The value of the global autonomous vehicle market is set to increase to nearly $200 billion by 2030, says a new report from Strategic Market Research (SMR).
The report sees the value of the autonomous vehicle market increasing from $25 billion USD in 2021 to $197 billion, almost a 700 percent increase. The growth in value would come as autonomous vehicles become increasingly more viable, with automakers like General Motors Audi, Google, BMW, Ford, Tesla, Volkswagen, and Volvo making significant investments into the budding technology.
Within the autonomous vehicle market, SMR seem passenger vehicles dominating the segment, with transportation holding almost 94 percent of all application of the technology, while North America holding about 45 percent of global market share. The report cites two major reasons for this potential explosion of value.
First is the rise in smart cities. Electric autonomous vehicles help to reduce air pollution and fight climate change, says the report. Autonomous vehicles have been shown to reduce traffic accidents by an astonishing 90 percent, considerably enhancing road safety. Several countries, including the United States, are making vast investments into the necessary digital infrastructure, amplifying the connectivity between vehicles and the world around them. As a result, autonomous vehicles and smart cities are expected to grow hand-in-hand.
The second reason involves the adoption of new technologies in cars. Many automakers are developing autonomous vehicles by integrating cutting-edge technologies, including artificial intelligence and the Internet of Things. The ever-increasing demand for implementing these new technologies into vehicles is driven by a desire for increased customer safety and security. Additionally, the incorporation of AI-based cameras is increasing product demand and contributing to the expansion of the autonomous vehicle market.
GM’s portion of this potentially lucrative market will be held by its Super Cruise and upcoming Ultra Cruise autonomous driving assistants, as well as by Cruise, the automaker’s robotaxi division. While the first two technologies are aimed at aiding the driver in reaching their destination safely and in a more relaxed fashion, Cruise is focused on completely removing the human element in driving by providing a completely automated taxi. Currently, Cruise relies on human interference for less than one percent of driving time.
Nevertheless, even a relatively conservative ten percent share of the $200 billion forecasted value would give GM a $20 billion in additional annual revenue. GM expects roughly double that amount, sharing in October 2021 that it expects $50 billion in revenue from Cruise over the next couple of years. The robotaxi service has thus far missed all internal deadlines to launch publicly, though testing on public roads is ongoing.
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Comments
No thanks.
Tell me lies, tell me sweet little lies…
$200B. People don’t like public transportation whether there is a driver or not. No one wants to occupy a space that was previously occupied by someone else, especially if a mess was left and not cleaned up. Taking away a driver is not going to make this better. It will probably make it worse as there won’t be a human presence to curb bad behavior.
And the Cruise Origin photo is laughable. Vehicle will only look like that for the very first passengers. Riders are not always going to be well groomed, well dressed people either. Where’s the photos with unkempt riders, 2 people per seat, and kids leaving face and fingerprints all over the glass; with newly prospective riders turning up their noses at the prospect of having to take a ride in the vehicle once the unkempt riders and their kids egress?
I’m really impressed with that cheap-ass plexiglass divider they came up with for COVID. I am sure they are paying an engineer $100k plus a year for something that a junior high student could make in shop class using materials from the local Home Depot.
well, I certainly would rather sit in a previously used box that only stops at my destination versus a massive box still filled with other occupants still and have to wait at each and every stop. honestly this tech is probably best served in congested large cities where people idle their engines waiting for Busses and trams to get out of the way.
LOL, I will believe it when I see it. Outside of a handful of our largest cities, most Americans detest public transportation, so show me how this market is going to be so large. I don’t believe it. Once we vote the current idiots out of office we can remove the sanctions on the US energy industry and get back to pre 2020 normal life! Please vote GOP!
And a heyday payday for lawyers when it goes wacko
Wow, so much lack of foresight in the comments section.
From a Cruise perspective, this technology has the potential to eliminate taxis along with Uber and Lyft. Rides will likely be cheaper and you don’t have to deal with a driver. Additionally, can’t you comprehend that there will be cameras inside these vehicles and bad behavior will be detected? Cruise can then flag your account and they won’t be picking you up again. And there will be a cleaning protocol for these vehicles. All very simple concepts.
Regarding Super Cruise and automated capabilities. Based on the demand GM is experiencing, they’re realizing how much demand there is for the technology. If they listened to all the naysayers, they’d never expand into new technology and they’d be so far behind, even more so than many of the Stellantis brands.
The number one job for males between the ages of 18-35 in the U.S. (and probably a decent amount of the developed world) is “driver.” That could be commercial, contract, ride-share, municipal, delivery, construction, transport, etc., etc.
I, for one, am not looking forward to the society that needs to replace all those jobs — when it already doesn’t have enough replacements today.
Historically, a large group of angry, young males doesn’t tend to work out well for existing societies and governments…
Sounds like a really good way to either end up with communism or fascism in America. So you’d better pray that society comes up with some replacement industries before your golden-era of autonomy comes to pass.
No worries, they can 5ake jobs cleaning the trash, puke and other bodily fluids deposited in these things 🙄
You’re right about communism and fascism. Get people out if their cars into government-controlled transportation that can be shut down at the flip of a switch, the same government will be dictating what house we can live in and the food we’re allowed to eat
Lies. First of all, Drivers covers a large swath of occupations and Uber/Lyft/taxi makes up a small portion of those jobs. Second, Drivers as an occupation is no where close to the number 1 occupation for men in that age range. Why don’t you look up the detail and quote your source.
If you haven’t noticed, there are a ton of job opportunities out there. They won’t have an issue finding a new job unless of course they don’t want to actually work. They can start getting an education now and they’ll even have a much better job once they complete that higher level of education.
Cameras? So riders give up their right to privacy with these drones. Even if a rider is recorded trashing the drone, will the company spend thousands of dollars prosecuting someone for a hundred dollars of damage?
Can’t wait for a 100,000 pound semi coming toward me with no one behind the wheel
Is it just me or is it odd how many predictions are made for 2030? Everything is evaluated by that number. I don’t recall 2020 or even 2000 being measured this intensely.
2030 is long enough away that nobody will remember these idiots’ “bold” predictions. It just makes them look a lot smarter than they actually are.
In its May 2019 IPO, Uber forcast the World AV rideshare market to grow to be worth US$6.2 trillion per year. My estimate of this was instead US$3 trillion per year. I continue to expect this and that the 2030 market will be several times the $200 billion SMR estimate.