Autonomous Vehicles Facing Serious Challenges

July 1, 2019 | Monday

Forex

   

Many automakers and technology firms spent billions on researching autonomous vehicles. However, the industry will face two significant challenges. And it needs to succeed before self-driving cars become all over the place.

Head of autonomous mobility in the World Economic Forum, Michelle Avary stated, "We've got a couple of big challenges in front of us. The first, obviously, is a technological challenge." In addition to that, Avary wanted to make sure that the technology is operating in the areas of perception, which is the vision. Also, to recognize objects and then understand how to move around them.

In addition to that, the industry depends on collaboration and sharing of data among the companies to construct the technology. But the ongoing trade war, now on a trade truce, between the U.S. and China block firms from sharing any geography-specific details. And if the tension continues, it will damage the growth of the industry. Also, it will prevent companies from working outside their own countries.

But Avery believes that there is still going to be a lot of mergers and acquisitions. Also, some partnerships will happen in space between auto manufacturers and technology firms.

Apple Meanwhile, the tech giant Apple bought an autonomous vehicle start-up, Drive.ai, recently. And this confirms rumors about the smartphone giant's investment in self-driving car software. Avary declared, "The two sides need each other. And the market is enormous."

Then, she added, "So, I think there's a lot of opportunities for everyone to come out as winners." Then, another problem for the autonomous vehicle is the business model. Avary said that they see a significant divergence in the entire concept of the model of the robo-taxi against what we perceive in fields like commercial trucking, mining, and construction. And it is where the business model case might be more quickly made.

Robo-taxis are the driverless ride-sharing services, which they are currently trying in the U.S.

   

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