An autonomous car operates and performs necessary functions without human intervention due to its ability to sense its surroundings. For appropriate operation, the autonomous vehicle uses various technologies, including RADAR sensing, artificial intelligence (A.I.) software, and light detection and ranging (LiDAR).
In 2021, the market for the autonomous car was worth USD 25.14 billion. And by 2030 it will be worth USD 196.97 billion, growing at a 25.7% CAGR during the forecast period.
The market for autonomous vehicles will rise due to the increasing acceptance of ADAS. Due to the development of technology, including software algorithms, sensors, cameras, processors, and mapping. Also, as consumer and vehicle safety and security are becoming increasingly important. Automakers are adding ADAS into their vehicles, boosting the market for autonomous cars.
Market Dynamics
Drivers
.The market for autonomous cars is expanding due to the commercial and environmental benefits of autonomous cars. Since it can operate without a human passenger, it is useful for older individuals. And people with disabilities who cannot operate traditional cars or need extra support. In terms of dependence on automobiles, it will help individuals become more independent.
A significant factor driving up demand for autonomous vehicles is the public’s rising preference for environmentally benign modes of transportation. The deployment of autonomous vehicles can help unlock the full potential of automobiles, and autonomous vehicles may help reduce carbon dioxide (CO2) emissions. Factors like vehicle automation, vehicle electrification, and drive-sharing can reduce traffic congestion. Reduce transportation costs, improve livability and walkability, and free parking spots in urban areas.
Restraints
Improving the weather sensitivity of autonomous cars is currently the main focus of players working on the worldwide market. For instance, if a car is traveling in weather causing severe precipitation or through. A thick layer of snow, its efficiency may be dramatically reduced.
Opportunity
Autonomous cars operate without human intervention. These vehicles are being developed to lessen collisions caused by human error, minimize road congestion, and offer hassle-free transportation. The development of driverless automobiles will boost the spread of ride-sharing. The average wait time for a cab will decrease with the use of autonomous cabs from 5 minutes to just 36 seconds. According to Ohio University’s Future of Driving research report.
Market Segmentation
By Type
The semi-autonomous vehicles segment ruled the entire market. Levels 1, 2, and 3 are the different levels of the semi-autonomous vehicle. Level 2 and level 3 automation in the semi-autonomous market category will grow fastest and support market growth. Level 1 automation has a strong acceptance rate, but level 2 and level 3. Automation have substantially higher market penetration rates because technology is advancing quickly.
By Vehicle Type
The passenger car segment held the majority of the market share. The tremendous increase of automakers, expanding urban populations, a booming population. Increasing living standards, and rising purchasing power are the main factor driving the automobile industries. Also, several governments and organizations invest a lot of money in developing cutting-edge features for the automotive industry. Automated vehicles are becoming increasingly popular as consumers seek better comfort, convenience, and safety features.
By Application
The transportation segment ruled the market in 2020 with 91% of the revenue share. The need for autonomous vehicles in transportation applications has been greatly sparked by the growing acceptance of electric and hybrid vehicles with varying levels of automation. Furthermore, the trend of autonomous vehicles in the category has been significantly enhanced by public awareness of. And government support for shared mobility in the business sector.
Regional Overview
In 2021, North America was the market leader, with 45.5% of the revenue share. This is because autonomous vehicles are now permitted to drive on public roads in the United States due to changes in traffic laws. The government is improving the road network to totally automate transportation. The primary element boosting the region’s growth is the government’s changes to the traffic laws to support autonomous vehicles on public roads.
Contrarily, due to a movement in customer preference towards automated products and a rise in the use of autonomous vehicles. Europe will become the most lucrative region for the market for autonomous cars. The U.K. Department of Transport declared in 2018 that autonomous car would be allowed on any public road without additional insurance or licenses. Also, the U.K. government has demonstrated its commitment to autonomous car. And plans to shift all on-road vehicles to autonomous ones by the year 2021 by enacting the required regulatory reforms.
Key Players
- Audi AG
- Waymo
- General Motors
- Tesla, Inc.
- Toyota
- Volkswagen
- Honda Motor Co., Ltd.
- Daimler AG
- BMW AG
- General Motors Company
- Uber Technologies, Inc.
- Ford Motor Company
- Volvo Car Corporation
- Nissan Motor Company
- Voxx International Corp.
- Google LLC
- Ficosa International Sa
- Nxp Semiconductors
- Texas Instruments
- Microsemi Corporation
In 2021, the market for the autonomous car was worth USD 25.14 billion. And by 2030 it will be worth USD 196.97 billion, growing at a 25.7% CAGR during the forecast period. The expansion of the market is driven by the rising demand for connected automobiles that use. The internet of things and the emergence of smart cities throughout the globe.
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