Recent incidents involving autonomous vehicle crashes, have made industry participants assume a lower profile. While these setbacks may slow progress in the sector, it does not mean the companies involved are taking their foot off the gas pedal in developing technology to move autonomous vehicles forward.
Any advanced technology industry will encounter growing pains, and as I said in my latest report, this space is just getting interesting. Allied Market Research puts the global autonomous vehicle market at $54 billion this year and $556 billion in 2026, growing at 40% per year. Even if these numbers are off by 25%, we’re still looking at a rapidly growing market.
And while the regulatory issues are real, there is growing economic pressure to solve the regulatory puzzle. Over 68% of freight travels on U.S. roads for an extended period of time. And with the trucking industry unable to fill driver positions, even with increasing pay and benefits, the American Trucking Association reports delays and costs are rising.
This lack of drivers, combined with an explosion in delivery of everything conceivable that consumers may purchase, as we recently looked at in our piece on the sharing economy, is placing growing pressure on regulators to formulate solutions to the autonomous vehicle problem. Trusting these issues will be resolved, let’s take a look at a few companies that are forging ahead in the autonomous vehicle space.
NXP Semiconductors (Nasdaq: NXPI)
Netherlands based NXP Semiconductors is the world’s largest supplier of automotive semiconductors, and will have a major role to play as cars and trucks move to autonomy. One of the things I like about NXP is the fact that it is already deeply embedded in the auto industry. This gives the company insight into customer needs as autonomous vehicles move through the Levels of Autonomy I detailed in my previous article.