The global market for autonomous driving chipsets was around $1.83 billion in 2019 and is estimated to reach $7.77billion by 2025, growing at a healthy 38.1% CAGR during the forecast period. The artificial intelligent (AI) chip in the autonomous driving system is the most critical component and also a new opportunity for SoC designers. Driven by Tesla, many vendors have joined the race to design chips for autonomous driving over the past few years.
- Global Autonomous Driving Chipset Market was dominated by North America with a share of 41% in 2019 with much larger consumption rate for ADV chipsets compared to other regions.
- Automatic emergency braking held the largest share of 29% followed by adaptive cruise control with 19% share in the overall ADAS systems in 2019 as it collects data and information from the front-end radar and video-based systems, irrespective of driver intervention in vehicle movements.
- The market opportunity in passenger vehicles is estimated to reach $5.51bn in 2025, growing at a CAGR of 37% due to increase in passenger vehicle shipments and high on road vehicles density.
- The rising occurrence of target vehicle, growing per capita automotive expenditure, and government initiatives aimed at providing automotive industry will aid the extension of the global autonomous driving chipsets market.
ADAS Features – Segment Analysis
Advanced Driver Assistance System (ADAS) have been one of the remarkable breakthroughs in designing applications for advanced safety in automobiles. ADAS is an array of systems and subsystems that incorporates electronic components such as sensors, microcontrollers and software under one roof. The sensors installed in the driver assistance systems are linked with the Electronic Stability Control (ESC) in cars that provide beep signals and direct drivers away from arduous situations that can possibly lead to fatal accidents. Automatic emergency braking held the largest share of 29% followed by adaptive cruise control with 19% share in the overall ADAS systems in 2019. AEBS collects data and information from the front-end radar and video-based systems, irrespective of driver intervention in vehicle movements. AEBS use long range radar (LRR) and mid-range radar (MRR) in blend with the video cameras. AEBS as an effective safety technology has been approved by the European Commission in 2014 and the regulations made by the commission clearly states that the AEBS installation should be mandatory in every new vehicle registered from 2015 onwards in Europe. This will decrease the casualties caused due to traffic accidents by 5,000 per year in Europe. AEBS has now become mandatory in Europe and North America by law and will soon be adopted by other continents as the mandatory safety components in automobiles.
End User – Segment Analysis
Autonomous driving chipsets are used in both passenger and commercial vehicles currently, including LCVs and HCVs. The market opportunity in passenger vehicles is estimated to reach $5.51bn in 2025, growing at a CAGR of 37%, while commercial vehicles is estimated to hit $2.25bn in 2025, at a healthy CAGR of 41.5%. Passenger vehicles add to around 75% of the overall car production and the passenger car market is growing at a CAGR of 3.4% as per a global study. The increase in passenger vehicle shipments and high on road vehicles density has spawned up the need of safety measures in the automobiles. The regulations passed by the European Commission and National Highway Traffic Safety Association (NHTSA), U.S.A regarding installation of certain ADV features such as AEB and TPMS to be made mandatory in every vehicle manufactured in 2014. The rise in the number of new car registrations is pumping up the passenger vehicle market resulting in more demand for ADV market shipments.
Geography – Segment Analysis
Global Autonomous Driving Chipset Market is dominated by North America with a share of 41% in 2019. U.S. is a leading nation with much larger consumption rate for ADV chipsets compared to other countries considered for this study. The region had acquired 65% market share in terms of revenue in 2019. The safety regulations set by the N.H.T.S.A in the U.S. and Canada has made it mandatory for the car and commercial manufacturers to offer certain ADAS applications such as AEB, LDWS, and FCWS as standard features. There are a few more reasons driving the ADV chipset market towards growth: one is the higher GDP of the nation that enables higher purchasing power of the consumers and second is the higher penetration rates of the ADAS in luxury as well as standard vehicles. The presence of the key suppliers for the ADV chipsets such as Autoliv, TRW Automotive is among few factors leading to growth of this market in the region.
Drivers – Autonomous Driving Chipset Market
Increase in Demand of Comfort Driving
Demographic changes over the last few years will intensely impact the market. For instance, the regular life expectancy of people has increased, which has led to a growth in the geriatric population worldwide. This has led to increased utilization of tools which can assist this population to drive safer. The rising occurrence of target vehicle, growing per capita automotive expenditure, and government initiatives aimed at providing automotive industry will aid the extension of the global advanced driver assistance system market.
Increasing Focus on Safety such as Lane Departure Warning Systems, Automated Emergency Braking Systems etc
Key drivers for the development of the ADAS market are the customers’ interests and attitudes. There is a significant difference between the demand generated by the regulations imposed by the government bodies and the continually changing consumer preferences. The U.S. and European customers’ responses and viewpoints for safety measures in automobiles highlight the contrast between their attitudes, awareness and knowledge towards active safety. European purchasers appear to be more concerned about vehicle safety, have larger amount of awareness of driver assistance systems and are ready to pay for extra safety measures.
Challenges – Autonomous Driving Chipset Market
Development cost of Chipsets is High
Since the development costs are high, it restricts the Chipset manufacturers to earn high margins. The companies should focus on providing AI/ML features not only to the high-end premium segment vehicles but also to the mid- and low-end passenger vehicles. This new market segment entry will help the manufacturers to attain economies of scale and there will be amortization of the development cost due to large volume and potential low cost of the autonomous driving chipset based systems.
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Autonomous Driving Chipset Market. Autonomous Driving Chipset driver market is expected to be dominated by major companies such as NVIDIA Corporation, Qualcomm, Mobil eye, Intel Corporation, Tesla, Samsung, Waymo, Autotalks, Seimens, Xilinx, TI (Texas Instruments), Infineon and Renesas Electronics among others.
- In February, 2020 Auto talks has launched V2X chipset, which claims to provide information about car’s location, direction, and speed up to ten times per second. This technology enables the car to communicate with other vehicles along with infrastructures such as traffic lights and mobile phones to help prevent collisions. Additionally, if at all the other vehicles are also equipped with the same system chipset in the surrounded area, those vehicles will receive updates thus, estimating the risks imposed.
- In February 2020 Huawei announced the unveiling of Ascend 910 chipset, which provides the Square Kilometer Array feature. . Huawei’s Ascend chipset 310 can be programmed by architecture developed by Huawei and also its feature of low power consumption is highly attracting the market growth. Additionally, the Ascend 310 chipset allows image recognition for autonomous vehicles. This chipset is capable of identification of 200 different objects around the vehicle simultaneously.