The Global autonomous car market was valued at USD 24.1 billion in 2022 and is expected to reach USD 66.5 billion by 2030, growing at a CAGR of 22.5% during the forecast period.

The market growth is attributed to various factors such as increasing demand for safety features in vehicles, rising investment in autonomous vehicle technology, and the development of smart infrastructure. Additionally, the increasing popularity of ride-sharing services is also driving the growth of the autonomous car market.

Geographically, North America is expected to dominate the market during the forecast period due to the presence of key market players and increasing government initiatives to support the adoption of autonomous vehicles. However, the Asia-Pacific region is expected to witness significant growth due to the increasing demand for luxury vehicles and the growing popularity of ride-sharing services in the region.

Market Dynamics

Driving Factors

There are several driving factors that are fueling the growth of the global autonomous car market. Some of these include:

Development of smart infrastructure: The development of smart infrastructure such as intelligent transportation systems (ITS) and smart cities is also driving the growth of the autonomous car market. These systems are designed to provide real-time data about traffic conditions, road closures, and other important information that can help autonomous cars navigate more effectively.

Popularity of ride-sharing services: The growing popularity of ride-sharing services such as Uber and Lyft is also driving the growth of the autonomous car market. These services require a large fleet of vehicles, and autonomous cars are seen as a cost-effective and efficient way to provide these services.

Government support and initiatives: Several governments around the world are supporting the development and adoption of autonomous vehicles through funding and regulatory support. This is further driving the growth of the market.

Restraining Factors

While there are several driving factors that are fueling the growth of the global autonomous car market, there are also some restraining factors that are hindering the growth of the market. Some of these include:

Cybersecurity concerns: With the increasing use of autonomous technology, cybersecurity concerns are becoming a significant issue. Hackers could potentially gain access to autonomous vehicles' control systems, leading to safety risks for passengers and other road users.

Legal and regulatory challenges: The legal and regulatory challenges associated with autonomous cars can be a restraining factor for their growth. Different countries and regions have different regulations and laws related to autonomous cars, and navigating these legal and regulatory challenges can be difficult.

Consumer acceptance: Consumer acceptance of autonomous cars is another restraining factor for the growth of the market. Many consumers are still skeptical about the safety and reliability of autonomous technology and may be hesitant to adopt it until they are more confident in its capabilities.

Challenges Factors

The development and adoption of autonomous cars face several challenges, some of which are:

Ethical considerations: Autonomous cars rely on algorithms to make decisions in real-time situations, raising ethical considerations. For instance, in situations where a car has to make a choice between the safety of the passengers and the safety of pedestrians, ethical dilemmas may arise.

Legal and regulatory framework: The development of autonomous cars requires a legal and regulatory framework that is not yet in place in many countries. Regulations need to be established to ensure the safety of passengers and other road users, and liability issues need to be addressed.

Consumer acceptance: The adoption of autonomous cars depends on consumer acceptance, which can be a significant challenge. Consumers may have concerns about the safety and reliability of autonomous technology, leading to resistance in adopting autonomous cars.

Cybersecurity risks: As autonomous cars become more connected, the risk of cyber attacks increases. Ensuring the cybersecurity of autonomous cars is a critical challenge that needs to be addressed to prevent malicious attacks.

Infrastructure challenges: Autonomous cars require a robust infrastructure to operate effectively. This includes smart highways, charging stations, and other necessary infrastructure, which may not be in place in many areas. The cost of building this infrastructure may also be a challenge in developing countries.

Opportunity Factors

The development and adoption of autonomous cars also present several opportunities for various stakeholders. Some of these include:

Improved safety: Autonomous cars can significantly reduce accidents caused by human error, thereby improving road safety.

Increased efficiency: Autonomous cars can reduce traffic congestion and improve traffic flow, leading to increased efficiency in transportation.

New business models: The adoption of autonomous cars can lead to the development of new business models in transportation, including ride-sharing and on-demand mobility services.

Improved accessibility: Autonomous cars can provide better access to transportation for individuals who are unable to drive due to age or disabilities.

Reduced environmental impact: Autonomous cars can reduce carbon emissions and improve the environmental impact of transportation by optimizing driving behavior.

Growth of new industries: The development and adoption of autonomous cars can lead to the growth of new industries, such as autonomous technology development, sensor manufacturing, and smart infrastructure development.

Improved urban planning: The use of autonomous cars can lead to improved urban planning, including the development of smart cities and the reduction of the need for parking spaces.

Segmentation Analysis

Component Outlook

The hardware segment includes components such as sensors, cameras, LiDAR, RADAR, GPS, and other electronic components. These components are essential for the functioning of autonomous cars and play a crucial role in the safety and reliability of autonomous technology.

The software segment includes algorithms, artificial intelligence, machine learning, and other software components that are required for the functioning of autonomous cars. The software is responsible for processing data collected by sensors and making decisions in real-time situations.

The services segment includes maintenance and support services, consulting and training services, and other related services that are required for the development and adoption of autonomous cars. These services are essential for the efficient operation and maintenance of autonomous cars.

The hardware segment is expected to hold the largest share of the market due to the critical role of hardware components in the functioning of autonomous cars. The increasing demand for sensors and other electronic components required for the functioning of autonomous cars is expected to drive the growth of the hardware segment.

The software segment is expected to grow at the highest rate due to the increasing demand for advanced algorithms, artificial intelligence, and machine learning technologies that are required for the functioning of autonomous cars. The software is responsible for processing data collected by sensors and making decisions in real-time situations, making it a critical component in the development of autonomous cars.

The services segment is also expected to grow at a significant rate due to the increasing demand for maintenance and support services required for the efficient operation of autonomous cars. As the number of autonomous cars on the roads increases, the demand for consulting and training services is also expected to grow.

Mobility Outlook

The commercial mobility segment is expected to grow at a significant rate due to the increasing demand for on-demand mobility services, such as ride-sharing and delivery services. The development of smart cities is also expected to drive the growth of the commercial mobility segment as the adoption of autonomous public transportation increases.

Overall, both the personal and commercial mobility segments present significant opportunities for the development and adoption of autonomous cars. The growth of the personal mobility segment is expected to be driven by the increasing availability of self-driving cars, while the growth of the commercial mobility segment is expected to be driven by the increasing demand for on-demand mobility services and the development of smart cities.

Regional Analysis

North America is expected to hold a significant share of the market due to the presence of major autonomous car manufacturers, such as Tesla, General Motors, and Ford, in the region. The increasing demand for self-driving cars and the development of smart cities are expected to drive the growth of the market in North America.

Europe is expected to grow at a significant rate due to the increasing adoption of autonomous cars and the development of smart transportation infrastructure in the region. The presence of major automakers, such as BMW and Mercedes-Benz, is also expected to drive the growth of the market in Europe.

Scope Of Report:

The Global Autonomous Car Market has been segmented into:

By Component

• Camera Unit
• LiDAR
• Radar Sensor
• Ultrasonic Sensor
• Infrared Sensor

By Mobility

• Shared Mobility
• Personal Mobility

By Electric Vehicle

• Battery Electric Vehicles 
• Hybrid Electric Vehicles
• Plug-in Hybrid Electric Vehicle
• Fuel Cell Electric Vehicle

By Mode of Purchase

• Prescribed
• Non-prescribed (OTC)

By Distribution Channel

• Institutional Sales
• Retail Sales

By Region

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • UK
  • Nordic Countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Market Players 

The global autonomous cars market is highly competitive and fragmented, with numerous players vying for market share. Some of the key companies in the market are:

• General Motors
• Ford
• Daimler
• Volkswagen 
• Toyota
• Waymo

Waymo LLC is a subsidiary of Alphabet Inc. (Google), which is a leading technology company that has been developing self-driving car technology for several years.

Tesla is a leading electric vehicle manufacturer that has also been developing autonomous car technology, with its Autopilot feature being one of the most well-known. General Motors Company is a major automotive manufacturer that has been investing heavily in autonomous car technology, with its Cruise division working on developing self-driving cars.

Uber is a ride-sharing company that has been investing in autonomous car technology in order to reduce costs and increase efficiency. Ford Motor Company is another major automotive manufacturer that has been investing in self-driving car technology, with its Argo AI division working on developing autonomous cars.

Baidu is a Chinese technology company that has been developing autonomous car technology, with its Apollo platform being one of the most well-known. Intel is a major technology company that has been investing in autonomous car technology, with its Mobileye division developing advanced driver assistance systems (ADAS) and autonomous driving technology.

Strategic Developments

In March 2021, Waymo announced a partnership with Jaguar Land Rover to develop autonomous cars using Waymo's self-driving technology.

In January 2021, Cruise, a subsidiary of General Motors, received a $2 billion investment from Microsoft, Honda, and other investors to develop self-driving cars.

In July 2021, Ford and Argo AI announced a partnership with Lyft to launch a self-driving ride-hailing service in Miami and Austin.

In March 2021, Intel announced a partnership with the Israeli tech company Mobileye to develop self-driving car technology.

In September 2020, Nvidia announced that it was acquiring Arm, a British chip designer, for $40 billion in order to develop its artificial intelligence and autonomous driving capabilities.

In January 2021, Baidu and Geely announced a partnership to develop autonomous driving technology and smart cars.

Aptiv and Hyundai: In September 2020, Aptiv announced a partnership with Hyundai to develop autonomous driving technology and a joint venture to produce self-driving cars.