Business Outlook for Autonomous Luxury Vehicle
Autonomous or self-driving luxury vehicles are described as a premium class of vehicles that require little or no human intervention. These vehicles make use of best-in-class sensors and advanced artificial intelligence (AI) techniques. The cutting-edge digital technology is combined to render safety and quality to individuals. Luxury autonomous vehicles are efficient and resilient in terms of operations.
They are available in different body types such as sedans, hatchbacks, and SUVs. These vehicles provide enhanced safety, user experience, and performance of the unit. Luxury autonomous vehicles can manage, analyze, and store data in real-time for a faster decision-making process. This offers a notable advantage over other classes of vehicles. Such vehicles are used for personal transportation or premium shared mobility services.
Collection of Advanced Components:
Enhanced data collection and analytics is the core requirement for these vehicles. To facilitate the process, they are designed with different components.
Biometric sensors are used to authenticate the end-user via facial recognition, sound confirmation, and fingerprint authentication. These sensors can also be activated with dedicated apps that are integrated with the digital ecosystem of the luxury vehicle. High-quality camera units are installed at the left, right, front, and rear sides to provide a 360-degree view.
According to the market database, the biometric sensor’s cameras help to gather real-life images of the environment and process them at faster rates through visual image processing techniques. Advanced Radar and Lidar sensors provide the ability to detect objects in low visibility. Radio pulses in case of radar are fired and detected to monitor the speed and size of the nearby objects. Lidar on the other hand provides the operating system of the vehicle to have a three-dimensional view of the environment. This technique helps in smooth navigation and cruise control processes. Ultrasonic sensors are integrated for improved parking scenarios. They can detect small range objects with high precision and park the car in the best manner. The varied technologies integrated to improve user experience have provided an optimistic market outlook for luxury autonomous vehicles.
Classification Based on Fuel Type:
Luxury autonomous vehicles are available in different forms depending on the fuel system. Battery Electric Vehicles (BEV) are completely electric and rechargeable types of vehicles. They do not require gasoline and produce zero emissions. The market outlook for this category is expected to be very positive. This is due to large-scale government regulations to cut down emissions and attains net zero carbon targets.
Increased research and innovation on battery operation and storage have attracted more attention in this market. The market segmentation for the automotive module can also be analyzed through Global Market Database. The prominent growth sectors of this industry can also be studied using this cloud-based market research platform. Other segments like hybrid vehicles have also been studied using this market intelligence tool.
Hybrid vehicles are equipped with twin systems, one with electric and one with petrol. These vehicles reduce emissions by half and provide the advantage to switch between the two systems. Internal Combustion Engine (ICE) vehicles make use of traditional fossil fuels to operate. These systems are expected to be disrupted by battery electric vehicles. Fuel cell electric vehicles make use of more efficient hydrogen cells. They release warm air and water vapor as emissions. The increased research focus is expected to ignite further innovation in this category.
The luxury autonomous vehicle market is fueled by innovative technologies to deliver top-class performance. The wide-scale adoption of the Internet of Things (IoT) is expected to support this industry.
According to the market database, the integration of IoT amongst luxury cars has increased due to the rise in demand to exchange data among autonomous vehicles and provide smooth operations. This is supported by the use of Embedded Subscriber Identity Module (eSIM) technology to enable data sharing and storage. These vehicles are equipped with eSIM to store user identity and provide access to real-time data. The next-generation wireless technology 5G is expected to onboard such vehicles and allow smooth transfer of information.
According to secondary research performed on free-market data, advanced artificial intelligence (AI) and machine learning (ML) capabilities are required to enrich the indoor as well as the outdoor performance of these vehicles. Luxury autonomous vehicles make use of sophisticated AI & ML techniques to detect, analyze, and take real-time decisions. Improved radar and lidar technologies are expected to boost the sensing ability of these vehicles. Advancements in these technologies are set to enhance the safety and quality of these vehicles. Growth in cybersecurity initiatives is expected to protect against digital hacks and threats. Cybersecurity also acts as a crucial enabler to safeguard user privacy and sharing protocols.
Challenges and Hurdles:
According to the market database, the major barrier for luxury autonomous vehicles is the lack of basic infrastructure in developing economies. The inadequacy of well-maintained roads, lane tracking, and advanced GPS navigation hamper the performance of such vehicles. The rise in connected vehicles has raised the concern of data leaks and hacks. The security in such vehicles needs to be updated regularly and enable a secure operational environment.
COVID-19 acted as a restraint for this market. Market research reports state that this is due to lockdowns initiated in several countries which disrupted the manufacturing and research operations. It also led to a muted consumer demand due to the pandemic. In the long run, the market outlook is expected to remain positive due to increased awareness of personal automotive mobility solutions. The vehicles require a great amount of time and resources to be trained in an optimum manner. According to market research tools, to make the car 95% as safe as an experienced driver, they require 275 million failure-free autonomous miles. The change in market outlook and business recovery solutions can also be developed using market intelligence tools.
The North America Perspective:
The North American region has a greater share in the autonomous luxury vehicles market. According to Global Market Database, this region is anticipated to stimulate business recovery in the post-COVID scenario due to the extensive research environment. For instance, Tesla launched an autonomous model in the year 2019. This model offers 50 trillion operations every second.
According to a report published by the United Services Automobile Association (USAA) in 2020, from the total luxury cars sold in the year 2020, 93.75% were digitally connected luxury cars. Further factors include the large customer base to acquire automotive luxury vehicles and high disposable income with them.
Europe Region Analysis:
The region is a major hub for luxury vehicle manufacturers. This has contributed towards increased innovation in the autonomous vehicle category. Improved participation by the regulatory bodies to monitor the quality and safety of such types of vehicles has led to improved vehicle performance. Market research tools can be used to assess the regional market outlook for the EU.
For instance, in December 2020, the data for the road-safety initiative for signed by multiple parties which belonged to public and private categories. The initiative is expected to drive improved data-sharing abilities between autonomous vehicles and traffic control authorities. This act is envisaged to enhance the safety of autonomous vehicles as well as pedestrians.
APAC Point of View:
The Asia Pacific region is expected to be the fastest-growing and has a significant contribution towards the business recovery in the automotive market. China has witnessed a greater share in the market due to increased adoption and awareness among consumers. Data from China Passenger Car Association (CPCA) has reported that the luxury car vertical held a share of 13.9% in the total car sales for Q2 2020.
Favorable policies by the government in China have captured the attention of key market players. For instance, Guangzhou municipal transportation bureau in August 2020, has issued 55 notices and 67 routes spanning 135 kilometers. These routes are dedicated to Intelligent Vehicle Connected (IVC) testing to improve the safety and quality of autonomous vehicles.