AV market could top $560bn as Volvo joins with Uber

Volvo links with Uber to boost an AV market that could be worth $560bn.

Volvo Uber XC90

The new Volvo Uber Autonomous Vehicle Image: Volvo Group

The Swedish manufacturer has joined the burgeoning taxi-app firm to develop the next generation of autonomous driving cars.

According to Volvo's own publicity, the project is worth $300m, with the car manufacturer and the San Francisco-based tech developer both contributing finances.

The aim is to develp what they claim will be a "longer term industrial partnership" and highlights the increasingly close alliance between the automotive industry and web-based technology companies who are intrumental in creating the 'connected car'.

Based on the Volvo 90 range of SUVs, sedan and premium estates, the base vehicle will use the company's Scaleable Product Architecture and will link with Uber's cloud-based mapping and tracking technologies to create the autonomous driving vehicle range.

The timing is critical, with management consultants AT Kearney predicting that the Autonomous Vehicle (AV) market could reach $560bn.  As well as Uber, Google is also getting in on the act and is currently recognised at the leading AV company in the US.

The overall savings generated by AVs could be significant, simply through the reduction in accidents alone, estimated to be around 70% of current figures.

In addition AVs are likely to save fuel, increase productivity and easy congestion, all of which could contribute further to a nation's GDP.