Apple's car project has a long way to go (AAPL)

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Apple will test its self-driving car systems in an employee shuttle bus on its California campus, according to the New York Times. Apple began its autonomous-vehicle program, called Project Titan, in 2014, but decided earlier this year that it would focus on designing software, sensors, and artificial intelligence (AI) rather than building vehicles.

Apple's self-driving development is progressing slowly relative to market leaders. Private tests, like the one Apple is doing, often precede trials on public roads, since closed settings are easier for new, unproven self-driving systems to handle and limit the danger to humans and other vehicles. Apple has received a permit from the California Department of Motor Vehicles to test its systems on public roads in the state eventually. But it's trailing behind its peers: Alphabet's Waymo has been conducting public roads tests for several years, and Uber has been testing its vehicles on public roads for the past year.

Apple's testing lag could cause it to fall even further behind, ultimately costing it opportunities.

• Apple will need to join forces with an automaker, but a lack of progress could make attracting partners difficult. Since Apple doesn't plan to build a car, it'll need to partner with an automaker. But if vehicle manufacturers believe that Apple's systems aren't close to ready, they might seek out other players instead.
• And all the while, competitors are moving forward. Intel, which bought LiDAR designer Mobileye earlier this year, is working with BMW to test 100 self-driving vehicles in various locations around the globe later this year, while Alphabet's Waymo is working with ride-hailing service Lyft to expand testing of its self-driving systems on Chrysler minivans. As these firms are racing ahead, Apple could be left struggling to find a partner. And though Apple's brand strength allows it to enter markets late and still succeed, this could be an uphill battle, and stagnation now might make it hard for the company to capitalize on the most rapid growth in the self-driving car market, which is still to come.

The self-driving car is no longer a futuristic fantasy. Consumers can already buy vehicles that, within a few years time, will get software updates enabling them to hit the road without the need for a driver.

This autonomous revolution will upend the automotive sector and disrupt huge swaths of the economy, while radically improving energy efficiency and changing the way people approach transport around the world.

Automakers and tech companies are racing to develop the technology that will power self-driving cars in the coming years. That tech is advancing, but leaves observers with a bigger question: will consumers trust driverless car tech, and will they want to use autonomous cars?

Peter Newman, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on self-driving cars that:

• Sizes the current and future self-driving car market, forecasting shipments and projecting installed base.
• Explains the current state of technology, regulation, and consumer perception.
• Analyzes how the development of autonomous cars will impact employment and the economy.

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