Investment Case

Five reasons to invest in Gapwaves

1.

Patented technology and unique know-how make Gapwaves world-leading

Gapwaves has developed a world-leading technology for waveguide antenna technology resulting in a high-performance solution that can be produced cost-efficiently. A large number of patents form the foundation of the company’s solutions, providing protection against competitors. This type of waveguide antennas is well suited for advanced radar systems where the demand for high performance and cost requirements are crucial. No other player in the market can offer the same high quality at the same price level.

2.

Demand driven by increased security requirements and need for new features

Radar is key when creating safe vehicles. Gapwaves waveguide antenna technology is world-leading and a key component of many radar solutions. Some examples where safety requirements are driving the demand for radar and antenna technology:

» Active safety in the automotive industry. It involves automatic braking systems, collision avoidance, adaptive cruise control, and more, where several areas are driven by stricter legislation. The number of radar sensors in a regular car is expected to increase from one to three in the coming years, with each radar becoming more advanced which is advantageous for Gapwaves.

» Smart cities. The need to optimize and monitor traffic flows in cities is increasing and radar is a crucial component in the solutions. Radar is outperforming cameras in terms of integrity and in harsh weather conditions, and partnerships with players such as Smartmicro confirms Gapwaves’ strong offering.

3.

Crucial phase – the company has proven itself and volume production is underway

The first high-volume production was initiated in 2024 and Gapwaves’ technology will be integrated in vehicles being released to the market in 2025. This means that Gapwaves’ has made the full transition from a research firm through development to becoming a commercial technology company, where both the technology and business model have proven to be competitive.

This is confirmed by contracts with leading global partners within the automotive industry such as HELLA and Valeo, and Gapwaves is a deeply integrated part of customers’ production lines.

4.

Growth potential in several areas

Gapwaves has a strong position within the automotive industry and smart cities. Other areas with already existing need for reliable antenna technology, and areas where the need is expected to increase, creates business opportunities for Gapwaves:

» Telecom. Mobile networks will require more bandwidth in the upcoming 5G networks and as 6G networks are developed. Due to the increased amount of data, networks will need to use higher frequencies, where Gapwaves’ solution makes a significant difference.

» Intelligent transportation systems are reshaping the work within many industries, such as the mining industry and agriculture, where autonomous vehicles are being integrated in the operations. It’s about efficiency and costs, but also about increased safety for people by avoiding risky tasks and work environments.

Gapwaves owns 30 percent of the radar company Sensrad, a strategic investment and opportunity that elevates Gapwaves higher up in the value chain and opens up new business opportunities with client groups requesting a complete product with high performance.

5.

Smart business model for both customers and owners

Gapwaves’ business model is based on customer-financed development of prototypes, which then transitions to high-volume production. Gapwaves has in-house production for assembly and testing of lower volumes. High-volume production takes place at facilities of selected partners allowing Gapwaves to be flexible and produce where it is geographically most suitable, as well as to tailor production according to the customer’s needs. This also means that the company ties up relatively little capital compared to producing in its own factories.

Read more in our Annual Report