By 2025, one in five vehicles in developed regions will offer one or more Level 2 features, according to Frost & Sullivan.
The company’s recent analysis of the global autonomous driving industry found that automakers and value chain partners are working to develop and deploy region- and segment-specific partial and highly automated vehicles by streamlining their strategies, capital investments, and product roadmap.
“In 2021, many major OEMs prioritized the deployment of Level 2 and Level 2-plus partial automation driving systems in their highest selling models and Level 3 conditional automation in a few premium models,” said Varun Krishna Murthy, Senior Research Analyst, Mobility Practice, Frost & Sullivan.
He said a lack of regulatory framework, high-value proposition, and lower cost will help push OEMs to develop Level 2-plus features over Level 2 and Level 3 in the next five years. Murthy also notes that vehicles with Level 2 and more will reach more than 11 million units by 2025, from 115,450 in 2020.
“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.”
By 2025, Frost & Sullivan expects one in five cars in developed regions to offer at least one, if not more Level 2 features due in large part to competition in the market. OEMs in emerging regions will focus more on Level 1 safety-related features.
They also see China leading the usership model of Level 4 robotaxis by launching paid services for public use within certain geographic areas.