The development of self-driving vehicle technology has hit a roadblock in California, with new data from the state's Department of Motor Vehicles (DMV) showing a 50% drop in autonomous vehicle testing miles in 2024. According to the DMV, a total of 4.5 million autonomous vehicle test miles were logged last year, down from 9 million miles in 2023.

The decline is more pronounced in the driverless testing category, with a staggering 83% drop from 3.26 million miles in 2023 to just 552,895 miles last year. This significant decrease in testing miles suggests that the industry is consolidating, with fewer companies willing to invest in the development of autonomous vehicle technology.

The DMV's annual disengagement reports, which detail instances where human drivers had to take over control due to technology failures or safety concerns, have been a point of controversy in the past. The reports have been criticized for lacking standardization, making it difficult to compare the results or rate the proficiency of autonomous vehicles technology.

The industry's consolidation is evident in the decline of major players such as Cruise, which was suspended and ultimately shuttered by its parent company GM. Waymo, on the other hand, has shifted its focus towards commercial operations in San Francisco and Los Angeles, logging fewer testing miles as a result. Historically, Cruise and Waymo have reported the highest testing miles, but their absence has left a significant gap in the market.

The DMV's data also reveals a decline in new permits issued for testing vehicles with a human driver. In 2022, four permits were issued, followed by two in 2023, and just one in 2024. Today, only 31 companies hold permits for testing with a safety driver, and of those, just 11 actually conducted public road testing in 2024.

Nine companies that submitted reports for the 2023-2024 period have ceased testing and withdrawn from the program, according to the DMV. Notably, Tesla did not log any autonomous miles in 2024. On the other hand, six companies, including AutoX, Nuro, WeRide, Waymo, and Zoox, are approved for driverless testing, with only Mercedes-Benz, Nuro, and Waymo holding permits that allow commercial operations.

This consolidation is a far cry from the industry's heyday, when venture funds flowed freely and as many as 60 companies held permits to test autonomous vehicles. The industry's contraction is a result of the significant investment required to develop autonomous vehicle technology, with fewer companies willing to pour millions into the development of this technology.

However, there are some outliers, such as Wayve, which raised $1 billion in May, and Waymo, which raised $5.6 billion in November. These investments suggest that there is still interest in autonomous vehicle technology, but the industry's consolidation has resulted in a lack of competition on the commercial front.

The implications of this consolidation are significant, with fewer companies driving innovation and competition in the autonomous vehicle space. As the industry continues to evolve, it remains to be seen how this consolidation will impact the development of self-driving vehicle technology and its eventual deployment on public roads.