Autonomous cars are capable of recognizing their environment and driving independently. Autonomous vehicles operate devoid of human intervention. It functions like a typical car and can travel anywhere a skilled driver can. Actuators, sensors, machine learning, and sophisticated algorithms propel autonomous cars. The mapping of objects, people, and their surroundings by automobiles is based on sensors inside the vehicle.
In 2021, the market for autonomous cars was worth USD 25.14 billion, and it will reach USD 196.97 billion by 2030, growing at a 25.7% CAGR during the forecast period.
Several key factors driving market revenue growth over the forecast period, including the development of autonomous vehicle technology, the increasing adoption of electric vehicles globally to reduce carbon emissions, and growing public awareness of the benefits of autonomous vehicles (AVs), including increased personal safety, diminished environmental impact, and low transportation costs. Moreover, advanced driver-assistance systems (ADAS) and the fast expanding use of robot taxis will significantly boost industry revenue growth in the future.
Market Dynamics
Drivers
With the aid of cutting-edge technology, the usage of AI-based camera systems for self-driving applications has proven helpful for a better customer experience while ensuring the safety of the passengers. The advancement of self-driving modular technologies that enable OEMs to choose the technology is critical for market growth. Technological advancements in the automotive sector influence people to select these alternatives. The growth of connected automobile technology and dynamic mobility applications is another important aspect of the market growth.
Restraints
Vehicles that are autonomous or self-driving require a number of fundamental infrastructures, such as clear, well-kept highways, lane marking, lane centering, and GPS connectivity. Automobiles cannot access cloud data due to the lack of network connectivity on highways. In developing countries, compared to emerging ones like Mexico, Brazil, and India, the expansion of IT infrastructure on highways is slower. The expansion of the worldwide autonomous vehicle market is constrained by inadequate infrastructure outside of urban regions and by poor driving habits or instruction.
Opportunity
Due to the exponential growth in the development of autonomous vehicles, many countries have passed legislation and regulations about infrastructure connectivity technologies. In relation to the next generation of autos, these regulations are meant to address security, privacy, liability, and safety. In China, for instance, the Ministries of Public Security, Industry & Information Technology, and Transport have all released laws governing the administration of autonomous vehicles for preliminary road testing. The main objectives are to incorporate autonomous driving into the overall national policy and to restructure the economy favoring a high-tech industrial model that includes autonomous vehicles and related technology.
Market Segmentation
By Type
On the basis of type, the autonomous car market is segmented into fully autonomous and semi-autonomous.
The semi-autonomous car segment ruled the entire market with the largest revenue share. Levels 1, 2, and 3 are the subdivision of semi-automatic and self-driving care on the basis of the degree of automation. Level 2 & 3 segments will expand at the fastest growth rate. The semi-autonomous car has a variety of ADAS features like adaptive cruise control, intelligent park assist, and others.
By Vehicle Type
On the basis of vehicle type, the autonomous cars market is segmented into passenger cars and commercial vehicles.
The passenger car segment held a maximum position in the market. The tremendous increase of automakers internationally, along with expanding urban populations, a booming population, increasing living standards, and rising purchasing power, are the main forces behind the automobile industries. Also, several governments and organizations invest a lot of money in developing cutting-edge features for the automotive industry. The increased need for cars with more comfort, convenience, and safety features is drawing a lot of attention to automated vehicles.
Regional Overview
North America dominates the market for self-driving cars because of its strong government support and positive consumer acceptance. In 2021, North America held the largest market position, with 45.5% of the revenue share. The Asia-Pacific area will experience substantial growth due to the introduction of driverless cars into the North American market and the increase in government funding by various countries to develop self-driving cars over the projection period. Per a study, the connected vehicle infrastructure’s explosive growth in the market will expand the autonomous car market in the upcoming years.
Key Players
- Microsemi Corporation
- Voxx International Corp.
- Texas Instruments
- Ficosa International SA
- Nxp Semiconductors
- Google LLC
- Uber Technologies, Inc.
- Nissan Motor Company
- Honda Motor Co., Ltd
- Volvo Car Corporation
- General Motors Company
- Ford Motor Company
- Daimler AG
- BMW AG
- Volkswagen
- Tesla, Inc.
- Toyota
- Waymo
- Audi AG
- General Motors
In 2021, the market for autonomous cars was worth USD 25.14 billion, and it will reach USD 196.97 billion by 2030, growing at a 25.7% CAGR during the forecast period. During the forecast period, government funding, a supportive regulatory environment, and investments in digital infrastructure will positively influence demand for autonomous cars.