In the automotive industry, technology is evolving at an unprecedented pace. IHS Markit predicts that by 2022, high-end vehicles will carry over $6,000 worth of electronic components, contributing to a massive $160 billion in automotive electronics revenue. This growth reflects the increasing reliance on advanced electronics for performance, safety, and connectivity.
According to Luca De Ambroggi, principal analyst at IHS Markit Automotive Electronics, this surge in electronic content is driven by the integration of software and hardware. The automotive semiconductor market is expected to grow by more than 7% by 2022, outpacing both the overall automotive electronics market and car sales growth. A key factor behind this growth is the rising value of software within semiconductors, which is reshaping how cars operate and interact with their environment.
To handle the growing complexity of vehicle systems, automakers are moving away from traditional CAN-based architectures toward more advanced networking solutions. As De Ambroggi notes, all electronic systems must meet stringent security standards to protect against cyber threats and ensure safe operation.
Artificial Intelligence (AI) is also playing a crucial role in shaping the future of driving. While AI has the potential to enable fully autonomous vehicles (Level 5), challenges remain in meeting performance, safety, and cost requirements. Additionally, wafer technology is still in development, meaning widespread adoption of Level 5 autonomy may take longer than expected.
The automotive market alone may not be enough to support the high costs of developing new technologies. Therefore, there's a growing need for general-purpose semiconductor components that can be tailored for the automotive sector, offering flexibility and cost efficiency.
In-vehicle AI systems must go beyond simple object recognition. They need to process various types of data to predict behavior and make informed decisions. Even mature technologies like speech recognition in entertainment systems require significant improvements before they can be reliably used in driving assistance applications.
Looking ahead, a standardized driver’s license system for autonomous vehicles may be necessary to prove their intelligence and safety on the roads. This could become a critical step in the widespread acceptance of self-driving cars.
Sensors such as LiDAR are expected to become essential components in autonomous vehicles, with around 35 million units projected to be deployed by 2025. Currently, over 15 different technologies are competing for a share of this growing market.
These sensor inputs will require robust networking to ensure accuracy and redundancy. IHS forecasts that the material cost (BoM) for sensor fusion in Advanced Driver Assistance Systems (ADAS) will double by 2025. Meanwhile, the cost of basic surround sensor fusion for parking applications is expected to drop significantly, making them more accessible for commercial use.
With the rise of 5G connectivity, smart cars are set to revolutionize the way we drive. Katherine Winter, VP of Autonomous Driving at Intel, highlights that autonomous vehicles will generate up to 4 terabytes of data per day by 2020, creating immense demand for 5G communication and cloud storage infrastructure.
Intel is already testing its chips in hundreds of autonomous vehicles, aiming to develop end-to-end solutions that connect vehicles, networks, and the cloud. In the future, data from these vehicles will be sent to data centers via 5G for machine learning, algorithm training, and access to high-definition (HD) maps.
Nakul Duggal, VP of Product Management at Qualcomm, emphasizes that 5G will be central to the future of smart vehicles. He predicts that by 2035, 5G technology will contribute over $2.4 trillion to the automotive sector.
5G technology will enhance vehicle visibility by providing 360-degree coverage, allowing cars to see further and navigate challenging conditions like narrow intersections or bad weather. With the help of 3D HD maps, smart cars can accurately determine their location and update in real-time.
However, the use of 3D HD maps requires new wireless connectivity solutions, including decentralized small cell base stations and roadside units (RSUs). These advancements will play a key role in enabling the next generation of connected and autonomous vehicles.
As the automotive industry continues to evolve, the integration of advanced electronics, AI, and 5G will shape the future of mobility. Stay tuned for more updates on the latest developments in automotive technology.
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