The global self-driving car market is anticipated to witness significant growth in the coming years owing to rising demand for technologically advanced and convenient vehicles. Self-driving cars, also known as driverless or autonomous cars, can operate automatically or without any support of a driver. Such technologically advanced vehicles are equipped with advanced sensors, which help them in navigation. In addition, advanced control systems that are integrated into a car can interpret sensory information to identify obstacles and appropriate signage.
Increasing cases of road accidents across the globe due to human error are anticipated to propel demand for self-driving cars. Driverless cars based on artificial intelligence can judge accidental situations in advance using sensors, and hence can activate safety measures to avoid a collision. This, in turn, can influence market growth in the coming years. In addition, benefits, such as better fuel efficiency and reduced carbon emission, are predicted to boost sales of driverless vehicles and stimulate market growth. Moreover, increasing R&D investments by automobile manufacturers to create flawless autonomous vehicles can drive the market in the coming years.
However, lack of infrastructure and rising threats from hackers can hamper market growth. In addition, stringent government regulations pertaining to data security can obstruct market expansion in the coming years.
Increasing number of collaborations among automobile manufacturers and leading software companies to make successful autonomous cars can create lucrative opportunities for the market. For instance, Volkswagen, a leading automobile company, collaborated with Microsoft to develop a new automotive cloud for better connectivity among vehicles on road.
The market can be segmented on the basis of car type, autonomous level, components, and application. Based on car type, the market can be categorized into level 1, level 2, level 3, level 4, and level 5. In terms of autonomous level, the market can be bifurcated into semi-autonomous and fully autonomous cars. On the basis of components, the market can be classified into radar sensor, ultrasound sensor, video cameras, LiDAR senor, central computing system, and global positioning system (GPS) navigation system. Based on application, the market can be divided into personal use and commercial use.
Asia Pacific is anticipated to witness substantial growth in the coming years owing to rising demand for advanced safety features in cars to reduce chances of accidents. Increasing road accidents due to driver’s negligence can propel safety concerns among consumers. Advent of autonomous cars is likely to enhance vehicle safety and reduce number of accidents owing to human error. Supportive initiatives by the governments of developing countries, such as India, China, and Japan, to introduce road safety regulations and promote self-driving cars can augment market growth. Increasing R&D investments by manufacturing companies to develop technologically advanced autonomous cars can impel regional market growth in the coming years.
Europe is likely to emerge highly lucrative in the coming years owing to presence of major automobile manufacturers. Volvo, Volkswagen, and Fiat Chrysler Automobiles are involved in the manufacturing of semi-autonomous vehicles. These companies are likely to invest in the development of advanced autonomous technologies, which, in turn, can impel market expansion in the coming years. Supportive government initiatives for the development of telecom and road infrastructure to help self-driving cars in communicating with their surroundings efficiently can drive the market. Launch of new projects pertaining to trail of driverless vehicles by local companies can impel market growth. For instance, Yandex launched its trail project for self-driving taxis in Russia. This taxi service offers free ride for passengers between five designated taxi ranks. The company will have an engineer inside the cab to ensure safety in case of system failure.
North America is expected to bode well in the coming years owing to rising production of driverless vehicles. New amendments in traffic rules to penetrate use of technologically advanced vehicles can augment regional market growth. For instance, according to a pilot program introduced by the National Highway Traffic Safety Administration (NHTSA), automobile manufacturers can test their autonomous vehicles on public roads with or without state regulation. Approvals from regulatory authorities to test driverless vehicles on public roads can spur market growth. For instance, the California Department of Motor Vehicles (DMV) granted approval for Waymo to test its autonomous cars on public streets and highways.
Some of the leading companies operating in the self-driving car market are General Motors, BMW, Ford Motor Company, Nissan Motor Company, and Volkswagen.
