Mobileye president and CEO Professor Amnon Shashua told an investor summit at Mobileye headquarters in Jerusalem on Tuesday that the Intel unit projected significant and sustained revenue growth for the next decade. Mobileye reported that in the third quarter of 2019, Mobileye achieved another record quarter with 20% revenue growth compared with the corresponding quarter of 2018 due to continued advanced driver-assistance systems (ADAS) momentum.
Intel acquired Israeli driverless car technology firm Mobileye in March 2017 for $15.3 billion.
Intel said that Mobileye is, "One of the most successful acquisitions in Intel’s history, Mobileye is now Intel’s fastest growing business on an annualized basis. The strength of Mobileye’s business today is largely attributable to a rapidly expanding ADAS market, while its future business will expand greatly with forays into data monetization and the nascent robotaxi market."
Intel CFO George Davis said, "Intel is participating in an expanded and increasingly data-centric total available market. As one of Intel’s big bets, Mobileye is a critical part of Intel’s future and is already exceeding our expectations with ADAS revenue today that is funding the future of driverless cars."
Shashua said, "Mobileye is uniquely creating economic and societal value every day of the journey to fully autonomous vehicles. Our ADAS to autonomous vehicle (AV) strategy sets us up to play the marathon game with self-funding of R&D that will enable us to address key segments of a significant total available market (TAM) for ADAS and data of $72.5 billion and an estimated $160 billion TAM for robotaxis by 2030."
Shashua also announced a Level 4 design collaboration with Chinese electric automaker NIO, which will integrate Mobileye’s industry-leading self-driving system to build highly automated and autonomous vehicles (AV) for consumer markets in China and other major territories. NIO will also work with Mobileye to develop a robotaxi variant of its next-generation vehicle that will be exclusively sold to Mobileye for global deployment of robotaxi-based ride-sharing services.
Regarding its revenue, Mobileye said that by the end of 2019 it would have shipped more than 50 million EyeQ chips since 2008. Furthermore, Mobileye said that it powers ADAS systems in 300 car models with 27 OEM partners, and that eight out of 11 level 2 systems in production are based on Mobileye technology. The company has recently enjoyed three major market design wins: 4 million new units with a major European OEM; a deal with the largest OEM in India - the second-fastest growing market for automobiles globally1 (after China); and two new wins with leading Chinese OEMs.
Mobileye expects its Robotaxi Mobility-as-a-Service to be a major growth driver for the future. Intel says that it conservatively estimates the total available market for robotaxis at $160 billion by 2030. Testing of the service will start in Paris in 2020 in collaboration with the RATP Group (Régie Autonome des Transports Parisiens), while through the partnership with Volswagen and Champion Motors, Robotaxis are scheduled to operate in Tel Aviv in 2022.
Mobileye is also generating revenue from data by creating ultra-precise maps. The company's Road Experience Management mapping system offers a solution for both autonomous driving and smart city management. Mobileye is now running automatic map creation of the world based on data arriving from BMW, Volkswagen, Nissan and three other major OEMs, ensuring fresh maps. Based on harvesting volumes, Mobileye predicts the EU will be fully mapped by the first quarter of 2020, and the majority of the US before the end of 2020. Mobileye’s recent ADAS deals in Europe, India and China expand its mapping reach to China, EMEA, India, Korea and the US and over 20 additional customers have joined Mobileye’s Ordnance Survey partnership trial and onboarding process for smart city mapping.
Published by Globes, Israel business news - en.globes.co.il - on November 6, 2019
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