Experts say what to expect from the autonomous vehicle market
According to the recent report by ResearchAndMarkets, the HD map for autonomous vehicle market is estimated to be $1.3B in 2020 and is projected to reach $20.4B by 2030, at a CAGR of 36.2%, leading to global revenue of $173.15B by 2023, which is very impressive, by the way.
So, as you can tell, today, PaySpace Magazine would like to talk about autonomous vehicles (i.e. self-driving cars). The above-mentioned report contains interesting highlights, the newest trends, and the industry leaders.’
Introduction to the autonomous vehicle market
Before we get any further, we believe it would be reasonable to define what an autonomous vehicle is, and highlight the major growth factors.
A self-driving car (can also be called an autonomous car/driverless car) is a vehicle that uses a combination of sensors, cameras, radars and artificial intelligence (AI), to travel between destinations without the need of any human effort. A fully autonomous vehicle has to be able to move and reach its destination without human intervention.
On the other hand, autonomous vehicles is a very loose concept, because it covers everything from a parking assistance system (car’s self-parking system) to a car that travels all the way on its own from point A to point B. The first option has already been implemented today: automatic parking, keeping the car in its lane on the road, adaptive cruise control that can speed up and slow down the car – all these functions already exist, and even middle-class cars are endowed with such functions. Therefore, some experts call this “partial autonomy”.
By analogy with “partial autonomy”, the car that is able to travel from point A to point B without human intervention can be called a “complete autonomy” vehicle, and this concept is much more difficult to implement. However, fully autonomous transport provides so many advantages:
- A radical reduction in car accidents – statistically, today more than 90% of accidents occur due to the fault of the driver;
- Reduced traffic congestion – you can make cars that drive closer to each other without any consequences;
- More free time for the driver – you can read, relax, chat with friends;
- Reduction in fuel consumption due to the optimisation of driving style, which is unattainable for a novice driver or aggressive driving style; etc.
Key growth factors
Basically, an increase in the number of road traffic accidents, tech advancements & novelties, and a growing need for automation are the major factors that propel the growth of the concept.
Moreover, mobility as a service (MaaS) sector can boost the growth of the industry as well. After all, automation novelties and the latest research will boost the growth of the global self-driving car market.
According to many experts, autonomous transport will become commonplace in 5-10 years, and be as common as electric cars are today. We can’t call it widespread popularity all over the world, but electric cars are real and affordable even for the regular buyer. And this trend tends to grow, especially in developed countries.
Thus, we believe that by 2025, autonomous transport can be where electric cars are now – albeit not yet a mass-market entry, but already a rather noticeable segment. The real boom of the market is anticipated by 2030.
Now let’s get back to the report by ResearchAndMarkets.
According to the report, the growing trend of autonomous driving and increasing investment in the industry by startups are the major drivers of the market. At the same time, the market faces some restraints, such as limited Standardisation in HD Maps and a lack of tests and environmental reliability.
It was also mentioned that with the development of the market, new opportunities and prospects arise, such as self-driving vehicle renting services, advancements in 5G technology, and the further development of the concept of real-time data. However, legal and privacy issues (related to HD maps) and the high cost of technology can become challenges for the market.
What’s more, the semi-autonomous segment is anticipated to be the largest one, and for a good reason. People still have doubts and concerns about the safety of the “fully autonomous” vehicle. Furthermore, the HD map products that top companies (i.e. NVIDIA, ТоmТоm, and NаvInfо) offer are focused mostly on semi-autonomous cars.
The passenger vehicle is anticipated to be the most popular segment in the HD map for the autonomous vehicle market.
What’s more, Asia-Oceania would probably become the fastest-growing HD map for the autonomous vehicle market, even though as of today, the North American region is a leading one, if we are talking about the autonomous vehicle market.