Global Autonomous (Driverless) Car Market Extends at a Healthy CAGR of 22.85 by 2030

Introduction

A driverless, autonomous, or self-driving car can navigate its environment without much help from a human. These vehicles perceive their surroundings using a variety of sensors, including GPS, LIDAR, sonar, radar, and inertial measurement units. In addition, the software in these cars is run by powerful processors, machine learning systems, actuators, and algorithms. Furthermore, they have sophisticated control systems that decipher sensor data to determine the best route for navigation, obstacles, and appropriate signage.

Market Dynamics

High Demand for Successful and Safe Travel Options Drives the Global Market

The market for autonomous/driverless cars will expand as there is a growing need for safe transportation. The NHTSA estimates that 94% of US traffic accidents in 2019 resulted from human error, including drunk driving, speeding, and other errors (National Highway Traffic Safety Administration). The most rapidly expanding part of the automobile is connectivity. By 2030, it is projected to generate one trillion dollars in revenue. The driver can access the internet and enjoy other features in a connected car. Some benefits are improved engine controls, automatic crash notifications, and safety warnings. Driverless cars that are connected can use user data to update their algorithms. The factors above should influence the market's growth during the forecast period.

Advancement in 5G Technology Creates Tremendous Opportunities

For the duration of the forecast, 5G will be essential to market expansion. Fifth-generation wireless technology will connect almost everything with a quick, dependable, and responsive network. Experts assert that a broad 5G adoption is necessary for autonomous vehicle technology. Communications service providers will be crucial partners for data analytics, safety, and entertainment as 5G is anticipated to offer premium infotainment services to passengers in autonomous vehicles. 5G is one such chance for market participants in the autonomous/driverless car market because it promises safer and smarter self-driving automobiles.

Regional Analysis

North America is the most significant global autonomous car market shareholder and is expected to grow at a CAGR of 21.38% during the forecast period. In the North American region, there has been a discernible rise in demand for self-driving cars over the last three years. The US business community's cooperation offers the demand with much support. Together with other tech companies and ride-hailing companies, automakers have started deploying autonomous vehicles in the region. Canada was the last country in North America to participate in the testing of autonomous vehicles. Despite this, numerous Chinese companies have recently collaborated with regional rivals. Along with the problems, Mexico's new trade agreement with the US and Canada has opened doors for the transfer of autonomous technology. The infrastructure must still be improved in the upcoming years, however.

Europe is expected to grow at a CAGR of 20.90%, generating USD 41.33 billion during the forecast period. Smaller European countries are also using the technology. Local businesses are partnering with other industries to develop autonomous vehicle technologies. Most self-driving cars have electric powertrains to reduce emissions. Level 1 and 2 automated vehicles are already existing on European streets. Fully automated vehicles (level 5) are expected by 2030, and self-driving cars (levels 3 and 4) will be available between 2020 and 2030. The Dutch government passed a bill in 2019 allowing extensive testing of autonomous vehicles (AVs) without a driver. The region's autonomous (driverless) car market is expected to be driven by its road infrastructure, top-tier wireless network coverage, and the highest electric vehicle charging station density.

China, Japan, and India accounted for more than 50% of the Asia-Pacific region's semi-autonomous vehicle market in 2020 due to government support for the technology. These countries anticipate demand for partially autonomous vehicles. Automakers have partnered with regional ride-hailing services to deploy their autonomous taxis. Local automakers are also introducing level 2, level 3, and level 4 autonomous vehicles. South Korea's president, Moon Jae-in, also plans to have only self-driving cars on the road by 2027. By 2025, the government and automakers will invest KRW 60 trillion (USD 50.7 billion) in the industry. Hyundai Motor Group, the country's largest automaker, may contribute two-thirds. By 2024, the government may revise laws, build traffic infrastructure, revise insurance rules, and define driver responsibilities.

Key Highlights

• The global autonomous (driverless) car market was valued at USD 24.10 million in 2021. It is expected to reach USD 153.60 million by 2030, growing at a CAGR of 22.85% during the forecast period (2022–2030).
• Based on type, the global autonomous (driverless) car market is bifurcated into semi-autonomous vehicles and fully-autonomous vehicles. The semi-autonomous vehicles segment is the highest contributor to the market and is expected to grow at a CAGR of 21.57% during the forecast period.
• North America is the most significant global autonomous car market shareholder and is expected to grow at a CAGR of 21.38% during the forecast period.

Competitive Players

Competitive Players

The global autonomous (driverless) car market’s major key players are Uber Technologies Inc., Daimler AG, Waymo LLC (Google Inc.), Toyota Motor Corp., Nissan Motor Co. Ltd, Volvo Car Group, General Motors Company, Volkswagen AG, Tesla Inc., BMW AG, and Aurora Innovation Inc.

Recent Developments

Market News

• In September 2022, In order to significantly increase the energy density of GM's Ultium battery cells for a longer range and lower cost, OneD Battery Sciences and General Motors Co. signed a joint research and development agreement. The Series C funding round for OneD, which the business recently closed at USD 25 million, also included GM Ventures and Volta Energy Technologies.

Segmentation

Global Autonomous (Driverless) Car Market: Segmentation

By Type

• Semi-autonomous Vehicles
• Fully-autonomous Vehicles

By Regions

• North America
• Europe
• Asia-Pacific
• Rest of the World