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People are still drawn to self-driving cars. Can leaders win the passenger car market?

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Advancing autonomous driving

In the news

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Simpler solutions. After the path to developing fully autonomous vehicles (AVs) has proven difficult and expensive, investors are targeting companies that offer simpler use cases, such as autonomous forklifts that are operated away from pedestrians and at lower speeds. In October through December 2022, venture capitalists funneled $1.4 billion into AV companies, down 47% from the previous year. However, one AV company that develops self-driving trucks for use on private roads received $500 million of that funding. [Reuters]

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Auto accident accountability. AV makers confront a major challenge: to what extent will they be held liable when their vehicles are involved in a car accident? A new study reveals that even when self-driving cars do not cause the accident, people still tend to hold them responsible. Roughly 2,000 study participants viewed videos of common types of collisions. When participants believed that the not-at-fault car was an AV, they were likelier to blame the AV maker at least partly for the crash and to say they would sue the company. [WSJ]

About a quarter of respondents to a McKinsey 2021 survey said they were very likely to choose an advanced autonomous-driving feature when purchasing their next vehicle.

On McKinsey.com

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Driving value. The dream of seeing fleets of driverless cars efficiently delivering people to their destinations has captured consumers’ imaginations and fueled billions of dollars in investment in recent years. Even after some setbacks, autonomous driving (AD) could create massive value for the auto industry, explain McKinsey senior partner Ruth Heuss and colleagues. Advanced driver-assistance systems (ADAS) and AD could generate between $300 billion and $400 billion in the passenger car market by 2035, McKinsey analysis finds.

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Cautious consumers. Although consumers continue to be interested in AD, they are also adopting more cautious and realistic attitudes toward self-driving cars, shows McKinsey's 2021 autonomous driving, connectivity, electrification, and shared mobility (ACES) survey, which polled more than 25,000 consumers about their mobility preferences. For instance, trust in the safety of AVs decreased by five percentage points between 2020 and 2021. See our new report on autonomous driving, including three scenarios for sales in 2030 and 2035.

Get up to speed on AD

— Edited by Belinda Yu, editor, Atlanta

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:10 - 13 Feb 2023

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People are still drawn to self-driving cars. Can leaders win the passenger car market?

Advancing autonomous driving

In the news

About a quarter of respondents to a McKinsey 2021 survey said they were very likely to choose an advanced autonomous-driving feature when purchasing their next vehicle.

On McKinsey.com