Automotive AI Chipset Market - By Product (GPU, ASIC, FGPA, CPU), By Application (Advanced Driver Assistance Systems (ADAS), Voice & Gesture Recognition, Infotainment System, Predictive Maintenance, Autonomous Driving), By Processing Type, By Vehicle Type & Forecast, 2023 – 2032

Automotive AI Chipset Market Size

Automotive AI Chipset Market size was valued at over USD 2.3 billion in 2022 and is anticipated to grow at a CAGR of over 20% between 2023 & 2032. The pursuit of autonomous driving technology is a primary factor driving market growth. The rising preference for Electric Vehicles (EVs) is driving the need for efficient power management, and AI chipsets play a crucial role in optimizing battery performance. Automotive manufacturers are also increasingly integrating AI chipsets to enable vehicles to perceive and respond to their surroundings autonomously, enhancing safety & convenience. In-car infotainment systems and Advanced Driver Assistance Systems (ADAS), which are high in demand, also rely heavily on AI processing power. The quest for eco-friendly and connected vehicles will propel the adoption of AI chipsets over the forecast period.
 

Automotive AI chipsets are specialized integrated circuits designed to perform advanced data processing tasks within vehicles. These chipsets incorporate artificial intelligence and machine learning capabilities to analyze data from various vehicle sensors, cameras & radars.

As AI chipsets gather and process vast amounts of data from vehicles, concerns over data privacy & security arise. Mishandling or breach of this data can lead to privacy infringements and raise legal & ethical questions for automotive companies. Also, the research, development, and manufacturing of cutting-edge AI chipsets require substantial investments. This can strain the budgets of automotive manufacturers, particularly smaller companies, potentially limiting their ability to adopt these technologies.
 

COVID-19 Impact

The COVID-19 pandemic had multifaceted impacts on the automotive AI chipset market. Initially, the global automotive industry experienced a slowdown in production & sales due to lockdowns and economic uncertainties. However, as the world adapted to the pandemic, the significance of AI-driven technologies became even more pronounced. Consumers sought safer and more connected vehicles, accelerating the adoption of AI-driven features such as touchless interfaces, autonomous capabilities, and advanced navigation systems. Moreover, the pandemic highlighted the importance of AI in optimizing supply chains, fleet management, and remote vehicle diagnostics, further driving the demand for AI chipsets in the automotive sector.
 

Automotive AI Chipset Market Trends

The trend toward edge AI processing involves performing AI computations directly on devices rather than relying on cloud servers. In the automotive context, this ensures real-time decision-making for autonomous vehicles and reduces latency in AI-driven applications. Further, predictive maintenance powered by AI is gaining traction. Automotive AI chipsets are used to monitor vehicle components, predict potential failures, and schedule maintenance, enhancing vehicle reliability & reducing downtime. With the growing complexity of automotive electronics, AI chipsets are utilized for advanced cybersecurity. They help detect and prevent cyber threats, safeguarding connected vehicles from hacking & data breaches. Additionally, collaboration between automakers, AI chipset manufacturers, and tech companies is a prominent trend. These partnerships aim to co-develop AI solutions tailored to the unique requirements of the automotive industry, fostering innovation and market growth.
 

Automotive AI Chipset Market Analysis

Based on product, the automotive AI chipset market is segmented into GPU, ASIC, FPGA, and CPU. FPGA is expected to witness a significant growth rate of over 24% during the forecast period. These chips can be reprogrammed to accommodate evolving AI algorithms and requirements without requiring physical component changes. In the automotive context, FPGAs are employed for tasks such as adaptive cruise control, lane-keeping assistance, and autonomous driving. Their ability to adapt to changing demands in AI algorithms and the automotive industry's dynamic nature makes FPGAs an essential growth factor in the AI chipset market. They empower manufacturers to keep up with technological advancements and meet evolving safety standards.
 

Based on vehicle type, the automotive AI chipset market is divided into passenger vehicle and commercial vehicle. The passenger vehicle segment held a dominant market share of over 70% in 2022 and is expected to grow at a lucrative pace till 2032. The adoption of AI chipsets in passenger vehicles is being driven by the demand for enhanced safety, convenience, and driving experiences. In the passenger vehicle segment, AI chipsets are used to power advanced driver-assistance systems that provide features such as adaptive cruise control, lane-keeping assistance, and autonomous emergency braking. These technologies aim to reduce accidents and improve road safety. Additionally, in-car AI-powered infotainment systems offer passengers personalized entertainment and connectivity, enhancing overall driving satisfaction. As consumers increasingly prioritize safety & convenience, the adoption of AI chipsets in passenger vehicles continues to grow.
 

North America held a significant automotive AI chipset market share of over 30% in 2022. The presence of major automotive manufacturers, tech giants, and a robust research ecosystem has accelerated AI integration into vehicles. The region is at the forefront of autonomous driving technology development with several companies testing autonomous vehicles on North American roads. Moreover, stringent safety regulations and consumer demand for advanced safety features further drive AI chipset adoption in vehicles.
 

Automotive AI Chipset Market Share

Major companies operating in the automotive AI chipset market are

• Nvidia
• Qualcomm
• Intel
• Renesas Technologies

The competitive landscape is characterized by continuous innovation as companies strive to improve their offerings with new features, integrations, and partnerships.
 

Automotive AI Chipset Industry News

• In August 2023, Kneron launched a new type of neural processing unit, the KL730, which integrates image signal processing and high energy efficiency for use in edge, security & automotive applications. KL730 is powered by a quad-core ARM Cortex A55 CPU and is available in various connectivity options such as SD, USB 2 & 3, and Ethernet.
   

The Automotive AI chipset market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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By Product

• GPU
• ASIC
• FGPA
• CPU

By Application

• Advanced Driver Assistance Systems (ADAS)
• Voice & Gesture Recognition
• Infotainment System
• Predictive Maintenance
• Autonomous Driving
• Others

By Processing Type

• Computer Vision
• Machine Learning
• Natural Language Processing

By Vehicle Type

• Passenger Vehicle
• Commercial Vehicle

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • GCC
  • South Africa
  • Rest of MEA