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

  • North American OEMs embrace advanced safety features
    August 14, 2014
    New research from Frost & Sullivan's Analysis of the North American Advanced Features Market and Optional/Standard Strategy of OEMs finds consumers demand seamless connectivity and high-end infotainment features in a car. The research also highlights the lifesaving technologies and features like night vision assist with pedestrian detection or collision warning and mitigation using augmented reality, which are accorded a higher importance compared to other features like power lift gate or ambient lighting i
  • EV inductive charging set to gain traction
    June 13, 2014
    New analysis from Frost & Sullivan, Strategic Analysis of Inductive Charging for Global Electric Vehicles (EV) Market, finds that the total market for inductive charging is expected to experience a compound annual growth rate of 126.6 per cent from 2012 to 2020, with approximately 351,900 units likely to be sold. Inductive charging will account for 1.2 per cent of both public and residential charging in North America and more than 2.6 per cent in Europe. Residential charging will be the most popular method,
  • Global powertrain market experience immense growth, say researchers
    April 21, 2017
    The latest report from Frost & Sullivan indicates that the global powertrain market is experiencing immense growth as new low-emission technologies such as engine downsizing and rightsizing; direct injection; turbocharging; transmission electrification; and electric vehicle (EV), hybrid and gasoline engines transform the industry. Original equipment manufacturers (OEMs) are embracing platform strategy as a tool to improve the energy efficiency of powertrain systems and to achieve fleet level CO2 compliance
  • Global automotive aftermarket boosted by eRetailing, telematics, says research
    July 25, 2017
    Global Automotive Aftermarket Outlook, recent research from Frost & Sullivan, indicates that penetration of eRetailing in the automotive aftermarket is increasing significantly and is expected to cross US$21 billion globally by the end of 2017. The study provides an overview of the global automotive aftermarket and its growth opportunities. Main industry trends, growth prospects, VIO, eRetail dashboards, country snapshots, and opportunities in North America, Europe, China, India and Latin America are provid