The Global Autonomous Vehicle Market Was Estimated USD 94.43 Billion In 2022 And Is Projected To Hit Around USD 1808.44 Billion By 2030, Poised To Grow At A CAGR Of 38.8% From 2023 To 2030.

Autonomous Vehicle Market Overview

"Autonomous vehicles," which are self-driving cars, are a big step forward in the car business. They have a lot of room to grow and speed up the progress of car technology. In the next few years, the growth of the market is likely to be driven by getting money from the government, making investments in digital infrastructure, and making rules that help the market grow.

Companies are making more self-driving cars because technology is getting better. For example, adaptive algorithms, sensor processing, high-definition mapping, and better infrastructure are all examples of how technology is getting better. A lot of different products and systems that can be bought on the market make up the infrastructure for self-driving cars. People who can't drive or have certain disabilities can use autonomous cars to get around on their own. It makes travelling more comfortable and gives people more freedom to read, sleep, or even work, which makes them more productive. It will also make it cheaper for businesses and taxis to hire drivers. People will be much more likely to buy these vehicles if they have other benefits, like making roads safer and allowing more people to use them for less money.

With the help of new technologies, a number of big players are working to make autonomous vehicles easier to use. In 2019, Volkswagen, the biggest automaker in the world, said it would work with Ford to invest in the AI company Argo AI. The goal of the partnership was to bring technology for self-driving cars to the US and Europe. The company has decided to spend more than $4 billion USD between now and 2023 to develop and improve its "self-driving" or "autonomous" services.

The self-driving car is made up of many sensors, like LiDAR and RADAR systems, that work together to do things on their own without a driver. These sensors help with navigation by analysing the situation, planning how to move, and controlling the path. Governments in places like the U.S., Germany, China, and Japan have started to use and accept self-driving cars because of rising safety concerns and improvements in car technology. Because of these things, the market is likely to grow over the next few years.

Market Dynamics

Market Drivers:

The Autonomous Vehicles Market is growing because unmanned vehicles have more benefits than traditional vehicles, such as a lower risk of car accidents, better safety and security, no need to pay a driver, better mobility for disabled people and people who don't drive, and more comfort and flexibility thanks to seamless operating systems.

"Semi-autonomous vehicles" are what the Society of Automotive Engineers (SAE) calls cars that can drive themselves at the level 1–3 level.

Most of the new cars made by Audi, BMW, and Mercedes-Benz come with level 1 automation as a standard feature. Level 2 automation is found in cars like the Volvo Pilot Assist, the Mercedes-Benz Drive Pilot, the Tesla Autopilot, and the Cadillac Super Cruise. The use of conditional automation is part of level 3 automation.

Market Opportunities:

The Autonomous Vehicles Market is growing because self-driving cars use less gas and don't get into accidents because of human mistakes. The growth of the Autonomous Vehicles Market is also helped by the fact that self-driving cars are becoming more popular in the auto industry and use less gas and battery power.

Sales of self-driving cars went up even though there was a pandemic. About 11,2 million level 2 cars will be sold in 2020, which is 78 percent more than in 2019. Automakers all over the world are making new models of level 2 autonomous cars to meet customer demand.

Market Restraints:

This supposed growth is being slowed down by a low number of new customers and the risk of hackers in the driving operation. On the other hand, because the parts for autonomous vehicles are expensive, the Autonomous Vehicles Market may not grow as much in developing or emerging countries.

Market Challenges:

Autonomous and semi-autonomous vehicles may not grow as quickly as they could because there isn't enough infrastructures to support them in developing countries, people are worried about cyber security and the safety of their personal data, and consumers aren't ready to accept fully autonomous vehicles.

Segment Overview

Based on the type of product, this market is divided into two groups: semi-autonomous and fully autonomous. Most of the market for cars around the world is in the semi-autonomous sector. Based on how much automation there is, the markets for semi-automatic and self-driving cars have been split up (at levels 1, 2, and 3, respectively). In the semi-autonomous sector of the market, level 2 and level 3 automation are expected to grow the most quickly. It has a moderate rate of acceptance right now, but because technology is getting better, its penetration rate is much higher than level 1.

Intelligent park assist and adaptive cruise control are two ADAS features found in semi-autonomous vehicles. Because of government rules about driver assistance systems, the intelligent park assist and automatic emergency braking subsegments are expected to grow the fastest in the market. The National Highway Traffic Safety Administration (NHTSA) says that by the end of 2022, most cars will have systems that automatically brake in an emergency.

Based on the type of mobility, it is expected that the commercial (shared) mobility segment will grow the most over the forecast period. Ride-sharing, robo-taxis, transporting goods, and other business operations are all part of the commercial mobility category. It is expected that the arrival of robo-taxis will cause new problems for people who own cars or use the "mobility as a service" model. New manufacturing technology is being used to make both traditional cars and robo-taxis. In robo-taxis, cars are put through more tests than big transport vehicles. Waymo was one of the first companies to charge for rides in its self-driving Waymo One car, which had a human driver as a backup. Chrysler has given Waymo tens of thousands of Chrysler Pacifica minivans. The goal of the agreement is to help companies that are building or working on robo-taxis come up with a new way to do business. AutoX and Optimus Ride are two startups that offer robo-taxis that drive themselves.

Level 4 and level 5 self-driving cars will be used to help people get around together. Several companies are now putting money into making robo-taxis and self-driving cars that can be used for ride-sharing, ride-hailing, robo-taxis, and car-sharing. A robo-taxi combines the benefits of an autonomous vehicle and an e-cab hailing service by running without a driver and focusing on Mobility as a Service (MaaS). It is expected to lower the costs of ownership and make it easier to manage a fleet. It would give people a way to get around that was safe, easy, and cheap. Many OEMs worked with autonomous driving system vendors and fleet management to set up robo-taxi services. Since most of the progress in the field of electric cars can be seen, the robo-taxi business may start with electric cars.

Regional Analysis

In 2020, the size of the market in Asia-Pacific was USD 0.72 billion. The region is the biggest in the world market because more and more people are buying these kinds of cars and because more and more people want high-tech features. Automotive companies are planning to build more factories in developing countries like India and China in order to make more cars and improve technology quickly.

• For example, in 2017, Baidu announced a plan to invest $1.5 billion to speed up the research and development of self-driving cars over the next three years.

Also, the Chinese government is working very hard to get ahead of the competition in self-driving vehicle technology. Also, governments in different countries are letting self-driving cars be tested on public roads as long as they follow certain rules.

Europe has the second-largest market share for self-driving cars because major manufacturers have spent a lot of money to develop new technologies. By the end of 2021, the British government plans to have self-driving cars on the roads. It plans to make the changes to the rules that are needed to help develop self-driving cars in the U.K.

Scope Analysis:

Recent Developments

• In January 2021 – Cruise and General Motors (G.M.) partner with Honda to expand autonomous vehicle mobility service

Honda announced its collaboration with G.M. and Cruise on self-driving vehicles for its autonomous vehicle mobility (MaaS) services business in Japan, based on development and commercial agreements signed in October 2018.

• July 2020 - Mobileye and Willer announce their partnership for autonomous mobility

Mobileye, an Intel company, announces its partnership with Willer, a transportation service provider. The collaboration plans to launch a self-driving robo-taxi service in Japan and the rest of Southeast Asia.

• February 2020 – Pony.ai announces it will raise US$400 million from Toyota to develop autonomous driving

Pony.ai, an autonomous driving company, raises $400 million from Toyota Motor Corporation to expand its partnership in mobility services. The collaboration will develop autonomous driving technologies and provide mobility services.

• August 2017 - Mobileye, Intel Corporation, BMW Group and Fiat Chrysler Automobiles have signed a memorandum of understanding to develop autonomous vehicles

Mobileye, Intel Corporation, BMW Group and Fiat Chrysler Automobiles jointly signed a Memorandum of Understanding (MoU) to develop the world's leading autonomous vehicle technology platform. The companies will support and leverage each other's resources, strengths and capabilities to make this partnership a global success.

Market Segmentation

This portion of the study on the Autonomous Vehicle Market gives detailed data on the segments at the country and regional level, thereby aiding the strategist in determining the target demographics for the relevant product or service and the impending opportunities.

By Component

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

By Electric Vehicle

• Battery Electric Vehicles (BEV)
• Hybrid Electric Vehicles (HEV)
• Plug-in Hybrid Electric Vehicle (PHEV)
• Fuel Cell Electric Vehicle (FCEV)

By Mobility Type

• Shared Mobility
• Personal Mobility

By Level of Autonomy  

• L1
• L2
• L3
• L4
• L5

By Vehicle Type              

• Semi-Autonomous
• Fully Autonomous

By Companies

• Delphi
• Ford Motors
• Tesla
• Alphabet
• Intel
• Daimler Group
• Baidu
• Google
• Volkswagen
• Jaguar
• BMW
• General Motors
• Toyota
• AB Volvo
• Autoliv
• Bosch
• Renault-Nissan-Mitsubishi alliance
• Audi AG
• General Motors Company
• Honda Motor Co., Ltd.
• Nissan Motor Company