A revolution in automation hardware and software is coming; Technology is maturing quicker than many might expect
BOULDER, Colo., May 25, 2023 /PRNewswire/ -- A new report from Guidehouse Insights examines how the market for light duty AVs (LDAVs) will transform from 2023 to 2035, focusing specifically on vehicles with Level 4 (L4) automation (hands-off, eyes-off, brain-off) and up—those in which drivers can take their hands off the wheel and their eyes off the road in defined conditions and do not need to control the vehicle.
Automated vehicle (AV) technology is advancing rapidly and has the potential to transform the way people view cars, personally and commercially. According to a new report from Guidehouse Insights, deployment of L4 LDAVs is predicted to rise dramatically through 2035 on a global basis. Guidehouse Insights expects the number of L4 LDAVs deployed annually will grow from less than 30,000 in 2023 to 56.4 million in 2035, at a compound annual growth rate (CAGR) of 88.4%.
"The day when a person does not need to drive at all to own a car is still at least 10 years away and probably longer but a revolution in automation hardware and software is coming—and the next 10 years of AV development and deployment will likely see significant maturation of the technology," says Sam Abuelsamid, principal research analyst with Guidehouse Insights. "The market implications of this technology are vast, and there are many factors driving its development, as well as several that could hold it back."
Several market conditions are promising for increased deployment of L4 LDAVs including the maturation of automated driving technology, consolidation of the most important players into fewer companies, permissive regulatory environment, and potential safety benefits. Most of the barriers to L4 LDAV rollout are tied to the fact that with such a young industry, there are many opportunities for its growth to be stunted, according to the report.
The report, Light Duty Automated Vehicles, examines the burgeoning market for L4 LDAVs and their penetration of the light duty vehicle (LDV) market, looking at the drivers of this emerging market as well as the barriers that could stop its growth. It predicts how the LDAV market will grow from 2023 through 2035 as well as the annual revenue automakers can expect from implementing the hardware needed for L4 autonomy. Guidehouse Insights also predicts what percentage of L4 LDAVs will be consumer vehicles versus commercial robotaxis or delivery vehicles. An executive summary of the report is available for free download on the Guidehouse Insights website.
About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today's rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has over 16,500 professionals in over 55 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.
* The information contained in this press release concerning the report, Light Duty Automated Vehicles, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.
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Cecile Fradkin for Guidehouse Insights
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