Rapid technological advancements have led to the widespread adoption of connected cars in North America. Unlike conventional passenger cars, new-age connected cars offer smartphone connectivity within the vehicle and with the world outside, traffic and collision warnings, roadside assistance, and real-time traffic monitoring. Moreover, it is easier to integrate the autonomous driving technology in connected cars as compared to conventional cars, as the former are already equipped with vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) connectivity, which is quintessential for driving autonomy.
Thus, the burgeoning digitization rate in mobility solutions is stimulating research and development (R&D) on self-driving technologies in the region. This is expected to propel the North American autonomous car market for fully autonomous cars at a CAGR of 17.1% during 2023–2030. According to P&S Intelligence, the market is expected to reach $52.3 billion by 2030. Additionally, federal and state governments are supporting the development of autonomous cars, with 15 states of the U.S. already having enacted 18 related bills in 2018.
The increasing government regulations to incorporate the necessary safety features in cars is already leading to the widescale adoption of level 1 semi-autonomous cars in North America. For example, the National Highway Traffic Safety Administration (NHTSA) mandated the integration of electronic stability control (ESC) in all passenger vehicles that have been manufactured since 2012. However, the future will witness a more-rapid adoption of fully autonomous cars due to the increasing demand for level 4 and level 5 autonomous cars for sharing services.
Such government initiatives, along with an increase in R&D activities, have led to the widescale integration of the autonomous driving technology in internal combustion engine (ICE) vehicles, battery electric vehicles (BEV), and hybrid electric vehicles (HEV). In recent years, most autonomous cars in the continent have been ICE-based. However, it is expected that this technology will be integrated in BEVs the most rapidly in the coming years, as it is easier to integrate fully autonomous technology in BEVs due to the presence of a large number of electronic systems in such automobiles.
In recent years, customers in the U.S. have shown a higher inclination toward autonomous cars, especially level 2 cars, in comparison to those in Canada. Additionally, the presence of established original equipment manufacturers (OEMs) is fueling the demand for autonomous cars in the country. Besides, the frequent introduction of novel car models with an advanced level of automation in the U.S. is augmenting the usage of these cars.
Furthermore, companies operating in the North American autonomous car market are entering into mergers, partnerships, and collaborations to minimize the financial risks involved in designing, testing, and manufacturing them and acquire the autonomous vehicle technology. For instance, General Motors Company has acquired Cruise Automation, a self-driving start-up, for $1 billion, to expand its technological base. Moreover, in 2018, Ford Motor Company and Walmart Inc. partnered to explore the potential of using self-driving cars for grocery and other consumer products’ delivery.
Thus, the development of new technologies and growing focus of governments on the incorporation of autonomous driving features in mobility solutions will boost the demand for autonomous cars in the coming years.
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