Boston, MA 08/19/2014 (wallstreetpr) – QUALCOMM, Inc. (NASDAQ:QCOM), NVIDIA Corporation (NASDAQ:NVDA) and Intel Corporation (NASDAQ:INTC) are the three new entrants that can significantly contribute in the Automotive Head-unit Processor Revenues. As per ABI Research, the three entrants can push the revenues to as much as $1.95 Billion by 2020.
The Expectations
The revenue from the automotive head-unit is expected to touch $1.95 billion in 2020. It came at $680 million in 2013. It is a transition stage for the automotive head units where they are turning back from the proprietary architectures which demand Tier1-led integration efforts and long development cycles towards platform designs.
The change in trend was set by Ford Motor Company (NYSE:F) long back in 2007. It offered the SYNC solution and the Windows embedded operating software for getting faster development time frames as compared to the previously dominant Tier1 suppliers. With the advancements, the hardware systems are consolidating and leading towards the open platforms and reference designs.
The Use Of The Opportunity
The chipset vendors including NVIDIA Corporation (NASDAQ:NVDA), Intel and QUALCOMM, Inc. (NASDAQ:QCOM) see the segment as a fresh opportunity. They are getting ready to compete with the establish chipset suppliers like Freescale Semiconductor Ltd (NYSE:FSL) and STMicroelectronics NV (ADR) (NYSE:STM).
The automotive semiconductor vendors hold the highest market share in the segment of computing processors and Bluetooth. However, the segment of Wi-Fi chipsets and cellular baseband is dominated by the consumer chipset players including QUALCOMM, Inc. (NASDAQ:QCOM).
The Future Ahead
The future for the newcomers including Intel, NVIDIA Corporation (NASDAQ:NVDA) and QUALCOMM, Inc. (NASDAQ:QCOM) looks bright. They have just started to gain in terms of market share in the industry. The new entrants have got the potential to become the major player in automotive head-unit processor industry. They can leverage their new-architectural designs and graphic engine assets to capture the growing need of real-time in-vehicle computing in industry. They can reuse the middleware and software and can cut down on costs as well as time.
