Auto Service World
News   June 23, 2021   by Christine Hogg

By 2025, 1 in 5 cars will offer one or more Level 2 autonomous driving features


Frost & Sullivan’s recent analysis of the global autonomous driving industry finds that original equipment manufacturers (OEMs) and value chain partners are streamlining their strategies, capital investments, and product roadmap to develop and deploy region- and segment-specific partial and highly automated vehicles.

By 2025, one in five cars in developed regions will offer one or more Level 2 (L2) features due to stiff competition, while OEMs in emerging countries will offer Level 1 (L1) safety-related features. Global regulations favoring testing and deployment will determine the adoption timeline for consumer markets. China will lead the usership model of Level 4 robotaxis by operating paid services for public use within predefined geographies.

This study highlights the critical market, business, and technology trends expected to drive the global autonomous driving industry.

“In 2021, many major OEMs prioritized the deployment of Level 2 and Level 2+ 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. “A lack of regulatory framework, high-value proposition, and lower cost will encourage OEMs to push L2+ features over L2 and L3 in the next five years. Vehicles at L2+ will reach over 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. 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.”

For more details on the report, click here.


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1 Comment » for By 2025, 1 in 5 cars will offer one or more Level 2 autonomous driving features
  1. Kevin Leuschen says:

    Great. In 4 years 1 in 5 cars might drive you into a tree and burst into flames at random.

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