Along with the advent of IoT, the self-driving car has also entered the market – not a thing of the future anymore. The global self-driving market was valued at 54.23 billion USD in 2019 and is predicted to garner 556.67 billion USD by the year 2026. The industry also registers a CAGR of 39.47% from 2019 to 2026 according to reports from Kenneth Research and Allied Market research.
Self-driving cars are also known autonomous cars or driverless cars, use a range of sensors, cameras, radars, as well as artificial intelligence (AI) to achieve this once impossible feat. These combined, further go on to monitor a 60-meter range around the car and form an active 3D map of its current surroundings. To be a fully functional self-driving car, it should be able to travel between destinations without any human intervention.
The autonomous car market is organized according to the level of automation, components, application, and region. Based on the level of automation the market is segregated into Level 1, Level 2, Level 3, Level 4, and Level 5. Component is segregated to Hardware, software, and service.
Important growth factors
- Acceptance by various governments worldwide expected to increase growth of industrial uses of autonomous cars by 2023
- Development of smart cities
- Increasing number of road accidents – self-driving cars may reduce accidents
- Advancements in technology
- Increased demand for automation
- Rise in mobility as a service (MaaS) sector (switching from ownership to MaaS)
- Rise of automation in the automotive industry
- Connected cars using IoT – can solve traffic congestion
- Demand for luxury cars
Improvement of road and pedestrian safety along with governments that are supportive of self-driving cars will have a major positive impact on the market by the year 2026. Technological advancements are also a main contributor to market growth as of now, and will only see further improvements.
However, other factors like high cost (assembly, technology updates, and maintenance), threat from hackers, may hinder the growth of the self-driving car market. If proper precautions and regulations are undergone these should not have a major negative impact on the market.
If you want a more in-depth look at the market, both reports are available for download from the following links:
Allied Market Research: https://www.alliedmarketresearch.com/request-sample/4649
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