Need for AI in Automotive and Future of the Market

Dublin, November 19, 2025 -

In the automotive industry, the need for 30-1,000 TOPS artificial intelligence capacity for level 2 to level 4 systems is presenting the market with an unprecedented demand for computation. As the importance of energy efficiency and cooling systems for electric vehicles increases, key players like Nvidia, Qualcomm, Mobileye, and Horizon are standing out with advanced system-on-chip (SoC) solutions targeting various levels of automotive technology, focusing on safety and efficiency.

In the coming years, the "Next Generation Automotive Computing Market Report" covering the period from 2026 to 2036 will examine these trends in the context of Advanced Driver Assistance Systems (ADAS), in-cabin monitoring, and connected vehicle technologies. It will also address the shift towards centralized computing in software-defined vehicles in line with new regulatory requirements.

The report offers a comprehensive analysis of ADAS and autonomous driving technologies while highlighting the technological, regional, and competitive dynamics driving this change. China is rapidly advancing towards Level 2 dominance, while Europe is developing regulations that will mandate the adoption of features such as Automatic Emergency Braking and Driver Monitoring Systems by 2024-2025.

The automotive computing market is on the brink of a transformation from traditional embedded control systems to complex AI-powered platforms that compete with data center infrastructure. This development is driven by the computing requirements of autonomous driving and software-defined vehicle architectures, representing one of the fastest-growing segments in the semiconductor industry.

By 2030, in-cabin monitoring systems are rapidly becoming a developed market in line with regulatory requirements such as the EU General Vehicle Safety Regulation and Chinese GB standards. The report details the evolution of Driver Monitoring Systems (DMS) and Occupant Monitoring Systems (OMS) technologies, including advanced AI-powered camera and radar solutions offering facial tracking, drowsiness detection, and comprehensive cabin safety monitoring.

Software-Defined Vehicle (SDV) architectures are redefining the fundamental configuration of automotive electrical/electronic systems, transforming over 100 distributed Electronic Control Units (ECUs) into centralized computing systems. The report compares SDV maturity models among major Original Equipment Manufacturers (OEM) such as Tesla, BYD, XPeng, Nio, Mercedes-Benz, BMW, and Volkswagen.

As regional dynamics reshape competition, Chinese players are increasing their local market share due to U.S. export restrictions on advanced AI chips. Nvidia is in a leading position in high-performance autonomous computing with its Drive platform and holds a significant share in the Level 2 and Level 3 market with the Orin SoC (254 TOPS). Moreover, the targeted Thor (2,000 TOPS) for 2025-2026 production aims to address Level 4 applications.

The report presents detailed technical and market analyses for LiDAR, radar, and camera technologies, identifying key players like Chinese LiDAR manufacturers (Hesai, RoboSense, Livox, Seyond) that have obtained a 60% global market share through aggressive pricing and local OEM partnerships. Additionally, forecasts for connected vehicle and V2X technologies track China's infrastructure deployment across 28,000 access points.

Qualcomm competes with Nvidia in the mid-tier segments, gaining attention with its Snapdragon Ride platforms. Mobileye, on the other hand, adopts a vertical integration strategy, bringing together its unique detection software and REM crowd mapping solutions through EyeQ SoCs. The report also includes 20-year projections for the implementation of autonomous driving systems at levels 0-5, multi-sensor fusion architectures, LiDAR technologies, and various market dynamics.