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Autonomous and Connected Vehicles Drive Automotive Market

AAPL, CETX, NVDA, GOOG, TSLA

PR Newswire

NEW YORK, December 14, 2016 /PRNewswire/ --

A recently published comprehensive research by PWC indicates that the global car market has the potential to build considerable value from the sale of connected car packages to end customers - fully $155.9 billion in 2022, up from $52.5 billion in 2017, an average annual growth rate of 24.3 percent. Despite the enormous potential however, car manufacturers are going to have to take certain measures in order to reach the numbers projected. For example, car makers have to integrate and bundle features into a simple car experience, be prepared to move from premium to volume sales and more. Cemtrex Inc. (NASDAQ: CETX), NVIDIA Corporation (NASDAQ: NVDA), Tesla Motors Inc. (NASDAQ: TSLA), Alphabet Inc. (NASDAQ: GOOGL), Apple Inc. (NASDAQ: AAPL)

The research puts an emphasis on the importance of suppliers. As huge demand for the new digital technologies associated with connected and autonomous cars will grow, so will the list of companies from outside the traditional automotive supply base, not just giant tech companies but ambitious startups as well, playing a crucial role in providing all manner of automotive systems. In fact, the fast growth of new players entering from outside the automotive vehicle market is already beginning to transform the structure of the auto industry.

Cemtrex Inc. (NASDAQ: CETX) is a diversified industrial and manufacturing company which provides Cemtrex provides manufacturing services of advanced custom-engineered electronics, industrial contracting services, monitoring instruments for industrial processes and environmental compliance, and equipment for controlling particulates, hazardous pollutants, and Greenhouse gases used in carbon trading globally. On December 13th the company commented on the outlook for the Automotive Electronics industry and potential opportunities for the Company, as automobiles add more electronic components and as they become more connected.

Cemtrex's chairman and CEO, Saagar Govil, said in a statemen, "Samsung Electronics recently acquired Harman International Industries, one of our largest customers, in an effort to accelerate its growth in the automotive connected space, which we believe is further validation of our strategy in this sector. We are extremely optimistic about the opportunities in front of us and our ability to leverage them with our growing organization."

Recently Cemtrex Inc. has also been active in expanding operations overseas. Earlier in September the company announced that it has fully integrated with the recently acquired Periscope, an electronics manufacturing company located in Paderborn, Germany. With the integration complete, Cemtrex secured a broader base and larger market share in the Eurozone and claims that it has become among the top 20 electronics manufacturing services (EMS) companies in Germany.

NVIDIA Corporation (NASDAQ: NVDA) has recently expanded into industries such as virtual reality and chips to power self-driving cars other than just computer graphics cards. The Department of Motor Vehicles in California approved a permit to NVIDIA to start testing self-driving cars in the state, with Tesla Motors Inc. (NASDAQ: TSLA), that is supplied by NVIDIA's chips to power its "Autopilot" system. NVIDIA has positioned itself as the provider of the computing power behind the self-driving systems, and wasn't believed to have desires to build entire systems with sensors and controls. This helped NVIDIA send the automotive section of the business's revenue up 60.8% to $127.0 million.

Alphabet Inc. (NASDAQ: GOOGL) announced that Google's self-driving car project will become its own entity within the company, Waymo. The program has been part of Google X and the name is derived from its mission of finding "a new way forward in mobility." Chief Executive of the project, John Krafcik told reporters, "We can imagine this [technology] in ridesharing, in transportation, trucking, logistics even personal use vehicles and licensing with automakers, public transport and solving the last mile." Krafcik also highlighted that the company is concentrated on technology, not necessarily making cars.

Apple Inc. (NASDAQ: AAPL) has publicly disclosed plans to develop self-driving cars, with a letter hoping regulators at the US National Highway Traffic Safety Administration to encourage "fair competition" between newcomers to the automotive industry and traditional manufacturers. Apple had been working on in-car technology in the form of Apple's "CarPlay", an iOS operating system that runs through a car's onboard entertainment system when an iPhone is connected, and is working to extend far beyond car software. According to recent reports, it was said that Apple has temporarily dropped efforts to design its own car, focusing on an underlying self-driving platform and is expected to pick a new direction of next year. The company will decide whether they will resume working on its own design or partnering with a current automaker.

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