Autonomous driving technology has brought a revolution in the automobile industry, thanks to which self-driving vehicle makers are constantly gaining steam.
Additionally, continued advancements in AI technology, which forms the basis of driverless technology, are making autonomous vehicles more reliable. Further, innovative Machine Learning (“ML”) and Deep Learning techniques, and advanced driver-assistance system (“ADAS”) are bolstering self-driving technology.
Driverless vehicles — comprising semiconductors, simulation software, electronics testing equipment and measuring instruments, predictive algorithms, and neural networking capabilities — are gaining popularity with major companies like
Alphabet
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Amazon
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Intel
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Tesla
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Apple
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and General Motors getting behind the concept of autonomous driving.
Notably, these companies are intensifying the autonomous driving battle as they are leaving no stone unturned to capitalize on immense growth opportunities present in the self-driving vehicles space.
Per a report by Grand View Research, the demand for autonomous vehicles on a global basis is projected at 6.7 thousand unitsfor 2020. Further, the figure is expected to witness a CAGR of 63.1% between 2021 and 2030.
Per data from McKinsey research, autonomous vehicles are expected to contribute to 66% of passenger-kilometers traveled in 2040.
AI Under Limelight
AI has a huge impact on driverless technology as it is being harnessed to bring fully autonomous driving into reality.
Self-driving vehicle makers remain highly dependent on AI to process the vast amount of data efficiently, and train and validate their autonomous vehicles.
AI algorithms,which are fed with real-time data from sensors, GPS, radar, lidar, cameras, and cloud services, help in operating thesevehicles.
Here we focused on three technology bigwigs that are strengthening their driverless technology-based AI skills to rapidly penetrate into the autonomous vehicle space.
Year-to-Date Price Performance
Alphabet
has been a frontrunner when it comes to autonomous driving, courtesy of its well-performing Waymo unit. It is continuously making efforts to stay ahead of the curve.
Waymo Driver, its autonomous driving technology, is constantly gaining momentum. Per the recent plans, the company is intending to deploy Waymo Driver successfully into cars like Jaguar I-PACE and Class 8 trucks.
Further, the company leverages Progressive Population Based Augmentation to enhance object-detection capabilities of Waymo Vehicles, while reducing costs and accelerating the training process.
Furthermore, Alphabet’s acquisition of Latent Logic is noteworthy. Notably, Latent Logic specializes in a form of ML namely imitation learning, which trains machines to perform actions similar to humans.
Consequently, the buyout is making the simulation technology of Waymo more advanced and realistic as imitation learning models human behaviour of motorists, cyclists and pedestrians. This, in turn, has strengthened the behavioral prediction capability of Waymo.
Additionally, Waymo vehicles that have exceeded the mark of 20 million miles, owing to innovative AI skills and deep-learning techniques, indicate that Alphabet is well-poised to ride on the autonomous vehicle wave.
Currently, Alphabet carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Amazon
’s acquisition of Zoox, a developer of autonomous ride-hailing vehicles, remains a major positive. The company unveiled its first self-driving robotaxi, putting an end to its long-awaited quest for driverless car services.
The newly launched robotaxi does not have any steering wheel, implying that there is no driver seat. It has space for up to four passengers and can travel up to 75 miles per hour.
We note that this move of Amazon will help it in gaining momentum among consumers, who are eagerly waiting to avail the driverless technology.
Further, the company’s growing AI-based efforts in the autonomous vehicles market remain noteworthy. Its investment in Aurora — a startup that develops technology to power fully-autonomous vehicles — remains a major positive.
Amazon, which currently carries a Zacks Rank #3, has teamed up with companies developing driverless car software at CES 2020.
All these factors will likely aid the e-commerce giant to rapidly penetrate the autonomous driving space.
Apple
is planning to produce self-driving car technology and introduce autonomous vehicle, which could include its breakthrough battery technology by 2024.
Further, Apple recently collaborated with Taiwan Semiconductor Manufacturing Company (TSMC) to develop self-driving chips, even as it looks to set up factories in the United States.
Additionally, Apple, which currently carries a Zacks Rank #3, moved its self-driving car unit under the leadership of AI executive John Giannandrea, who will oversee the company’s continued work on an autonomous system for an automated car.
Further, Apple’s acquisition of a self-driving shuttle firm, Drive.ai, is in sync with its strong efforts toward bolstering its expertise in neural networks, which plays an important role in developing software for driverless vehicles.
Additionally, the solid database of Drive.ai, related to road conditions, signals and traffic, is helping the company in innovating the software for driverless vehicles.
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