Autonomous Driving Paves Way for New Auto OEM Business Models

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The autonomous driving market is all set to receive a huge boost with 80 percent of automotive original equipment manufacturers (OEMs) looking to finalise their automation technology roadmap in 2016. This trend is expected to pave the way for new business models in the automotive ecosystem. Once the market establishes a conducive testing environment and develops improved sensing capabilities, their focus will turn to augmenting data acquisition and validation capabilities.

Interestingly, the need to reduce road fatalities and enhance the commute experience of passengers is unlikely to be a strong adoption driver for autonomous driving. OEMs will instead be impelled by the need to forge the best partnerships and build a reliable eco system with diverse entities that can provide value at various stages.

"Meanwhile, the market is enthusiastically adopting and investing in revolutionary technologies such as Artificial Intelligence (AI) and deep learning," states Frost & Sullivan Intelligent Mobility Research Analyst Arunprasad Nandakumar. "In fact, a strong AI and deep learning wing is considered vital for designing a sustainable business model for autonomous driving."

However, the industry is battling several technological challenges in its creation of the ideal sensing suite. Companies are striving to offer vision capabilities in multiple driving conditions at a reasonable price, but the current software and validation capabilities are not sufficient to flawlessly sustain a complex autonomous driving environment. Above all, the industry is in dire need of a favourable regulatory framework.

Industry participants need to adopt a unified approach to devising regulatory frameworks. It is crucial that they make sure that new regulations will assist the growth of the global autonomous driving market rather than just the regional markets. Without global standards and regulations, the market will be impaired by reduced interoperability.

"Overall, the participants that will enjoy success are not likely to be singular entities, but those with the strongest partnerships and ecosystems," noted Nandakumar. "These companies are expected to boast a robust product and service portfolio that best address the needs of next-generation drivers."

Strategic Outlook of Global Autonomous Driving Market in 2016 is part of the Automotive & Transportation Growth Partnership Service program. Frost & Sullivan's related studies include: Top Auto Trends at 2016 Consumer Electronics Show (CES) Outline Intelligent Mobility Road Map, 2016 Outlook of the Latin American Passenger Vehicle Market, From Vehicle Automation to Autonomous Driving: The Big Leap, Will We Learn From the Self-Learning Cars?, and Consumer Demand and OEM Strategies for the North American All-Wheel Drive Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.




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