Recent technological advancements are expected to steer growth in favour of the global autonomous car industry through 2025. With the emergence of advanced technology, automakers are expected to invest heavily in autonomous and electronic vehicle technology. The era of automation is shifting towards more comfortable and secure transportation, thus leading to rising investments in automation sector.
Growing Focus on Minimizing Risk of Accidents Boosts Autonomous Car industry in North America
In 2018, North America was the leading contributor for maximum growth in the global autonomous cars market. The government in the U.S. is likely to introduce technological improvements in autonomous car features. The number of car crashes in this country is very high, which is expected to fuel demand for driverless vehicles between 2018 and 2025. Smart cities development is rising, as countries such as the U.S. is planning to deploy digital infrastructure by ensuring vehicle connectivity. This will further help to increase road safety and reduce traffic blocking.
These factors are anticipated to drive the market in North America. The market in Asia Pacific is expected to grow at a faster rate during the forecast period. The rising adoption of autonomous cars in countries such as China is likely to create growth opportunities for the market in Asia Pacific. Autonomous driving is preferred more in China owing to the issues related to car parking and traffic management.
Revolutionary Trends in Autonomous Driving to Transform the Market
“Transformation in the automotive sector is steered by the rapidly changing consumer behaviour,” observed a lead analyst at Fortune Business Insights. “Rising need for reliable transport and increasing safety concerns are projected as the growth engines for the global market,” he added. Onset of trends such as Mobility as a Service or MaaS is expected to speed the evolution of the market. Consumers are shifting from personally owned vehicles to mobility solutions, helping them to manage their trip considering convenience, cost, and time.
Automated system in vehicles help to enhance vehicle performance, offer better emission control, and ensure driver safety. This, along with other features such as electronic steering, collision avoidance, external airbags will enable growth in the market. Governments are increasingly investing in research and development (R&D) activities to improve infrastructure.
This in turn, is estimated to encourage growth in the global market over the forecast years. For instance, as per Union Budget 2018-2019, Indian government allocated around US$ 92.22 Bn to infrastructure. Improvements in road infrastructure and increasing internet penetration across the world are also expected to offer tailwinds to the growth of the market. Fortune Business Insights predicts the above factors to shift consumer preference towards autonomous cars in the upcoming years.
Contrary to this, some factors may hamper the growth of the market. The high costs associated with automated vehicles may restrict the market’s growth. For instance, airbags used in autonomous cars are expensive and should be replaced immediately after the impact. This makes it difficult for middle-class people to buy such vehicles.
Google’s Robot Car Project to Drive Innovation in Autonomous Car Technology
The advent of advanced technologies is expected to encourage companies to develop autonomous vehicles. Leading automakers are planning to keep their vehicles updated with upcoming technological changes in autonomous driving. For instance, in April 2017, Google developed a driverless vehicle project called Waymo to avoid stress of driving for customers, free up their time.
It is a self-driving technology developed with an aim to improve transportation. In the same year, three companies formed a joint venture to develop a platform for end-to end customer support and safety. The platform called advanced driver assistance support or ADAS was developed by Ericsson, Autoliv, and Volvo. Some of the other leading players operating in the global autonomous car market are Daimler AG, General Motors, Volkswagen Group, Ford Motor Company, BMW AG, Robert Bosch GMBH, Denso Corporation, Renault-Nissan-Mitsubishi Alliance, AB Volvo, Tesla Inc., and Toyota Motor Corporation. Moreover, Volkswagen is estimated to invest US$ 91 Bn to develop electric cars in the coming years.
Also Read: How safe are autonomous cars?
Note: This is a guest blog by Panchali Malik Tripathi, head of content writing/ editing at Fortune Business Insights.