Well, over the period, and with changes in the advancement of the technologies. As per Bloomberg reports, the global market for ADAS in 2021 is projected to be USD 74.9 billion by 2030. It shows a CAGR of 11.9%.
As per Deloitte insights on Industry 4.0 in the automotive industry, in the advanced technology category, Safety is 71% for Germany, 60% for the United States, 59% for Japan, 52% for the Republic of Korea, 39% for China, and 49% for India.
The market is also dominated by the partnership between the tech company and the key OEMs in the market. For example, an artificial intelligence vision silicon company like Ambarella Inc. (US), partnering with Arrival (Luxembourg) electric vehicle manufacturing company for autonomous driving and ADAS features in Arrival’s buses and vans.
However, as per a survey report by Deloitte, the readiness of the consumer’s willingness to pay for an advanced featured technology vehicle is not more than the US $500.
Germany is not willing to pay more than €400, Japan not more than ¥ 50,000, the Republic of Korea not more than ₩ 500,000, China not more than ¥2,500, and India not more than Rs. 25,000.
Looking at the facts, it is a concern for any automotive company to think twice before investing heavily. Also, the reasons for consumers purchasing limit on the latest vehicle tech is unknown. Are they skeptical or don’t want the vehicle price to go beyond a certain level as you don’t get the same value after reselling the vehicle.
The price of your product is always a major block or hurdle to bypassing the market standard. The invisible hand played by the customer limits the price of the final product. The luxury class will always be there, but the revenue generated from the mid-class society cannot be neglected.
So, how are they planning to restrict the price? Or are they worried at all about the final vehicle market price? Do we also need to act on the limit the final vehicle product price to restrict the expensive commodities?
Well, with a pure electric battery, the price of the electric car is higher than the traditional vehicles and with such advanced IoT devices and technologies, no doubt that the vehicle price will be way high than USD $500. A vehicle with such advanced IoT features got the potential of altering the market price.
The final vehicle prices are not yet disclosed. So need to see, in the coming years, how the factors get compensated. The pandemic lockdown did eventually slow the market down, but by 2022, everybody is expecting a push in the automotive market. Hope to see some more futuristic movement.