Intel (INTC - Free Report) is zooming ahead in the autonomous driving industry with its latest developments in the field.
Intel’s Mobileye recently announced that its SuperVision surround-view advanced driver-assistance system (ADAS) will power Geely Auto Group’s Lynk & Co brand’s highly awaited premium electric vehicle (EV) — Zero Concept. Markedly, Geely Auto Group is one of the leading auto manufacturers based out of China.
The new Zero Concept EV will leverage Lynk & Co’s CoPilot solution, and run on Mobileye SuperVision ADAS, which is integrated with advanced over-the-air (OTA) update capabilities and advanced features including lane-keeping assist and automatic emergency braking.
Mobileye’s EyeQ5 system-on-chip (SoC) combined with Geely’s accelerated production expertise will aid the automaker to roll out a new suite of advanced driver-assist features to consumers as early as fall 2021.
Growing clout of Mobileye’s surround-vision technology is expected to aid Intel to democratize the use of ADAS and make autonomous driving mainstream.
Per the multi-year deal, the companies will work together to offer superior package of high-level safety with advanced driver aids features, including traffic-jam assist and point-to-point highway pilot capabilities, empowered by Mobileye's SuperVision tech.
Notably, Lynk & Co’s CoPilot solution is set to pioneer ADAS-to-AV scalable system space as it features surround-view cameras; and driving and navigation technologies powered by two of Mobileye’s most advanced EyeQ5 SoCs.
Furthermore, Mobileye and Geely have inked long-term “high-volume ADAS agreement” aimed at equipping a variety of Geely Auto Group’s models with Mobileye vision-sensing technology.
Growth Prospects Augur Well
The collaboration between Geely and Mobileye in the backdrop of growing momentum of electric vehicles in China amid increased allegiance to safe and cleaner transportation solutions, augurs well for Intel in the longer haul.
Per MarketsandMarkets data, ADAS market is set to hit $83 billion by 2030 from $27 billion in 2020, at a CAGR of 11.9%. Ongoing momentum of mobility as a service (MaaS) solutions and accelerated deployment of 5G are anticipated to be tailwinds.
According to a report by Grand View Research, self driving cars and trucks market is projected to hit 6.7 thousand units in 2020 and is envisioned to grow at a CAGR of 63.1% from 2021 to 2030.
Additionally, autonomous vehicles are set to revolutionize the concept of transport while contributing significantly to the global economy. Per data from McKinsey research, autonomous vehicles are expected to contribute to 66% of the passenger-kilometers traveled in 2040, while generating $1.1 trillion in mobility services revenues and $0.9 trillion in sales.
The rapid development in the self-driving vehicle space can primarily be attributed to breakthroughs in technology, with the integration of robust AI and ML capabilities in ADAS.
Moreover, improving neural networking capabilities and advancements in digital mapping and obstacle recognition functionalities are expected to lead to safer navigation, reduction in accidents and commuter comfort.
Markedly, increasing proliferation of ADAS and ramp of new IQ programs is expected to bolster Mobileye’s revenues. The low power consumption of Mobileye chips and ability to create maps for self-driving systems via its Road Experience Management platform has helped Intel to gain footprint in the market.
Zacks Rank and Key Picks
Intel currently carries a Zacks Rank #3 (Hold).
Some other top-ranked stocks worth considering in the broader sector are Zoom Video Communications (ZM - Free Report) , salesforce.com, inc. (CRM - Free Report) and Blackbaud (BLKB - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Zoom Video, salesforce.com and Blackbaud are currently pegged at 25%, 18% and 7.6%, respectively.
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