Market Trends of Autonomous (Driverless) Car Industry
This section covers the major market trends shaping the Autonomous Car Market according to our research experts:
Semi-autonomous Cars Segment Anticipated to Gain Significance during the Forecast Period
Following the SAE (Society of Automotive Engineers) International Automated Driving Standards, cars with Level 1-3 automation features have been considered in the market segment for semi-autonomous vehicles. The growing need for safer and more efficient driving systems promotes the development and adoption of semi-autonomous vehicles. Moreover, several regional governments have placed stringent driving and safety laws, further encouraging companies to offer these technologies in their automobiles.
Several technological advancements have helped foster a conducive environment for the market's growth. Moreover, the presence of a high number of passenger cars has elevated the rising need to enhance the driving experience and is promoting the adoption of semi-automated vehicles. This has been evident in sales during the COVID-19 pandemic.
Even during the pandemic, autonomous cars witnessed a rise in sales, as in 2020, around 11.2 million cars were sold with Level 2 features, which was an increase of 78% over 2019. Owing to such a favorable environment in the market, automakers worldwide are introducing new semi-autonomous vehicle models to attract consumers. For instance,
In April 2021, Citroen unveiled its new model, C5 X SUV. This new model was offered in both gasoline and plug-in hybrid versions. C5 X offers semi-autonomous Level 2 driving in compliance with current legislation.
In April 2021, Beijing Hyundai Motor Co. Ltd launched the new Tucson L, a compact crossover SUV. The vehicle is built on the i-GMP platform, and it is equipped with a 1.5 liters turbocharged engine (maximum power output of 147 kW, peak torque of 253 Nm), mated to a 7-speed dual-clutch transmission. The vehicle features the Hyundai Smart Sense system, which includes 23 safety and assistance functions and supports Level 2 autonomous driving.
Based on the aforementioned factors, the semi-autonomous cars segment is likely to gain prominence over the forecast period.
North America Likely to Hold Dominant Share in the Market
North America is expected to dominate the autonomous (driverless) car market during the forecast period. The region has been a pioneer of autonomous vehicles due to factors like strong and established automotive company clusters and being home to the world's biggest technology companies like Google, Microsoft, Apple, etc. Particularly in the US, self-driving cars have already been tested and used in California, Texas, Arizona, Washington, Michigan, and other states of the US. However, their mobility is currently restricted to specific test areas and driving conditions.
Apart from various local companies, the country is witnessing the entry of companies from other countries. For instance,
In February 2021, Vietnam's domestic automaker Vin Fast announced that it had obtained a permit to test autonomous vehicles on California's public streets. The company sought this permit to commercialize its electric vehicles in the US market.
In April 2021, Honda and Verizon announced that they are working at MCity to explore Verizon 5G Ultra-Wideband and 5G Mobile Edge Compute (MEC). The companies are testing how using Verizon 5G Ultra-Wideband and MEC in the Honda SAFE SWARM can reduce the need for AI onboard each vehicle.
In March 2021, Motional announced that it would be using the all-electric Hyundai IONIQ 5 as the vehicle platform for its next-generation robotaxi. Through its partnership, consumers in select markets will be able to book a Motional robotaxi through the Lyft app starting in 2023. Motional's IONIQ 5 will be equipped with Level 4 autonomous driving capabilities.
Thus, the North American region is likely to benefit from the aforementioned developments, and it is expected to witness stable demand for autonomous cars during the forecast period.
