Even though the car industry is moving towards connected cars and driverless vehicles, it may be stumbling. With the growth of the ride-sharing industry (where people prefer to rent a car for a couple of hours) and cheap efficient app-based taxis like Uber, drivers are not buying cars to the extent the industry hoped.
The automotive industry has been trying to invest in ride-sharing companies or developing autonomous systems and innovative cars with controlled CO2 emissions and lower fuel consumption levels.
According to a research by The Boston Consulting Group, the autonomous car market will hit $42 billion by 2025. However, according to The Economist, Barclays predicts that the fully autonomous vehicle will result in the average American household reducing its car ownership from 2.1 vehicles now to 1.2 by 2040. A self-driving car may drop off a family’s member at work, then rush back to pick up the kids and drive them to school. The $11million in annual sales of mass-market cars for personal ownership in America may be replaced by $3.8million sales of self-driving cars, either personally owned or part of taxi fleets.