A Blog by Jonathan Low

 

Oct 26, 2019

How AI Is Beginning To Redefine the Auto Industry

It's not just performance; AI is changing the way the industry conceptualizes the manufacturing, marketing and monetization of transportation. JL

Business Wire reports:

As AI adoption peaks, organizations are realizing the need to leverage advanced algorithms and computational structures, innovative testing and validation platforms, integrated cockpit solutions, and 5G network adoption and application deployment for building their next generation mobility services. AI is thus driving merger and acquisition trends in the automotive sector. Customizations are increasingly replacing traditional automotive platforms, fueling the development of intelligent platforms covering in-vehicle experiences, supply chains, automotive sales and marketing, insurance tools, vehicle e-commerce and other applications
Artificial Intelligence (AI) is redefining the automotive industry, especially in the development of innovative hardware and software stack for level 5 autonomy and intelligent ADAS systems. As AI adoption peaks, organizations are realizing the need to understand and leverage advanced algorithms and computational structures, innovative testing and validation platforms, integrated cockpit solutions, and 5G network adoption and application deployment for building their next generation mobility services. AI is thus driving merger and acquisition trend in the automotive sector.
Further, state of the art customizations are increasingly replacing traditional automotive platforms - a trend that is strengthening in the automotive industry. This is fueling the development of a large number of intelligent platforms covering in-vehicle experiences, supply chains, automotive sales and marketing, insurance tools, vehicle e-commerce and other applications - that are detailed in the report.
Organizations are adopting the merger and acquisition (M&A) route as a key strategy for acquiring AI skills, technologies, and relevant portfolios for leveraging organic and inorganic growth opportunities in the mobility market. Such initiatives are poised to create high potential for these acquirers, by helping them launch new AI services and increase their customer base.
Acquisition Trends
The report includes an analysis of more than 60 deals with a detailed technology overview, deal amount, and the purpose of acquisition. The acquisitions listed in the report capture the intricate requirements of the automotive sector to upgrade its value in the marketplace.
The M&A analysis section offers a comprehensive view of the transactions in the automotive sector, spanning AI, machine learning, and deep learning technologies. The different target technology areas highlighted include intelligent vision systems, data analytics, cloud computing, AI hardware and software, localization, security and other related software stacks.
Some of the prominent deals observed include:
  • Intel - Mobileye
  • Analog Devices - OtoSense
  • Baidu - xPerception
  • Continental - Argus Cyber security
  • Xilinx - Deephi
  • Daimler - Torc
  • Zurich Insurance - Brightbox
  • Blackberry - Cylance
  • DoorDash - IvI5
  • WPCS International - DropCar
  • Verizon - Telogis
Key Insights:
  • Automotive suppliers are leading the AI acquisition trend with a focus on acquiring complementary skills such as computer vision, gesture recognition, and AI-based analytics.
  • In terms of technology, computer vision has attracted the largest number of acquires due to its capabilities for object detection, classification, and semantic segmentation.
  • AI-based data analytics, conversational AI, intelligent hardware and software solutions, and annotation techniques are the other key technology areas that are prominent in the acquisition trend.
  • Acquirers are targeting AI companies for tuck-ins, business line expansion, and vertical and horizontal integration.
  • Ford, Intel, and Baidu have made three acquisitions each for gaining AI technologies for the mobility market.
  • Uber has made two acquisitions related to data-training capabilities.
  • Acquisition trends suggest that automotive retail is undergoing a transformation, with dealers and automotive suppliers focusing on customer-centric solutions.

0 comments:

Post a Comment