Autonomous Driving Chipset Market Projected To Grow At A CAGR Of 38.1% During The Forecast Period 2020 To 2025

Increase in demand for comfort driving and safety features coupled with cut – throat competition among autonomous vehicles’ manufacturers is anticipated to drive the Autonomous driving chipsets market during the forecast period 2020 - 2025. The global market for autonomous driving chipsets was around $1.83bn in 2019 and is estimated to reach $7.77bn by 2025, growing at a healthy 38.1% CAGR during the forecast period.

Autonomous driving chipsets market is analyzed to witness notable growth during the forecast period 2020-2025, owing to the Increase in demand for comfort driving and safety features coupled with cut – throat competition among autonomous vehicles’ manufacturers. Moreover autonomous driving is one of the most important applications for semiconductors in the next five years. The artificial intelligent (AI) chip in the autonomous driving system is the most critical component and also a new opportunity for SoC designers.

By ADAS features, 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.

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. 

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.

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. 

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.

The major companies in the autonomous driving chipsets market include NVIDIA Corporation, Qualcomm, Mobil eye, Intel Corporation, Tesla, Samsung, Waymo, Autotalks, Seimens, Xilinx, TI (Texas Instruments), Infineon and Renesas Electronics among others. In August 2019, Tesla Inc. introduced a new in-house chip which is 21 times faster than the older Nvidia model Tesla used and each car's computer has two for safety.

Demand for ADAS is relied upon to accelerate across the globe as the purchasers are significantly aware about the security measures in automobiles and the enhanced economic conditions of the major economies in the area have brought about better acquiring force of the buyers, subsequently making the ADV chipset applications reasonable to adapt. The penetration rates of ADAS are being affected due to filing of various safety regulations by the governments across every region throughout the World. There is increased penetration, especially in APAC region due to changes in governmental regulations and the demand for advanced technology drive the market.