Computing and AI for Automotive 2024

Scope of this report

Methodology and definitions

Three-Page summary

Executive summary

Automotive applications – Context

Market forecasts

• Automotive Market  
• ADAS architecture evolution 
• Computing for Imaging 
• Computing for Radar 
• Computing for LiDAR 
• Computing for ADAS and active safety 
• Computing for Infotainment and telematics 

Application trends

• ADAS and Active Safety 
• Infotainment and Telematics 

Market share and supply chain

• Main news of the last two years 
• Automotive processor competitors overview and market share 
• Some OEMs are already designing their own processors 
• Focus on Chinese Processor Companies 

Technology trends

• E/E Architecture Evolution and Centralization 
• ADAS & Safety 
• Infotainment & Telematics
• Chiplet for Automotive

Conclusion

About Yole Group

The race to dominate the global $16.4B ADAS and Infotainment processor market by 2029

In 2023, the ADAS and Infotainment processors market was worth $7.8B and is expected to hit $16.4B by 2029 with a CAGR of 13%. ADAS accounted for 52% of revenues, against 48% for infotainment. Representing a crucial step in the development of ADAS, front-cameras are leading the market for ADAS processors in the automotive industry, where Mobileye's EyeQ processors are leading the way. The centralization of architectures and sustained demand for advanced ADAS functions have enabled Tesla and Nvidia to expand rapidly using their high-performance central processors. After strong post-COVID growth, OEMs and tiers-1s started 2024 by lightening their excess processor inventories. It is not certain that the return to normal expected for the second half of 2024 will fully compensate for the drop in volume at the start of the year. The infotainment processor market is led by Qualcomm, followed by NXP and Renesas. Integrated into all Tesla cars, the expensive but high-performance Ryzen and Radeon processors allow AMD to reach the 4th position in terms of revenue.

Centralized architectures are forcing the supply chain to organize itself; China is waking

The increasing importance of processors in the automotive industry, combined with the complexity of these systems, has led OEMs to become more involved in processor development. OEMs are now directly collaborating with semiconductor manufacturers to develop processors that best meet their specific needs. In 2023, Western companies accounted for more than 95% of automotive ADAS and Infotainment processor revenues. However, they face increasing competition from Chinese companies. In the realm of central processors, Horizon Robotics and HiSilicon (a subsidiary of Huawei) are experiencing significant growth. For instance, Horizon Robotics' automotive revenues increased by 57% between 2022 and 2023. Although this growth is currently concentrated in the Chinese market, Western companies are heavily investing in establishing a presence in China. While Tesla is currently the only company to have successfully developed its own central processors, the Chinese car manufacturer Nio has already begun designing its own, capable of combining the power of four Nvidia Orin processors into a single SoC. In infotainment, Chinese companies such as Rockchip, Unisoc, BlackSesame, SemiDrive, and SiEngine are growing, though their adoption remains limited. The Chinese market continues to be heavily dominated by Qualcomm.

Pioneering safety and performance: The shift toward central processors

Faced with the increasing complexity of ADAS and infotainment systems, processor technologies are evolving to provide ever more functionalities. On the one hand, the addition of ADAS cameras in cars tends to move VPU processors toward Multi-purpose VPUs. On the other hand, the combination of heterogeneous sensors like radars and cameras tends to use FPGAs first and then move toward APUs or central processors. Central processors have become vital to achieving the most advanced ADAS features. In this race for power, Nvidia and Tesla are leading the way, placing AI accelerators at the center of their chip development. To meet safety needs, ADAS processors have started integrating safety islands, sometimes in addition to standalone safety processors. Despite this strong trend towards centralization, the market is currently dominated by VPUs, where we find players like Mobileye, Toshiba, Texas Instrument, and Ambarella, as well as startups like Hailo and Horizon Robotics. The increasing maturity of LiDARs and imaging radars is driving the move from using FPGAs to APUs. RoboSense and Nio have, for example, revealed their APUs for LiDAR.

Aisin, Aito, Alphabet, Algolux,  Alibaba Group, Allwinner Technology, Amazon, Ambarella, AMD, Apollo, Apple, Aptiv, Arbe, Arcfox, Argo, ARM, Arriver, Artosyn, Audi, Aurora, AutoChips, Autox, Avatr, Baidu, BlackSesame Technologies, Blaize, Bosch, BMW Group, BYD, Cariad, Cambricon, Chery, Cipia, Continental, Cruise, Daimler, Delphi, Dena, Denso, Didi, DJI, Dongfeng Lantu Automobile, EasyMile, Eeasy.Tech, Faurecia, FCA, Five, Ford, Foxconn, Fujitsu, Geely, General Motors, Geo Semiconductor, Google, Great Wall, Hailo, Harman, Hella, Hesai, HiRain, HiSilicon, Honda, Hongoi, Horizon Robotics, Huawei, Hyundai, Infineon, Intel, Kalray, Leapmotor, LeddarTech, Li Auto, Luxeed, Lyft, Magna, Mahindra, Marvell, Mediatek, Melexis, Mercedes-Benz, Microship, Microsoft, Mobileye, Morningcore, Movento, Motional, Navya, Nio, Nissan, Nuance, Nvidia, NXP, OmniVision, Oppo, Pony.AI, Polestar, PSA, Quadric, Qualcomm, Renault Nissan, Renesas, Robosense, Rockchip,  SAIC-GM-Wuling Automobile, Samsung, Seeing Machines, Seres Automotive, SemiDrive, Siengine, Singgo, Smart Eye, Sony, Softkinetic, Stellantis, STMicroelectronics, Telechips, Tesla, Texas Instruments, Toshiba, Toyota, TSMC, Uber, Uhnder, Valeo, Veoneer, Videantis, Volkswagen, Volvo, Vsora, Waymo, WeRide, Woven Planet, Xiaomi, Xilinx, Xperi, Yandex, Zeekr, Zenseact, ZF Friedrichshafen, Zoox, and more.

Key Features

• Types of hardware for ADAS & active safety and Infotainment & Telematics
• Car architecture evolution with the associated forecast. ADAS and infotainment merging discussion
• Processors for ADAS & active safety and Infotainment & Telematics forecast by volume, ASP and revenue.
• Artificial intelligence (AI) technologies used in automotive
• Ecosystems, supply chain, market share, market forecast, and trends
• Focus on the Chinese automotive processor ecosystem
• Processor for active safety, ADAS, and cockpit technology trends
• Chiplet for automotive

What's new?

• ADAS and infotainment analysis and forecast
• Chiplet for Automotive

Product Objectives

• Give an overview of computing for safety, ADAS, and AD, in-cabin sensing, cockpit and connectivity applications:
  • How car architecture is evolving with ongoing centralization trends. Car architecture forecasts are provided.
  • Discussion about ADAS and infotainment fusion, with forecast
  • Where processors can be found in cars.
  • What technologies are used, and what developments are ongoing.
  • Processor volume, ASP, and revenue forecasts, with technology and application breakdowns.
• Provide a potential scenario for AI evolution within the dynamics of the autonomous automotive market, and present an understanding of the impact of AI on the semiconductor industry:
  • Hardware for AI revenue and volume forecast
  • Focus on autonomous cars: ADAS and AD-equipped vehicles
• Deliver an in-depth understanding of the ecosystem and players:
  • Will OEMs develop their own processors, or will they choose to co-develop them with partners?
  • Who are the players? What are the relationships inside this ecosystem? Who will win the battle for primacy in the autonomous market? How is evolution in cockpit technology impacting the market?
  • Which are the key suppliers to watch, and what technologies do they provide?
  • Focus on the Chinese processor ecosystem
• Offer key technical insights and analyses into future technology trends and challenges:
  • Key technology choices.
  • Technology dynamics and roadmaps.
  • Chiplet for automotive