Canalys recognizes vendor Champions in the China ADAS SoC Leadership Matrix 2024

Canalys has crowned NVIDIA, Qualcomm, Horizon Robotics, Texas Instruments, Ambarella, AMD and Axera as Champions in the China ADAS SoC Vendor Leadership Matrix 2024.

Canalys recently published its first China ADAS SoC Leadership Matrix, highlighting the leading advanced driver assistance system chipset vendors in China. Seven vendors, NVIDIA, Qualcomm, Horizon Robotics, Texas Instruments, Ambarella, AMD and Axera, stood out among numerous competitors due to their exceptional performance and contributions to both the development of the ADAS SoC market and the automotive industry as a whole, earning Champion status to reward their outstanding contributions and their industry-leading efforts.

Defining Champions and vendor inclusion in the Canalys China ADAS SoC Leadership Matrix

Canalys assesses ADAS SoC vendors’ positions in the Leadership Matrix by analyzing feedback from ADAS tier-one suppliers and automotive ecosystem partners on collaboration, alongside Canalys analysts’ evaluations of solution and market strategy competitiveness, all backed by performance metrics. Champions have demonstrated the highest level of excellence in driving the development of the ADAS industry in China with upstream and downstream partners while ensuring strong business continuity with robust technological roadmaps and upgrade strategies.

Canalys assessed 18 ADAS SoC vendors in the Chinese market. Vendors providing ADAS system-on-chips designed to achieve perception and computing capabilities for ADAS driving features to tier-one suppliers and automakers are considered eligible. Champions are those vendors showing industry-leading performance in technical roadmap planning and execution, supply chain management, operation and service capabilities, while demonstrating strong growth prospects.

Besides the seven Champions, other vendors are categorized as Contenders (market frontrunners who need to improve competitiveness and/or partner relationships), Scalers (potential rising stars with clear characteristics, such as technology innovation, that partners are looking for) and Foundations (vendors with low partner satisfaction scores, and have shown minimal commitment in driving change and transformation).

SoC vendors paving the way to shared success in the automotive ecosystem

The ADAS market in China has been developing rapidly and formed a mature ecosystem. The L2 and above ADAS segment achieved unprecedented growth in 2023, triggering a significant breakthrough in the industry chain. In a fiercely competitive environment, automotive OEMs seek a balance between enhanced intelligent driving capabilities, cost, performance and fast deployment across various product segments.

Price wars and slowing demand in the EV market will extend well into 2024. Under pressure to thrive in a cut-throat market, OEMs are forced to transfer the cost-cutting and technology upgrade demands to ADAS tier-one suppliers and SoC vendors.

Automotive OEMs and tier-one suppliers’ SoC procurement requirements have shifted rapidly, driven by the dynamic market and evolving consumer preferences. OEMs and tier-one suppliers increasingly value technical support provided by SoC vendors during project implementation, facilitated by mature toolchains and ecosystem software, which can reduce engineer development difficulties. In the new market phase, OEMs are not just looking for product differentiation with ADAS but also actively exploring business model innovations derived from ADAS functions.

High computing power is typically associated with high costs. SoC vendors downplay performance in favor of a balanced solution package leveraging robust software and algorithm integration to improve the optimal use of computing power. Additionally, a diverse, future-looking product portfolio helps SoC vendors consistently meet OEMs’ feature requirements across all price segments and systematically reduce sunk costs related to product development. These have become vital factors for ADAS SoC vendors to build competitiveness and enhance their market reputation.

Congratulations to the two domestic vendors, Horizon Robotics and Axera, which have accompanied the rise of the Chinese automotive industry, as well as the five global vendors deeply rooted in the Chinese market, NVIDIA, Qualcomm, Texas Instruments, AMD and Ambarella, as they are crowned Champions in the China ADAS SoC Vendor Leadership Matrix 2024.

The revenue-generating opportunities for the China ADAS SoC market will become increasingly apparent, driven by both incremental and replacement demand. Ecosystem partners in the automotive industry have unequivocally stated that China is more than just a country with significant potential – it is a strategic market capable of fostering innovation in both technology and business models. ADAS SoC vendors must enhance their collaboration capabilities with partners, prioritizing partner satisfaction and mutual business growth. While Contenders work to attract a growing partner base, Champions face the major challenge of maintaining their leadership positions over the next 12 months.

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