As the role of software in developing autonomous cars reaches a new high, we assess what artificial intelligence means for ‘traditional’ tier-1 hardware suppliers.
As the automotive industry races to offer higher levels of automation, artificial intelligence (AI) has become integral to many car makers’ long-term strategy.
As human drivers become less reliant on cars to perform basic driving tasks, the need for cars to make intelligent decisions increases. AI has, therefore, become a key component in developing autonomous vehicles beyond SAE level 3 when the human driver no longer acts as a backup.
In an automotive context, the ultimate vision behind AI is to combine data, advanced algorithms, processing power and sophisticated hardware to develop cars that respond independently to the world around them.
AI is a cornerstone of developing cars that:
Alongside HD maps, cloud updates, V2X and many other key enablers for higher levels of automation, AI has fundamentally disrupted who car makers see as prospective partners.
* Companies shown are examples and are not intended to provide an exhaustive list.
As the role of software grows, even for global car brands with massive resource at their disposal, finding the right expertise in-house (or even within the automotive industry) is often not feasible. Car makers are therefore looking beyond the traditional automotive space as access to the right knowledge and IT architecture becomes equally (if not more) more important than sourcing the best, most cost-effective hardware.
Many car makers are looking to expand their software based expertise through acquisitions and new partnerships
The established dominance of traditional tier-1 suppliers is certainly being challenged by ambitious new players from outside the automotive industry. Key players now range from vast global corporations, through to a diverse array of startups.
Traditional hardware suppliers who do not diversify are likely to miss out on a large and lucrative section of the wider market. However, as most new AI players support a different part of the autonomous vehicle ecosystem, they are unlikely to face any significant threat in the short term.
Did you find this useful?
You may also be interested in SBD’s quarterly Autonomous Car Guide, a comprehensive view of the latest trends and developments within the autonomous driving space. The report provides a detailed view of barriers and enablers to autonomy, who is involved, deployment scenarios for major car brands and how technologies are evolving to facilitate higher levels of automation. Enquire below.