In this study, the sensor technology has been reviewed for the future driverless cars. The paper discussed the wide array of literature for supporting various evidences. Paper provides the clear classification of the autonomous or the driver-les cars. The evidences displayed that these cars are mainly based on the sensor technology that will help in detection of the objects on the road, detecting obstacles, collision mitigation and automatic parking. Driverless cars working through sensors can help in improving land use and will increase mobility and accessibility. Paper discussed the calculation of the distance for the object detection, in terms of time of flight and triangulation. The three main sensor techniques discussed in the study includes laser sensor (based on the Light Detection and Ranging and Laser Scanner), Radar sensor (previously used in aviation and defence) and Vision based sensor (Cameras). The study concludes that all the sensors have some advantages and disadvantages. Therefore, the sensor fusion will help in improving the overall technique of producing the full-fledged driverless cars. The further study and experiments are required for finding the benefits of the fusion of sensor technology.