The Need for AI in the Automotive Industry and the Future of the Market

Dublin, November 19, 2025 -

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

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

The report provides a comprehensive analysis of ADAS and autonomous driving technologies, 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 in 2024-2025.

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

By 2030, cabin monitoring systems are rapidly becoming a market influenced by regulatory requirements such as the EU General Safety Regulation and Chinese GB standards. The report details the evolution of Driver Monitoring Systems (DMS) and Occupant Monitoring Systems (OMS) technologies and includes advanced AI-powered camera and radar solutions offering features like face tracking, fatigue detection, and comprehensive cabin safety monitoring.

Software-Defined Vehicle (SDV) architectures are re-establishing the fundamental configuration of automotive electrical/electronic systems, transforming over 100 distributed Electronic Control Units (ECUs) into centralized computing hubs. 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 amid U.S. export restrictions on advanced AI chips. Nvidia is in a leading position in high-performance autonomous computing with its Drive platform, holding a significant market share in the Level 2 and Level 3 markets with the Orin SoC (254 TOPS). Additionally, the Thor (2,000 TOPS), aimed at Level 4 applications, is targeted for production in 2025-2026.

The report offers detailed technical and market analyses of LiDAR, radar, and camera technologies, identifying key players such as Chinese LiDAR manufacturers (Hesai, RoboSense, Livox, Seyond) that have captured a 60% global market share through aggressive pricing and local OEM partnerships. Moreover, forecasts on connected vehicle and V2X technologies trace the deployment of infrastructure in China's 28,000 secondary road units.

Qualcomm competes with Nvidia in the mid-tier segment, gaining attention with its Snapdragon Ride platforms. Mobileye, meanwhile, adopts a vertical integration strategy, combining unique perception software and REM crowd mapping solutions with its EyeQ SoCs. The report also includes 20-year application forecasts for autonomous driving levels 0-5 systems, multi-sensor fusion architectures, LiDAR technologies, and various market dynamics.