Ambarella (AMBA - Free Report) recently announced that it is collaborating with Chinese automotive supplier Shanghai OFilm to develop an automated valet parking (AVP) hardware platform. It will be based on Ambarella's CV22AQ CVflow computer vision system-on-chip (SoC).
The platform will boast capabilities like superior image signal processing, powerful Artificial Intelligence (AI) computing performance and ultra-low power consumption associated with the SoC.
The amalgamation of Ambarella’s SoC and OFilm’s intelligent driving algorithms and system integration capability will help the platform achieve high precision image recognition, free space detection, obstacle detection and map construction.
The joint venture follows a collaboration by Daimler’s (DDAIF - Free Report) Mercedez- Benz and Bosch, which developed an AVP system in 2017, making them the first companies to come up with the system.
Per a study by Fact.MR, smart valet parking solutions have witnessed year-over-year growth of 9.9% in 2018.
Per Allied Market Research, Smart Parking Market is projected to reach $11,553.6 million by 2025, witnessing a CAGR of 11.2% from 2018 to 2025.
These findings and forecasts make us optimistic about the prospects of the company in this space.
CVFlow Architechture: A Key Driver
Ambarella is making steady progress on the development and delivery of computer video solution based on its CVFlow architecture. The company released CVFlow software developed kits, supporting its CV2 and CV22 SoCs, attracting positive consumer feedback.
In further efforts to build relevant products for markets with impressive opportunities, Ambarella launched the CV22AQ automotive camera SoC for Advanced Driver Assistance Systems (ADAS), in December last year.
On the same day, it announced its partnership with intelligent visual perception software developer, HELLA Aglaia, to develop a platform based on the CV22AQ technology. This will add advanced AI features in front ADAS cameras.
Growing demand for single chip solutions with integrated computer vision processing in the surveillance camera market bodes well for the company’s CVflow architecture-based SoC solutions.
Carving a Niche in SoC Market Despite Competition
Ambarella is well known for its market leading high performance video processing SoCs, which consume lowest power in this space. The company’s proprietary video and image processing SoCs are highly configurable, providing it a cost and power advantage against its rivals that use multiple expensive semiconductors in their video and image processing solutions. This makes Ambarella a suitable choice for automotive dashboard cameras and drone cameras, among others.
Ambarella has a broad portfolio of products that are tailored for meeting the specific needs of various end markets. The company’s H2 SoC is one of the widely used technologies in the sports camera market, which has features such as flying camera flight control, video analytics and wireless networking. Moreover, its S-series solutions are used in majority of the digital IP cameras.
Ambarella forayed into the VR camera space by launching H3 SoC in 2017. Although it will be very tough for Ambarella to compete against well established players such as NVIDIA (NVDA - Free Report) and Advanced Micro Devices (AMD - Free Report) , we believe that given its track record of innovation, the company has the potential to strengthen its position in the space.
Ambarella currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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