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Growing Acceptance Of Autonomous Driving Prompts OEMs To Develop New Business Models

New analysis from Frost & Sullivan, Strategic Outlook of Global Autonomous Driving Market in 2016, finds that one in seven cars will feature highly automated features by 2030.

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The autonomous driving market is set to receive a boost with 80 percent of automotive OEMs looking to finalize their automation technology roadmap in 2016, according to Frost & Sullivan. This trend is expected to pave the way for new business models in the automotive ecosystem. Once the market establishes a conducive testing environment and develops improved sensing capabilities, the focus will turn to augmenting data acquisition and validation capabilities.

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Frost Sullivan - LogoNew analysis from Frost & Sullivan, Strategic Outlook of Global Autonomous Driving Market in 2016, finds that one in seven cars will feature highly automated features by 2030.

Interestingly, the need to reduce road fatalities and enhance the commuter experience of passengers is unlikely to be a strong adoption driver for autonomous driving. OEMs will instead be impelled by the need to forge partnerships and build a reliable ecosystem with diverse entities that can provide value at various stages.

Photo credit: iStock.com/narvikk

Photo credit: iStock.com/narvikk

“Meanwhile, the market is enthusiastically adopting and investing in revolutionary technologies such as artificial intelligence (AI) and deep learning,” said Arunprasad Nandakumar, Frost & Sullivan intelligent mobility research analyst. “In fact, a strong AI and deep learning wing is considered vital for designing a sustainable business model for autonomous driving.”

However, the industry is battling several technological challenges in its creation of the ideal sensing suite, according to the research. Companies are striving to offer vision capabilities in multiple driving conditions at a reasonable price, but the current software and validation capabilities are not sufficient to flawlessly sustain a complex autonomous driving environment. Above all, the industry is in dire need of a favorable regulatory framework.

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Industry participants need to adopt a unified approach to devising regulatory frameworks. It is crucial that they make sure that new regulations will assist the growth of the global autonomous driving market rather than just the regional markets. Without global standards and regulations, the market will be impaired by reduced interoperability.

“Overall, the participants that will enjoy success are not likely to be singular entities, but those with the strongest partnerships and ecosystems,” noted Nandakumar. “These companies are expected to boast a robust product and service portfolio that best address the needs of next-generation drivers.”

For complimentary access to more information on this research, click here.

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