KDDI Targets Autonomous Driving Revenue of 528 Billion Yen by 2028
KDDI Targets Autonomous Driving Revenue of 528 Billion Yen by 2028
Telecommunications giant KDDI has unveiled an ambitious roadmap to generate 528 billion yen ($3.5 billion) in revenue from autonomous driving services by fiscal year 2028. The company aims to establish itself as a central hub for the automotive industry through strategic alliances with technology firms like newmo and robotics developer ELYZA Robotics.
Telecommunications provider KDDI has outlined a comprehensive strategy to capture a significant share of the emerging autonomous driving market, targeting 528 billion yen ($3.5 billion) in related revenue by fiscal year 2028. The company intends to position itself as a core partner for the automotive industry by integrating artificial intelligence and connectivity technologies into vehicle operations.
KDDI announced its plans on November 6, aiming to expand its business portfolio beyond traditional telecommunications. The financial projections include 13.9 billion yen ($92 million) in operating profit from these services. To achieve this, KDDI is strengthening collaborations with specialized technology firms, most notably newmo, a developer of autonomous driving software.
The partnership with newmo is central to KDDI’s near-term goals. Under the agreement, KDDI will provide its extensive telecommunications infrastructure and data capabilities to support newmo’s autonomous driving platform. This collaboration aims to accelerate the commercialization of self-driving vehicles and enhance safety through real-time data processing.
KDDI also emphasized its commitment to developing "autonomous driving AI" that can operate effectively in diverse environments. The company plans to deploy this technology across various vehicle types, including passenger cars and logistics trucks. By combining its network expertise with advanced AI, KDDI seeks to solve complex challenges in autonomous navigation, such as accurate localization and decision-making in unpredictable traffic conditions.
The broader automotive landscape is shifting rapidly toward digital integration. KDDI noted that the automotive industry is increasingly viewing connectivity and data services as critical components of vehicle value. The company aims to become a "digital hub" for automakers, offering end-to-end solutions that span from vehicle development to post-sale services.
In addition to its work with newmo, KDDI is expanding its ecosystem through other strategic alliances. On October 1, the company announced a collaboration with ELYZA Robotics, a developer of humanoid robots and AI technology. This partnership aims to integrate robotics into autonomous driving systems, potentially enhancing vehicle maintenance and operational efficiency.
KDDI’s long-term vision extends beyond 2028. The company has set a goal to achieve 300 billion yen in revenue from automotive-related businesses by fiscal year 2030. This includes not only direct autonomous driving services but also related data analytics, insurance, and mobility-as-a-service offerings.
The telecommunications giant is also monitoring developments in the broader mobility sector. For instance, Wing Aviation, an affiliate of Alphabet, has announced plans to introduce drone-based delivery services in Japan by 2027. While distinct from ground-based autonomous driving, such advancements highlight the growing convergence of aviation and automotive technologies in the mobility space.
KDDI’s strategy reflects a broader industry trend where traditional telecom providers are diversifying into high-growth technology sectors. By leveraging its network infrastructure and forming key partnerships with AI and robotics specialists, KDDI aims to secure a dominant position in the future of autonomous transportation.
F.P.Kavanaugh--IP
