Abstract:

Autonomous driving (AD) has attracted a lot of attention in recent years.  AD represents a huge opportunity to transform mobility. Road safety would increase, and drivers would have more time to relax in vehicles rather than focus on the road. The Society of Automotive Engineers has divided autonomous vehicles into levels based on their capabilities. AD will be a game changer in the automotive industry. Although the private AD market appears to be promising, OEMs and other stakeholders face numerous challenges. Since AD laws are still evolving, there is some long-term uncertainty. The diffusion of AD depends on two factors i.e. the availability of technologies and the customer’s willingness to adopt specific use cases. Regulatory requirements can heavily influence both. The disruption AD creates will probably have seismic consequences for incumbent automakers and suppliers. They need to understand both how the market could roll out under different scenarios and the use cases for private and shared AVs alike. A flexible model that considers various scenarios may provide the necessary insights.