Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Market Insight- Global Autonomous Car Market
An autonomous car or a self-driving car or driverless car is a vehicle capable of sensing the environment and moving safely with little to no human intervention. An autonomous car can go anywhere, similar to a conventional car, and do everything that an experienced human driver does. These cars combine various types of sensors to perceive surroundings such as GPS, LIDAR, sonar, radar, and inertial measurement units. These cars also rely on actuators, algorithms, machine learning systems, and powerful processors to execute software. Furthermore, they are equipped with advanced control systems to interpret sensor information, in order to identify suitable navigation path and also obstacles and relevant signage.
The global Autonomous Car Market is estimated to account for US$ 0.6 Mn in terms of value in 2025 and is expected to grow at CAGR of 47.5% for the period 2025-2035
Market Dynamics- Drivers
- Enhanced safety offered by these vehicles is expected to drive growth of the global autonomous car market during the forecast period
Technological advancements in autonomous cars have the capability to save an enormous amount of lives each year that are lost in traffic accidents and fatalities due to human error in judgment. According to the International Organization for Road Accident Prevention (OICA), that human error accounts for 90% of road accidents worldwide. Adoption of autonomous cars can minimize the number of road accidents and make streets safer by automating safety features and reducing dependency on human intervention. Thus, this factor is expected to drive the global autonomous car market growth during the forecast period.
- Seamless connectivity offered by driverless cars is expected to propel the global autonomous car market growth over the forecast period
Intelligent sensing technology is deployed in autonomous cars, which allows cars to travel close together. This, in turn, allows more cars on the road with less traffic and minimized congestion. Furthermore, these cars use vehicle-to-vehicle connectivity thereby staying in sync with one another at the same time identifying traffic flow and optimum speed to maximize fuel efficiency. These features provide a smarter and seamless experience for passengers. Hence, these factors are expected to propel the global autonomous car market growth over the forecast period.
North America region dominated the global xyz market in 2025, accounting for 33.2% share in terms of value, followed by Europe, Asia Pacific, Middle East and South America respectively
Source: Coherent Market Insights
Market Dynamics- Restraints
- Ambiguous laws and regulations regarding the use of autonomous cars are expected to restrain growth of the global autonomous car market during the forecast period
Different companies around the world are approaching autonomous cars in their own ways, which makes it difficult to have standardized policies and regulations related to the same. Similarly, for global adoption of autonomous cars, a universally accepted regulatory framework is required. However, there are different regulatory policies in different states for the use of autonomous cars. Thus, the major ambiguities in laws and regulations regarding the use of autonomous cars are expected to hamper the global autonomous market growth in the near future.
- Inappropriate use of technology is expected to hinder the global autonomous car market growth over the forecast period
Technological advancements in autonomous cars have opened new paths for the misuse of technology such as hacking and ransomware, which ultimately puts passengers’ lives in danger. Some cases have shown that hackers in controlled environments have been able to take partial or full control of autonomous cars by exploiting their vulnerabilities. Furthermore, majority of auto manufacturers and some leading IT companies are working on autonomous cars that use vehicle-to-vehicle communication. This, in turn, has necessitated standardization of security platforms to reduce possible cyber-security-related risks. Thus, these factors are expected to hinder the global autonomous car market growth over the forecast period.
- Autonomous cars with enhanced functionalities can present lucrative growth opportunities
Autonomous cars are installed with advanced technology such as high-tech sensors and software. These sensors and technology can be used to enable medical applications too. The sensors onboard a car can read vitals and send them to hospitals for diagnosis in the event of emergency. This has allowed more and more autonomous cars to have medical applications in the near future. Similarly, the autonomous cars of the future are expected to make use of the car’s hardware and software to deliver entertainment applications. The hardware and software of cars, such as windshields and control consoles, can be used to project images and videos.
- Transition from car ownership to mobility-as-a-service is expected to provide major business opportunities
Since car prices have increased significantly in the recent past, the trend of mobility-as-a-service has emerged in the global market. Ride-hailing companies such as Uber, Lyft, Cabify, Ola, DiDi, and others have started testing autonomous cars in their fleet. Ride-hailing companies have gained significant traction in the global market, especially in emerging economies. According to Transport Department, the Government of India, the number of cabs in Bangalore increased to 166,000 in 2018 from 80,000 from 2015. Consumers are preferring cab services since it is cheaper than owning a car. Hence, integrating autonomous cars in terms of mobility-as-a-service is expected to provide excellent growth opportunities.
Source: Coherent Market Insights
- Increasing adoption of fuel-efficient cars
Growing concerns regarding air pollution and greenhouse gases combined with stringent regulations concerning CO2 emission have compelled carmakers to manufacture more efficient cars. According to Goldman Sachs, it is estimated that 25% of all cars sold by 2025 will have electric motors, a significant jump from today’s 5%. It is expected that majority of those will be hybrids, and among those cars, 95% of cars would still depend on traditional fuels for at least some portion of their power. This implies that advancement in internal combustion engines is required to make them more efficient and conform to new norms. The overall efficiency will significantly be improved with the development and advancement of alternative power sources such as fuel cells.
- Emergence of technology companies in automotive sector
Many software companies have entered into the automotive sector with autonomous cars being the major target. The consumer technology companies such as Google and NVIDIA have invested significantly in novel software and technologies for the automotive sector. Although these companies come from completely different product markets (from cell phones to cars), their technological expertise and concentrated activities on convenience, design, automated assistance, and battery life, would help bring in new sorts of advancements and innovations to the automotive sector.
In Global Autonomous Car Market, by Level of Automation, the Level 3 segment will dominate the global market in 2025, accounting for 71.1% share in terms of value, followed by Level 4, Level 2, Level 5 and Level 1 respectively.
Source: Coherent Market Insights
Key companies operating in the global autonomous car market are Waymo LLC, Tesla Motors, Inc., Bayerische Motoren Werke AG, Ford Motor Company, General Motors Company, The Volvo Group, Toyota Motor Corporation, Audi AG, Nissan Motor Co., Ltd., and Uber Technologies Inc.
- Key players operating in the market are focused on partnerships and collaborations, in order to gain competitive edge in the market. For instance, in January 2017, Nissan Motor Co., Ltd. partnered with DeNA, to begin testing driverless vehicles for commercial services.
- Major market players are involved in partnerships and collaborations, in order to enhance their market presence. For instance, in January 2017, Audi AG partnered with NVIDIA with a plan to have a semiautonomous car in late 2017 using NVIDIA tech and AI.