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Global Autonomous Car Market to Grow by 36% and Hit a $37B Value by 2023

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Autonomous Car - Investors King

Over the last five years, major carmakers, tech giants, and start-ups have invested more than $50bn into autonomous vehicle (AV) technology. Although there have been many financial, practical, and scientific challenges in developing these vehicles, the entire market continues growing, with many autonomous cars expected to be on the roads in the following years.

According to data presented by BuyShares, the global autonomous car market is expected to grow by 36% in the next two years and hit a $37bn value by 2023.

5.4 Million Cars With At least Level 3 Autonomy on the Roads by 2023

Autonomous cars use radar, lidar or GPS technology, and computer vision to sense their environment. The advanced control systems integrated into the car can interpret the sensory inputs to detect signboards or prevent collisions.

Although fully autonomous cars are unlikely to reach wide acceptance any time soon, Level 2 and Level 3 autonomous cars, which use collision detection, lane departure warning, and adaptive cruise control, are expected to witness rapid growth.

In 2019, the global autonomous car industry was worth $24.1bn, revealed the Research and Markets data. Last year, the market shrunk by some 3% due to the economic slowdown caused by the COVID-19. In 2021, however, the market is forecast to recover and start growing, reaching over $27bn value.

Statistics also showed that in 2019, some 1.4 million vehicles with at least Level 3 autonomy were sold worldwide. This figure is set to reach 2.7 million in 2021 and continue growing to 5.4 million by 2023.

Fully autonomous cars will not reach a wide customer base unless they are completely safe from cyber-attacks. If such concerns are solved, the autonomous car market is estimated to hit 58 million sold units by 2030.

44% of Drivers Willing to Use a Fully Autonomous Car, Safety Issues the Biggest Concern

Overcoming technological hurdles is not enough for autonomous vehicles to take off. People need to feel comfortable about riding in an autonomous vehicle to use them and buy them.

The 2021 Global Automotive Mobility Study revealed customers worldwide had similar attitudes towards autonomous cars regardless of their level of automation. Around 47% of respondents were willing to use a semi-autonomous vehicle, while 44% said they would use a fully autonomous car.

Still, the biggest concern regarding these vehicles was safety. Around 61% of respondents were worried about potential safety issues due to machine error, and some 51% of them were concerned about safety issues due to human error. Liability ranked as the third major concern with a 38% share among respondents.

One-third of consumers were unsure whether the technologies necessary for autonomous vehicles are advanced enough, while 30% of them worried about data security and privacy.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Starlink Pulls Plug on Ghana, South Africa, and Others

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Starlink, the satellite internet service operated by SpaceX, has announced the cessation of services in countries including Ghana and South Africa.

This decision comes as a significant blow to users who have come to rely on Starlink for their internet connectivity needs.

The decision, set to take effect by the end of April 2024, will disconnect all individuals and businesses in unauthorized locations across Africa, including Ghana, South Africa, Botswana, and Zimbabwe.

While subscribers in authorized countries such as Nigeria, Mozambique, Mauritius, and others can continue to use their kits without interruption, those in affected regions face imminent loss of access.

One of the reasons cited by Starlink for the discontinuation is the violation of its terms and conditions.

The company explained that its regional and global roaming plans were intended for temporary use by travelers and those in transit, not for permanent use in unauthorized areas. Users found in breach of these conditions face the termination of their service.

Furthermore, Starlink’s recent email to subscribers outlined stringent measures to enforce compliance.

Subscribers who use the roaming plan for more than two months outside authorized locations must either return home or update their account country to the current one. Failure to do so will result in limited service access.

The decision to discontinue services in certain countries raises questions about the future of internet connectivity in these regions.

Also, concerns have been raised about Starlink’s ability to enforce the new rules effectively. Reports indicate that the company has previously failed to enforce similar conditions for over a year, raising doubts about the efficacy of the current measures.

Starlink’s decision to pull the plug on Ghana, South Africa, and other nations underscores the complexities of providing satellite internet services in diverse regulatory environments.

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Nigeria’s Broadband Penetration Stalls at 42.53% Amid Connectivity Challenges

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Nigeria’s broadband penetration has stalled at 42.53% as of January, according to the latest report.

Subscriptions currently stand at 92.19 million, indicating a significant gap in connectivity, particularly in rural areas.

The Nigerian National Broadband Plan 2020-2025 aims to increase broadband penetration to 70% by 2025, with the ultimate goal of achieving 96% mobile broadband coverage by 2030.

However, this ambitious target requires substantial investment—approximately $461 million, according to a recent report by the Global System for Mobile Communications Association (GSMA).

While the country’s major telecommunications companies, such as MTN Nigeria and Airtel Africa, have invested heavily in expanding their network infrastructure, much of this development has been concentrated in urban areas. Rural and underserved regions face a significant coverage gap, exacerbating the digital divide.

Despite these challenges, Nigeria has made progress in improving its broadband infrastructure. Since 2012, the mobile broadband coverage gap across Africa has decreased from 56% to 13% in 2022, due to significant investments in network capacity and new technologies.

Nonetheless, millions of Nigerians, particularly those in rural regions, remain without access to essential telecom services.

To address this issue, Nigeria’s government established the Universal Service Provision Fund (USPF) in 2006, aimed at bridging the connectivity gap and expanding broadband access to unserved and underserved areas.

The fund provides resources for deploying telecommunications infrastructure in economically unviable regions.

The success of these initiatives, along with increased investments in broadband infrastructure and policies to incentivize internet expansion in remote areas, will be crucial in closing the connectivity gap and improving digital access for all Nigerians.

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iPhone Shipments Drop Amid Resurgence of Android Rivals

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Apple iPhone 14

Apple Inc. reported a significant drop in iPhone shipments during the March quarter, reflecting a downturn in sales across China amid the resurgence of competition from Android-powered rivals.

According to market tracker IDC, the tech giant shipped 50.1 million iPhones in the first three months of the year, a 9.6% year-on-year decline that fell short of the average analyst estimate of 51.7 million.

The steep decrease in iPhone sales marks Apple’s most significant quarterly dip since 2022, when Covid-19 lockdowns disrupted supply chains.

This time, the Cupertino-based company faces challenges from resurgent competitors such as Huawei Technologies Co. and Xiaomi Corp.

These firms have rebounded strongly in recent quarters, and their innovative product lines have begun to reclaim market share from Apple in China.

Samsung Electronics Co. regained its position as the top smartphone supplier globally, while Apple ranked second. Xiaomi closed the gap on Apple, shipping 40.8 million units, an impressive 33.8% increase year-on-year.

Transsion Holdings, another key player in the budget smartphone segment, nearly doubled its shipments, showcasing the competitive environment Apple faces.

Nabila Popal, research director at IDC, highlighted the broader shift in the smartphone market, which has recovered from the supply chain disruptions and challenges of recent years.

“While Apple has demonstrated resilience and growth in recent years, maintaining its pace and share in the market may prove challenging as Android manufacturers make strides,” Popal commented.

Apple has a strong brand and loyal customer base, yet its market position may be tested further by the aggressive pricing and innovative products offered by Chinese rivals.

The company’s efforts to sustain its premium pricing strategy may also be challenged as more customers consider switching to Android alternatives.

As the tech industry looks ahead to the rest of the year, Apple’s upcoming earnings report and strategic moves to address this competitive pressure will be closely watched by investors and industry observers alike.

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