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OEMs are Reprioritizing Short-term Economic Returns on Investments into Autonomous Driving (AD) by Adopting L2+ Technologies and Investing in Plug-and-play Platforms
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The autonomous industry, although developing at a decent pace, has realized that the transition from traditional vehicles to autonomous vehicles is still a long time away. OEMs and Tier-1 suppliers have been pouring in investments to develop technologies for deployments of highly automated vehicles. However, despite overcoming the technological barriers, these companies are still facing challenges from regulations and public acceptance. Accidents and fatalities caused by autonomous vehicles, making the headlines in 2018, have further added to the challenges. Owing to such circumstances, the industry is geared up for taking a gradual approach to developing autonomous driving technologies. Focus is on developing scalable L2+ features, where L2 features are enhanced by integrating localization and mapping data, while enabling a plug-and-play framework for scaling up developments with new-generation solutions. This ensures short-term revenue generation, allowing OEMs and suppliers to highlight returns and justify their investments.In 2019, the autonomous industry witnessed OEMs’ preparation for L2+ and above automation through the adoption of a layered platform, coupled with developments in sensor fusion, which has impelled OEMs to re-visit in-vehicle network requirements. In 2020, Frost & Sullivan expects perception start-ups to seek new partnerships with platform developers and technology companies as the industry gears up for L4 deployments.
In this 2020 outlook, Frost & Sullivan has highlighted 3 key market and business trends which have been impacted due to the changing dynamics of the autonomous ecosystem. The outlook also highlights 3 key technology trends that Frost & Sullivan believes will see fast advancements with a focus on highly automated vehicle commercialization.
This report highlights these trends and explains the impact along with use cases.
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