Computing and AI for automotive: toward centralisation and connectivity
Chiplets for ADAS and infotainment take off with centralisation trends.
The ADAS and infotainment processors market, worth US$7.8 billion in 2023, is expected to reach US$16.4 billion by 2029, with a 13% CAGR.
Front cameras are critical to ADAS, with Mobileye’s EyeQ processors leading the market.
Qualcomm leads the infotainment processor market, followed by NXP and Renesas.
Processor technologies are evolving to enhance ADAS and infotainment system functionalities.
The automotive processor market generated US$20.0 billion in revenue in 2023, with US$7.8 billion from APU s and FPGA s, and US$12.2 billion from MCUs. According to Yole Group, APU and FPGA processors were divided between ADAS with US$4.1 billion, and cockpit applications with US$3.7 billion.
ADAS and active safety applications are projected to grow robustly, while infotainment and telematics applications are expected to grow at a CAGR of 8% to US$5.9 billion by 2029.
The market for ADAS sensing, including imaging processors for front-facing cameras, radar APUs, and LiDAR processors, is also expected to expand significantly, at a 7% CAGR23-29, highlighting the critical role of these technologies in enhancing vehicle safety and autonomous driving capabilities.
Central computing within vehicles is projected to experience a surge with a 36% CAGR23-29, propelled by the increasing integration of ADAS domain controllers. Additionally, in-cabin sensing technologies, focused on monitoring driver and occupant behavior, are set to grow rapidly, reflecting a shift toward enhanced in-vehicle safety and user experience.
Adrien Sanchez, Senior Technology & Market Analyst, Computing at Yole Group, comments: “In the infotainment and telematics segment, the primary in-vehicle infotainment unit is projected to grow steadily, with telematic processors expected to see substantial growth, particularly with the rollout of 5G technology. This points to a future where connected and intelligent vehicles become increasingly commonplace, driven by the continuous evolution of automotive processor technologies.”
AD central processors are anticipated to grow rapidly from US$826 million in 2023 to US$4.4 billion by 2029 at a 32% CAGR. VPUs , APUs, and FPGAs are expected to grow with CAGRs of 4%, 53%, and 20%, respectively.
The Computing and AI for Automotive report from Yole Group provides an overview of computing for safety, ADAS and AD, in-cabin sensing, cockpit, and connectivity applications. This new report provides a potential scenario for AI evolution within the dynamics of the autonomous automotive market and presents an understanding of the impact of AI on the semiconductor industry. Furthermore, it delivers an in-depth understanding of the ecosystem and players. Yole Group also offers key technical insights and analyses into future technology trends and challenges.
The growing importance of processors in the automotive industry, coupled with the complexity of these systems, has prompted OEMs to become more involved in processor development. OEMs now collaborate directly with semiconductor manufacturers to create processors tailored to their specific needs. In 2023, Western companies accounted for over 95% of automotive ADAS and infotainment processor revenues. However, they are facing increasing competition from Chinese companies.
Hugo Antoine, Technology & Market Analyst, Computing at Yole Group, adds: “Horizon Robotics and HiSilicon (a subsidiary of Huawei) are making significant strides in the central processor market. For example, Horizon Robotics’ automotive revenues increased by 57% between 2022 and 2023. Although this growth is mainly concentrated in the Chinese market, Western companies are investing heavily to establish a presence in China. Currently, Tesla is the only company to have successfully developed its own central processors, but the Chinese car manufacturer Nio has started designing its own, capable of combining the power of four Nvidia Orin processors into a single SoC. ”
In the infotainment sector, Chinese companies such as Rockchip, Unisoc, BlackSesame, SemiDrive, and SiEngine are growing, though their adoption remains limited. The Chinese market is still largely dominated by Qualcomm.
