The global Autonomous Vehicle Market is highly lucrative and predicted to witness significant growth at a healthy CAGR over the forecast period (2016-2027), reveals the Market Research Future (MRFR) report.
Autonomous cars use technologies such as computer vision, GPS, lidar, and radar to sense the environment. These cars are integrated with advanced control systems that can interpret the sensory inputs to avoid a collision or detect the signboards.
Spurring market growth
As per the Market Research Future report, there are numerous factors that are propelling the autonomous vehicles market size. These include the demand for efficient and safe traveling options, supportive government policies and initiatives for self-driving technology, intensive research, and development activities to develop self-driving technology, and growing investments in auto-tech. Additional factors adding market growth include advances in lidar technology and widespread adoption of the ADAS platform.
On the contrary, concerns about safety and cybersecurity of user’s personal data, hesitation of consumers to fully accept autonomous cars, high cost of autonomous vehicle technology, and lack of infrastructure to support these cars in developing nations may deter the global autonomous vehicle market growth over the forecast period.
COVID-19 impact on the global autonomous vehicle market
Just as other industries, the on-going COVID-19 pandemic has hit the overall automotive industry, compelling automakers to cut-down the output at their production plants. In fact, the disruption in supply has prompted brands manufacturing passenger cars to reduce production in some areas. China being the chief contributor in the rapid development of the auto industry and a key contributor of different auto technologies and components to different countries, is impacted due to the strict restrictions on cross border trade which severely impacted the automobiles sales worldwide. These brands were working intensively on alternatives and countermeasures to minimize the impact. Autonomous vehicle dealers and manufacturers, however, have shifted their focus to online sales from the offline lead generation model. The initiative to engage with potential buyers with the help of digital channels will serve as a game-changer to the growth of the market. Amidst the crisis, the need for luxury cars is getting back to normal, and the autonomous vehicle market subsequently is picking up gradually.
The Market Research Future Report provides an inclusive analysis of the autonomous vehicles market based on hardware & software, sensors and types.
By type, the global autonomous vehicles market is segmented into fully autonomous vehicles and semi-autonomous vehicles. Of these, the semi-autonomous vehicles segment will lead the market over the forecast period.
By sensors, the global autonomous vehicles market is segmented into image, LIDAR, radar, ultrasonic, and others. Of these, the lidar segment will dominate the market over the forecast period.
By hardware & software, the global autonomous vehicles market is segmented into GPS systems, cameras, communication systems, and others.
North America to Command Largest Share in Autonomous Vehicles Market
By region, the autonomous vehicles research market covers growth opportunities and the latest trends across Europe, the Asia Pacific (APAC), the Americas, and Rest of the World (RoW). Of these, North America will command the largest share in the market over the forecast period. Demand for luxury autonomous cars, increasing sales of cars, issues related to vehicle safety, stringent government regulations, the constant rise in the auto industry, need for more automated cars, and amendments in traffic regulations in the United States to incorporate autonomous cars on public roads are adding to the global autonomous vehicles market growth in the region.
In Europe, the autonomous vehicle market is predicted to hold the second-largest share over the forecast period. Increase in R&D investments in luxury cars, rise in sales, the region being the global hub for high-end and expensive car manufacturers, rising consumer spending and preference on high-performance, lavish cars, the presence of reputable automotive industry, and growing adoption of autonomous cars are adding to the global autonomous vehicle market growth in the region. Besides, the growing preference for technologically advanced products and extensive investments by key manufacturers to develop advanced technologies, are also adding market growth.
The global autonomous vehicle market in the APAC region is predicted to have healthy growth over the forecast period. Increasing production and sales of luxury cars, the presence of well-established automobile industry, high technological advances, increasing adoption of autonomous cars, growing preference of consumers for technologically advanced features, the government of China working to attain a competitive advantage in self-driving vehicle technology, and permission of autonomous car testing on public roads under specific conditions and norms are adding to the global autonomous vehicle market growth in the region.
The autonomous vehicle market is competitive and fragmented due to the presence of many notable industry players. They initiate on partnerships and strategic collaborations to gain market share as well as accelerate the research activities. These players have also encompassed strategies such as brand reinforcement, innovation, collaboration, and M&A to gain a higher competitive share. The automotive manufacturers are also making collaborations with semiconductor device manufacturers, and technology solutions providers to gain technical expertise as well as reduce the overall production cost. These players, moreover, are making heavy investments to expand their R&D activities to accelerate the self-driving technology development.
- Bosch (Germany),
- Autoliv Inc. (Sweden),
- NXP Semiconductors N.V. (Netherlands),
- Infineon Technologies AG (Germany),
- ZF Friedrichshafen AG (Germany),
- Nvidia Corporation (U.S.),
- Renesas Electronics Corporation (Japan),
- Intel Corporation (U.S.),
- Continental AG (Germany), and
- Hitachi, Ltd. (Japan)