AUTONOMOUS VEHICLE CHIPS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Autonomous Vehicle Chips Market Size and Trends

Global autonomous vehicle chips market is estimated to be valued at USD 23.64 Bn in 2024 and is expected to reach USD 41.87 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.5% from 2024 to 2031.

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The rapid development of self-driving technologies and increasing demand for advanced driver-assistance systems are fueling the need for more sophisticated autonomous vehicle chips that can power functions like computer vision, sensor fusion, deep learning and artificial intelligence. The autonomous vehicle chips market trend shows significant growth as automakers continue to invest heavily in autonomous driving research and development. Rapid improvements in artificial intelligence and 5G connectivity are also supporting new chip designs with greater processing power, data transmission speed and lower power consumption. This is driving the development of safer, more affordable autonomous vehicles.

Market Driver - Increasing demand for advanced driver-assistance systems (ADAS) and autonomous vehicles

As advanced driver-assistance systems have evolved rapidly in recent years, penetrating deeper into consumer vehicles, the demand for autonomous vehicles capable of self-driving is on the rise. ADAS technologies have been improving safety on roads by offering features like adaptive cruise control, lane keeping assistance, blind spot monitoring, and automatic emergency braking. This has familiarized consumers with autonomous capabilities and piqued their interest in fully autonomous driving. Major automakers are vigorously working towards deploying self-driving vehicles and have accelerated their R&D spending to bring them to market in the next 5-10 years. The younger generation of drivers in particular is more open towards embracing new mobility options and sees considerable value in technologies freeing up travel time for other activities.

Consumer surveys have shown that a majority would feel more secure and comfortable travelling in an autonomous vehicle rather than a human-driven one given the safety risks from human errors. Several real-world pilot projects testing autonomous shuttles and taxis have proven the viability of driverless capabilities despite technical obstacles. Ride-hailing companies are actively pursuing autonomous fleet operations to optimize costs. Regulatory frameworks around the world are evolving to introduce regulatory clarity for deployment of autonomous vehicles. Technology giants as well as new players in the mobility space are pouring billions into autonomy to commercialize self-driving networks and services. While full autonomy may still be a few years away due to engineering challenges, the momentum clearly points towards growing consumer adoption once the technologies arrive at sufficient maturity and reliability.

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Rising Investments in Research and Development for Autonomous Vehicle Technology

Automakers, technology companies, new mobility startups as well as governments worldwide have significantly ramped up investments to accelerate the development of autonomous driving systems. They recognize autonomous vehicles, once fully realized, will transform the entire mobility landscape by addressing critical issues of road safety, traffic efficiency, accessible transportation, and more. Therefore competing intensely to build leadership in this expanding sector viewed as a major long term opportunity. Major tech clusters in Silicon Valley, Detroit, Munich, and Tokyo have mobilized immense resources racing to solve the scientific and engineering challenges of autonomous driving such as sensor processing, navigation, and object recognition through deep learning algorithms.

Governments especially in Asia, Europe and North America offer sizable funding and subsidies for universities and companies pursuing autonomous vehicle research. Cities are collaborating to test autonomous fleets and build supporting infrastructure of 5G networks and HD mapping. Eventual commercialization of autonomous systems will usher in a new paradigm of mobility as a service replacing private vehicle ownership. This vision of the future transportation landscape where full autonomy is the norm acts as a powerful motivator for continued increase in dedication of capital towards speeding up development of self-driving vehicles and mastering all technical aspects to make that future possible. With so much at stake competitively and economically, investments in autonomous vehicle R&D look set to keep rising substantially in the coming years.

In March 2024, Mobileye Global Inc., an Israeli autonomous driving company acquired by Intel in 2017, launched its SuperVision Lidar chip designed for autonomous vehicles. This innovative chip integrates Mobileye's EyeQ system-on-chip with advanced computer vision algorithms and a custom Lidar sensor, enhancing the capabilities of self-driving technology.