Investment trends in autonomous vehicle development
Sharing investments on autonomous vehicle technology development will help automakers mitigate risks associated deployment of autonomous vehicles in future
IHS Markit forecasts autonomous vehicles sales to reach more than 33 million units by 2040. The huge growth potential is driving many companies, including automakers and tier-1 suppliers, to commit huge investments in autonomous vehicle technology development and testing. Most of these companies plan to launch highly or fully autonomous vehicles in the next 5-10 years. While ride-hailing service is widely expected to be the first major use case, developers are testing self-driving vehicles for commercial delivery services as well. In US state California alone, around 60 companies have received permits from the Department of Motor Vehicles (DMV) to test autonomous vehicle technologies on public roads. Outside the United States, many Asian and European countries allow testing and deployment of autonomous vehicles in pilot projects in geofenced areas.