San Antonio, Texas — An analysis of the autonomous driving industry, made by Frost & Sullivan, found that one in five vehicles will have Level 2 autonomous driving features by 2025.
OEM’s and value chain partners are doing what they can to move towards partial and highly automated vehicles by working on their strategies, product roadmap and capital investments to be able to offer the new autonomous technology. Varun Krishna Murthy, senior research analyst, mobility practice at Frost & Sullivan, says that over 11 million units will have the Level 2 autonomous driving features in just a few short years from 115,450 in 2020.
“In 2021, many major OEMs prioritized the deployment of Level 2 and Level 2+ partial automation driving systems in their highest selling models and Level 3 conditional automation in a few premium models,” said Murthy. “A lack of regulatory framework, high-value proposition, and lower cost will encourage OEMs to push L2+ features over L2 and L3 in the next five years.”
What every OEM needs to be focusing on right now, is the preparation needed to be able to bring Level 2 autonomous driving features to their customers, says Murthy.
“OEMs will reconsider their long-term strategies of introducing car sharing and robotaxis (usership model) to the conventional ownership model, due to the financial strain and change in mobility preferences,” said Murthy. “The focus is on maximizing their short-term revenue by rerouting capital investments, reducing vehicle complexity and cost, and investing in in-house capabilities and collaborations.”
