Automotive Infotainment SoCs Market Trends

Growth Drivers

• Emergence of the software-defined vehicle (SDV): The shift to the software-defined vehicle is a powerful catalyst for the infotainment automotive infotainment SoCs market. With automobiles serving as software-driven upgrade platforms, the demand for high-performance, centralized computer hardware to run advanced applications grows exponentially. This is fueling the need for advanced SoCs that will manage several in-car domains. In January 2024, Panasonic Automotive introduced its Neuron High-Performance Compute (HPC) architecture at CES. This platform is specifically designed to bring infotainment, ADAS, and other automotive functions onto a single, high-performance device to facilitate the next generation of SDVs.
• Demand for AI-powered, immersive in-cabin experience: Increased consumer interest in a convenient, smartphone-like experience within the vehicle is leading to demands for infotainment SoCs with top-level AI and graphics capabilities. Car manufacturers are competing to bring generative AI assistants, high-definition multimedia streaming, and interactive gaming, all of which require high-performance, dedicated silicon. For example, Intel launched a new generation of AI-powered automotive SoCs in January 2024, with Zeekr being the inaugural OEM to employ the technology. The collaboration will result in a generative AI-enabled living room experience in the next-generation cars, a new standard in in-cabin tech.

AI-Powered Immersive In-Cabin Experiences

Source: LG Electronics, Continental, Volvo, Afeela

• Adoption of multiple in-vehicle screens: The modern auto cockpit is increasingly filled with various large, high-resolution displays for the driver, front passenger, and rear-seat occupants. This presents a significant technical challenge and a vast opportunity for SoCs that can drive multiple displays and applications simultaneously from a single chip. In April 2025, LG Electronics and MediaTek showcased a revolutionary Android-based Concurrent Multi-User (CMU) system. This technology allows various passengers to employ different displays and applications independently on a single OS, reducing the hardware requirements and system load for multi-screen infotainment systems.

Global EV Market Growth & Infotainment SoC Demand Drivers

Source: IEA

Regional EV Sales Analysis & Infotainment SoC Requirements

Source: IEA

Challenges

• Geopolitical tensions and supply chain disaggregation: The infotainment automotive infotainment SoCs market is facing massive headwinds from escalating geopolitical tensions, which are bringing about supply chain disaggregation and a global push towards semiconductor self-reliance. This complex geography poses a threat to companies that rely on global supply chains and forces them to navigate a mosaic of national rules and barriers to trade. This test was put in stark relief in October 2024, when China launched its first onshore car-grade chip certification system. This initiative is in response to the country's over 90% reliance on overseas importation of auto chips, and it constitutes a major move towards reducing reliance on worldwide suppliers.
• Increasing sophistication of chip design and manufacturing: As infotainment SoCs become more powerful and integrated, their design, testing, and manufacturing complexity will reach unprecedented levels. Stretching the boundaries of Moore's Law requires engineering- and capital-hungry solutions like advanced packaging and chiplet architectures that represent insurmountable technical hurdles. This was highlighted in December 2024, when Broadcom delivered the world's first 3.5D Face-to-Face XPU. This highly advanced chip integrates several compute dies and memory modules using advanced packaging, showing the immense engineering effort required to produce next-generation silicon for AI automotive applications.