The 2024 Consumer Electronics Show (CES) in Las Vegas unveiled the impressive Qualcomm Snapdragon Digital Chassis concept. During the event, Qualcomm exceeded expectations in its earnings report, reporting nearly $10 billion in top-line revenue. While the majority of Qualcomm's revenue stemmed from its mobile phone and Internet of Things (IoT) businesses, the real growth driver was the automotive sector, which displayed a 31% year-over-year increase, with automotive-related revenue reaching $598 million.
Qualcomm's success in the automotive space is further emphasized by the integration of its Snapdragon Digital Chassis in 75 new vehicle models that were launched in 2023. This adds to Qualcomm's already significant footprint in the industry, as over 350 million vehicles on the road are equipped with its Digital Chassis solutions.
The partnership between Qualcomm and Bosch garnered attention at CES, as they jointly introduced the industry's first central vehicle computer capable of running both infotainment and Advanced Driver Assistance Systems (ADAS) functionalities on a single system-on-chip (SoC). This is made possible by Qualcomm's Snapdragon Ride Flex SoC, which supports mixed-criticality workloads. The integration of digital cockpit, ADAS, and automated driving functionalities on a single chip allows automakers to implement a unified, central compute and software-defined vehicle architecture across various vehicle tiers. Bosch's vehicle computer can now offer features such as infotainment, vehicle lifecycle management, digital cluster, object detection, automated parking, intelligent navigation, voice assistance, and sensor processing.
Moreover, Qualcomm partnered with Salesforce to revolutionize automotive experiences by combining its Snapdragon Digital Chassis solutions with the Salesforce Automotive Cloud. This collaboration empowers automakers, fleet providers, automotive finance groups, and suppliers to deliver advanced and personalized customer experiences that can be continuously updated throughout a vehicle's lifecycle. By merging vehicle data with first-party data such as website interactions, in-app usage, and purchase history, automakers can establish a stronger relationship with their customers. The collaboration aims to provide services like real-time alerts, tailored offers, predictive maintenance alerts, and on-demand feature upgrades, enabling automakers to customize service offerings and deploy them across their vehicle fleets.
As automobiles become fully connected intelligent devices, Qualcomm's strong presence in the mobile edge market gives it an advantage in entering the automotive electronics market. It has the technological base and deep partnership skills required to build platforms in this industry successfully. While NVIDIA poses competition in the ADAS and digital cockpit market with its NVIDIA DRIVE platform, Qualcomm's decades-long expertise in communications and mobility capabilities gives it the edge. Additionally, Qualcomm rivals NVIDIA in AI inference technologies and offers a more comprehensive solution.
At CES, Qualcomm showcased its AI-driven digital cockpit, integrating generative AI to enhance the driver experience, offering a glimpse into the future of automotive technology enabled by Qualcomm's advancements.
With its impressive growth and diversification, Qualcomm is proving to be a significant player in shaping the landscape of automotive technology. Its successful integration of Snapdragon Digital Chassis and partnerships with industry leaders position the company to redefine how automobiles are connected and intelligent. As Qualcomm outpaces competitors like NVIDIA, it takes a leading role in driving the future of automotive innovation.
Disclaimer: The author of this article is an industry analyst at NAND Research, and the company engages in research, analysis, and advisory services with various technology companies, including those mentioned. The author does not hold any equity positions with the companies discussed in this article.
