Autonomous Vehicle Market Size, Share, Industry, Forecast and outlook (2024-2031)

Autonomous Vehicle Market Overview

The Global Autonomous Vehicle Market reached USD million in 2022 and is expected to record significant growth by reaching up to USD million by 2030, growing at a CAGR of  35.7% during the forecast period (2023-2030). The ability to sense its surroundings enables an autonomous or driverless vehicle to drive itself and carry out critical tasks without the assistance of a human.

An autonomous vehicle uses a completely automated driving system to respond to external conditions like a human driver. There are six levels of automation and as the levels rise, so does the degree of the autonomous car's operational independence.

Autonomous Vehicle Market - Strategic Insights

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Source: DataM Intelligence Analysis (2022)

Autonomous Vehicle Market Dynamics

The growing demand for road safety is the major market driver for global autonomous vehicles. However, the high cost of testing procedures could be a major market restraint.

Growing road safety concerns

There may be certain benefits when comparing autonomous vehicle technology to human-driven vehicles. One such possible benefit is that they may boost road safety. Vehicle accidents claim many lives yearly, but automated vehicles may result in fewer fatalities because the software used within them is likely to perform more accurately than human drivers. Another benefit that autonomous vehicles may offer is reduced traffic congestion brought on by fewer accidents. The respective fact can also be accomplished via autonomous driving by eliminating human actions that clog up the road, particularly stop-and-go traffic. The ability to sleep during overnight trips and remove driver tiredness are other benefits of autonomous vehicles. Another potential benefit of automated driving is that it may allow those unable to drive due to age or disabilities to use automated automobiles as more convenient modes of transportation. The respective factors act as major global autonomous vehicle market drivers.

High cost of testing procedures

High-tech infrastructure, incredibly expensive lidar and radar equipment and pricy contracts with cloud computing and mapping companies are all necessary for autonomous vehicles. According to data made public by Volkswagon, most consumers would not be able to purchase a self-driving car because the initial investment would probably exceed USD 100,000. Before the typical individual owns one, it might take a long time. BMW and Daimler also disclosed that level 3 and above autonomous vehicles require a separate investment in technology. For so-called Level 3 cars, the sensors, CPUs and software already cost roughly USD 56460 (50,000 euros ).

Although substantial progress has been made in lowering the cost of manufacturing autonomous vehicle implements, these reductions are still too high for the typical family to find them a financially viable option. Before they become a regular occurrence within the grasp of the middle class, it will take some time. Therefore, a significant market barrier is the high cost of autonomous vehicles.

COVID-19 Impact on Autonomous Vehicle Market

The COVID-19 epidemic has brought about a great deal of change in our daily lives; therefore, the automotive and transportation sectors are keeping an eye on how shifts in consumer behavior may affect the adoption of autonomous vehicle (AV) technology across all sectors of the economy and daily life. Numerous OEMs have had an impact on COVID-19 activities, including production and R&D. Although AV development and roll-outs may experience a short-term disruption, this disruption may open up new opportunities for AV technology adoption within consumer segments and speed adoption in various commercial segments because AV technology is seen as a crucial part of responding in times of emergencies and uncertainty.

Nonetheless, COVID-19 is altering customer perceptions of public transportation in ways that could eventually be advantageous for AV technology. Customers have mostly stayed at home as the pandemic has spread over the world, either out of choice or due to local regulations. A recent McKinsey survey found that half of the consumers believe they are open to extending their use of private vehicles beyond traveling to safely connect with the outside world, such as for drive-in movie theatres. According to the survey, consumers value constant access to a private vehicle more than before COVID-19.

OEMs may be putting AV development on hold due to customer reluctance to buy new cars, but the possibility of AV adoption by logistics firms, delivery services and the food service sector might give OEMs and other AV participants the market demand they need to advance AV technology. As a result, if COVID-19 may have halted AV technology research and postponed customer purchases of new cars, it has also raised the possibility of AV technology acceptance in the future.

Autonomous Vehicle Market Segment Analysis 

The global autonomous vehicle market is classified based on system, component, mobility type, level of autonomy, propulsion type, vehicle type, application and region.

The growing need for safer and more effective driving systems in passenger car allow the respective segment to grow at a fast pace

The growing need for safer and more effective driving systems encourages the development and widespread use of autonomous and semi-autonomous passenger vehicles. According to data, 5,59,08,989 passenger cars were produced globally in 2021, which grew to 5,70,54,295 in 2022. Similarly, passenger car sales rose from 5,39,17,153 units in 2021 to 5,63,98,471 units in 2022. In Q1 2022, for instance, the Tesla Model S topped the list with 159,470 sales, a 29 percent market share and a 22-spot increase. 

Numerous technological developments have created a favorable atmosphere for the respective segment’s expansion in the market. Additionally, the abundance of passenger vehicles has increased the demand to improve the driving experience and is encouraging the use of autonomous technology in the passenger vehicle segment.

Source: DataM Intelligence Analysis (2023)

Global Autonomous Vehicle Market Geographical Share

Well-established clusters of automotive businesses and the presence of leading tech corporations are anticipated to create profitable growth prospects for the autonomous vehicle market in North America

North America will dominate the autonomous vehicle market during the projected period. The area has been a pioneer in autonomous vehicles due to well-established clusters of automotive businesses and housing some of the leading tech corporations in the world, including Apple, Google and Microsoft. In U.S., self-driving vehicles have already been tested and used in Arizona, Washington, Michigan and others. However, their mobility currently is restricted to specific test sites and driving conditions.

For instance, Honda and Verizon stated in April 2022 that they collaborated at MCity to investigate Verizon's 5G Ultra-Wideband and 5G Mobile Edge Compute (MEC). The firms are experimenting with how the Honda SAFE SWARM, which uses Verizon 5G Ultra-Wideband and MEC, can lessen the need for AI in each car. Therefore, the advancements are expected to be advantageous for the North American region, which is anticipated to have stable demand for autonomous vehicles during the projected period.

Source: DataM Intelligence Analysis (2022)

Autonomous Vehicle Companies and Competitive Landscape

Though the global autonomous vehicle market is a growing market and it is extremely competitive and filled with several major players such as AB Volvo, BMW AG, Daimler AG, Ford Motor Company, General Motors, Honda Motor Co., Ltd., Nissan Motors Co., Ltd., Tesla, Inc., Toyota Motor Corporation and Volkswagen AG. The market stakeholders use market tactics such as mergers, acquisitions, product launches, contributions and collaborations to gain a competitive advantage and recognition in their respective markets.

Tesla, Inc.

Overview: Tesla, Inc., formerly known as Tesla Motors, is an American producer of electric vehicles, solar energy systems and batteries for autos and household energy storage. In honor of Serbian American inventor Nikola Tesla, it was established in 2003 by American businessmen Martin Eberhard and Marc Tarpenning. In 2017, current CEO Elon Musk took charge. The initial public offering of Tesla in 2010 generated about USD 226 million.

Product Portfolio: 

• Autopilot: The most difficult aspects of driving are made easier by the enhanced safety and convenience features of Autopilot. Over time, Autopilot adds new capabilities and enhances current ones to make Tesla vehicles safer and more capable. Autopilot allows vehicles to steer, accelerate and halt autonomously within their lane. The current Autopilot functions necessitate constant driving attention.

Key Development:

• Tesla Inc. announced on November 25, 2021, that after previously restricting automatic driving, the company is now making it accessible to all customers in North America.

Why Purchase the Report?

• To visualize the global autonomous vehicle market segmentation based on system, component, mobility type, level of autonomy, propulsion type, vehicle type, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the global autonomous vehicle market by analyzing trends and co-development. 
• Excel data sheet with numerous data points of autonomous vehicle market-level with four segments.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping available as excel consisting of key products of all the major market players.

The global autonomous vehicle market report would provide approximately 93 tables, 112 figures and almost 256 pages.

Application Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies