It is no shock that Qualcomm is rising as a dominant player in the automotive electronics house. Launched to produce excellent conversation to the mobile edge, Qualcomm observed great results in bringing connectivity and ability to significantly clever cell devices. For a extended time, that unit was your telephone. That is shifting your automobile is your greatest related product.

Qualcomm Enters the Car Business

Assisted driving (sent by an state-of-the-art driver-aid system, or ADAS), the electronic cockpit practical experience, and even cloud connectivity, are all central to a driver’s experience. These options are also all enabled by complex digital systems that make the modern-day vehicle glance closer to a rolling info center than any common notion of a “car.” There is an arms race in the automotive electronics space, with a handful of forward-searching technologies companies chasing a marketplace envisioned to be worth an estimated $100B by 2023.

Qualcomm initially entered the automotive section by selling its mobile cellphone technological innovation into the area. Modems offered a all-natural growth into a right adjacent current market. Above time, Qualcomm expanded its choices into a whole assortment of automotive options, such as ADAS, with its acquisition of Arriver as aspect of its Veoneer acquisition.

Qualcomm’s investments in automotive are having to pay off. In its most current earnings contact, CEO Cristiano Amon told us that the firm experienced developed its automotive revenues by “double digits” year-more than-year. In its current earnings launch, Qualcomm noted revenue for its automotive products of $434M. Which is up 13% yr-more than-12 months.

There’s additional profits to follow. Past September, Qualcomm explained to buyers at its Automotive Trader Working day that its style and design win pipeline is envisioned to provide $30B again to the organization. That was approximately a yr in the past the pipeline has undoubtedly grown.

The Snapdragon Digital Chassis

The Snapdragon Electronic Chassis is Qualcomm’s umbrella established of solutions for the connected automobile. The portfolio addresses four vital elements:

  • Snapdragon Vehicle Connectivity is a complete portfolio of 4G/5G, Wi-Fi, Bluetooth, and positioning methods.
  • Snapdragon Auto-to-Cloud provides a application suite of integrated, flexible services letting automakers to offer above-the-air telemetry and similar options.
  • Snapdragon Cockpit powers the driver-facing expertise, enabling a computer software-described in-cabin practical experience with a vary of hardware and software program options.
  • Snapdragon Experience: a scalable option stack customizable by auto OEMs to present automated driving abilities ranging from fundamental AI inference and vision processing to full-stack autonomous driving.

Presented the very specialised mother nature of the space, automotive is a market place demanding deep partnerships with clients and other folks in the ecosystem. This is also accurate of the cell cell phone enterprise. Qualcomm has used its overall existence enabling, and currently being enabled by, others in its sector. The company proceeds to build on that power as it grows in the automotive sector.

Qualcomm’s listing of associates is expansive. It contains deep collaboration with the automakers, these as its extended-term strategic romantic relationship with BMW to co-develop ADAS programs. Qualcomm also has sound associations with extensive-term car subsystem suppliers like Bosch, Valeo, and Samsung. Most apparently, the business is forging associations with next-generation alternative suppliers, these kinds of as Spoke, which has a system to make improvements to the security of non-motor vehicle-riding commuters utilizing connected auto technological know-how.

This has led to the Snapdragon Digital Chassis becoming quite attractive to automakers, major to some of that $30B design-win pipeline about to start out spending off.

Snapdragon Digital Chassis in the 2024 Cadillac Escalade IQ

The most notable early wins for the Snapdragon Digital Chassis arrived from Volvo and Mercedes-Benz. Qualcomm and Volvo jointly introduced that the Volvo EX90 and EX 90 Excellence electrical SUVs are created working with Snapdragon Electronic Cockpit technological know-how. It can be an superb remedy, giving a totally-connected multi-screen knowledge. Mercedes and Qualcomm are collaborating on a electronic cockpit resolution that will be deployed in a long term Mercedes model.

This thirty day period, the momentum continues as Cadillac announces it is putting Snapdragon Electronic Chassis engineering into its future 2025 Cadillac Escalade IQ, Cadillac’s initially all-electrical full-sizing SUV. The layout win features far more than just Snapdragon Electronic Cockpit. The new automobile will consist of Snapdragon Vehicle Connectivity and Snapdragon Experience. It is a wonderful earn for Qualcomm.

Analyst’s Choose

The automotive electronics current market is eye-catching, but it really is not an uncomplicated a person to enter. A technological know-how vendor will have to fully grasp how to provide compute and communication remedies to an AI-enabled mobile edge. The market place necessitates strong partnership capabilities, as collaboration across a broad ecosystem of enabling systems is how platforms are built in this industry. All of this is acquainted to Qualcomm.

Qualcomm’s most equivalent competitor in the rewarding ADAS and digital cockpit sector is NVIDIA, which is also aggressively increasing its automotive business enterprise with its NVIDIA Travel platform. NVIDIA noted in its most recent earnings contact that its earnings in the phase was up an remarkable 114% 12 months-in excess of-year, coming in at $296M for the quarter (Qualcomm’s automotive revenue was $434M for the exact time period). NVIDIA claimed that its layout-acquire pipeline stands at $14B.

NVIDIA isn’t Qualcomm’s only competitor. About a dozen different vendors are competing specifically towards the different factors of the Snapdragon Electronic Chassis. It is a hard sector to navigate, but Qualcomm is navigating far better than most.

Qualcomm’s growing success in automotive is just one case in point of how very well the company is executing its system to define the cell edge. Irrespective of whether radio, compute, AI, or even cloud, Qualcomm delivers a resolution stack that no other technologies firm nowadays can offer. Which is a impressive place. It is profitable Qualcomm business in automotive. The broader edge is subsequent.

Disclosure: Steve McDowell is an industry analyst, and NAND Research an market analyst organization, that engages in, or has engaged in, investigation, assessment, and advisory companies with several technologies providers, which might involve these described in this article. Mr. McDowell does not hold any equity positions with any business described in this posting.

By Tara