China’s autonomous car market is expected to reach 1.5 million units by 2025, growing on a compound annual growth rate of 28.4%.
According to the latest study by ResearchandMarkets.com, the automotive industry is China is likely to shift into a higher intelligence level by 2025. At present, the L1 and L2 autonomous vehicles are available in the market, with total sales of 300,000 units in 2018. In the passenger car segment, 96.5% of autonomous vehicles are L1 and L2 private cars.
However, the study predicts that in the years ahead autonomous vehicle technology will see more adoption in passenger cars business segments such as public taxis and mobility service vehicles. Public taxis and other mobility service vehicles will account for a little more than a quarter or 25.6% of the passenger car market share in 2025.
Key players in China’s autonomous vehicles market
Furthermore, the study identifies the key autonomous driving participants and their market activities in the automotive industry. The value chain of the market is also discussed in this study.
The China FAW Group Corporation is the leading domestic automotive OEM in terms of autonomous vehicle technology development. It is likely to pioneer L4 autonomous vehicle technology and achieve commercialisation of the same in 2020.
Moreover, SAIC Motor and Zhejiang Geely Holding Group are likely to commercialise the L4 autonomous vehicles between 2022 and 2024, in China. NIO, a new start-up, is another key notable participant in the market.
Baidu Inc., Alibaba Group Holding and Tencent Holdings are the key notable technology companies that provide software and database platforms to support automotive OEMs in China.
Apollo, Baidu’s open platform, and Alibaba’s intelligent expressway (expected to be ready by 2038), and Tencent’s cybersecurity and vehicle connectivity platform can enhance the autonomous vehicle software features in China.
The Chinese government is expected to introduce official regulations on the autonomous vehicle by 2023. The demonstration bases for autonomous vehicles in Shanghai, Beijing, and Chongqing will be further expanded in China between 2019 and 2020.