Power Electronics Europe April/May Issue 2022

6 MARKET NEWS Issue 2 2022 Power Electronics Europe www.power-mag.com In 2035, C.A.S.E (Connectivity, ADAS, Sharing, Electrification) will be a $318 billion market, and the semiconductor value at chip level in a car will reach $78.5 billion in 2026, with a 14.75% CAGR between 2020 and 2026, announced Yole in its recent Automotive Semiconductor Trends report. ADAS technologies used to be considered a ‘nice to have’ feature for safety- conscious family car owners. It has now become the new frontier for technology companies. “The C.A.S.E megatrends have taken the industry by storm, the whole ecosystem including automotive companies, semiconductor manufacturers is moving to adapt to this massive transformation,” commented Pierre Cambou, Principal Analyst Imaging. Mobileye from Intel, filling for an initial public offering at an estimated value of $50 billion, is a sign of the times when the same number was achieved by Xilinx, acquired by AMD in February 2022. A few months back, Waymo, the autonomous vehicle arm of Google, was raising $2.3 billion at a value of $30 A Massive AI-Powered Automotive Transformation billion while Huawei was shifting 10,000 employees from mobile activities, hit by US sanctions, to autonomous vehicle technology research. Other examples can be mentioned: BMW willing to fight off Tesla by partnering with Qualcomm and Arriver, the perception venture born from the $4.5 billion acquisition of Veoneer. “There is an endless list of noteworthy news pointing toward industry reorganization. Therefore, all semiconductor and technology giants are looking into the ADAS to AD transition, the new center of gravity of the AI revolution,” Cambou said. Road mobility is a $10 trillion market. ADAS to AD technology could be the magic ring to command it all. This includes cameras, radars, LiDARs, and a lot of edge and cloud computing. Yole’s automotive analysts predict ADAS to AD technology to grow at 12% CAGR for the 2021-2027 period, reaching, at the electronic module level $25 billion in 2027. “Today, only 12 % of the 1,300 million cars on the road worldwide are fitted with ADAS technology,” explains Pierrick Boulay, Senior Technology & Market Analyst, Lighting and Display at Yole. “This figure will rise to 50 % of the 1,800 million cars on the road estimated for 2030. This evolution is due to the huge increase in penetration of the technology in cars produced every year. From 21 % five years ago, ADAS is now fitted onto 65 % of all vehicle production in 2022, and this number will reach 86% by 2027.” While quantitatively the transition is almost total, the qualitatively new generations of hardware are dubbed with ‘Level of autonomy’ increments, originally Level 1. Level 1 includes improved cruise control that could provide warnings to drivers. Then a transition came to Level 2 in different flavors: Level 2+ and now Level 2++ for cars with automated steering and braking, under supervision; in certain ideal conditions, and we cannot yet call it “autonomous driving”, but it is clearly at the top end of “advanced driving assistance”, states Yole’s analysts. The excitement is therefore palpable at Level 2. Key enabling technologies that benefit from this evolution are cameras, radars, LiDARs, and computing chips. In the Imaging for Automotive report, Yole’s imaging team describes the $440 worth of electronic content needed for Level 2+ cars of 2017, which is jumping toward $3,270 for state-of-the-art Level 2++ cars such as top-end Tesla, the recently released Honda Legend, and upcoming Mercedes S-class. The threshold toward completely removing the eyes of the driver from the road is nearby. This is the indication that Level 3 has been reached, the Kàrmàn line for autonomy which then extends to Level 4 and even Level 5. www.yole.fr