Category: Trends
The automotive industry is rapidly evolving with the rise of electric vehicles (EVs) and advancements in autonomous driving and car digitization. In this article, we take a deep dive into the opportunities and challenges coming with autonomous driving.
The world of car manufacture has always been a pioneering place, since the day that Carl Benz applied for a patent for his ‘vehicle powered by a gas engine’ in January 1886 and heralded the end of the horse and carriage.
Fast-forward 138 years, to 2024, and the end of the human driver may soon be on the cards, with autonomous driving gaining pace.
Recent investments such as £800m into UK self-driving car technology startup wave - backed by SoftBank, Nvidia and Microsoft - to develop the next generation of AI-powered vehicles signal that the commercial appetite for driverless cars is certainly there and traditional car makers will be under threat if they don’t adapt.
The automotive industry is at a critical juncture. The need to look beyond traditional fuels and respond to the growing pressure for greater climate responsibility is turning eyes firmly on Electric Vehicles (EVs), with Tesla’s dominance waning as other major manufacturers and emerging new players carve out market share.
In the UK, new regulations came into force at the beginning of 2024 - the zero emission vehicle (ZEV) mandate. It sets out the rising percentage of new zero emission cars and vans that manufacturers will need to make each year, reaching 80% of all their new cars and 70% of new vans by 2030 and 100% by 2035. Whilst obstacles remain, such as EV affordability and range, with rising targets the market is on track for a steep growth trajectory.
Recent investments to develop the next generation of AI-powered vehicles signal that the commercial appetite for driverless cars is certainly there and traditional car makers will be under threat if they don’t adapt.
Indeed, according to research by New Automotive, UK electric car sales were already up nationally by 18.5% in 2023 compared with the previous year, and the share of zero emission car miles driven had doubled in this time. The number of public electric vehicle-charging devices in the UK had also grown by 45%, reaching 53,677 at the start of 2024, building the infrastructure to support the sector’s growth.
Read the third annual State of the Switch report from New AutoMotive here.
Meanwhile, innovations in autonomous driving and the digitization of cars are rapidly evolving the sector and the people within it, with the new skill sets needed to change the face of the industry. Specialists in software, electronics and autonomous vehicles AI experts are in high demand to power this movement and enable both established and new manufacturers to stay ahead of the latest developments.
In the background to all this, supply chain shortages, bottlenecks and global trade disruptions continue to be ever present in the automotive technology race.
As with all industries, AI is opening up opportunities and efficiencies across the automotive world. And whilst BMW, Mercedes-Benz and Volkswagen each made AI-related announcements at the major global tech event CES in Las Vegas in January 2024, the industry has long been tapping into AI in the design and manufacture of cars, including in voice technology, advanced driver assistance systems (ADAS) and other safety-related features.
Read some of the AI-related announcements here.
The opportunities presented by ChatGPT, such as voice-controlled navigation, predictive navigation and real-time traffic updates, are already being used or implemented by major manufacturers. Since 2019, emagine has been providing expert guidance and assistance to major automotive and software manufacturers on integrating cutting-edge voice technology into vehicles, including in a range of 17 of the world’s most used languages.
Read about ChatGPT improving vehicle navigation here.
Ongoing data collection is essential to keep improving and refining AI software. As end-users actively engage with these AI tools on a daily basis, they provide real-time data that can be analysed to enhance functionality and user experience.
This ongoing data input allows developers to identify trends, address issues, and implement improvements, ensuring the software remains effective and user-friendly.
Before cars hit the road, AI is allowing designers to process vast quantities of data to manufacture more efficient cars in a more efficient way and improve quality control. AI can also bring production rates in line with predicted demand. Although, as a highly regulated sector, AI best practice and data management are important to get right.
On the road, advanced driver assistance systems (ADAS) are already in widespread use, for example to help drivers park or change lanes more safely. Autonomous cars are the ultimate goal and are already on the roads, but there are levels of automation.
The Society of Automotive Engineers, SAE International, ranks vehicles from Level 0 to 5, from none to ‘full driving automation’. For higher levels, a safety driver will still be on hand to step in if needed.
Read about the SAE International ranks here.
McKinsey’s 2023 report on the the future of autonomous vehicles estimates that autonomous driving (AD) could create $300 billion to $400 billion in revenue by 2035 and that, despite some setbacks to product launch and adoption, AD has ‘the potential to transform transportation, consumer behaviour, and society at large’.
Examples include, improving road safety through greater traffic efficiency, allowing employees to work during their commute and increase productivity or travel in from further away, as well as to improving mobility for older adults and individuals with reduced mobility.
Autonomous driving has the potential to transform transportation, consumer behaviour, and society at large.McKinsey & Company
AD technology has the potential to make our roads significantly safer and reduce the number of road accidents, but there are administrative and trust hurdles to overcome.
PwC suggests that to enable mass adoption, the industry can learn from the civil aviation sector in its approach to infrastructure and regulation. These technological advancements also have a significant collateral impact, including on the healthcare, legal and insurance sectors. Insurance policies will need to adapt to a world in which the car owner is no longer the driver and establishing where the fault of an incident lies. Will the specialists behind the technology be pulled into the liability debate?
Read more about PwC suggests here.
There are also ethical considerations, such as what ‘choice’ an automated car would make when faced with the prospect of hitting a group of people or one individual. And how does the public feel about AD? Whilst there have been a number of accidents involving driverless vehicles, in the context of the thousands of road fatalities every year, is the occasional technical glitch the lesser evil?
Read more about driverless vehicle accidents here
AI and automation bring with them immense, futuristic opportunities and significant challenges. And the futuristic feel of the sector does not end with autonomous vehicles. Innovations like BMW’s concept car i Vision Dee, that interacts with its driver, expresses ‘emotions’ and can even change colour using E Ink technology, are truly bringing sci-fi to life.
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