Automotive AI Chipset Market Size to Reach USD 14,116.8 Million in 2032
The automotive AI chipset market size reached USD 3,142.8 Million in 2024 and is expected to register a revenue CAGR of 21.2% during the forecast period
March 20, 2024 – Rising expansion of Advanced Driver Assistance Systems (ADAS) is the key factor driving revenue growth of automotive AI chipset market. Automakers nowadays are increasingly integrating AI-powered safety and automation features into vehicles. Governments across the globe are also mandating ADAS technologies, such as automatic emergency braking, lane departure warning, adaptive cruise control, and blind-spot detection to increase road safety. In April 2024, for instance, The National Highway Traffic Safety Administration (NHTSA) of U.S. introduced the final version of a new regulation requiring all passenger vehicles in the country to be equipped with Automatic Emergency Braking (AEB). The mandate aims to prevent rear-end collisions and pedestrian accidents. This regulatory push enhances vehicle safety and expands market opportunities for semiconductor companies and AI chipset manufacturers.
In addition, the growing deployment of electric and connected vehicles further boosts the need for sophisticated automotive AI chipsets. In 2023, the number of connected cars on the road globally reached approximately 350 million, marking an 18% increase from 2022. The global fleet of connected vehicles is projected to surpass 640 million units by 2027. The rapid growth of connected cars is significantly driving revenue growth in the automotive AI chipset market. Automakers in recent days are integrating AI-driven infotainment, telematics, and vehicle-to-everything (V2X) communication systems. These advancements require high-performance AI chipsets to process vast amounts of data from sensors, cameras, and cloud-based platforms. The demand for enhanced cybersecurity and edge computing solutions in connected vehicles is also further fueling investments in automotive AI chipsets and driving revenue growth of the market.
However, high cost of AI chipsets and implementation is restraining revenue growth of the market. Advanced AI chipsets require cutting-edge semiconductor fabrication which is driving up production costs. Additionally, the integration of AI chipsets into vehicles necessitates sophisticated software development, high-performance computing infrastructure, and extensive testing. It further increases expenses for automakers. The cost burden is particularly challenging for mid-range and entry-level vehicle manufacturers. It limits the widespread adoption of AI-powered automotive solutions and restraints revenue growth of the market.
Key Highlights:
- Hardware segment accounted for largest revenue share in 2024 due to the increasing demand for high-performance AI processors, GPUs, and system-on-chips (SoCs) that power autonomous driving, advanced driver assistance systems (ADAS), and in-vehicle infotainment. In addition, the expansion of ADAS safety features, regulatory mandates, and the push for higher levels of automation (L2–L5 autonomous driving) are compelling automakers to invest in advanced AI chipsets and boosts revenue growth of this segment.
- Autonomous driving segment accounted for a significant revenue share in 2024 due rto the increasing adoption of self-driving technologies and advancements in AI-powered decision-making systems. Automakers and tech companies are heavily investing in Level 2 to Level 5 autonomous vehicles. It requires high-performance AI chipsets to process vast amounts of real-time data from LiDAR, radar, cameras, and sensors. In addition, the integration of edge AI and deep learning algorithms in autonomous vehicles is also driving revenue growth of this segment.
- North America accounted for largest revenue share in 2024 in the automotive AI chipset market due to the rapid adoption of autonomous driving technologies, connected vehicles, and advanced driver assistance systems (ADAS) in the region especially in U.S. and Canada. In addition, the significant investments from leading semiconductor companies such as Qualcomm, Intel, and NVIDIA, alongside the expansion of AI-driven vehicle innovations, are further driving revenue growth of the market.
- Some major companies in the global market report include NVIDIA Corporation, Intel Corporation, Qualcomm Technologies Inc., Advanced Micro Devices, Inc., Renesas Electronics, NXP Semiconductors, Infineon Technologies, STMicroelectronics, Samsung Electronics, Graphcore, Micron Technology, Inc., and Huawei Technologies Co., Ltd.
- On 09 August 2024, Intel introduced a new Graphics Processing Unit (GPU) for vehicles in mainland China, reinforcing its presence in the world’s largest electric vehicle market despite slowing growth and fierce competition in advanced semiconductors. The newly launched Arc Graphics for Automotive discrete GPU is specifically designed to enhance in-car Artificial Intelligence (AI) capabilities and will be commercially integrated into vehicle cockpits.
Unlock the key to transforming your business strategy with our automotive AI chipset market insights –
Get a preview of the complete research study
Navistrat Analytics has segmented global automotive AI chipset market on the basis of component, processing type, vehicle type, application and region:
- Component (Revenue, USD Million; 2022-2032)
- Hardware
- Graphics Processing Unit (GPU)
- Central Processing Unit (CPU)
- Field Programmable Gate Array (FPGA)
- Application-Specific Integrated Circuit (ASIC)
- Software
- AI Frameworks
- Middleware
- Others
- Services
- Deployment & Integration
- Support & Maintenance
- Hardware
- Processing Type Outlook (Revenue, USD Million; 2022-2032)
- Machine Learning
- Deep Learning
- Natural Language Processing (NLP)
- Computer Vision
- Vehicle Type Outlook (Revenue, USD Million; 2022-2032)
- Passenger Vehicles
- Commercial Vehicles
- Light Commercial Vehicles (LCVs)
- Heavy Commercial Vehicles (HCVs)
- Application Type (Revenue, USD Million; 2022-2032)
- Advanced Driver Assistance Systems (ADAS)
- Autonomous Driving
- Infotainment Systems
- Telematics
- Voice & Gesture Recognition
- Predictive Maintenance
- Cybersecurity
- Others
- Regional Outlook (Revenue, USD Million; 2022-2032)
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Benelux
- Nordic Countries
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- South Korea
- Oceania
- ASEAN Countries
- Rest of APAC
- Latin America
- Brazil
- Rest of LATAM
- Middle East & Africa
- GCC Countries
- South Africa
- Israel
- Turkey
- Rest of MEA
- North America