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Autonomous Vehicle Testing in California Dropped 50%. Here’s Why.
California has seen a significant decline in autonomous vehicle testing on public roads, with the total number of test miles logged dropping by a staggering 50% in 2024 compared to the previous year. According to new data released by the state’s Department of Motor Vehicles (DMV), only 4.5 million autonomous vehicle test miles were recorded in 2024, a stark contrast to the 9 million test miles reported in 2023.
The decline is not limited to one specific type of testing permit, as both autonomous vehicles with human safety drivers and driverless testing saw significant drops. In fact, driverless testing, which allows for true autonomy without a human behind the wheel, plummeted by an astonishing 83% from 3.26 million miles in 2023 to just 552,895 miles last year.
While it’s not entirely surprising that autonomous vehicle testing has slowed down, given the intense competition and high costs associated with this technology, there are a number of other factors at play here.
First and foremost, the industry is going through a period of consolidation. The hype surrounding autonomous vehicles has worn off, and many companies have ceased to exist or have shifted their focus away from public road testing in favor of more cost-effective methods such as simulation-based development.
Another key factor contributing to this decline is the increased scrutiny placed on autonomous vehicle technology in recent years. As fatalities and near-misses continue to plague the industry, it’s becoming increasingly clear that the development of this technology requires a much greater focus on safety and regulatory compliance.
Furthermore, the market has undergone significant changes as well. Gone are the days when millions of dollars could be poured into autonomous vehicle research without hesitation. Today, investors are far more discerning, requiring companies to demonstrate tangible progress before injecting significant capital.
The most glaring example of this shift is the recent funding rounds received by Waymo and Wayve. While these two companies have managed to secure massive sums – $5.6 billion in Waymo’s case and $1 billion for Wayve – it’s a far cry from the days when as many as 60 companies had permits to test drivered autonomous vehicles.
The result is an industry that has seen significant consolidation, with only a handful of major players remaining. This lack of competition on the commercial front means that there are fewer incentives for companies to continue investing in public road testing.
In summary, it’s clear that the autonomous vehicle industry is undergoing a period of transformation. The intense hype surrounding this technology has worn off, and investors have become far more discerning.
Source: techcrunch.com
