Skip to main content

Level 4/5 autonomous driving will be possible in the next five years, says research

Growing consumer preference for convenience-enhancing technologies and automobiles-as-a-service options helped double the adoption of vehicles with automated driving features in 2016, says Frost & Sullivan’s mobility team. Going forward, large-scale investments from original equipment manufacturers (OEMs) will refine the use of artificial intelligence (AI) and cognitive cloud-based technology solutions even further, enabling level 4/5 autonomous driving within the next five years. Retrofitted automated driv
May 9, 2017 Read time: 2 mins
Growing consumer preference for convenience-enhancing technologies and automobiles-as-a-service options helped double the adoption of vehicles with automated driving features in 2016, says 2097 Frost & Sullivan’s mobility team.


Going forward, large-scale investments from original equipment manufacturers (OEMs) will refine the use of artificial intelligence (AI) and cognitive cloud-based technology solutions even further, enabling level 4/5 autonomous driving within the next five years. Retrofitted automated driving solutions and deployment in shared mobility (taxi) platforms will experience robust growth.

“With the introduction of automated driving taxis to support shared mobility business models, the commercial entry of level 4 vehicles is expected by as early as 2020,” said mobility senior analyst Anirudh Venkitaraman. “In the European and North American markets, the introduction of level 3 automation by 2018, driven by over-the-air updates from 8534 Tesla, will strengthen the initial take rates for the technology. Pilot offerings from 2125 Audi, 1731 BMW, and Mercedes-Benz will soon follow, taking the product into the premium market.”

The report, Global Autonomous Driving Market Outlook 2017, finds that the global autonomous driving market will be worth US$83 billion by 2025. The study examines the top trends in the automated driving market, including developments like growing usage of driver assistance, new solutions, robot taxis, cognitive cloud computing, and adoption of mechanical light detection and ranging (LiDAR) for perception improvement.

“Concerns surrounding legislation, system reliability issues, and incompatible infrastructure limit the opportunities for OEMs looking at automated driving,” noted Venkitaraman. “Nevertheless, the journey from human-operated to completely autonomous cars is a progression, and pioneering semi-automated vehicles will be an important milestone toward achieving level 5 automated vehicles.”

For more information on companies in this article

Related Content

  • Live web conference – future of vehicle parking management systems
    September 3, 2013
    According to Frost & Sullivan, the parking industry has transformed dynamics in its operation with a different genre of participants including automotive OEMs exploring numerous opportunities in parking and expected to witness a major growth phase in this decade. Bundled services with apps are helping parking operators to ease their operations, business and positioning. Early stage growth opportunities will attract more than twenty new start-ups in the parking industry providing real-time parking applicatio
  • Growing use of safety technologies in new vehicles appeals to drivers
    July 23, 2015
    The safety-related technologies that manufacturers are increasingly equipping their new vehicles with are making those vehicles more appealing to their owners, according to the J.D. Power 2015 U.S. Automotive Performance, Execution and Layout (APEAL) Study. The APEAL Study, now in its 20th year, is the industry benchmark for new-vehicle appeal, examining how gratifying a new vehicle is to own and drive. Owners evaluate their vehicle across 77 attributes, which combine into an overall APEAL Index score th
  • New national body to drive uptake of electric vehicles in Australia
    June 2, 2017
    A new industry-led national body that aims to drive the uptake of electric vehicles (EV) in Australia has been launched in Canberra. A total of 17 organisations, including non-profit organisation ClimateWorks Australia, Tesla, Audi, BMW, Jaguar Land Rover, infrastructure firm JET charge and the Royal Automobile Club of Victoria have joined the Electric Vehicle Council.
  • Driving dynamics ‘vastly influence car purchase decisions in Europe’
    April 24, 2015
    Driving dynamics play a huge role in the purchasing decisions of vehicle owners in Europe. While safety and reliability are top priorities, driving dynamics-related capabilities such as manoeuvrability and ride quality rank high in importance among consumers looking to buy a car. New analysis from Frost & Sullivan, European Consumers’ Attitude towards Driving Dynamics Technologies, finds that urban male customers are willing to pay a higher than average price to upgrade driving dynamics technologies. Wo