Autonomous vehicle market to reach $35bn in 3 years

The advanced emirates-global-sale-assistance systems (ADAS) and the autonomous vehicle (AV) market will reach a total global value of $35 billion in 2020, before a fourfold increase to reach $144 billion in revenues by 2025.

This is according to a Juniper research report titled, Autonomous Vehicles and ADAS: Adoption, Regulation and Business Models 2016-2025, which found that whilst ADAS still lacks significant mass market penetration, its adoption is set to increase rapidly globally over the next five years.

The report notes the rapid adoption will be driven by a number of factors such as an increasing interest in AV by governments around the world due to safety and environmental reasons and reduction in hardware costs, particularly sensors, will lead to the commoditization of ADAS systems. In addition, Juniper found Safety Agency specifications will become more stringent, particularly with respect to vulnerable road users such as pedestrians. The study recommends that original equipment manufacturers will need to invest in more sophisticated ADAS systems to obtain the coveted 5star ratings.

According to the World Economic Forum, the age of self-driving vehicles is fast approaching and city leaders need to take steps to prepare as the disruptive technology becomes a reality. Egil Juliussen, senior director and analyst at Automotive Technology, says: “Autonomous driving technology is probably the hottest topic in the automotive industry, with much of the credit going to Google due to tremendous press coverage and resulting interest across automotive original equipment manufacturers, suppliers, technology industry, and consumers.”