Heavyeights Samsung And Qualcomm Are Moving Into The Connected Cars Technology Market

Technology keeps moving forward, especially in the field of wireless telecommunications. Since Connected cars technology are the next market to develop after mobile phones and computers, Samsung and Qualcomm are moving into the connected cars tech market.

As reported by Forbes, Qualcomm has started its drive towards the connected cars market by purchasing semiconductor company NXP in the largest chip deal on record worth $38 billion last October. With this deal, Qualcomm has positioned itself as the largest automotive chipmaker.

On the other hand, Samsung recently purchased Harman, a Tier 1 supplier for an estimated $8 billion. Harman leads all companies in providing infotainment solutions for car makers. Samsung is set to provide its expertise in electronic applications for Harman to expand into more comprehensive technology for connected cars.

At the current CES, Microsoft, Intel and Nvidia laid down their respective plans for the connected car technology. These companies realize that the market has been steadily growing as expected by the car industry and the Strategy&PWC.  

Since Harman is already a top Tier 1 supplier, Samsung will eventually market its automotive chips through Harman product line-ups. In the case of Qualcomm, it has a wider marketing scope as it is open to sell to all Tier 1 suppliers except Harman.

Qualcomm is expected to become the dominant supplier in the connected car market. "With revenue estimates exceeding $1 billion per annum, Qualcomm (with the NXP acquisition) will move firmly into the number one market share position for application-specific infotainment and telematics products," said Strategy Analytics director Richard Robinson. 

One option for Qualcomm and Samsung to enter the connected car service is to work together for better results.  Qualcomm is undoubtedly the leader in telecom technology as the leader in 4G LTG modem production and the upcoming 5G technology which will be much needed by car makers.

When Samsung's reliability to play the role as hardware supplier is added to the equation, both Qualcomm and Samsung have the chance to play a major part in the connected cars tech market.