Photo credit: Shutterstock
Here is carl. No one loves to employ technology better than he does. He prefers to follow trends, using the latest equipment and gadgets. The choice of his mobile phones, personal accessories, and vehicles speak boldly of this. Carl wants to go on a vacation to a nearby city but prefers only himself on the journey. But, wait, he'd be needing two things. — a car and a driver. Remember he wants to go alone, he doesn't want a driver. So he arranges for an autonomous vehicle and zooms off for an exciting vacation experience.
What exactly is that? You may want to ask. Everyone is talking about autonomous vehicles, even you. A vehicle that drives itself? Who would have thought a world would emerge where cars would now drive their drivers? That's unbelievable. Maybe not anymore with technology. It seems to be the latest development in the automotive industry. If you haven't heard about it, don't budge. It's the whole essence of the post. Give a few minutes, and you'd be one step ahead to knowing what's bringing a monumental change to the automotive business. Sit back and have an exciting read.
The U.S Autonomous vehicle Industry
Otherwise known as self-driving cars, autonomous vehicles are independent vehicles that do not need your input as a driver to function. In other words, these vehicles are fully automated. Autonomous vehicles can sense their environment, moving with little or no human input. They include several sensors— LIDAR and RADAR systems, which concurrently carry out operations automatically, without the help of drivers.
Artificial intelligence and all its related components have shown the world some possibilities in automated vehicles. The impact of AI on the autonomous industry is huge. AI is revolutionalizing the world. With it, transportation is safe. There is also the development of driver assist programs, driver risk assessments, and autonomous driving. The goal is to remain pre-installed in autonomous cars.
Moreso, automation in vehicles is no longer a luxury. Although several semi-autonomous driving systems such as adaptive cruise control(ACC), lane assist, rear-view video systems(RVs), automatic emergency braking(AEB), forward collision mitigation (FCM), and a host of others are already set in motion on roads, the world looks up to the automotive and tech companies for the launch of the first set of autonomous vehicles plying our major road.
According to Statista, the rates of autonomous vehicles with at least Level 1 autonomy-driver assistance are estimated to grow between 2019 and 2024. Notably, there was an estimated total of around 31.4 million autonomous cars globally in 2019. According to the reports, there is an expected increase to some 54.2 million in 2024. In the same vein, IEEE, the institute of electrical and electronics Engineers report also states that by the end of 2040, autonomous vehicles would take over 75% of the vehicles plying our roads. Google's waymo has already set its vehicle in motion for over 10 million miles.
The autonomous market in the U.S
In 2021, the autonomous car market in the U.S was valued at over USD 3.51 billion. Automotive experts say all hopes are high that by 2027, the figure must have risen over $9.36 billion. It registers a CAGR of over 17% during the 2022–2027 forecast period. Undoubtedly, the COVID-19 pandemic dealt a heavy blow on the automotive industry, making manufacturers reduce their output.
In the U.S today, there are a lot of regulations by the government that focuses on increasing road safety. More autonomous vehicles are developing with highly advanced technologies in sync with smartphones, creating new interest among market players to attract customers. There is also a high demand for private ownership. Therefore, the autonomous car market will be dominated by semi-autonomous vehicles. Howbeit, there is a need for ease in driving and increased concern for security which necessitates the demand for high-end technology.
In a survey by Euromonitor's Voice of the Industry, 13% of respondents indicated they plan to increase the usage of cars for commuting short distances. The demand is supported by the collaboration between companies across the United States. However, the trade agreement between Mexico, the United States, and Canada involves transfer opportunities for autonomous technology. In comparison, there is room for improvement in infrastructure in years to come.
Competition and Investment Opportunities
A few competitors dominate the autonomous vehicle market in the U.S. These constitute Apple, Tesla, Waymo, Ford, BMW, BMW, Honda, Nissan, Uber, and other players. They are doing everything possible regarding collaboration, innovation, and strategy to beat their counterparts and gain a fair share. For example, in December 2021, Uber Technologies Inc and Aurora collaborated to launch a pilot program.
The goal is to transport goods autonomously across Texas while hands are on deck to launch autonomous commercial trucking by 2023. Similarly, Aurora, Toyota, and Denso collaborate strategically in building and launching self-driving. This unity tends to develop and test driverless vehicles after the installation of the Aurora Driver.
However, conditional automation dominates the United States autonomous car market (Level 3). At this level, the vehicle system does all the dynamic driving tasks, while it expects the human drivers to respond promptly to the request to intervene. These tasks include steering, accelerating, braking, adequate vehicle monitoring, and prompt response to road events.