Automotive Artificial Intelligence Chipsets

Global Automotive Artificial Intelligence Chipsets Market to Reach US$11.7 Billion by 2030

The global market for Automotive Artificial Intelligence Chipsets estimated at US$3.5 Billion in the year 2024, is expected to reach US$11.7 Billion by 2030, growing at a CAGR of 22.5% over the analysis period 2024-2030. GPU Chipset, one of the segments analyzed in the report, is expected to record a 24.5% CAGR and reach US$6.9 Billion by the end of the analysis period. Growth in the ASIC Chipset segment is estimated at 21.6% CAGR over the analysis period.

The U.S. Market is Estimated at US$907.4 Million While China is Forecast to Grow at 21.2% CAGR

The Automotive Artificial Intelligence Chipsets market in the U.S. is estimated at US$907.4 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.8 Billion by the year 2030 trailing a CAGR of 21.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 21.0% and 19.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 16.4% CAGR.

Global Automotive Artificial Intelligence Chipsets Market - Key Trends & Drivers Summarized

Why Are AI Chipsets Transforming the Automotive Landscape?

Artificial intelligence chipsets are at the heart of a technological revolution that is reshaping the automotive industry. These chipsets, designed to process complex algorithms, are critical for enabling features such as autonomous driving, advanced driver-assistance systems (ADAS), and predictive maintenance. Automakers are leveraging AI chipsets to push the boundaries of what vehicles can achieve, from recognizing objects in real-time to making split-second decisions that enhance passenger safety. Furthermore, the increasing demand for Level 3 and higher levels of vehicle automation is accelerating the adoption of high-performance AI chipsets. These advanced systems require enormous computational power to process vast amounts of sensor data, such as inputs from LiDAR, cameras, and radar. AI chipsets are uniquely suited to handle these tasks, ensuring seamless integration and functionality in autonomous vehicles. Additionally, the transition toward software-defined vehicles is boosting demand for chipsets capable of supporting continuous over-the-air updates, enabling cars to evolve with advancing technology.

How Is Technology Driving Innovation in AI Chipsets for Vehicles?

The automotive artificial intelligence chipsets market is witnessing rapid advancements in chipset architecture and design to meet the growing complexity of modern vehicles. One major trend is the integration of system-on-chip (SoC) designs, which combine multiple functionalities, including machine learning, edge computing, and neural processing, into a single, compact unit. These innovations are not only enhancing the processing speed but also reducing power consumption, a critical factor for electric and hybrid vehicles. Another breakthrough is the development of specialized AI accelerators, which are optimized for deep learning tasks. These accelerators enable real-time decision-making, a key requirement for autonomous driving systems. The advent of 7nm and 5nm manufacturing processes has further improved the performance and efficiency of these chipsets, allowing them to handle the intensive computational requirements of AI algorithms. Additionally, collaborations between automakers and tech giants have accelerated innovation in this space, with companies investing heavily in research to develop custom chipsets tailored to specific automotive applications.

What Are the Regional Trends Shaping Market Expansion?

The adoption of automotive AI chipsets varies significantly across regions, influenced by factors such as regulatory frameworks, consumer demand, and infrastructure readiness. North America and Europe remain dominant markets, driven by a strong emphasis on innovation and significant investments in autonomous vehicle development. Governments in these regions are actively promoting the deployment of advanced automotive technologies, offering incentives and establishing testing grounds for autonomous vehicles. In contrast, the Asia-Pacific region is emerging as a key growth hub, fueled by the rapid digitization of the automotive sector in countries like China, Japan, and South Korea. These nations are investing heavily in AI research and have established partnerships with global tech companies to accelerate the development of AI-powered vehicles. Additionally, the growing adoption of electric vehicles in this region is driving demand for energy-efficient AI chipsets, creating lucrative opportunities for manufacturers. Emerging markets in Latin America and the Middle East are also witnessing increased interest, supported by rising vehicle ownership and technological advancements.

What Is Driving Growth in the Automotive Artificial Intelligence Chipsets Market?

The growth in the automotive artificial intelligence chipsets market is driven by several factors, including advancements in autonomous driving technologies, increasing adoption of electric vehicles, and rising consumer expectations for smarter and safer vehicles. The proliferation of ADAS and self-driving features has created a massive demand for AI chipsets capable of handling complex real-time data processing. Additionally, the rise of connected vehicles, which rely on AI chipsets to facilitate vehicle-to-everything (V2X) communication, is fueling market expansion. Consumer demand for enhanced in-cabin experiences, including personalized infotainment and voice recognition systems, is also propelling the adoption of AI chipsets. Automakers are increasingly incorporating AI-powered features to differentiate their offerings in a highly competitive market. Moreover, the shift toward green mobility is driving the development of energy-efficient chipsets tailored for electric and hybrid vehicles. Strategic collaborations between automakers and chipset manufacturers, along with supportive government initiatives, are further bolstering market growth, making automotive artificial intelligence chipsets a cornerstone of the industry’s future.

SCOPE OF STUDY:

The report analyzes the Automotive Artificial Intelligence Chipsets market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Type (GPU Chipset, ASIC Chipset, FGPA Chipset, CPU Chipset); Vehicle Type (Passenger Cars, Commercial Vehicles)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 34 Featured) -

• Ambarella, Inc.
• AMD (Advanced Micro Devices)
• Apple Inc.
• Google LLC
• Huawei Technologies
• IBM Corporation
• Infineon Technologies
• Intel Corporation
• Micron Technology, Inc.
• Microsoft Corporation
• Mobileye (Intel Subsidiary)
• NVIDIA Corporation
• NXP Semiconductors
• Qualcomm Technologies, Inc.
• Renesas Electronics
• Samsung Electronics
• SK Hynix Inc.
• STMicroelectronics
• Tesla, Inc.
• Texas Instruments

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