According to a new report from Guidehouse Insights, the market for AI-based applications for EV energy management is expected to grow at a 27.8% compound annual growth rate (CAGR) over the next decade.
Revenue generation within the market is expected to increase from $298.7 million in 2020 to $2.7 billion in 2029.
While many EV drivers are enthusiastic about their vehicles, prospective customers have legitimate reasons for hesitating to make the switch, including shorter driving range, inconvenient charging, and insufficient knowledge of what to do when problems occur.
The EV industry is aware of these concerns, and is aggressively applying AI technology to enhance the EV experience.
As of 2020, AI applications in use by OEMs include improving lithium battery design and manufacturing. AI can offer EV drivers superior navigation and route planning and help address range anxiety. Also, AI applications can improve the charging station experience and facilitate roadside assistance.
These solutions are being developed internally by the EV industry and therefore are not expected to represent a revenue-generating opportunity for third-party solution developers.
William Hughes, principal research analyst with Guidehouse Insights, said: “The use of AI technology is anticipated to play an increasingly important role in enhancing the efficiency and capabilities of EVs, advancing the competitive positioning of EV OEMs, and overcoming the objections of prospective EV buyers.
“Ultimately, EV adoption should accelerate as AI makes the EV ecosystem more attractive and competitive.”
Read more about the report.