Smart cars: How big is the market for central computing and sensors?

The automotive industry is undergoing profound changes, especially in intelligent driving and infotainment systems, where computing and artificial intelligence technologies are increasingly being used.

This article will explore the market capacity of automotive semiconductors, especially automotive processors, and the impact of the centralization and connectivity trends in automotive computing and artificial intelligence on the industry and the market.

Part 1

Smart Driving and Infotainment

Rapid growth in the processor market

●Processor requirements

According to market analysis data, the smart driving and infotainment processor market is valued at US$7.8 billion in 2023 and is expected to increase to US$16.4 billion by 2029, with a compound annual growth rate (CAGR) of 13%. The growth is mainly due to the continuous advancement of processor technology, which has continuously enhanced the functionality of ADAS and infotainment systems.

◎In the field of intelligent driving, the front camera is a key component, and Mobileye's EyeQ processor occupies a leading position in the market.

◎In the infotainment processor market, Qualcomm ranks first, followed by NXP and Renesas.

◎In 2023, the revenue of the automotive processor market reached 20 billion US dollars.

Application processor (APU) and field programmable gate array (FPGA) revenues were $7.8 billion, while microcontroller (MCU) revenues reached $12.2 billion. APU and FPGA processors are mainly used in ADAS ($4.1 billion) and cockpit applications ($3.7 billion).

Smart driving and active safety applications are expected to grow strongly, while infotainment and telematics applications are expected to grow at a CAGR of 8% to reach $5.9 billion by 2029. In particular, the ADAS sensing market (including image processors for front cameras, radar APUs, and LiDAR processors) is expected to grow at a CAGR of 7%, highlighting the key role these technologies play in improving vehicle safety and autonomous driving capabilities.

The rise of central computing and in-car sensing technology

As the integration of smart driving domain controllers continues to increase, central computing in cars is expected to grow rapidly at a compound annual growth rate of 36%. In addition, in-car sensing technology focused on monitoring driver and passenger behavior will also grow rapidly, reflecting the increasing emphasis on in-car safety and user experience.

In the field of infotainment and telematics, the main in-vehicle infotainment units are expected to grow steadily, especially with the launch of 5G technology, telematics processors are expected to achieve significant growth, and driven by the continuous development of automotive processor technology, connected smart cars will become more and more common in the future. "

AD CPUs are expected to grow at a compound annual growth rate of 32%, from $826 million in 2023 to $4.4 billion in 2029. The compound annual growth rates of visual processing units (VPUs), APUs, and FPGAs are 4%, 53%, and 20%, respectively.

These growth figures indicate the growing importance of AI in autonomous driving and in-car applications.

Part 2

The rise of the Chinese market and global competition

The increasing importance of processors in the automotive industry has prompted automakers to become more involved in processor development. Today, OEMs work directly with semiconductor manufacturers to build processors that meet their specific needs. In 2023, European and American companies accounted for more than 95% of automotive smart driving and infotainment processor revenues, but are facing increasing competition from Chinese companies.

Horizon Robotics and HiSilicon (a subsidiary of Huawei) have made significant inroads in the CPU market. Horizon Robotics' automotive revenue grew 57% between 2022 and 2023, with much of this growth concentrated in the Chinese market, but European and American companies are investing heavily to establish operations in China.

In the field of infotainment, Chinese companies such as Rockchip, Unisoc, Black Sesame, CoreDrive and CoreEngine are emerging, although their applications are still limited. The Chinese market is currently dominated by Qualcomm, but the rapid development of Chinese companies indicates that the market structure may change in the future.

summary

With the continuous advancement of automotive computing and artificial intelligence technology, the automotive industry is moving towards centralization and connectivity. The rapid growth of the intelligent driving and infotainment processor market, the rise of central computing and in-vehicle sensor technology, and the strong development of the Chinese market are all important manifestations of this trend.

With the popularization of 5G technology and the further application of artificial intelligence technology, connected smart cars will become more and more common, pushing the entire automotive industry to new heights.