![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/09\/TomTom1.jpg\")
<\/a><\/p>\nIn addition to sensors and other features, HD maps are an important part of autonomous driving, which can incorporate different levels of human assistance \u2013 from very little to none whatsoever in even the harshest weather conditions.<\/p>\n
HD maps, stored on a car\u2019s computer system, replicate every lane, guard-rail, road edge and pole that a vehicle sees, helping cars locate their positions within centimeters. Those features are critical to avoid crashing into nearby cars, but they also help the car discern which traffic light at a busy cross-section it should obey or identify a speed sign hidden by a truck.<\/p>\n
So far, TomTom has publicly announced HD partnerships with Baidu Inc on its Apollo driverless project, and with Renault on the carmaker\u2019s SYMBIOZ autonomous driving program. It announced in March that it had won multiple deals to provide HD maps to major car makers, but declined to say which ones.<\/p>\n
Those contracts, which typically last more than 10 years because of ongoing service needs, have so far resulted in a roughly 60% market share in HD maps for TomTom, according to Willem Strijbosch, the company\u2019s head of autonomous driving.<\/p>\n
\u201cNot every car maker has made their decision yet on who will support them on HD maps,\u201d said Strijbosch. \u201cBut out of all the car makers that have made a decision, we see that the big ones \u2013 the top 10 \u2013 are picking TomTom.\u201d<\/p>\n
TomTom collects traffic and road data on more than 67 million kilometers around the world using 600 million different devices \u2013 including its mobile mapping cars, sat navs, and mobile phones. Of those roads, TomTom has so far covered only 400,000 kilometers in HD.<\/p>\n
Its HD maps are currently only available on highways in the US, Canada, Europe, South Korea and Japan but it is working to add more side roads as the technology advances.<\/p>\n
The mapping firm doesn\u2019t disclose revenue from HD maps but in July it boosted its full-year guidance, saying it now expects sales from its location technology to grow 17% to 435 million euros, up from 430 million euros forecast in April. That amounts to around two-thirds of the group\u2019s overall expected revenue.<\/p>\n
\u201cThe single biggest risk to the TomTom investment case is costs,\u201d said Wim Gille, head of equity research at ABN AMRO. He said the company still has lots of ground to cover on HD maps compared to its standard definition maps and clients will want reassurance that the company can continue to serve them in a decade from now.<\/p>\n
While HERE is out-earning TomTom in revenues, Gille said, it\u2019s also spending around 1 billion euros a year in operating expenses, about twice as much as TomTom. Still, he said both companies have what it takes to build and maintain an HD map.<\/p>\n
\u201cThe market is big enough for both of them,\u201d he said.<\/p>\n
\n