How can autonomous vehicles help China? China became the world’s leader in the automotive market in 2009, passing the United States. The continued explosive growth of the automotive market is overtaxing China’s automotive-related infrastructure. This is resulting in significant traffic and pollution.
Autonomous vehicles, especially “robo-taxis” can help make commuting easier. Instead of driving 1.3 hours in their commute, three times more than in the United States, Beijing drivers can instead let the AV bring them to work or home. Sharing the robo-taxis would help decrease traffic on the roads and let drivers relax during their commute.
However, China’s complicated traffic environment, including aggressive driving behaviors and complicated signage, may slow AV adoption. Autonomous vehicles would need more time to learn the local traffic structure and be able to operate safely. This can add up to three years to adaptation when compared to the U.S. Mass adoption would not be until post-2027, when technology has addressed the road conditions of urban and suburban settings.
AVs have the potential to make China’s automotive industry the largest AV market. Mass deployment of fully autonomous vehicles in China could happen in the next nine or ten years.
AV’s can take over the marketplace by 2040. With the potential of accounting for up to 66% of passenger travels, it can grow into a $2 trillion dollar marketplace by then. Its sales would account for about 40% of new sales and 12% of the vehicle installed base.
To gain a winning position in tomorrow’s AV market requires preparation today. Delaying your transition can lead to losing influence and freedom in the market as competitors move faster. Those in China’s automotive industry must start developing strategies that can give them the potential to becoming a market leader for autonomous vehicles.
Preparing for the Future Today
AV technologies are developing rapidly, making it imperative for companies to understand their impact on day-to-day business and operations for academic, corporate, and government organizations. Coming soon, the IEEE Guide to Autonomous Vehicle Technology is a seven-course program covering the foundational and practical applications of autonomous, connected, and intelligent vehicle technologies. Courses are developed by some of the leading experts in AV technologies. Contact an IEEE Content Specialist today to learn more.
Resources
Pizzuto, Luca; Thomas, Christopher; Wang, Arthur; Wu, Ting. (Jan 2019). How China will help fuel the revolution in autonomous vehicles. McKinsey & Company.
[…] In fact, the market is predicted to reach $7 trillion annually by 2050. There are many companies around the world developing autonomous and intelligent vehicle technology as they seek to capitalize on the massive […]