The Autonomous Vehicle Market size was valued at USD 87.5 billion in 2021, according to a report by Research and Markets, and is predicted to reach USD 614.9 billion by 2030 with a CAGR of 24.7% during the forecast period from 2022 to 2030.
Increasing demand for driverless cars is due to increased application of these vehicles in logistics industry along with the trend of ownership to Mobility-as-a-Service (MaaS). Also, rising demand of autonomous cars from military and defence sector along with rapid development of high-definition technology, adaptive algorithms, and high-processing sensor technologies is further driving the autonomous vehicle market growth.
However, high cost of servicing and risks related to complications such as malfunctions and failures are factors that restrain the growth of the market during the forecast period. On the contrary, adoption of smart features such as auto-braking and adaptive cruise control in these vehicles that allow reduction in accidents caused by human errors that in turn is expected to create lucrative opportunities for the market players in the future.
Advancements in Autonomous Technology and Demand for Safety Features
Several Strict Rules and Regulations Regarding Safety of AVs
AVs Reduce Traffic Congestion
Scarcity of Semiconductor Chips Across the World
Rising Demand for Electric Vehicles (EVs)
The Global Autonomous Vehicle market share is segmented on the level of automation, by propulsion type, by mobility and by component.
Based on Level of Automation, the market is classified into semi-autonomous and fully-autonomous. The semi-autonomous segment is further divided into level 1, level 2 and level 3.
Based on Propulsion Type, the market is classified into internal combustion engine (ICE), battery electric vehicles (BEV), hybrid electric vehicles (HEV), plug-in hybrid electric vehicle (PHEV), and fuel cell electric vehicle (FCEV).
Based on Mobility, the market is divided into personal mobility and shared mobility. Personal Mobility is further divided into hatchback, coupe & sports car, sedan, suv, and others. Shared Mobility is further categorised into robo taxi, self-driving bus, ride share, self-driving vans & trucks, and ride hail
Based on Component, the market is classified into ultrasonic, lidar, radar, vision system, GPS receiver, and others.
Based on Geography, the market is segmented into North America, Europe, Asia-Pacific, and RoW.
The Asia Pacific market is projected to hold the dominant share by 2030.
Asia Pacific holds the major share of the autonomous vehicle market share and is expected to continue its dominance during the forecast period. This is attributed to the factors such as increased level of vehicle automation along with supportive government initiatives for mandating driver assistance system to reduce road fatalities. Also, adoption of ADAS systems in small cars along with increased pace of technological innovation boost the market growth of AVs.
Mercedes launched SAE L3 drive pilot system. The system allowed drivers to hand over control to the vehicle and allows hands-free control on certain roads and at certain speeds. This launch is aimed at creating awareness regarding L3 driving that would increase the sales of vehicles equipped with L3 system.
BMW unveiled its new 7 Series with extensive ADAS. This new model will focus on core BMW strengths such as superior driving dynamics and combine them with improved passenger car comfort and equipment levels related to car connectivity and ADAS. Thus, this launch would help BMW to capture the market and increase their core sales.
AB Volvo had partnered with Aurora to reveal a prototype long-haul autonomous truck for the North American region. It was based on the Aurora driver technology with automotive sensors that detects the surroundings and makes it suitable for autonomous driving.
Ford Motor Company collaborated with Argo AI and Walmart to launch autonomous vehicle in major cities of US that includes Miami, Austin, Texas, and Washington, D.C. that provide service that use Ford self-driving test vehicles paired with the Argo AI self-driving system to deliver Walmart orders to the potential customers.