Volvo is partnering with Nvidia on self-driving trucks (VLVLY, NVDA)
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Sweden's Volvo, the world's second-largest truck manufacturer, is working with California-based graphics processor unit (GPU) designer Nvidia to develop self-driving trucks. The firms will build on Nvidia's Drive autonomous vehicle (AV) software stack and platform to train, test, and deploy AVs.
They will focus on vehicles used in public transport, freight transport, and construction, along with a few other industries. The multi-year partnership is expected to start immediately, with the two firms establishing engineering teams at each of their respective headquarters in Gothenburg and Silicon Valley.
Nvidia sees its currently small auto segment as a significant growth opportunity, so we expect aggressive investments from the firm in expanding its product offerings and partner ecosystem. Although Nvidia's automotive
For Volvo, leveraging Nvidia's tech and expertise could help it bring self-driving trucks to market before some of its competitors, giving it a valuable early-mover advantage.Volvo is facing stiff competition from a number of firms, including legacy rival Daimler, which is the largest truck manufacturer in the world, and startups like Alphabet's Waymo.
Earlier this year, it was revealed that Daimler has a goal to introduce a fully autonomous truck within the next decade. If using established tech from Nvidia allows Volvo to develop autonomous trucks faster than competitors, it could be in a position to entrench itself in what's expected to be a lucrative market: The global autonomous truck market will grow by more than 50% between 2020 and 2025 to hit nearly $1.7 billion, per Allied Market Research estimates.
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