Google self-driving leads to software CaaS with EVs in the future

googlecarIHS Automotive released a new report that shows how autonomous cars with software from Google and rides-share (car-as-service) companies like Uber and Lyft will influence car developments and consumer choices in the future.

Currently automakers are using evolutionary methods for ADAS that eventually lead to self-driving features, notes the report, while Google is revolutionary and will affect the car transportation business.

Google has spent a lot of money ($60 million so far at $30 million a year) for software to interpret the sensors and learn to drive. Google uses similar technology from other research areas such as robotics and drones as well as artificial intelligence (AI), machine learning and machine vision. When automakers such as Toyota see what Google is doing, then they follow such as Toyota’s AI research Center with a $1 billion, five-year investment, notes the report.

IHS analysis reports that Google’s self-driving software is performing better than nearly all drivers in the vast majority of traditional driving situations in good weather except for extreme unpredictable events such as extreme weather, strange roads, exceptional traffic and other unexpected conditions.

It looks like Google’s goal is to offer software and services for transportation by fleets of driverless cars within ten years. That’s when a car-as-a-service approach may be a significant opportunity.Car-as-a-service (CaaS) is the new freeway of  urban transportation. CaaS is  car sharing, with cars but without the people. IHS Automotive analysts believe Google is currently developing the software and maps that can be the basis for driverless vehicles in five years or so.

IHS estimates that the deployment of driverless CaaS will begin before 2025. As driverless car volumes grow, it should lower the cost of mobility services. IHS Automotive forecasts that nearly 12 million self-driving and driverless cars will be sold globally in 2035

Driverless car mobility services will probably be in urban areas for short trips which are perfect for EVs that can re-charge themselves using existing and growing public charging networks. IHS Automotive predicts that global EV charging stations will grow from 650,000 in 2015 to more than seven million in 2021

The low emissions of EVs will be favored by cities. IHS Automotive forecasts that the global production of battery EVs will grow from 273,000 in 2015 to 1.3 million in 2022. Global production of plug-in hybrid EVs is projected to grow from 179,000 in 2015 to over 2.4 million in 2022, according to IHS estimates. Driverless car fleets for CaaS are likely to greatly increase the sales of EVs after 2025.

Meanwhile, a Google self-driving LSV was in the news for driving too slow, therefore Google vehicles may also lead to slower speeds on roads.