiers, the future of automotive sensors and
architecture is expected to experience significant growth to meet market demands. Insights from McKinsey analysis
indicate that this shift in automotive sensors and architecture is poised to outpace future car sales.
The forecasted trends from 2020 to 2030 reveal intriguing

ECU CAGR : +3% Car Production
insights into the trajectory of the automotive industry.
DCU CAGR : +68% CAGR : +2%
While car production units are projected to experience a
Sensors CAGR : +8%
120
Car Production in Million (Unit) modest 2% compound annual growth rate (CAGR), the
ECU DCU Sensors 115
108
sensors market is expected to undergo a substantial 8%
Market Value, USD Billions
120
CAGR. Similarly, the electronic control unit (ECU) market is
100 97
103
anticipated to see a 3% CAGR, albeit with a decline in
100
90
market value forecasted for 2025. In contrast, the domain
80
108 control unit (DCU) market is poised for remarkable growth,
80 with a staggering 68% CAGR, signalling a significant shift
68
60
63 towards DCUs replacing ECUs. This growth underscores
60
44
the evidence that the market demands technological
40
40
advancement and centralisation of vehicle architecture. For
automotive OEMs, embracing this shift towards centralised
30
26
20
20
control units is imperative not only for staying relevant in
2 the market but also for meeting the evolving demands of
0
2020 2025 2030
0
2020 2025 2030
consumers and technological advancements.27
26. Frontiers in Future Transportation, Article: Automotive Intelligence Embedded in Electric Connected Autonomous and Shared Vehicles Technology
for Sustainable Green Mobility
27. Mckinsey & Company, Automotive Software And Electronics 2030 Report
Strategies for Success in the Rapidly Evolving

Automotive Technology Landscape
The growing automotive Artificial Intelligence market presents both

challenges and opportunities, prompting action from automotive companies
and potential newcomers. With changes happening swiftly, it's vital to create a
clear strategy to benefit from automotive disruptions instead of being left
behind by them. In the next section, we'll detail emerging strategies for
different player types and provide guidance on navigating this evolving
landscape successfully.
The emerging trends of artificial intelligence in the automotive industry are set to have a significant impact across the
board. These trends will not only reshape strategic perspectives and future outlooks but also influence product design
and functionality, ultimately affecting end consumers. In the following sections, we'll explore how these trends affect
various stakeholders along the automotive value chain, including OEMs, tier-1 and tier-2/component suppliers,
startups, tech companies outside the automotive sector, and engineering agencies/3rd-party software developers.
We'll discuss areas that require adaptation and provide actionable strategies tailored to each player, helping them
navigate the changing landscape effectively.
Automotive OEMs
Mitigate Rising Per-vehicle Hardware-AI Integration Costs
As the costs of hardware and technology IP integration per vehicle are expected to rise significantly, OEMs must seek
strategies to reduce these integration costs. This could involve creating economies of scale through partnerships with
other OEMs, utilizing supplier components for nondifferentiating components with higher economies of scale,
increasing the reusability of technology IP between platforms and models, or simplifying the vehicle architecture.
Create a Cross-Functional Development Organization
By breaking down domain silos within the development organization and centralizing decision-making power for AI
and vehicle architecture, OEMs can accelerate time to market for new AI integration definitions and sourcing decisions.
Invest in Research and Development & Foster Partnerships and Collaborations
To stay ahead in the rapidly evolving automotive technology landscape, OEMs should allocate resources to research
and development initiatives focused on AI and other emerging technologies. This investment will enable them to
innovate and develop cutting-edge solutions that meet evolving customer needs and preferences.
OEMs can leverage partnerships and collaborations with technology companies, startups, and research institutions to
access expertise, resources, and innovative solutions in AI and related fields. Collaborative efforts can accelerate
technology development, enhance product offerings, and drive competitive advantage in the market.
Enhance Cybersecurity Measures
With the increasing integration of AI and connectivity features in vehicles, cybersecurity becomes a critical concern.
OEMs should prioritize cybersecurity measures to safeguard vehicle systems and data from cyber threats and
breaches. This includes implementing robust security protocols, encryption mechanisms, and continuous monitoring
systems to detect and mitigate potential risks.
Adapt to Regulatory Requirements

As AI technologies become more prevalent in automotive applications, OEMs must ensure compliance with relevant
regulations and standards governing safety, privacy, and data protection. Proactively addressing regulatory
requirements will not only mitigate legal risks but also build trust and confidence among customers and stakeholders.
Focus on Customer Education and Acceptance
Educating customers about the benefits and capabilities of AI-driven technologies is essential for fostering
acceptance and adoption. OEMs should develop comprehensive marketing and communication strategies
to highlight the value proposition of AI features, address concerns about privacy and safety, and
demonstrate the potential impact on driving experience and convenience. Building customer trust and
confidence will be crucial for driving widespread adoption of AI-enabled vehicles.
Tier 1 Suppliers
Collaborate on AI Integration Strategy
Tier-1 suppliers can play a pivotal role by collaborating closely with OEMs to co-create a shared vision for integrating
AI into future automotive systems. By actively participating in the definition of AI integration requirements and
leveraging their expertise, tier-1 suppliers can contribute to shaping the direction of AI adoption in the automotive
industry. Establishing strategic partnerships and engaging in industry ecosystems can further strengthen their position
in driving AI integration initiatives.
Develop AI Capabilities and Infrastructure
To capitalize on the growth opportunities presented by AI integration, tier-1 suppliers must invest in building robust
AI development and integration capabilities. This requires a concerted effort to attract and retain top talent in AI and
software development. Establishing dedicated teams or business units focused on AI development and integration
can accelerate the pace of innovation. Additionally, creating an integrated development, integration, and validation
framework will enable seamless integration and continuous improvement of AI technologies.
Foster Cross-Functional Collaboration
Breaking down internal silos is essential for tier-1 suppliers to effectively meet the evolving demands of customers
and remain competitive in the market. By establishing cross-functional teams and departments, tier-1 suppliers can
enhance collaboration and agility in developing cross-domain solutions. This organizational structure enables them to
respond more swiftly to customer requirements and market dynamics, driving innovation and differentiation in their
offerings.
Invest in Advanced Manufacturing Technologies
To meet the increasing demand for AI-integrated automotive components, tier-1 suppliers should invest in advanced
manufacturing technologies. This includes automation, robotics, and additive manufacturing techniques that can
improve production efficiency, quality, and scalability. By modernizing their manufacturing processes, tier-1 suppliers
can streamline production and deliver AI-enabled solutions more effectively to OEMs and end customers.
Enhance Data Analytics and Security Capabilities
As AI integration becomes more prevalent in automotive systems, tier-1 suppliers must prioritize data analytics and
cybersecurity measures. By leveraging data analytics tools and techniques, they can derive actionable insights from
vast amounts of data generated by AI-powered systems. Additionally, implementing robust cybersecurity protocols
and encryption methods is essential to safeguard sensitive information and protect against cyber threats, ensuring the
integrity and security of AI-integrated automotive solutions.
Tier 2 Suppliers
Identify Niche Opportunities
Tier 2 suppliers should proactively identify niche opportunities within the automotive electronics market. By focusing
on specific areas where their expertise and capabilities align, such as specialized sensors or components for specific
vehicle systems, tier 2 suppliers can differentiate themselves from competitors and avoid commoditization pressures.
Once a niche has been identified, tier 2 suppliers should strive to scale their operations within that niche, leveraging
their unique strengths to capture market share and drive growth.
Enhance Specialized Software Capabilities
In addition to their hardware offerings, tier 2 suppliers can enhance their value proposition by developing specialized
software capabilities. This may involve adding advanced algorithms for functions like functional safety, artificial
intelligence, or cybersecurity to their existing products. By integrating software solutions into their offerings, tier 2
suppliers can provide added value to tier 1 suppliers or OEMs, potentially bypassing intermediaries and supplying
directly to end customers. This strategic approach enables tier 2 suppliers to strengthen their position in the market
and capitalize on emerging opportunities in the automotive industry.
Navigating the Shifting Automotive Landscape: Key Steps for All Players
In addressing the multifaceted challenges posed by the evolving automotive landscape, there exists no universal
playbook tailored to each player's unique position within the industry's value chain. Nevertheless, regardless of their
specific roles or market positions, all companies must consider a set of strategic actions to effectively maneuver
through the transformative effects of advancing automotive technology and the increasing presence of artificial
intelligence:
Strengthen AI and Architecture Capabilities and Engage in Early Discussions
Amidst the evolving trends in automotive AI and vehicle architecture, active involvement in early-stage discussions is
crucial. By participating in conceptual and design phases, companies can influence the development of technological
solutions, shape component integration, and position themselves competitively in the market.
Embrace Experimentation and Agile Practices
Given the absence of definitive solutions for many technological and business challenges, a culture of experimentation
is essential. Companies aspiring to excel in emerging technologies, particularly AI integration for ADAS and AD and
next-generation services, must adopt a test-and-learn approach. Quick iterations based on experimentation enable
rapid learning and adaptation, facilitating innovation and competitiveness.
Continuously Assess Control Points and Adapt to Changing Dynamics
Control points within the technology stack that hold significance today may evolve into commodities tomorrow. To
navigate the market successfully, companies must consistently evaluate their control points and adapt to evolving
ecosystem dynamics. Vigilant monitoring of ecosystem landscapes allows companies to anticipate disruptions and
realign their strategies accordingly.
Forge Strategic Partnerships in Emerging Ecosystems
The increasing complexity of AI, sensors, and software systems in vehicles necessitates collaborative partnerships
within the automotive ecosystem. With the growing costs of research and development, particularly in software,
collaboration enables shared resources and distributed costs across a broader vehicle base. Deeper integration
beyond traditional supplier-purchaser relationships is essential for driving innovation and sustaining competitiveness
in the industry's future landscape.
Invest in Talent Development and Retention
Recognize the importance of talent in driving technological advancements and maintaining a competitive edge. Invest
in talent development programs, attract top-tier professionals, and cultivate a work environment that promotes
continuous learning and growth.
Prioritize Cybersecurity and Data Privacy
With the increasing integration of AI and connectivity features in vehicles, prioritize cybersecurity and data privacy
measures. Implement robust security protocols, encryption techniques, and privacy safeguards to protect consumer
data and ensure the integrity of vehicle systems.
Embrace Sustainability and Environmental Responsibility
As the automotive industry transitions towards electric and autonomous vehicles, prioritize sustainability initiatives
and environmental responsibility. Invest in eco-friendly technologies, reduce carbon emissions throughout the
production process, and align corporate strategies with global sustainability goals.
Adapt Supply Chain and Manufacturing Processes
Anticipate changes in supply chain dynamics and manufacturing processes driven by advancements in AI and
automation. Embrace digitization, adopt flexible manufacturing systems, and optimize supply chain networks to
enhance efficiency, reduce costs, and mitigate supply chain disruptions.
This report has been crafted by a dedicated team at V2M, drawing insights from extensive research and public
sources. It's important to note that neither the report nor any of its contents are intended to serve as the sole basis for
making investment decisions regarding companies operating in the covered markets or similar sectors. This includes
considerations such as purchasing securities of listed companies or engaging in activities related to company listings.
The report may contain forward-looking statements, which encompass estimates, forecasts, and projections regarding
various industries, trends, players, and consumer behaviors. As forward-looking statements inherently involve
uncertainties related to events that may or may not occur in the future, caution is advised when interpreting them.
Specifically, statements in this report concerning future developments, earnings potential, business plans, growth
prospects, profitability expectations, and general economic or regulatory conditions are subject to such uncertainties.
These forward-looking statements are based on current estimates and assumptions made to the best knowledge of
the V2M team. However, it's essential to recognize that these statements and the broader market assessments they
reflect are subject to risks, uncertainties, and other factors that may result in actual situations and developments
differing materially from those anticipated or not manifesting at all. Moreover, V2M does not assume any obligation to
update these forward-looking statements or align them with actual events or developments. Responsibility for the
accuracy and completeness of the information contained in this report rests solely with V2M, and no liability is
assumed towards any individuals for any inaccuracies or omissions.
20
Contacts And Authors
Petr Bakulov
V2M Founder and Chief Executive Officer
[email protected]
Indra Sutalaksana
V2M Financial Strategist
[email protected]
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2 Driving Innovation: The Imperative for Automotive Companies to Embrace AI

INTRODUCTION & KEY FINDINGS

AI Adoption Accelerates: Automotive Sector Embraces New

The automotive industry is witnessing a transformative shift as it

Rapid Growth Projected: AI's Ascendancy in the Automotive

The automotive software market is poised for substantial growth,

Staying Ahead: Key Players' Imperative to Embrace

The automotive landscape is evolving rapidly, with emerging

Investigating the Trends of AI in Automotive Technology

Strategic Adaptation and Industry Response

Upcoming Automotive Technology Breakthroughs

Strategies for Success in the Rapidly Evolving Automotive Technology

Contacts and Authors 26

Artificial Intelligence in the Automotive Sector

We delve into the current landscape and future prospects of AI

Exhibit 1. AI Technology Implementation Maturity: Automotive Sector Climbs as AI New Adopters

High As AI continues to make its way into various

Life Science predictive maintenance to enhanced driver

Source: FutureBridge Analysis and Insights.1

Exhibit 2. Automotive AI Technology Market Size is Expected to Grow Significantly

As technology continues to advance, the automotive

1. futurebridge.com, Article: “Artificial Intelligence Reshaping the Automotive Industry”

Increasing Impact: Artificial Intelligence on Car Design and Production

In 2022, BMW employed AI to analyze decades of crash

Porsche Digital, the subsidiary of the sports car

Continental, a leader in automotive parts, has innovated

AI-Driven Efficiency: Enhancing Automotive Supply Chain Streamlining

Artificial Intelligence Revolutionizes the Future of Driving Support Systems

Cruise Park Park

Source: Markovate (edited).7

7. markovate.com, Blog: How AI is Driving Innovation in the Automotive Industry?

Investigating the Trends of AI in Automotive

Global Automotive AI/Software Market Outlook

Automotive AI Market Automotive Software Market

Exhibit 4 AI's Significance Across Future Automotive Software Domains

2030 2025 AI Content

Volume Car Premium Car

16 148 866 2888

98 894 1011 3371

90 822 944 3148

37 337 1096 3654

37 339 938 3128

12 105 544 1812

18 162 529 1764

Source: Mckinsey Analysis.11 (Updated)

11.Mckinsey & Company, Automotive Software And Electronics 2030 Report

Exhibit 6. Preference In choosing ICE Vehicles is Rebounding: Consumer Concerns on Affordability

Source: Deloitte Analysis. 12

Cost of AI Integration: AI technology demands substantial investment in research, development, and

12.Deloitte, 2024 Global Automotive Consumer Study Report

Source: Deloitte Analysis. 12

Strategic Adaptation and Industry Response

Here, we explore the emergence of tech companies and startups fueling

Emergence of Startups Fueling Automotive Technology Innovation

Luminar Technologies, founded in 2012 by Austin Russell and

Seeing Machines is an advanced computer vision technology

Charting the Course: Automotive Alliances Between Tech Companies

Innovating Together: OEMs and Startups Redefine Automotive Progress

Source: Bain Global M&A Report 2024. 18