Qualcomm CEO Cristiano Amon
Qualcomm demonstrated its growing momentum at this week’s automotive-focused IAA Mobility event in Munich this week, making a set of wide-ranging announcements, including a new relationship with Amazon's AWS cloud service, new and expanded partnerships with the automotive OEM community, and even new market-expanding platforms. Let's look at each in turn.
AWS Cloud Innovation Partnership
Qualcomm and Amazon Web Services (AWS) announced a strategic partnership to advance innovation in the automotive industry. Recognizing the growing significance of software-defined features, the explosion of data analytics, and the need for rapid development of new vehicle functionalities, the two companies will collaborate to provide comprehensive development infrastructure and tools to expedite autonomous driving and the transformation of software-defined vehicles (SDVs).
Qualcomm tells us that it’s committed to offering scalable solutions that combine cloud and hardware technology to uphold high performance and safety standards for global automakers. AWS, on the other hand, brings its extensive portfolio of cloud services and capabilities to the table. The collaboration between the two companies seeks to foster innovation in the automotive sector by sharing best practices and the joint vision of collaborative automotive innovation.
One of the key stated objectives of the relationship is democratizing vehicle software development by enabling automakers to experiment and integrate cloud technologies into their development processes.
For instance, Qualcomm Technologies' software stack, which powers advanced safety functions such as automatic braking and lane assist, allows developers to leverage the cloud to simulate, test, validate, and verify new features and functions before proceeding to traditional hardware testing. This approach accelerates the development process, helping software engineers bring viable products to market faster.
Expanding Reach into 2-Wheelers & New Vehicle Classes
Qualcomm expanded its Snapdragon Digital Chassis portfolio with the introduction of two new platforms, QWM2290 and QWS2290, aimed at transforming users' experience in the 2-wheeler, micro-mobility, and other motorized vehicle markets. These platforms are designed to offer improved safety, infotainment, cloud-connected digital services, personalization, and convenience across an expanded array of vehicle classes. The move responds to the growing demand for sustainable and affordable mobility options in the sharing economy.
The new QWM2290 and QWS2290 platforms draw on technologies from Qualcomm Technologies' existing Snapdragon Digital Chassis portfolio. They feature smart clusters powered by the next-generation Snapdragon Cockpit Platform, offering benefits like real-time navigation with points of interest, safety features, and maintenance reminders for riders.
Snapdragon Digital Chassis for 2-Wheelers
Qualcomm's Auto 4G and 5G Modems provide ultra-fast connectivity, enabling riders to utilize 4G/5G, Wi-Fi, vehicle-to-everything (V2X), and Bluetooth for safety, personalization, infotainment, and productivity features. The platforms also incorporate Snapdragon Cloud-Connected Digital Services, allowing OEMs to create service revenue opportunities, provide over-the-air updates, and offer services like predictive maintenance, theft protection, and asset tracking.
Expanded Automotive OEM Relationships
In his keynote at the IAA Mobility event in Berlin this week, Qualcomm CEO Cristiano Amon highlighted the importance of building an ecosystem, a skill the company mastered as it navigated to the top of the mobile device market. Amon said that Qualcomm's relationship with its customers goes deeper than the traditional supplier relationship, that Qualcomm also enables all its customers and partners to innovate. This accelerates innovation across the industry. At the event, Qualcomm reinforced its ecosystem-driven approach by announcing new and expanded collaborations across the automotive OEM industry.
BMW Group
BMW Group and Qualcomm have expanded their technological collaboration to integrate the latest advancements from the Snapdragon Digital Chassis Solution into BMW Group's new vehicles. This is an expansion of a relationship first announced in March 2022.
Leveraging Qualcomm’s Snapdragon Cockpit Platform and Snapdragon Auto Connectivity Platforms, BMW aims to provide drivers and passengers with more sophisticated in-vehicle experiences. The collaboration will also introduce advanced AI features, including in-car virtual assistance, natural language interactions, in-cabin safety monitoring, and precise navigation positioning.
Additionally, the latest BMW vehicles will feature the Snapdragon Auto 5G Modem-RF for ultra-fast connectivity, low network response times, and reliable support for safety features and always-connected experiences.
The two companies are co-developing a comprehensive, open, and scalable Advanced Driver Assistance System (ADAS) system, ranging from Level 2 to Level 3 automated driving functionalities. Based on the Snapdragon Ride Platform with integrated Ride Vision software, this system is expected to make Level 2+ systems available starting in 2025, expanding access to safer self-driving technologies within the global automotive ecosystem.
Mercedes-Benz
Mercedes-Benz AG and Qualcomm are collaborating to further enhance the digital luxury experience in Mercedes-Benz vehicles. The partnership will bring advanced in-vehicle technology and features to the 2024 Mercedes-Benz E-Class Sedan using Snapdragon Digital Chassis Solutions.
These solutions, powered by the Snapdragon Cockpit and Snapdragon Auto Connectivity Platforms, promise immersive, interactive, and intelligent in-vehicle experiences with 5G connectivity and cloud-connected digital services for all passengers. The vehicles featuring these technologies are expected to be available in the US in early 2024.
Additionally, Mercedes-Benz E-Class Sedans will leverage Qualcomm’s Snapdragon Automotive Connectivity Platforms to deliver always-on, always-connected in-vehicle experiences, providing the necessary high-bandwidth pipeline for seamless multimedia streaming, over-the-air updates, and multi-gigabit upload and download capabilities.
Jaguar Land Rover (JLR)
Qualcomm and Jaguar Land Rover (JLR) announced a partnership to integrate 5G capabilities into select next-generation JLR vehicles, including Range Rover, Defender, Discovery, and Jaguar. This collaboration aims to support advanced digital cockpit and infotainment systems in JLR's vehicles as part of JLR's vision for a sustainable, luxury-driven future.
Utilizing Qualcomm’s Snapdragon Auto 5G Modem-RF, JLR intends to provide efficient and seamless connectivity for drivers and passengers, enabling direct, low-latency connections between vehicles and their surroundings. This connectivity will enhance safety, generate real-time data for new connected-car services, and contribute to higher levels of vehicle autonomy.
The partnership builds upon the longstanding relationship between Qualcomm and JLR, with both committed to delivering cutting-edge capabilities through Snapdragon Automotive platforms in future vehicles.
The Snapdragon Auto 5G Modem-RF is a crucial component of the Snapdragon Digital Chassis technology suite, offering ultra-high speeds and ultra-low latency to power immersive and always-connected in-vehicle experiences. By harnessing this technology, JLR vehicles will not only provide highly personalized and upgradable in-vehicle experiences, but also offer connected services and advanced safety and mobility applications through features like vehicle-to-vehicle (V2V) and vehicle-to-roadside infrastructure (V2I) communications.
Mahindra
Qualcomm and Indian automaker Mahindra & Mahindra announced a strategic collaboration to leverage the Snapdragon Digital Chassis Solution's cloud-connected services platform for Mahindra's upcoming SUVs in India.
The partnership will utilize Qualcomm’s Data Insights with edge diagnostics, a key component of the platform, to provide real-time data-driven diagnostics during pre-production vehicle testing.
This technology enables Mahindra to access real-time analysis of in-vehicle data, helping them discover and rectify errors promptly, leading to cost reductions and faster development processes. Notably, Mahindra will be the first global automaker to employ Data Insights with edge diagnostics as part of the Snapdragon Digital Chassis platform.
This collaboration builds upon the existing partnership between Mahindra and Qualcomm, where Snapdragon Cockpit Platforms were supplied for Mahindra's Scorpio-N and XUV700 SUVs. Based on scalable AI technology, these platforms enhance in-vehicle experiences by enabling personalization, natural interaction, virtual assistance, and immersive audio and visual features. Mahindra aims to revolutionize its vehicle testing cycle and achieve more seamless and cost-effective vehicle development through this collaboration with Qualcomm.
Analyst’s Take
There’s little question that Qualcomm’s investments in the automotive industry are paying off. The company disclosed in its latest earnings report that it’s grown its automotive revenues by "double digits" year-over-year, reporting revenue for its automotive products of approximately $434M. That's up 13% year-over-year. A year ago, in September 2022, Qualcomm told investors at its Automotive Investor Day that its design win pipeline is expected to deliver $30B back to the company.
Qualcomm is showing growing momentum with this week's announcements. The expansion of Qualcomm's relationships with BMW and Mahindra and its new relationships with Mercendes-Benz and Jaguar Land Rover show that customers like what the company is selling. At the same time, the company's relationship with AWS and its new ultra-mobility-focused platforms will work to expand its market footprint.
Automobiles are fast becoming fully connected intelligent devices, increasingly equipped with new AI inference capabilities. The technologies leveraged by intelligent automobiles look like those that drive the rest of the mobile edge – a market dominated by Qualcomm. The company's strategy of leveraging its expertise in the mobile edge into this new market, while expanding its software stack to meet the unique needs of automotive, is smart. Automotive is a long play from which Qualcomm is already seeing growing success, a success I expect will only accelerate over time.
Disclosure: Steve McDowell is an industry analyst, and NAND Research an industry analyst firm, that engages in, or has engaged in, research, analysis, and advisory services with many technology companies, which may include those mentioned in this article. Mr. McDowell does not hold any equity positions with any company mentioned in this article.
