According to a new market research report published by Credence Research, “Autonomous Vehicle Market (by Type (Semi-autonomous and Fully autonomous), by Power (Electric cell, Fuel cell and Hybrid), by Vehicle (Car (Robo-taxi), Van/Shuttle, and Truck) by Geography (North America, Europe, Asia Pacific, and Rest of the World)) – Growth, Future Prospects, and Competitive Landscape, 2019 -2027”, the global autonomous vehicle market is expected to expand at a CAGR of 35.6% during the forecast period from 2019 to 2027.
An Autonomous vehicle, sometimes also referred as a self-driving vehicle (SDV) uses technologies such as Artificial Intelligence (AI), LiDAR and Radar sensing for creating a 3D map in order to sense the environment and travel from one destination to another without human interference. Since it eliminates the need for a driver, it reduces operating costs for car rental service providers such as Uber, and Lyft among others. In addition, an autonomous vehicle helps customers to lower mobility cost by offering greater flexibility in terms of transportation to desired location, thereby providing a market for transport as a service (TaaS) and gradually lowering individual vehicle ownership rate. On the flip side, it raises the concerns on unemployment as humans will be replaced by robots.
Autonomous vehicles such as robo-taxis operate on Autonomous Mobility on Demand (AMoD) service, touted to be one of the most rapidly adopted applications of autonomous vehicles, especially in developed economies such as the U.S., the UK among others. Automotive industry is going to see huge transformation due to growing R&D in autonomous vehicles, strict government regulations & inclination of automotive manufacturers towards the technology. Rising emissions have created a huge demand for fuel efficient and emission free vehicles. Robotic assistance is expected to be the solution for emission free and fuel efficient environment.
However, as mentioned earlier, unemployment will become a major issue as soon as this technology becomes fully commercial since humans will be replaced by robots. Cyber security threats will be higher as terrorists and hackers can exploit it by hacking into multiple models at the same time. Furthermore, huge capital investment and consequent need to increase R&D expense may pose challenge to new entrants in the market.
Autonomous vehicles is segmented by level of autonomy into two categories, namely semi-autonomous and fully autonomous. Autonomous vehicles with semi- autonomous technology represents those vehicles in which computer can handle two or more tasks simultaneously, while fully autonomous technologies are those which allow drivers to safely turn their attention away while driving. Fully autonomous is further categorized in two types namely: L4 autonomy and L5 autonomy. In L5 autonomous vehicle, the vehicle doesn’t require human interference as it is fully automated. Currently, the L4 vehicles are being monitored by human backup drivers and are geo-fenced whereas L5 vehicles are still being envisioned.
Europe represents the largest autonomous vehicle market followed by North America. Europe is anticipated to witness strong growth as countries such as Germany, France, and the U.K. etc. are aggressively focusing on developing related infrastructure to test and deploy autonomous vehicles on large scale. Developing economies such as China, India, Japan and South Korea among others are also not lagging behind and are slated to become attractive markets in the years to come. The combination of factors including developing transport infrastructure, rapid urbanization and increased focus on environment & vehicle safety in countries such as China, Japan, and India is contributing towards growing demand in Asia-Pacific region.
Some of the major autonomous vehicle manufacturers operating in the market include Tesla, Inc., Daimler AG, Lyft, Inc., Uber Technologies Inc., Volkswagen AG, Volvo Car Corporation, Waymo LLC, Ford Motor Company, General Motors Company, BMW AG, and Aptiv PLC among others. In addition, large number of collaboration between technology providers and manufacturers in the market is expected to further strengthen the competitive landscape of autonomous vehicle market worldwide.
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