Investment bank Morgan Stanley (NYSE:MS) has published a report predicting a $200 billion market for self-driving cars by the year 2030.
What Happened: Analyst Adam Jonas and Tim Hsiao shared in the report that adoption for autonomous vehicles will take off in the near future with the growth of AI and comprise 28% of unit sales by 2030, Bloomberg reported on Monday.
The report outlined 5 levels of autonomous driving for vehicles and predicts that smart driving would generate over $300-$400 billion in revenue for companies by 2035.
However, the report also spoke about China's dominance in the all-electric mobility sector, writing that "An outsized EV user base and tech deflation have given China an early edge."
The report also added that Silicon Valley's "dominance of AI computing power and data" is an advantage for tech companies as well as the German big three automakers.
Why It Matters: The news comes in as autonomous driving in the U.S. could face stricter regulations from the government after President Donald Trump's nominee for the NHTSA, Jonathan Morrison, called for tougher oversight on the sector.
Autonomous driving has seen growth in the U.S. as Uber Technologies Inc. (NYSE:UBER) partnered up with Alphabet Inc.'s (NASDAQ:GOOGL) (NASDAQ:GOOG) Waymo to expand its services in Atlanta.
Elsewhere, Tesla Inc. (NASDAQ:TSLA) has shared plans to expand into cities like Phoenix and the San Francisco Bay Area, in pursuit of Elon Musk's ambitious plan to serve over half the population of the U.S. with Tesla robotaxis by the end of the year.
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