Global Automotive NAD Module and Chip Market to See 13% CAGR Growth from 2020 to 2030

TapTechNews July 15th news, according to the latest research of Counterpoint's Global Automotive NAD Module and Chip Forecast, the global automotive connectivity module and chip market is expected to grow at a compound annual growth rate (CAGR) of 13% from 2020 to 2030, and the shipment of NAD modules will exceed 700 million units within this decade.

Counterpoint research analyst Subhadip Roy said: We are now entering the era of Auto 2.0, characterized by significant transformations in areas such as powertrains (like electrification), safety and mobility (like automation), cockpit and infotainment (like digitalization), all driven by the main thread of advanced connectivity, making software-defined vehicles (SDV) possible. Advanced 5G connectivity will catalyze this transformation with higher bandwidth, capacity and lower latency, enabling functions such as real-time battery management systems (BMS), a full set of location-based services integrated with high-definition/self-driving maps, and streaming infotainment. It will also enable low-latency C-V2X (TapTechNews note: Cellular Vehicle-to-Everything) and data, sensor-assisted autonomous driving.

Roy added: Currently, 4G Cat4 access technology dominates the NAD module market, meeting the speed requirements of OEM telematics applications. However, as the demand for the next-generation SDV grows, 5G will become the dominant technology for L3+ ADAS/ADS (Advanced Driver Assistance Systems) vehicles, while 5G RedCap will replace 4G Cat4, mainly for L2 ADAS and below connected vehicles, focusing on OEM telematics and lightweight streaming infotainment.

Senior analyst Parv Sharma said: China started with electrification and digital cockpits and achieved autonomous driving functions in most new cars, taking the lead in entering the SDV era. This adoption and scale not only benefits China but also the entire automotive value chain. For example, China contributed nearly one-third of the NAD module shipments in 2023, 8 out of every 10 vehicles in the country are connected vehicles, and it is expected that the penetration rate of passenger cars will reach 100% by 2028. China is also a leader in 5G adoption. In the first quarter of 2024, 20% of NAD modules shipped in China had 5G capabilities. In contrast, the penetration rate of cellular-connected NAD modules outside of China in 2023 was nearly 66% and is expected to continue to grow in the coming years.

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