Intel to Buys Israel’s Mobileye for USD15 Billion

The renowned IT firm, Intel is about to enter into largest cross border deal with the acquisition of Israeli automotive tech firm Mobileye

Israel: Recently, while signing a deal for the acquisition of Israeli automotive technology firm, Mobileye, for over USD15 billion, the United States computer giant, Intel, showed its commitment for self-driving vehicle technology. As per the Israeli authorities, the agreement is anticipated to be the largest ever cross border acquisition deal for an Israeli firm.

Both the companies, Intel and Mobileye, expressed their interest to become a global leader in "self-driving vehicle technology", by offering the autonomous technology at a comparatively lower cost.

As per the company spokesperson, "The combination is expected to accelerate innovation for the automotive industry and position Intel as a leading technology provider in the fast-growing market for highly and fully autonomous vehicles. Intel estimates the vehicle systems, data and services market opportunity to be up to $70 billion by 2030."

Moreover, last year, the renowned German car maker, BMW announced about iNext, which was introduced in combination with Mobileye and Intel and is related to a self-driving project for "highly and fully automated driving". The technology would be available, commercially by the end of 2021.

Several major automakers are already involved in the testing of autonomous or semi-autonomous cars around the globe. Mobileye was founded in 1999 in Israel and employs nearly 660 members. The company has developed real time camera systems, which are widely used to avoid on road accidents with the assistance of algorithms data.

Mobileye co-founder Ziv Aviram said of the acquisition that "together, we will provide an attractive value proposition for the automotive industry. We expect the growth towards autonomous driving to be transformative. It will provide consumers with safer, more flexible, and less costly transportation options, and provide incremental business model opportunities for our automaker customers.”

The US based IT firm, anticipates that the autonomous vehicle technology would generate about 4,000 GB of data every day by 2020, which requires utmost supervision and is ultimately the strength of the company.

As per TechSci Research, the testing of the new self-driving vehicles is anticipated to further lead to greater advancements in the autonomous vehicle technology, thereby, assisting the demand of autonomous vehicles to grow across the globe over the coming years. The acquisition of the Israeli auto firm by the US based IT giant would add an achievement with the constant R&D in the field of autonomous car technology in coming years.

According to a recent report published by TechSci Research, “Global Autonomous Car Technology Market Forecast and Opportunities, 2035 – ADAS, Semi-Autonomous, Fully-Autonomous”, global autonomous car technology market is expected to witness a CAGR of over 10% through 2035. The market is currently dominated by ADAS segment, which is expected to maintain its dominance over the next twenty years as well. The dominance of this segment can be attributed to anticipated increase in government regulations pertaining to integration of ADAS technologies in passenger cars. Further, semi-autonomous car technology is expected to witness robust growth over the next ten years, owing to anticipated decline in its average selling price coupled with rising volume sales.