Global Automotive Self-driving Chip Market By Type (L1 and L2 Level, L3 Level, L4 Level, Others), By Application (Passenger Car, Commecial Car), By Region, And Segment Forecasts, 2023 to 2032

Market Overview:

The global automotive self-driving chip market is rapidly evolving as autonomous driving technology advances. Self-driving chips are critical components in autonomous vehicles, enabling real-time processing of complex algorithms for navigation, object detection and decision-making. The automotive industry is undergoing a shift wherein cars will be distinguished by their electronics and semiconductors; this development makes semiconductors an essential part of automotive innovation. IoT, 5G, Artificial intelligence and other advanced technologies will all come together to form the automotive self-driving car (IoT).

The global automotive self-driving chip market was valued at USD 41.92 billion in 2023 and is projected to reach USD 110.50 billion by 2033, growing at a CAGR of 10.19%. The worldwide automotive self-driving market is also expanding due in large part to the quickeneng pace of fully automated car development and commercialisation, the reason being numerous sensors require powerful automotive chips for data processing. 

Premium Insights:

• Significant investments from tech giants and automotive manufacturers are accelerating development and adoption

• Government regulations and policies promoting autonomous driving technology are also aiding market growth

Global Automotive Self-driving Chip Market Dynamics:

Drivers: Technological advancements, stringent safety regulation & focus on ADAS, emphasis on connectivity

-The development of powerful AI processors and efficient machine learning algorithms is crucial for enabling autonomous vehicles to navigate complex environments. Advancements in these fields are creating a strong foundation for the automotive self-driving chip market.

-Governments are implementing stricter regulations on vehicle safety, prompting car manufacturers to invest in advanced driver-assistance systems (ADAS). Many ADAS features utilise processing power similar to that of self-driving chips, creating a spillover effect that benefits the market.

-The future of autonomous vehicles hinges on robust connectivity and V2X communication. Self-driving chips with integrated connectivity features are crucial for enabling real-time data exchange between vehicles and infrastructure, enhancing safety and efficiency.

Restraints: High initial costs, technical challenges & regulatory hurdles and consumer perception & public acceptance.

-Developing and integrating self-driving chips into vehicles is a complex and expensive process. The high cost can be a barrier for some automakers, particularly those targeting lower-priced vehicle segments.

-Autonomous vehicles still face technical hurdles related to sensor accuracy, lidar technology limitations, and handling unexpected situations. Additionally, clear and comprehensive regulations governing the operation and liability of self-driving vehicles are necessary before widespread adoption can occur.

-Public concerns about the safety and reliability of self-driving vehicles can be a barrier to widespread adoption. Building consumer trust through transparent communication and successful real-world testing is crucial.

Opportunities:  Advancements in chip manufacturing technologies, focus on standardisation, focus on multifunctionality and integration with other systems , expansion into emerging markets.

-Improvements in chip manufacturing processes like 5G integration and efficient power management can lead to smaller, more powerful, and energy-efficient self-driving chips. This can reduce costs and improve the overall performance of autonomous vehicles.

-Developing standardised interfaces and promoting open-source software platforms for self-driving chips can encourage innovation, collaboration, and faster development cycles within the industry.

-Developing self-driving chips with integrated functionalities for ADAS features, infotainment systems, and vehicle communication can improve overall system efficiency and reduce development costs for automakers.

-The growing demand for affordable transportation and rising interest in technological advancements in developing economies present significant opportunities for the automotive self-driving chip market.

Market By Automotive Self-driving Chip Type Insights:

Based on product type, the market is segmented into analogue ICS, logic ICS, microcontrollers, sensors, lighting devices, and others. In 2023, the analogue ICS segment held a dominant market share of approximately 40%. The analogue integrated circuit which is present in the majority of electronic devices, is the most basic circuit component of a larger electronic circuit. Operational amplifiers, power management circuits and sensors are examples of analogue integrated circuits. Wideband signals with sampling rate restrictions and higher power applications are its areas of application.

Based on fuel type, the market is divided into diesel, gasoline and electric or hybrid vehicles. The gasoline segment dominated the market with a market share of over 40% in 2023. Gasoline-powered cars contain about a thousand of these essential chips. Particularly chips are utilised in the sensors that, in case of an accident, activate the gasoline-powered vehicle’s life-saving airbag.

Based on application, the market is segmented into safety, body electronics, chassis, telematics and infotainment, powertrain and others. In 2023, the infotainment and telematics segment held a dominant market share as a variety of automotive chips, such as integrated circuits and timing, enable the robust and dependable infotainment and telematics segment. 

Market By End-Use Insights:

Based on end-use, the market is segmented into passenger vehicles, light commercial vehicles and heavy commercial vehicles. With a market share of 42%, the passenger vehicle segment dominated the industry in 2023. A passenger automobile is a multitrack vehicle that has four wheels, a driver, and at least two axles. On public roads, most passenger cars are used for public transportation and the chips present in these cars are in large quantities. 

Market By Region Insights:

Based on regional coverage, the Global Automotive Self-driving Chip Market is segmented into Asia Pacific, North America and Europe. The US leads the world in the use of automotive self-driving chips and North America will dominate the global market due to the rise in internet users and the development of new technologies like 5G, artificial intelligence, and the Internet of Things (IoT). However, the Asia Pacific region is also witnessing a significant market demand.

Competitive Scenario:

Key players in this market are Tesla, Horizon,  Renesas, BOSCH, Qualcomm, Mobileye, Black Sesame Technologies, Westwell Lab, MediaTek Inc,  and Intel. 

Scope of Work: Global Automotive Self-driving Chip Market

Key Market Developments

• December 2021-With the release of Software Version 11.0, Tesla unveiled innovative features like the Tesla light show, a redesigned user interface, updated navigation, comfortable suspension while using autopilot, and enhancements for colder climates.

• May 2022- Renesas will invest in and reopen the Kofu Factory as a 300mm Water Fab exclusively for Power Semiconductors.

• April 2023- Samsung Electronics announced plans to invest $10 billion in a new memory chip manufacturing facility in South Korea to meet the growing demand for memory chips in the automotive and other sectors.

Frequently Asked Questions (FAQs)

1. What are the main drivers of the market?

Ans. Key drivers include technological advancements, stringent safety regulations & focus on ADAS, emphasis on connectivity

2. What are the primary challenges faced by the market?

Ans. The primary challenges include high initial costs, technical challenges & regulatory hurdles and consumer perception & public acceptance.

3. Who are the major players in the automotive self-driving chip market?

Ans. The major players include Tesla, Horizon,  Renesas, BOSCH, Qualcomm, Mobileye, Black Sesame Technologies, Westwell Lab, MediaTek Inc,  and Intel. 

4. What opportunities exist in the market?

Ans. Opportunities include advancements in chip manufacturing technologies, focus on standardisation, emphasis on multifunctionality and integration with other systems, and expansion into emerging markets.