Home Automotive and Transportation Autonomous Vehicle Market Revenue booms to reach USD 51.958 billion by 2031

Autonomous Vehicle Market

Autonomous Vehicle Market Size, Share & Trends Analysis Report By Level of Automation (Level 1, Level 2, Level 3, Level 4, Level 5), By Component (Hardware, Software, Service), By Application (Passenger Cars, Public Transportation, Commercial Applications, Air Taxis) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRAT130DR
Study Period 2019-2031 CAGR 12.1%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 18.587 Billion
Forecast Year 2031 Forecast Year Market Size USD 51.958 Billion
Largest Market Europe Fastest Growing Market North America
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Market Overview

The global autonomous vehicle market revenue was valued at USD 18.587 billion in 2022. It is projected to reach USD 51.958 billion by 2031, growing with a CAGR of 12.1% during the forecast period (2023–2031). Europe leads the autonomous vehicle market with strong government support and increasing demand for autonomous vehicles, especially in Germany and the U.K. North America follows, driven by technological advancements and favorable government policies. Asia Pacific experiences rapid growth, led by Chinese and Japanese initiatives for self-driving technology. 

Autonomous or self-driving cars use technologies such as GPS, digital mapping, artificial intelligence, RADAR sensing technology, light detection and ranging technology, and computer vision to provide convenience and enhanced safety for passengers. Autonomous vehicles need sophisticated software programs for their driverless technologies, compelling the automotive industry to invest in new fields. Growing R&D activities for the development of self-driving technology and increasing investments in auto tech are promoting the growth of the autonomous vehicle market.

The development of adaptive algorithms, sensor processing, high-definition mapping, and improved infrastructure, among other technological advancements, is motivating a number of companies to ramp up their manufacturing of autonomous vehicles. Autonomous vehicles make it possible for non-drivers and those with certain disabilities to go around independently. Travelers are more productive when they are more comfortable and have the freedom to read, rest, or even work while they are moving.

Market Dynamics

Market Drivers

Benefits Offered

The increased number of advantages offered by self-driving/autonomous vehicles as compared to traditional vehicles, such as reduced road-crash risk, reduced traffic congestion, enhanced safety and security, lower fuel consumption, elimination of driver wages, efficient parking, increased lane capacity, secured mobility for disabled individuals and non-drivers, reduced CO2 emissions, and increased comfort and flexibility offered by seamless operative systems is attributed to the growth of the automotive vehicles market.

Government Support

Governments in developed as well as developing countries have made changes and amends to regulations to encourage the development of self-driving vehicles. For instance, In India, The Motor Vehicles (Amendment) Act 2019 has taken the place of its predecessor to allow the testing of autonomous vehicles. The United States Department of Transportation has committed to facilitating and supporting the safe development, testing, and adoption of automated vehicle technologies.

Market Restraint

Lack of Infrastructure in Developing Nations

Partially autonomous vehicles are already prevalent on roads in developed nations, and highly automated vehicles will soon join them. But the same cannot be said for emerging nations like India. The infrastructure of roads in developing countries is far from ready to accommodate automated driving. Self-driving cars need well-maintained and organized roads, GPS connectivity, an efficient communication network, lane marking, object detection, etc. Poor infrastructure and lack of driving discipline will create obstacles for the self-driving vehicles market in emerging countries.

Regional Analysis

Based on region, the global autonomous vehicle market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa (LAMEA).

Europe holds the largest share of the market, backed by government support and increasing demand for autonomous vehicles. The European Union (E.U.) is also working towards providing a favorable environment for autonomous vehicle development on a regional level. Several European countries, including Germany and the U.K., have issued regulations for the testing of self-driving vehicles on public roads. Due to the presence of significant original equipment manufacturers in Germany, which are releasing new models with high levels of automation, the country holds the greatest market share. New car models are being released by a number of OEMs, including BMW, Volkswagen AG, and Tesla Inc., for both consumer and business use. Advanced driver assistance systems (ADAS) features are available on these vehicles. This accelerates the market for autonomous vehicles in Europe during the forecast period. Due to the quick adoption of new technologies like the Internet of Things, artificial intelligence, cloud computing, and others, the Europe autonomous cars market is constantly expanding. However, there are additional costs related to connectivity solution fees, communications services, hardware systems, and high purchase prices, which could hinder the market's expansion.

North America accounts for the second-largest share of the global autonomous vehicle market. The growing demand for technologically advanced products in the region is proving to be an impetus to market growth. Additionally, favorable government policies and the presence of industry leaders are also expected to provide a fillip to demand in the coming years. According to Autonomous Vehicle Pilots Across America, over 50% of U.S. cities are preparing to develop their roads for self-driving vehicles. The U.S. market has key players, such as Apple, Google, and Mercedes-Benz. Market participants use a variety of strategies, including new product launches, mergers and acquisitions, government collaborations, and technological breakthroughs, to stay competitive. These strategies significantly contribute to market growth.

Asia Pacific is witnessing the fastest growth in the global autonomous vehicle market, driven by increasing efforts by Chinese players for the development of self-driving technology. The Japanese government is also working intensively to gain a competitive edge in self-driving vehicle technology. In 2018, the Japanese government began testing a driverless car system on the public in order to launch a self-driving car service in the Tokyo Olympics. The market for autonomous vehicles is being propelled by factors such as rising consumer demand for a convenient and safe driving experience, stringent safety regulations, and rising disposable income in emerging economies. The regional market is expected to expand at the quickest rate throughout the projected period as a result of the growing partnerships undertaken by Autonomous Vehicles technology suppliers in this area.

The Latin America and, Middle East & Africa region holds the least share in the global autonomous vehicle market. The Mobility Center for Africa (MCA) aims to provide a platform for the testing and deployment of connected, autonomous, shared, and electric vehicles and mobility solutions in South Africa. Additionally, MCA is working to facilitate research and development into autonomous vehicles and promoting the local incubation of startups and investments in this field. The market for autonomous vehicles in the Middle East is anticipated to expand steadily. The region’s lack of infrastructure is one of the major challenges for the market. However, to lessen traffic congestion and accidents on the roads, some governments are making an effort to introduce autonomous vehicles. During the forecast period, the United Arab Emirates and Saudi Arabia are anticipated to hold the majority of the self-driving market share in the Middle East.

Report Scope

Report Metric Details
Segmentations
By Level of Automation
  1. Level 1
  2. Level 2
  3. Level 3
  4. Level 4
  5. Level 5
By Component
  1. Hardware
  2. Software
  3. Service
By Application
  1. Passenger Cars
  2. Public Transportation
  3. Commercial Applications
  4. Air Taxis
Company Profiles General Motors Google Volkswagen Ford Motor Company BMW Baidu Tesla Toyota Audi Jaguar
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global autonomous vehicle market is segmented on the level of automation, component, application.

Based on the level of automation, the autonomous vehicle market has been segmented into Level 1, Level 2, Level 3, level 4, and level 5.

Level 2 and Level 3 automation, which represent semi-autonomous vehicles, are expected to grow at the fastest rate over the forecast period. In level 2 automation, the car has steering and acceleration/deceleration controls. Because a human is seated in the driver's seat and has the ability to take over the vehicle at any time, this automation falls short of self-driving. Level 3 cars are capable of "environmental detection" and autonomous decision-making, like accelerating past a stationary object. However, they still need a human override. The driver must remain vigilant and prepared to take over in case the system does not complete the task. 

On the basis of components, the autonomous vehicle market has been segmented into software, services, and hardware.

The software segment will dominate the market over the forecast period. Self-driving cars employ artificial intelligence to comprehend their surroundings, recognize items, and categorize them as people, cars, trucks, moving objects, stationary objects, and so on. Automobiles can also successfully execute white line monitoring with computer vision algorithms. These skills are then incorporated into a set of guidelines on what to do in particular situations.

Based on application, the autonomous vehicle market has been segmented into passenger cars, public transportation, commercial applications, and air taxis.

The commercial segment is expected to grow at the fastest rate over the forecast period. Ride-sharing, robotic taxis, the transportation of goods, and other commercial activities are all included in commercial mobility. Several businesses are now investing in the creation of autonomous vehicles, including Robo-taxis, for use in ride-sharing, ride-hailing, and car-sharing. A Robo-taxi combines the advantages of an autonomous vehicle with e-cab hailing. Lowered ownership costs and improved fleet management are expected with the introduction of Robo-taxi. It would offer a reliable, practical, and economical mode of transportation.

Market Size By Level of Automation

Market Size By Level of Automation
  • Level 1
  • Level 2
  • Level 3
  • Level 4
  • Level 5
  • Recent Developments

    Top Key Players

    Autonomous Vehicle Market Share of Key Players

    Autonomous Vehicle Market Share of Key Players
    General Motors Google Volkswagen Ford Motor Company BMW Baidu Tesla Toyota Audi Jaguar Others

    Frequently Asked Questions (FAQs)

    How big is the autonomous vehicle industry?
    The global autonomous vehicle industry size was valued at USD 18.587 billion in 2022. It is projected to reach USD 51.958 billion by 2031, growing with a CAGR of 12.1% from 2023 to 2031.
    Commercial segment is the leading segment for the market during forecast period.
    The key players in the global market include General Motors, Google, Volkswagen, Ford Motor Company, BMW, Baidu, Tesla, Toyota, Audi, Jaguar.
    North America region has the highest growth rate in the autonomous vehicle market.
    Benefits offered, government support are the major growth factors of the autonomous vehicle market.


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