Autonomous vehicles, also known as self-driving vehicles, use a combination of cameras, radars, GPS, and LiDAR to comfortably transport passengers from one destination to another without any human intervention. These vehicles offer advantages like reduced road accidents, lesser traffic jams, better mobility for disabled people, and optimization of transport capacities.
Market key trends:
Growing adoption of self-driving technology is expected to be a major trend driving the Global Autonomous Vehicle Market Size growth over the forecast period. Increasing R&D investments by major OEMs and tech companies toward developing advanced driver-assistance systems (ADAS) and improving the autonomy level of vehicles is supporting this adoption. For instance, Tesla, General Motors, Ford, Audi, and BMW have been extensively focusing on incorporating self-driving features in their future vehicles. This in turn is supporting the proliferation of autonomous vehicles across the globe.
Threat of new entrants: The autonomous vehicle market requires high R&D investment and technological capabilities which act as entry barriers for new players.
Bargaining power of buyers: Customers have increasing options and switching to other brands is easy. However, buyers still have less control over pricing as the technology is new.
Bargaining power of suppliers: Key suppliers like sensor manufacturers and software developers hold significant bargaining power due to their technical expertise and differentiating technologies.
Threat of new substitutes: Emergence of advanced mobility solutions like shared, electric and connected vehicles pose threat to autonomous vehicles.
Competitive rivalry: Intense competition exists among existing players to gain early mover advantage in commercializing fully autonomous vehicles.
Strength: Established automakers have design and manufacturing capabilities. Technology giants have advanced AI and connectivity expertise.
Weakness: Safety and reliability challenges exist. Requires huge investments and long testing periods before commercialization.
Opportunity: Rising demand for self-driving cars due to convenience and safety. Industry collaboration and open platforms present cross-selling opportunities.
Threats: Stringent regulations delay market potential. Data privacy and cyber security threats raise adoption challenges.