The Global Autonomous Car Market, by Level of Automation (Level 1, Level 2, Level 3, Level 4 and Level 5) and by Region (North America, Latin America, Europe, Asia Pacific, Middle East and Africa) - Global Forecast to 2035”, is expected to be valued at US$ 29.3 Million by 2035, exhibiting a CAGR of 47.5 % during the forecast period (2025-2035).
An autonomous car or driverless car or connected vehicle is a vehicle capable of sensing its environment and operating without human intervention. In layman’s terms, an autonomous car can guide itself without human input. Autonomous cars have been deemed as the cars of the future with inclusion of advanced technology such as machine learning, sensors, actuators, complex algorithms, SONAR, LIDAR, and GPS. Moreover, these cars are equipped with high-performing processors to execute specialized software. Sophisticated software installed in the autonomous car processes all sensory input, maps the path and sends instructions to the car’s actuators that control braking, acceleration, and steering.
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
Enhanced mobility for the geriatric population and disabled individuals is expected to boost the global autonomous car market growth over the forecast period
According to Coherent Market Insights’ analysis, countries including Japan, Italy, and Germany, where people over 65 years old or elderly account for more than 20% of the total population. This age group is more susceptible to slow responsiveness to myopia and other diseases. According to the National Highway Traffic Safety Administration, there has been an increase in accidents involving the elderly. The autonomous car can make driving for people of this age group a more independent and safer affair. Moreover, in countries such as the U.S., geriatric population is expected to boost the demand for autonomous cars. Disabled or handicapped individuals are among the most who are unable to drive, which in turn, is expected to increase the demand for these cars. Thus, these factors are expected to propel growth of the global autonomous market over the forecast period.
Growing adoption of autonomous cars by ride-hailing companies is expected to present lucrative growth opportunities
Leading ride-hailing or ridesharing companies such as Lyft Inc. and Uber Inc. have started testing autonomous cars in their fleets. For instance, in February 2020, Uber Inc. received to test self-driving cars on public roads across the state of California from the California Department of Motor Vehicles (DMV). High growth of ridesharing market combined with increasing demand for safe commute are expected to present significant growth opportunities for market players over the forecast period.
Lack of standardization regarding regulatory policies is expected to hamper the global autonomous car market growth during the forecast period
Although technologies in autonomous cars are rapidly evolving, lack of standard and universal regulatory policies is expected to hamper the market growth in the near future. Major players in the automotive and technology industry have chosen different approaches to develop autonomous cars, which has necessitated standardized laws and regulations. A universally regulatory framework is required to implement autonomous cars in all countries. Thus, unclear laws and regulations associated with the use of autonomous cars are expected to hinder the global autonomous car market growth over the forecast period.
New entrants from technology sector in the automotive industry
With software and other technologies taking the lead in autonomous cars, consumer technology companies like Google and NVIDIA are entering the automotive world. Though 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. One incentive for tech companies to enter the automotive sector is that electric vehicles utilize almost 1/3 of the parts used in conventional vehicles, which considerably brings down the barriers to entry.
Increasing adoption of fuel-efficient cars
Strict regulatory policies regarding emission of CO2 and fuel economy have enforced automakers to make engines more efficient. The overall efficiency will significantly be improved with the development and advancement of alternative power sources such as fuel cells, nonetheless, their affordability by mass-market still remains a concern. For instance, in Japan, for the advancement of such technology and vehicles, the government has set a price target of around US$ 18,000 for fuel cell vehicles by 2025. While such cars account for a small niche in global car sales, the target price would help them to be more competitive with popular hybrid cars.
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.