AUTONOMOUS VEHICLE MARKET ANALYSIS

The global autonomous vehicle market size was valued at US$ 104.47 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 39.9% from 2023 to 2030.  The autonomous vehicle market is undergoing significant developments due to increased collaboration between automotive and electronics companies. Increasing R&D expenditure on development of autonomous vehicles is also expected to drive growth of the global autonomous vehicle market in the coming future.

Global Autonomous Vehicle Market: Regional Insights

North America is projected to show significant growth in the global autonomous vehicle market over the forecast period. This growth can be attributed to increasing growth of mobility as a service sector. Moreover, the region is likely to show strong growth due to amendments in traffic regulations in the U.S. for incorporating autonomous cars on public roads. The adoption of these regulations is increasing all over the country, which will lead to complete autonomous transportation in the country. Such factors are thus expected to fuel growth of the market across the region.

Asia Pacific is also anticipated to exhibit substantial growth in the global autonomous vehicle market during the forecast period, owing to rise in demand for an efficient, convenient, and safe driving experience, stringent safety regulations, and increasing disposable incomes in developing countries across the region. Moreover, rise in partnerships adopted by market players providing self-driving/autonomous car technology in the region is also driving growth of the market in Asia Pacific.

Figure 1. Global Autonomous Vehicle Market Share (%), By Region, 2022

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Global Autonomous Vehicle Market Drivers:

• Increasing need for road safety to boost growth of the market: Increasing number of road accidents all over the world is creating a strong need for road safety. As per the Association for Safe International Road Travel (ASIRT), road accidents cause more than one million deaths every year. The primary cause of these accidents are human error occurring in an uncertainty of events; such as head-on collision caused due to driver’s misinterpretation. These accidents could also occur owing to part or machine failure such as breakage of axles or brake failure. Thus, the need for road safety is increasing all over the world, which in turn is expected to propel growth of the global autonomous vehicle market over the forecast period.
• Higher energy savings by autonomous vehicles to fuel the market growth: The efficiency of cars as compared to human drivers is increasing due to rise in development of autonomous cars integrated with artificial intelligence (AI). Autonomous vehicles are capable of providing enhanced real-time traffic updates, improved, telematics and connected cars, and can change routes accordingly on their own. Thus, these vehicles will be highly efficient as they world limit the waste of fuel at traffic jams. This factor is further expected to boost growth of the global autonomous vehicle market over the forecast period.

Global Autonomous Vehicle Market Opportunities:

• Rise in technological developments by OEMs for autonomous vehicles is expected to offer growth opportunities in the global autonomous vehicle market over the forecast period. OEMs are increasingly focusing on technological developments aimed at providing enhanced features while cutting down on the cost. This in turn is driving the demand for autonomous cars. With advancements around driver assistance, security, convenience and comfort, power train, electrical suspension, instrumentation, safety, and braking of autonomous vehicles is driving their demand. As a result, the market is witnessing multiple opportunities.
• Novel business modules for insurance companies is also creating growth opportunities in the global autonomous vehicles market. With growing emergence of autonomous vehicles, innovation of automobile insurance is also growing all over the world. Conventional automobile insurance is secured by vehicle owners. For instance, car owners have to insure their vehicles to prevent loss against accidents. According to research, human error cause more than 90% of car errors. Due to this, insurance companies offer aid in terms of monetary benefits. Thus, such new business models for insurance companies are creating multiple opportunities in the market.

Global Autonomous Vehicle Market Trends:

• Adoption of various growth strategies by market players is a major trend: Major players in the global autonomous vehicle market are adopting collaborations and development of new solutions to boost their competitive edge in the market. For instance, in August 2019, Audi entered into partnership with BMW and Daimler for development of an advanced driving system. With such collaborations, companies can create highly functioning autonomous vehicles with autonomous parking and driving.

• Supportive regulations by governments are trending in the market: With increasing development of autonomous vehicle, governments of several countries are establishing regulations and laws related to the technology. These rules and regulations are for addressing liability, safety, security, and privacy associated with the new-wave automobiles. Governments are introducing regulations to administer road testing of autonomous vehicles. Such regulations are anticipated to support development of autonomous vehicles. This trend is likely to continue in the market, further driving growth of the market in the coming future.

Global Autonomous Vehicle Market Restraints:

• Concerns around cyber-security and vehicle safety to limit the market growth; Autonomous vehicles work on cyber-physical systems as they comprise both virtual and physical world elements. The physical system of these vehicles consist the car and all other mechanical components. In virtual systems of these cars, AI-based systems that provide assistance in driving, such as navigation, cloud connectivity, and car-to-car communication. Thus, connectivity used in these vehicles poses threat to the security of autonomous vehicles. This factor in turn is expected to hinder growth of the global autonomous vehicle market over the forecast period.
• Lack of infrastructure in emerging nations to obstruct the market growth: Technological innovations, policies and regulations, infrastructure, and adoption by customers are the main pillars of autonomous vehicles. The autonomous vehicles depend on constantly maintained road infrastructure, updated maps, road signs, or updated navigation systems. Several emerging countries such as Brazil, Mexico, and India lack infrastructure required for these vehicles. As a result, the adoption of these vehicles is limited in underdeveloped regions. This factor is likely to impede growth of the global autonomous vehicle market over the forecast period.

Figure 2: Global Autonomous Vehicle Market Share (%), By Application, 2022

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Global Autonomous Vehicle Market Segmentation:

• The global autonomous vehicle market report is segmented into Application.
• Based on Application, the market is segmented into Transportation (Commercial, Industrial), and Defense. Out of which, Transportation is expected to dominate the global market over the forecast period and this is attributed to the increasing adoption of autonomous vehicles in transportation. For instance, in December 2019, Baidu, an internet-related product and service provider announced to have secure 40 licenses which will help it to enable test of driverless cars. With increasing technological advancements and increasing adoption of autonomous vehicles in industrial sector is also driving growth of this segment.
• Defense segment is also expected to witness significant growth in the near future and this is owing to the growing initiatives by governments around the world towards development of autonomous vehicles for defense sector. For instance, in March 2020, Sikorsky in collaboration with the U.S. Defense Advanced Research Projects Agency (DARPA) announced testing of autonomous flight software on S-70 Black Hawk and S-76 commercial helicopters.

Global Autonomous Vehicle Market: Key Developments

• In August 2020, Audi AG entered into partnership with FAW. This partnership is aimed at expansion of Audi’s production of autonomous fully electric cars.
• In November 2020, BMW AG opened a novel research and development center with FIZ Projekthaus Nord. With this novel R&D center, the company aims at expansion of its R&D network for future of cars.
• In October 2020, Daimler AG, and Waymo entered into an agreement of global strategic partnership for advancement of technology movement in autonomous vehicle sector.
• In February 2021, General Motors invested US$ 100 Mn in the U.S. manufacturing plants. With this initiative, the company plans to boost its truck transmission capacity.

Global Autonomous Vehicle Market: Key Companies Insights

• Audi AG
• BMW AG
• Daimler AG (Mercedes Benz)
• Ford Motor Company
• General Motors
• Google LLC
• Honda Motor Corporation
• Nissan Motor Company
• Tesla, Inc.
• Toyota Motor Corporation
• Uber Technologies, Inc.
• Volvo Car Corporation
• Volkswagen AG

*Definition: An autonomous vehicle (AV) is a motorized vehicle that can perform driving tasks without the need for human control. The driving tasks can include steering, acceleration, and braking. The AV can also detect, classify, and avoid static and moving obstacles in its environment. It can even communicate with other vehicles to determine the safest path.