 "After smartphones, Qualcomm is making some interesting moves in XR, VR and automobiles. Here’s how")
For years, Qualcomm has been synonymous with smartphone innovation, powering countless devices with its Snapdragon processors. However, the tech giant has been making some interesting moves, steering its focus on tech like Extended Reality (XR), Virtual Reality (VR), and automobiles. This strategic pivot reflects Qualcomm’s vision to expand its footprint in sectors poised to define the next era of technological advancements.
The move is no surprise, considering the plateauing smartphone market. According to data from Counterpoint Research, global smartphone shipments dropped by 11% in 2023, marking the industry’s lowest point in nearly a decade. Qualcomm’s diversification comes at a time when industries like XR and connected vehicles are experiencing exponential growth, offering fertile ground for innovation.
The XR and VR revolution
Extended Reality and Virtual Reality are two of Qualcomm’s most promising ventures. XR, which blends real-world and digital elements, and VR, which creates entirely immersive virtual environments, are predicted to revolutionise industries ranging from gaming and entertainment to education and healthcare. Qualcomm has already established itself as a leader in this space with its Snapdragon XR platform, used in devices like the Meta Quest series.
Data from IDC shows that global XR shipments are expected to grow at a compound annual growth rate (CAGR) of 48.1% between 2023 and 2028, reaching 80 million units annually by the end of the forecast period. Qualcomm’s chips are designed to support these devices, offering high efficiency and low latency for a seamless user experience.
Qualcomm has firmly positioned itself at the forefront of extended reality (XR), virtual reality (VR), and augmented reality (AR) technologies, supplying chipsets that power some of the most advanced products in these categories. With devices like Meta’s headsets and smart sunglasses gaining traction, Qualcomm’s Snapdragon XR platforms are shaping the future of immersive experiences. Here’s how Qualcomm’s technology is driving this innovation and what lies ahead.
Qualcomm’s Snapdragon XR platforms are the foundation for many AR and VR devices, offering the processing power required for seamless, immersive experiences. These platforms enable real-time spatial computing, precise hand tracking, and high-resolution visuals, which are crucial for next-gen AR and VR products. Designed with efficiency in mind, Snapdragon XR solutions also focus on extending battery life, a vital factor for wearable devices.
Meta, one of the leaders in the XR space, relies heavily on Qualcomm’s technology. The Meta Quest 3, launched in 2023, uses the Snapdragon XR2 Gen 2 chipset. This enables improved performance, better graphics, and enhanced mixed-reality experiences compared to its predecessor. With features like advanced room mapping and multitasking capabilities, the Quest 3 delivers one of the most sophisticated VR experiences available.
Another standout product is Meta’s smart sunglasses, developed in collaboration with Ray-Ban. These glasses integrate Qualcomm’s technology to enable lightweight AR functionality, such as real-time navigation, smart notifications, and voice assistance. They offer a glimpse into a future where AR is seamlessly woven into daily life, all powered by Qualcomm’s efficient chipsets.
Qualcomm is already working on the Snapdragon AR1 and XR3 platforms, aimed at pushing the boundaries of immersive technology. These platforms promise enhanced AI capabilities, ultra-low latency, and support for advanced features like simultaneous localisation and mapping (SLAM), which is essential for accurate AR rendering. Qualcomm is also focusing on advancing 5G capabilities to improve the connectivity of AR and VR devices, ensuring faster data transfer and smoother streaming.
In the coming years, Qualcomm plans to deepen its partnerships with key players like Meta, Microsoft, and Lenovo while expanding its reach to more consumer-focused devices. By enabling lighter, more powerful, and affordable AR and VR products, Qualcomm is laying the groundwork for XR technology to become mainstream.
As the XR industry evolves, Qualcomm’s innovations are set to redefine how users interact with digital and physical worlds, blending them into a unified, immersive reality.
Revolutionising automobiles
Qualcomm has been making significant strides in the automotive industry with its Snapdragon platforms, particularly the Snapdragon Cockpit and Snapdragon Ride. These platforms are designed to enhance in-vehicle experiences and support advanced driver-assistance systems (ADAS), respectively. Their impact is notably significant in rapidly growing automotive markets like India and China.
The Snapdragon Cockpit platform focuses on delivering advanced digital experiences within vehicles. It integrates infotainment, instrument clusters, and passenger entertainment into a unified system, providing seamless connectivity and personalized interactions for drivers and passengers. The platform’s capabilities include high-definition displays, premium audio, and AI-driven virtual assistants, all aimed at enhancing the in-car experience.
Snapdragon Ride is Qualcomm’s comprehensive platform for ADAS and autonomous driving. It offers scalable solutions that support various levels of autonomy, from basic driver assistance to fully autonomous driving. The platform is designed to process vast amounts of sensor data in real-time, enabling features like lane-keeping assistance, adaptive cruise control, and automated parking.
China’s automotive giants, such as NIO, XPeng, Li Auto, and Great Wall Motors, are heavily integrating Qualcomm’s Snapdragon platforms to power their vehicles. For example, XPeng has incorporated Snapdragon Cockpit in its P7 electric sedan, delivering advanced AI-driven infotainment and seamless in-car connectivity. Similarly, NIO leverages the platform to enhance its digital cockpit capabilities, offering high-resolution displays and personalised user experiences.
On the Snapdragon Ride front, partnerships with autonomous driving solution providers in China are shaping the future of mobility. For instance, Qualcomm collaborates with Baidu’s Apollo program to enable scalable autonomous driving solutions. These collaborations align with China’s aggressive push towards smarter, safer vehicles and solidify Qualcomm’s presence in the country.
According to Canalys, Qualcomm holds a 67% market share in China’s digital cockpit domain controller market for the first half of 2024.
This dominance is attributed to Qualcomm’s scalable solutions that cater to the customization trends among Chinese automakers, allowing them to differentiate their offerings in a competitive market.
Furthermore, collaborations with leading Chinese automotive brands, such as Li Auto and Great Wall Motors, have strengthened Qualcomm’s presence in the region. These partnerships focus on developing intelligent in-car experiences and advanced driver-assistance features, aligning with the Chinese government’s push towards smart and autonomous vehicles.
Like China, India’s automotive market is also on a growth trajectory, with increasing consumer demand for connected and feature-rich vehicles. Qualcomm’s Snapdragon platforms are well-positioned to support this evolution by providing automakers with the tools to integrate advanced infotainment systems and ADAS features.
In India, Qualcomm is working with major automotive players like Tata Motors, Mahindra, and Maruti Suzuki, aiming to enhance the driving and passenger experience. Tata Motors, for instance, uses Snapdragon Cockpit in its premium SUV range to offer features such as connected infotainment, voice assistance, and integrated digital instrument clusters.
Snapdragon Ride is still emerging in the Indian market, but it is gaining traction with automakers exploring ADAS and autonomous capabilities. Partnerships with Bosch India and other Tier 1 suppliers help deliver scalable solutions for features like adaptive cruise control and lane departure warnings. This positions Qualcomm as a critical enabler in India’s journey toward safer and smarter vehicles.
While specific market share data for Qualcomm in India’s automotive sector is limited, the company’s global expertise and scalable solutions make it a valuable partner for Indian automakers aiming to enhance their vehicle offerings. The Snapdragon Cockpit platform can enable Indian manufacturers to provide personalized and connected in-car experiences, meeting the expectations of tech-savvy consumers.
The latest iterations of Qualcomm’s automotive platforms, the Snapdragon Cockpit Elite and Snapdragon Ride Elite, were unveiled at the Snapdragon Summit 2024. These platforms are powered by Qualcomm’s Oryon CPU, offering a threefold increase in performance and a twelvefold boost in AI capabilities compared to previous generations.
These advancements enable real-time processing and contextual awareness, essential for applications like ADAS and autonomous driving. The enhanced AI capabilities also support features such as real-time driver monitoring, advanced vision perception, and personalized in-cabin experiences, catering to the evolving demands of consumers in both China and India.
A data-driven future
Qualcomm’s foray into these industries is backed by a clear focus on data and analytics. Its platforms are designed to process and leverage massive amounts of data generated by XR devices and connected vehicles. This data not only improves the functionality of individual devices but also drives broader innovations, such as predictive maintenance in cars and personalised XR experiences.
The company is also investing heavily in AI, which plays a pivotal role in its new ventures. Qualcomm’s AI capabilities enable features like natural language processing in XR headsets and real-time decision-making in autonomous vehicles. This focus on AI ensures that Qualcomm remains a step ahead in an increasingly competitive tech landscape.
While Qualcomm’s diversification is promising, it is not without challenges. The XR market, for instance, is still in its infancy, and mass adoption could take several years. Similarly, the automotive industry, especially in India, faces hurdles like infrastructure gaps and high EV costs, which could impact Qualcomm’s growth trajectory.
However, the opportunities far outweigh the challenges. By positioning itself as a pioneer in XR, VR, and connected automotive technologies, Qualcomm is tapping into sectors expected to dominate the future. With a robust portfolio of solutions and strategic partnerships across the globe, the company is well-poised to succeed in its new ventures.
Qualcomm’s evolution from a smartphone-focused company to a leader in emerging technologies is a testament to its adaptability and forward-thinking strategy. Whether it’s making immersive realities accessible or powering the cars of tomorrow, Qualcomm is charting a new course that could redefine its role in the tech world. For India and China, two of the most dynamic markets, this shift promises innovations that are not just groundbreaking but also transformative for millions of people.
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