Autonomous Cars Market - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026

  • To Be Published : Jul 2018 |
  • Format : CMI Insight PPT Format CMI Insight PDF Format

Autonomous cars, also called driverless cars, self-driving cars, robot car or autonomous vehicles (AVs), are vehicles that are able to navigate to a predetermined destination without the help of human guidance. Incorporation of advanced vehicle systems such as ADAS, AEBS, comprehensive vehicle tracking systems, remote controlled systems and advanced vehicle to everything connectivity are expected to be the nascent technological developments paving the way for autonomous cars market during the forecast period. Moreover, these technologies are featured with enhanced vehicle performance and fuel efficiency, which is projected to increase consumer inclination towards these.

Increasing number of road accidents due to human driving errors is expected to be the prominent factor positively influencing growth of the autonomous cars market

According to International Organization for Road Accident Prevention, over 90% accident causes are human errors or negligence to traffic regulations. These causes include alcohol consumption while or before driving, reckless speeding, and passing of red signals, to name a few. These incidences can be reduced with the adoption of driverless cars and smart road infrastructures. As per Coherent Market Insights, around 30,000 lives could be saved every year in the U.S. alone. Thus, requirement to reduce the fatality rates owing to road accidents will provide impetus to the overall autonomous cars market over the forecast period.

Autonomous Cars Market Taxonomy

On the basis of automation levels, the global autonomous cars market is classified into:

  • Level 1
  • Level 2
  • Level 3
  • Level 4
  • Level 5

Reduction in traffic congestion and parking problems will help these vehicles gain higher market traction

According to our research experts, these technologies will also help the users save approximately over 30 minutes of their daily time in traffic congestions, which could be utilized for more productive tasks. Moreover, no requirement for door opening spaces for self-parking vehicles can save up to 15% of the extra parking spaces. This will help in reducing the parking space problems, specifically in the frequently congested city areas. These associated benefits will provide solid growth prospects for the autonomous car market. Additionally, requirement to enable safe transport of kids, elderly and handicapped individuals who are unable to drive will drive increased demands.

Lack of efficient regulatory framework for the advent of self-driving vehicles on commercial basis is expected to hinder the overall market growth.

In May 2016, a Tesla Model S car was involved in an accident in Central Florida, leading to the death of the user. This led to several arguments, one of which included the lack of regulatory frameworks for automated vehicles. Moreover, in case of insuring an AV, the question of responsibility in the event of an accident is among the primary concerns. In October 2015, Volvo announced that it does not accept liability in the event of its self-driving vehicle being involved in a crash. However, other firms are very unlikely to resolve such issuances owing to indefinite probability of the occurrence of an accident, and is projected to present challenge to all the global economies over the forecast period.

U.S. is expected to register highest gains and account for largest market share over the forecast period

U.S. consumers are increasingly inclined towards adoption of advanced vehicle technologies, owing to the strong presence of leading industry participants and government mandates in the region. Moreover, government bodies have partnered with several tech bodies and automotive participants for rapid development of automated technologies to safeguard human lives. For instance, in January 2016, U.S. Transportation announced plans to introduce initiatives concerning the accelerated adoption of AV technologies and foster closer collaboration among the government and automakers on issues concerning user safety.

Other countries that may present potential growth landscape include Germany, the Netherlands, Singapore, Japan, Iran, and China. Several initiatives by government and automotive industry participants were witnessed in these countries that could augment the autonomous cars market over the following decade. For instance, in June 2017, Persian Gulf Intelligent Technology and Industrial Company (PGITC), successfully completed the testing of AV over the 25 km track. Another instance, is of Germany, where Stuttgart Government bureau authorized Mercedes-Benz for the testing and development of next gen AVs on public roads, in January 2017.

Participants such as Alphabet Inc. and Tesla, among many others are increasingly participating in testing and development of self-driving vehicles to capitalize on the opportunity

Companies involved in testing and development include major tech giants and automotive participants such as Audi, BMW, Alphabet Inc., General Motors, Ford, Volkswagen, and Nissan Motor Company Ltd. According to our research, Alphabet Inc. and Tesla are among the major participants that have gained considerable edge over the other participants in the development of autonomous fleet operations. Industry is expected to be majorly characterized by collaborations and intensive competition among the players for the development of AVs over the next few years.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

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Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.
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Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization:

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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