Autonomous Car Market Size, Industry Outlook, Regional Analysis (U.S., Germany, UK, Italy, Russia, China, India, Japan, South Korea, Brazil, Mexico, Saudi Arabia, UAE, South Africa), Application Development & Forecast, 2016 – 2024
Report ID: GMI1224
Autonomous Car Market size is driven by rising human errors that cause automobile accidents. Pedestrian safety and driver assistance are the secondary benefits, which support the autonomous car market growth over the forecast timeline.
Increasing technological developments in ensuring better transportation system have attracted investments to make this technology efficient and safe at the same time. Moreover, vendors are showing a keen interest in driverless vehicle development by investing heavily in R&D, manufacturing, and commercialization of robotic vehicles. For instance, in May 2016, Volkswagen announced USD 300 million investment in Israeli startup Gett, serving taxis, and black cars in 60 cities.
Driverless transportation systems are expected to reduce the energy consumption in multiple ways. For instance, a widespread adoption of autonomous vehicles can have benefits such as vehicle communications and information exchange regarding direction changes. Furthermore, vehicle interaction with road infrastructure also reduces the traffic congestion leading to a smother traffic flow.
Increasing urban customers and newer mobility concepts are expected to drive this industry. Varied age group mobility will also act as an added benefit to the autonomous car market. It will enable elderly people, who are too old to drive themselves and differently-abled population and younger generations to traveling independently. With the adoption of these vehicles, traveling demand along with reduced carbon emissions and energy use will also drive the autonomous car market share from 2016 to 2024.
Increased adoption of driverless transportation will result in enhanced societal and economic benefits of automotive manufacturers and other players in the value chain. Suppliers of autonomous car electronics will benefit from growing autonomous car market demand by innovating newer technologies in satisfying OEM requirements.
Stringent government norms and regulations may hamper the autonomous car market size over the forecast timeframe. In September 2016, the U.S. Department of Transportation announced its guidelines regarding current regulations that need to be applied and safety expectations, which are to be met by the automakers such as 15-point safety standard for design development, encouraging nascent technology with uniform rules.
High maintenance and repairing costs may hamper the autonomous car market. Varying weather conditions, such as rain, fog, and snow, make the system inefficient in detecting the track lines on the pavement. Maintenance costs are very high, which may have a negative impact on the increasing number of robotic transportation. In addition, concerns pertaining to the adoption rate that will lead to a slowdown of the growth rate are different types of weather that cover the track lines by a coating of snow or mud, relying too much on google maps, and potholes that are tough to be detected by sensors as they lie below the road surface.
Computer algorithms ensure safe vehicle driving by obeying the traffic rules but it cannot predict or control other vehicles’ driving behavior. Equipping cars with transponders is a potential solution, which is also known as V2V communications. This solution can communicate speed, position, and direction to other vehicles. This technology can be a potential growth opportunity for the autonomous car market as it can be effective when a large number of vehicles on road have transponders embedded in them.
The autonomous car market is segmented based on its components such as radar sensors, LiDARs, video cameras, central computing systems, ultrasound sensors, and GPS navigation systems.
The autonomous car market adoption among consumers is challenging as the mobility group is still not confident enough to give full control of their cars in the robot’s hands. For instance, according to AAA survey in the U.S., three out of four drivers are afraid to travel in an autonomous car. About 54% drivers feel unsafe in sharing the road with autonomous cars. Nearly two-thirds of drivers report the adoption of semi-autonomous technologies such as adaptive cruise control, automatic emergency braking, lane-keeping assist, or self-parking technology. This consumer perception of the technology poses a potential challenge to manufacturers to penetrate in this autonomous car market.
Within a complex and diversified transportation industry landscape, competitors are being forced to compete on multiple fronts providing new services potentially. Autonomous car market participants focus on partnerships, collaborations, and mergers & acquisitions to acquire a considerable market share in the industry while new market entrants initially target economically attractive segments.
The majority of automakers along with other industries are focusing on providing benefits pertaining to advanced driver assistance systems for the consumers. For instance, Apple has invested over USD 1 billion in Didi Chuxing, a Chinese ride-hailing service. In July 2016, Uber announced a merger between Didi Chuxing, adding value to Apple’s investment. Suppliers, such as Mobile eye, is offering ‘system-on-a-chip’ solution for ADAS thus disrupting the vehicle technology value chain.
Industry participants of autonomous car market include Google, Alpha, Mercedes-Benz, BMW, Nissan, General Motors, Tesla, Ford, Volvo, Honda Motor Corporation, Toyota, and Uber.
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