The acquisition will help Nvidia strengthen its mapping and localization capabilities. Here are the top-line bullets you need to know.
Nvidia, a company that designs and manufactures graphic processing units (GPS), has acquired DeepMap, a provider of high-definition mapping solutions for autonomous vehicles. The acquisition is expected to be completed in Q3’21. The financial terms of the transaction were undisclosed.
Who are the parties to the deal?
- DeepMap: California-based DeepMap, a high-definition mapping solutions company, provides technology to enable continuously updated precision mapping for autonomous vehicles. The company’s customers include Bosch, Ford, Honda, Mercedes-Benz, and SAIC, among others. DeepMap’s presence spans 7 countries and its offerings are used by over 10M people daily. It was featured on the CB Insights AI 100.
- Nvidia: California-based Nvidia designs and manufactures graphics processing units for gaming and professional systems. It also manufactures system-on-chip units for the automotive market, among others. It generated $5.66B in Q1’21 revenue and has a current market cap of $404B.
Why does the market matter?
The acquisition will strengthen HD mapping and localization capabilities on NVIDIA DRIVE where:
- The HD maps for the autonomous vehicles market is expected to grow at a CAGR of 34.3% and reach a value of $16.51B by 2028, according to Emergen Research.
- Nearly 18.4M automobiles on the road are expected to feature at least level 2 automation by 2024. The increased rate of adoption of autonomous vehicles coupled with technological advancements has contributed to industry growth.
- The Covid-19 pandemic has also given boosted the growth of autonomous driving technology to develop a contactless, safe option for personal mobility, logistics, and delivery services.