Autonomous cars 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, which is compelling the automotive industry to invest in new fields. Intensive 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.
Growth of the automotive industry, development of smart cities, increasing demand for luxury cars, traffic congestion issues, and supportive government regulations are collectively surging the demand for autonomous cars in the automotive industry market. Autonomous vehicles provide improved safety and reduce traffic congestion, which further propels market growth. Additionally, increasing demand for connected cars using Internet of Things (IoT) is also expected to contribute to market growth. However, the high cost of these vehicles and threat from hackers in driving operations may hinder the growth of the market. Moreover, these vehicles could shrink the demand for private vehicles. Nevertheless, car manufacturers could compensate for these losses from alternate revenue streams such as Uber-like car-sharing service.
The global autonomous vehicle market accounted for over USD 10.5 billion in 2017 and is expected to grow at a CAGR of 12.1% during the forecast period, 2019–2026.
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The global autonomous vehicle market can be segmented on the basis of the level of automation, component, application, and region. On the basis of level of automation, the market has been segmented into Level 1, Level 2, Level 3, level 4, and level 5. On the basis of component, the market has been segmented into software, services and hardware. On the basis of application, the market has been segmented into passenger cars, public transportation, commercial applications, and air taxis.
On the basis of region, the global autonomous vehicle market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
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Europe holds the largest share in the global autonomous vehicle market, backed by government support and increasing demand for autonomous vehicles. The European Union (EU) 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 to govern the testing of autonomous vehicles on public roads.
North America accounts for the second largest share in the global autonomous vehicle market. The growing demand for technologically-advanced products in the region is proving impetus to market growth. Additionally, favorable government policies and presence of industry leaders are also expected to provide a fillip to demand in the coming years. In 2018, according to Autonomous Vehicle Pilots Across America, over 50% of U.S. cities are currently preparing to develop their roads for self-driving vehicles.
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 the 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 2020 Tokyo Olympics.
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.
Some of the prominent players in the market are General Motors (U.S.), Google (U.S.), Volkswagen (Germany), Ford Motor Company (U.S.), BMW (Germany), Baidu (China), Tesla (U.S.), Toyota (Japan), Audi (Germany), and Jaguar (U.K.).
The autonomous vehicle (AVs) market is expected to witness massive growth opportunities during the forecast period. Intel believes this influx of autonomous vehicles will create passenger economy, in which new businesses emerge around the driverless-car market; it says this new economy will be worth USD 7 trillion by 2050.
This report offers key insights pertaining to the autonomous vehicle market with emphasis on recent developments across geographies and development strategies adopted by prominent market participants. The following sections have specifically been covered in the report.
|Market Size||USD in Billion By 2030|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
|Segments Covered||by Level of Automation (Level 1, Level 2, Level 3, Level 4), Component (Hardware, Software, Services)|
|Geographies Covered||North America, Europe, Asia-Pacific, LAME and Rest of the World|
|Key Companies Profiled/Vendors||General Motors (U.S.), Google (U.S.), Volkswagen (Germany), Ford Motor Company (U.S.), BMW (Germany), Baidu (China), Tesla (U.S.), Toyota (Japan), Audi (Germany), and Jaguar (U.K.).,|
|Key Market Opportunities||Rapid Growth In Automotive And Transportation Industry Enhances Autonomous Vehicle Market|