Global Autonomous Cars Market – Insights
Autonomous cars are also called as driverless cars, self-driving cars, robot car or autonomous vehicles (AVs) and are able to navigate a predetermined destination without the help of human guidance. These cars rely on a combination of advanced vehicle systems such as advanced driver-assistance systems (ADAS), advanced emergency braking system (AEBS), comprehensive vehicle tracking systems, remote controlled systems, and advanced vehicle to everything connectivity. These systems are expected to be nascent technological developments boosting growth of the autonomous cars market during the forecast period. Moreover, these technologies help to enhance vehicle performance and fuel efficiency, which is projected to increase consumer preference towards these cars. Growing smart city and connected infrastructure initiatives by government of various countries has led to increase in internet connectivity, road infrastructures, and highways, which will make the infrastructure suitable for autonomous cars, thereby boosting growth of the global autonomous cars market.
Global autonomous cars market is expected to witness significant growth during the forecast period (2018–2026). The market growth for autonomous cars is majorly attributed to increasing disposable income.
The major restraining factor for the global autonomous cars market is high cost of embedded systems in these cars and certain limitations. For instance, airbags used in these cars inflate just once on impact, after which they need to be replaced. Moreover, these airbags are expensive.
Figure 1. Global Autonomous Cars Market Share (%), by Region (2017 & 2026)
Source: Coherent Market Insights, 2017-18
Increasing demand for safety, comfort, and convenience along with growing infrastructure is expected to aid in growth of the global autonomous cars market.
Automated embedded system play an important role in improving vehicle performance, driver and pedestrian safety, and offer effective emission control. Advanced safety and comfort systems include sensors and microcontrollers, which help to drive and navigate the car. Convenience system include features such as infotainment, electronic steering, automatic braking, collision avoidance, brake assist, driver warning, external airbags, and other embedded systems, which help to avoid crashing of car. These features of autonomous cars aid in growth of the global autonomous cars market.
Furthermore, increasing government investment on research and development activities to enhance infrastructure that is suitable for driving autonomous cars is expected to drive the market growth. For instance, Government of India allocated US$ 92.22 billion for infrastructure, according to the union budged 2018-2019. Growing internet availability and smart city concept is also expected to aid in the market growth.
Figure 2. Global Autonomous Cars Market Share (%), By Application (2017 & 2026)
Increasing demand for autonomous cars among passenger cars segment in North America is expected to drive the market growth.
North America held dominant position in the global autonomous cars market in 2017, and is projected to retain its dominance throughout the forecast period. This is owing to high demand for autonomous cars in the region. Asia Pacific is expected to be the fastest growing market throughout the forecast period, owing to rapid infrastructure development in emerging economies such as India and China. For instance, the Government of India launched ‘Smart City Mission’ in 2015 under which the Indian Government plans to develop 100 smart cities.
Major players operating in the global autonomous cars market include, General Motors Company, Alphabet, Inc., Volkswagen Group, BMW AG, Renault SA, Tesla, Inc., Aptiv, Plc., Audi AG, Hyundai Motor Company, Honda Motor Company, Ltd, Toyota Motor Corporation, Daimler AG (Mercedes Benz), Kia Motor Corporation, and others.