Global Autonomous Vehicle Market Size, Share & COVID-19 Impact Analysis, by Level of Automation, by Application, by Component, By Region Forecasts, 2024 – 2032

Global Autonomous Vehicle Market Size, Share & COVID-19 Impact Analysis, by Level of Automation, by Application, by Component, By Region Forecasts, 2024 – 2032

Global Autonomous Vehicle Market was valued at US $ 60.3 billion in 2023 and is expected to reach US $448.6 billion by 2032 growing at a CAGR of 19% during the forecast period 2024 – 2032.

There has been an increase in the frequency of road accidents across the globe. The Association for Safe International Road Travel (ASIRT) estimates that traffic-related fatalities claim the lives of over a million people annually on average. For the most part, accidents are caused by illogical human activity; for example, head-on collisions caused by miscommunication between drivers. Accidents may also result from machine or component failures, such as axles and brakes. In an effort to increase traffic safety, numerous governments are currently implementing stricter regulations. This is because autonomous cars have significantly more sophisticated sensors than human drivers do, allowing them to combine and interpret a wide range of driving-related systems (including lane management and navigation) centrally to make choices. They are therefore far safer than regular cars.

Two billion cars will be on the road worldwide by 2050, according to Automotive World Ltd., a reliable source of information on the automotive sector. Hence, if a lot of cars were involved, there would be a huge concern about traffic congestion. Still, autonomous cars could be able to ease traffic congestion. By interacting with other vehicles, autonomous vehicles will also be able to avoid traffic bottlenecks. Furthermore, as the sharing economy expands, autonomous cars will be able to offer economical, easy point-to-point transportation with minimal infrastructure expenditure, resulting in minimal traffic congestion.

“Hardware segment, by component, is expected to be dominating market from 2023 to 2030.”

On the basis of component, automotive hardware accounted for over half of global sales of autonomous vehicles in 2023. The amount of market investment has increased as a result of companies' increased attention on and difficulties with the deployment of sophisticated hardware systems for driverless cars. For example, the Hyundai Motor Group committed US$5 billion to autonomous driving research in May 2022. However, the software and services sector is predicted to grow at the fastest rate, roughly 6.7%. Software is also utilised for planning and decision-making, mapping and location, and upholding network connectivity, which is necessary for the sensors to function. A generalised software platform that has evolved with technology and digitization is used by autonomous cars.

“Level 5 segment, by level of automation, is expected to be dominating market from 2023 to 2030.”

With two thirds of the global revenue from autonomous vehicles in 2023, the level 5 category accounted for the majority. For the duration of the projected period, this dominance is anticipated to persist. This segment is expected to expand at the highest compound annual growth rate between 2025 and 2035 due to demand.

“Self-Driving Truck segment, by application, is expected to be dominating market from 2023 to 2030.”

By 2025, half of the whole market for autonomous vehicles will be made up of self-driving trucks. Government actions have also significantly increased the application possibilities for autonomous vehicles in terms of supporting infrastructure. The civil section is expected to expand at the fastest rate between 2015 and 34, with a compound average growth of 22.7%. Market expansion is being driven by digital systems created by companies like Cisco and IBM that integrate waste collection, boost surveillance, regulate traffic lights, etc.

“North America is expected to be largest region in autonomous vehicle market.”

North America led the world in 2023 for autonomous vehicle revenue. The region accounted for two-fifths of all global autonomy revenues that year. In comparison, it is anticipated that the LAMEA region will have the greatest CAGR (16.2%) in the forecast period. In order to address the many complex issues that arise along the way and are inevitable for societies like the ones here whose economic life depends upon strong transportation links across distance, LAMEA countries should prioritise the use of autonomous vehicles on their multifaceted transportation systems.

Autonomous Vehicle Competitive Landscape

The competitive landscape of the Autonomous Vehicle market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Autonomous Vehicle technology holds the potential for further growth. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Autonomous Vehicle market is highly competitive, with numerous companies vying for market share. Prominent companies in the Advanced Manufacturing Market include:

BMW AG, Ford Motor Company, Audi AG, Google LLC, Daimler AG, Nissan Motor Company, General Motors Company, Toyota Motor Corporation, Honda Motor Co., Ltd., Volvo Car Corporation, Tesla, Volkswagen AG, Uber Technologies, Inc. and others.

Recent Developments:

In July, Austin will host the first automated vehicle test programme for Volkswagen Group of America, Inc. (VWGoA). Launches of the programme are anticipated to include a fleet of ten ID Buzz cars that are completely electric and equipped with an autonomous driving system (AD). The international Volkswagen Group worked with a local technological company called Mobileye to build this system.

Supplier group GTMC annoubced to provide Pony.ai with a fleet of battery-electric vehicles bearing the Toyota brand in August 2023. It is anticipated that Toyota would equip these cars with cutting-edge redundancy technologies intended for Level 4 autonomous driving research and development. These automobiles ought to function seamlessly with Pony.ai's autonomous driving technologies and operate on the robotaxi network platform, PonyPilot + system.

The first electric vehicle (EV) from the tech giant's automotive division, Xiaomi EV, is the SU7 sedan. It is designed with a twin DRIVE Orin arrangement for highway driving capabilities. Based on the industry-leading big language model for perception and decision-making developed by Xiaomi, the automobile will be able to move around Chinese cities with ease, independent of location, administrative regions within the nation, or kind of road. There are two variants that will be available: one that can travel up to 415 miles on a single charge, and another that can travel up to 497 miles. The first half of 2024 will see the formal debut of the SU7.