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The commercialization of autonomous driving will evolve from a product-centric to a service market.
Published2016.04.29 17:58The prediction that approximately 80% of all OEMs will complete their automation technology roadmaps by 2016 is expected to provide strong support to the autonomous driving market.
These trends will pave the way for new business models in the automotive ecosystem. Once OEMs have established market-ready test environments and developed improved sensing capabilities, they will shift their focus to collecting and validating the increasing volume of data.
According to the 'Strategic Outlook of Global Autonomous Driving Market in 2016' published by Frost & Sullivan Korea, it is predicted that one in seven cars will have advanced autonomous functions by 2030.
▲ A self-driving car contest held at the Intelligent Vehicle Parts Testing Center last year (Ministry of Trade, Industry and Energy)
Interestingly, the factors that could strongly push for autonomous driving do not seem to include reducing traffic fatalities and improving the commuter experience. OEMs should focus on building a trusted ecosystem by forming best-in-class partnerships with diverse organizations that can deliver value at multiple levels.
"The autonomous driving market is actively adopting and investing in innovative technologies such as artificial intelligence and deep learning," said Arunprasad Nandakumar, Research Analyst for Frost & Sullivan's Mobility Industry Research practice. "In fact, powerful AI and deep learning are seen as essential elements for designing autonomous driving as a sustainable business model in the long term."
However, there are several technical challenges in creating an ideal sensing suite. While companies are striving to provide vision capabilities across a wide range of driving conditions at an affordable price, the software and validation capabilities currently lack the capabilities to fully manage complex autonomous driving environments. This necessitates a favorable regulatory framework.
Industry stakeholders must adopt a unified approach to developing a regulatory framework. This is crucial to ensuring that new regulations support the growth of the global autonomous driving market, not just regional ones. Without global standards and regulations, interoperability will be limited, negatively impacting the market.
Researcher Nandakumar stated, "Companies that build ecosystems through strong partnerships with other organizations, rather than through a single entity, will generally succeed in the autonomous driving market. We expect these companies to introduce powerful products and services that address the needs of drivers in the future."
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