NXP Semiconductors NV (NASDAQ: NXPI), (ON) – 5 Stocks To Take Advantage Of The “Huge” Opportunity Presented By ADAS Over The Next Decade


Electric vehicles are the future, as the world shifts from gas-guzzling ICE vehicles to their green-energy counterparts. The ancillary beneficiaries of the growing adoption of electric vehicles are companies that have switched to advanced driver assistance system (ADAS) technology, which is now at the heart of autonomous driving and electric vehicles.

Huge opportunity ahead: ADAS features, which were installed in just 10% of the billion cars in circulation worldwide at the end of 2020, are now part of a third of cars sold in major markets such as mainland China, Europe, Japan and United States. a new study from market research firm Canalys has shown.

For that proportion to drop to half, it will take several years, the company said.

“The ADAS opportunity over the next decade and beyond is enormous,” said Sandy Fitzpatrick, vice president of Canalys.

Canalys currently predicts that only around 30% of cars on the road will have ADAS functionality in 2025 and around 50% in 2030.

“Automakers who can include them as standard in all their new vehicles, without significant additional cost, will have a competitive advantage,” the firm said.

What is ADS? ADAS are electronic systems installed in vehicles that use advanced technologies to assist the driver. It uses sensors like radars and cameras to understand the environment around it, either by providing information to the driver or by taking automatic measurements.

ADAS features include adaptive cruise control, lane keeping assist, automatic emergency braking and blind spot warning. These features along with sensors can actively keep a vehicle a set distance from another vehicle ahead, keep a vehicle centered in its lane, bring a vehicle to a complete stop in an emergency, identify other vehicles or pedestrians in the process. are approaching and more.

Here are five actions that could greatly benefit from the growing use of ADAS:

1. NXP Semiconductors SA (NASDAQ: NXPI): NXP accounts for around 11% of the automotive chip market and is the biggest player in the industry, Barron’s reported, citing BofA Securities analyst Vivek Arya. The company derives about half of its revenue from the automotive end-market, the analyst said.

The company provides radars, vision systems, parts for infotainment and on-board experience, and automotive connectivity to electric vehicles.

2. ON Semiconductor Corporation (NASDAQ: ON): ON ranks seventh in automotive-related chip sales with a 4% market share, Arya said. The company is heavily leveraged to win in both electric vehicles and automatic image sensors for ADAS applications, he added.

ON provides high performance image sensors, lidar detectors and a vast ecosystem of partnerships. It also has a portfolio of products, including power management, lighting solutions, motor drivers, systems design expertise, reference designs, powerful and flexible development kits and a highly experienced application support.

Related Link: Tesla Will Be World’s Most ‘Deeply Integrated’ Automotive Company With Fully Implemented AI Day Plans, Says Ark

3. Aptiv API (NYSE: APTV): Aptiv shares have more than tripled since the COVID-19-induced trough in March 2020. Aptiv was one of the first to launch a radar-based adaptive cruise control system in 1999. In January, the company introduced its Next Generation ADAS Platform compatible with Levels 1-3. The auto parts supplier has a joint venture with Hyundai automobile company. RDA (OTC: HYMTF) for the robotic axis.

4. Innoviz Technologies Ltd. (NASDAQ: INVZ): The Israeli startup is a developer of solid-state lidar sensors and perception software. The company went public in the United States at the end of 2020. It entered into an agreement in 2018 to supply high-end, automotive-grade solid-state lidar to Bayerische Motoren Werke ADR (OTC: BMWYY), by Magna International Inc. (NYSE: MGA) as a Tier 1 supplier.

5. Ambarella, Inc. (NASDAQ: AMBA): Ambarella designs chips for computer vision, the technology used by the electric vehicle giant Tesla Inc (NASDAQ: TSLA). Following the company’s second quarter results, KeyBanc analyst John Vinh said Ambarella is gaining traction in the fleet management market with Yandex, KeepTruckin and Solera advertising products using the company’s CV.

Related Link: EV Week In Review: Tesla Gets Optimistic Delivery Forecast, XPeng’s Under $ 25,000 Car, Lucid’s Big Week, Workhorse Drops Legal Challenge

Image by Rudy and Peter Skitterians from Pixabay

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