AUTONOMOUS VEHICLE MARKET ANALYSIS

Market Challenges And Opportunities

Global Autonomous Vehicle Market Opportunities:

• Rise in technological developments by OEMs for autonomous vehicles is expected to offer growth opportunities in the global autonomous vehicle market over the forecast period. OEMs are increasingly focusing on technological developments aimed at providing enhanced features while cutting down on the cost. This in turn is driving the demand for autonomous cars. With advancements around driver assistance, security, convenience and comfort, power train, electrical suspension, instrumentation, safety, and braking of autonomous vehicles is driving their demand. As a result, the market is witnessing multiple opportunities.
• Novel business modules for insurance companies are also creating growth opportunities in the global autonomous vehicles market. With the growing emergence of autonomous vehicles, the innovation of automobile insurance is also growing all over the world. Conventional automobile insurance is secured by vehicle owners. For instance, car owners have to insure their vehicles to prevent loss against accidents. According to research, human error causes more than 90% of car errors. Due to this, insurance companies offer aid in terms of monetary benefits. Thus, such new business models for insurance companies are creating multiple opportunities in the market.

Global Autonomous Vehicle Market Restraints:

• Concerns around cyber-security and vehicle safety to limit the market growth; Autonomous vehicles work on cyber-physical systems as they comprise both virtual and physical world elements. The physical system of these vehicles consists of the car and all other mechanical components. In virtual systems of these cars, AI-based systems that provide assistance in driving, such as navigation, cloud connectivity, and car-to-car communication. Thus, connectivity used in these vehicles poses a threat to the security of autonomous vehicles. This factor in turn is expected to hinder growth of the global autonomous vehicle market over the forecast period.
• Lack of infrastructure in emerging nations to obstruct the market growth; Technological innovations, policies and regulations, infrastructure, and adoption by customers are the main pillars of autonomous vehicles. The autonomous vehicles depend on constantly maintained road infrastructure, updated maps, road signs, or updated navigation systems. Several emerging countries such as Brazil, Mexico, and India lack infrastructure required for these vehicles. As a result, the adoption of these vehicles is limited in underdeveloped regions. This factor is likely to impede the growth of the global autonomous vehicle market over the forecast period.