Mobileye is an Israel-based technology company that develops vision-based advanced driver assistance systems (ADAS) using camera processing algorithms. It has three competitive strengths: computer vision algorithms allowing camera-only ADAS, efficient vision accelerator chips, and a large dataset from millions of road miles. Mobileye has established itself in the regulated safety market and provides aftermarket and original equipment manufacturer (OEM) solutions. It aims to evolve ADAS features incrementally to achieve higher levels of autonomous driving through advances in sensing, mapping, and policy capabilities. Mobileye has over 20 OEM customers, claims profitability, and forecasts increasing average selling prices and addressable markets as autonomous functionality grows.

1. KEY
p-AEB: Pedestrian Automatic Emergency Braking
v-AEB: Vehicle Automatic Emergency Braking
ACC: Adaptive Cruise Control
AHC: Adaptive High Beam Control
CWAB: Collision Warning Auto Brake
DAC: Driver Alert Control
DNN: Deep Neural Network
FCW: Forward Collision Warning
FSPL: Free Space thru Pixel Labeling
HMW: Headway Monitoring and Warning
HPP: Holistic Path Prediction
IHC: Intelligent High Beam Control
LDW: Lane Departure Warning
LKA: Lane Keeping Assistant
LKS: Lane Keeping and Support
PCW: Pedestrian Collision Warning
PD: Pedestrian Detection
PPHC: Path Planning using Holistic Cues
SLI: Speed Limit Indicator
TJA: Traffic Jam Assist
TSR: Traffic Sign Recognition
VD: Vehicle Detection
Fusion Multiple Cameras
Single Monocular Camera REM
Autonomous driving
$0
$60
$120
$180
$240
2011 2012 2013 2014 2015
$39
$22
$18
$13
$195
$117
$57
$25
$7$5$6$3
Estimated NRE
EyeQ
Aftermarket
Total Revenue
Overview
Founded in 1999, Mobileye is a 700+ person technology company based in Israel that
develops ADAS solutions. The company claims three competitive strengths:
1) Vision processing software algorithms based on deep learning which allow series of camera
only ADAS features
2) IC design competencies of low power / low cost vector accelerators that are an order of
magnitude more efficient than the competition
3) Millions of “road experience miles”, translating to a large validation dataset
Mobileye has established a firm position in the $4.5B Safety Rating Regulation Market by
introducing features identified by NCAPs to achieve 5 star safety rating.
Mobileye is “fabless” working with STMicroelectronics to deploy EyeQ. The cycle time for
release of new hardware matches industries natural cycle time for evolving platform elements
(3-4 years). Tier1s serve as the channel to OEMs, though they create demand pull by working
closely with the OEMs.
Products
EyeQ Vision Processing Platform
Family of automotive grade low power chips which support
computationally intensive vision applications. The customer may select a
bundle (2-3) of ADAS features. Each generation has improved
performance by 6-8X.
Series 5/6 Aftermarket Unit
A $1,000 product providing FWC, PCW, HMW, LDW, IHC, and SLI
features. Has proven valuable for 1) OEM customer acquisition,
allowing them to easily evaluate on their own cars, 2) building
datasets to train models, and 3) dealings with governmental
agencies.
Road Experience Management (REM)
A cloud based service, Delivering crowd sourced high def maps with 10cm accuracy. Primary
principle is “Sparse 3D, Dense 1D” which caps network bandwidth requirement at 10 KB/Km.
Strategy - Evolution to Autonomous Driving
While the ultimate industry goal is to achieve Level5 fully autonomous driving functionality, the
company divides the market into two camps: 1) those who are aiming to provide full
functionality in some places (e.g. Google, Uber), and then aim to scaling everywhere, and 2)
those who are targeting partial functionality everywhere (most of the car industry) and aim to
incrementally enhance features to achieve full capabilities.
Mobileye is in the latter camp, where ADAS features play an important role and can naturally
address Autonomous Driving Level1, Level2, and eventually Level3 requirements. The
company is placing bets in three technology areas -Sensing, Maps, and Driving Policy- to enable
its evolution from ADAS to the Autonomous Driving.
Sensing, helps build an environmental model and is a natural growth of ADAS. Planned
capabilities that go beyond current ADAS requirements are determining path delimiters, and
resolving drivable paths. EyeQ is also evolving from supporting a single camera to surround
camera sensing capability (up to 8).
Requirements for MAPs are met with REM (discussed above), which allows OEMs to leverage
own assets (deployed vehicles) to supply a critical item needed to achieve full autonomy at a
reasonable cost. OEMs can share mapping data, and Mobileye has commitments from 3 OEMs -
GM,VW, and Nissan.
Driving Policy is distinct from Sensing as follows. Sensing deals with the present, it’s mostly a
single agent game and is predictable. The key technology is deep supervised learning. Driving
Policy by contrast, involves planning for future events (e.g. what maneuvers to take to
successfully exit the highway), it’s a multi-agent game (e.g. actions dependent on interpretation
of pedestrian or other driver intents), and it’s not perfectly predictable. The key technology is
Reinforcement learning.
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2021
Roadmap
Product Launches EyeQ1
Series 5 Aftermarket
EyeQ2 EyeQ3
Series 6 Aftermarket
REM
EyeQ4 (Engr. Sample)
EyeQ4
EyeQ5 (Engr. Sample)
EyeQ5
8x Improvement
Camera VGA (640 x 480) - 12bit
36 FPS
Up to 2048x2048
Monochrome, Bayer, RGB,
Y:Cb:Cr
50° Monocular Camera
1.3M imagery
-
150°, 50°, 25° trifocal
Front radar, 4x side
radar, front/back Lidar
5 Cameras HD Camera
8 Cameras
Software Feature
Launches
Two bundes
- A: LDW,TSR, IHC
- B: LDW, v-AEB
Aftermarket
- FWC
- PCW
- HMW
- LDW
Pedestrian Detection
System (Industrial)
LDW
VD 2nd generation
PD
PCW
IHC
TSR
LKA
FCW
HMW
ACC
TJA
p/v AEB Partial breaking
Road profile
reconstruction
Debris detection
Multiple focal camera
Aftermarket
smartphone support
Blind spot detection
IHC,TSR, CC, Haptic
alerts, break pre-light
Traffic Light Detection
(US)
Night-time PD
FSPL
PPHC
REM Prior to resolve
ambiguity
Improved drivable
paths
Object Detection
Full Speed ACC
LKA in construction
zones
3D VD
Automated parking
OTA Updates
Lidar, Radar,
HD Camera
Market
Notable OEM
Feature
Introductions
LDW
CWAB
DAC
LDW
AHC
TSR
p/v AEB
partial breaking
IFCW ACC
TJA
p/v AEB
vAEB Full Breaking
VW REM
announcement at CES
Animal Detection
Additional
New Launches
LDW 5 new launches Two commercial
launches autonomous
3x EyeQ3 configuration
New Launch MSRP
$K(mean/min)
$53
$37
$80
$80
$34
$34
$30
$16
$33
$22
$38
$23
$23
$20
Models 5 10 13 19 34 54 109 160 215 247
Mobileye Brief
Autopilot
S80
V80
XC60
XC70
BMW7 S60 BMW1
BMW3
Volt
Equinox
Terrain
Cad XTS
Cad DTS
i3
BMW1
BMW3
BMW5
BMW7
Super Cruise
$45
Revenue(M) Net Income and Operating Profit
AEB
Level 1
Autonomous
Driving
Company swung to profitability in 2013, after shipping
2.6M cumulative units. The loss in 2014 was due to a
$60M charge for options granted to founders, without
which the profitability would have grown by 200% to
$45M. Margins have been steady at 74%.
Financials
YOY growth (70%-100%) outpaces ADAS market
growth (~30%). Revenue mix from aftermarket,
EyeQ sales and NRE (comes to roughly $100Ks per
account).
Few hardware, but frequent software releases: successful “software wrapped
around hardware” approach reflected by increasing ASP. Stark contrast to
NVIDIA: Mobileye has achieved profitability after shipping 2.5M units, while
NVIDIA still losing money after shipping 8M units.
Camera only features have cut costs (parts, with no radar requirement, and
integration), allowing penetration in non-luxury segments. Company has
won 80% of all RFQs received in the past seven years. Currently company
claims 22 OEM customers.
Mobileye Addressable
Market ($B)
Level 1
Autonomous
Driving
$4.5
$15
Without
options
charge
Mobileye is successfully defending their ASP by
adopting a “Software wrapped around Hardware”
approach. ASP was flat in 2014 due to mix of app
bundles in pipeline. Company forecasts ASP to
multiply by up to 3x (to $132) in 2018 by adoption
of autonomous driving features.
Average Selling Price (ASP) and Units
$19M
$40M
$81M
$144M
$241M
Level 2?
Autonomous
Driving
Level 3
Autonomous
Driving
Level 3
Autonomous
Driving
Level 5
Autonomous
Driving
Fully Autonomous
(somewhere)
0
4.5
9
13.5
18
Safety
Rating
Regulation
Autonomous
Driving
Trend
Autonomous
With
REM
Present Future
$4.5B
Addressable Market
$15B
March towards Autonomous Driving is expanding
addressable market. REM will increase market size
further by introducing services with recurring fees.
0
1666.667
3333.333
5000
$0
$35
$70
$105
$140
2011 2012 2013 2014 2015 2016 2017 2018
EyeQ ASP
Target ASP
Units (K)
290
668
1,303
2,656
4,445
$132
$35 $37
$44 $44 $44
-$3
$25
$53
$80
50%
58%
65%
73%
80%
2011 2012 2013 2014 2015
Margin
Operating Profit
$78
-$15
$15
-$2
-$12
74%74%74%
70%
64%64%
70%
74% 74% 74%
Level 3
Autonomous
Driving
Level 2
Autonomous
Driving
albertjordan@mac.com 8/8/16