Delivery

This report comes in PPT.

Key findings

By 2040, 97% of new light vehicles sold will have some level of autonomy

By 2040, 97% of light vehicles sold globally are projected to have some form of vehicle autonomy – up from 57% in 2023. The SAE Level 2 segment is expected to dominate, but more sophisticated driverless technologies will ensue, thanks to improved AI capabilities, more liberal driverless regulations, and greater consumer acceptance of autonomous cars.

Mercedes is leading the shift to higher autonomy, with Chinese brands following suit

Mercedes became the first major automotive brand to commercialise SAE Level 3 vehicles, after launching its Drive Pilot system for EQS and S-Class models. However, several Chinese automotive brands, such as Li Auto and Nio, are following suit. This is expected to ramp up competition, as brands look to develop full self-driving technologies.

Safety and traffic features interest consumers but privacy remains a concern

Hazard warnings and traffic alerts are the most popular connected car features, reflecting consumer interest in improved vehicle safety. However, data privacy remains a concern, as evidenced by numerous cases of OEMs leaking data to third parties, such as insurance firms and data analytics companies, without customer consent.

Laws and regulatiaons needed for future autonomous and connected car use

While governments are gradually reforming road traffic laws, this is happening only slowly, due to the numerous legal and safety concerns arising from driverless technologies. In addition, laws surrounding data privacy and security coming from connected products also remain a contested issue, especially regarding how OEMs collect user data and ensure its integrity.

Connected and autonomous cars to have a wide-ranging industry impact

The connected and autonomous car industry will have far-reaching consequences that will impact the business models of various industries, including automotive, logistics and insurance. Keeping track of new driverless and connected technologies, and building strategic partnerships can help firms future-proof their business models.