Auto processor market growing at 13% CAGR 22-28
ADAS/AD applications are expected to grow with a CAGR 22-28 of 18%, to reach $8.7 billion in 2028.
Cockpit applications are expected to grow with a CAGR22-28 of 5%, to reach $4.0 billion in 2028.
Both applications are driving the computing demand, with Mobileye, Xilinx-AMD, NXP, Nvidia, Qualcomm and others fighting for this market.
Pushed by safety regulations, the adoption of ADAS is increasing rapidly – and this is driving multiple sensor adoption.
“Car architecture evolution is strongly impacting the processor market, in terms of both units and revenue” says Yole’s Adrien Sanchez, “centralisation is expected to progress significantly in the next years”.
The cockpit segment is driven by centralisation into a cockpit domain controller, the growing importance of user experience applications, and the arrival of 5G, which is having an impact on the telematic segment.
Software-defined cars, new cockpit applications, and an increasing number of ADAS/AD functions make processors increasingly important in cars and can create a dependent relationship between OEMs and processors.
In this context, some OEMs have announced their willingness to build a custom processor – however, due to the cost, most of them are instead expected to use other solutions such as co-design or forming partnerships.
There are different types of competitors, such as traditional automotive players, processor companies from consumer and server markets, companies specialising in vision processing, and many start-ups proposing innovative solutions.
China’s computing ecosystem is very dynamic, with many young companies enjoying strong momentum and getting design wins. Among them, Horizon Robotics and SemiDrive are already shipping processors in cars, and others are expected to follow in the coming years.