HD Maps for Autonomous Vehicles Market

Market Overview

The HD maps for autonomous vehicles market revenue was valued at USD 889.8 million in 2019 and is expected to reach USD 7,706.6 million by 2029, with a CAGR of 24.1% during the forecast period, 2020–2029. North America dominates the global market, driven by leading players like NVIDIA, Waymo, Google, and Apple partnering with automotive brands. In China, General Motors, Honda, Nissan, Peugeot Group, and Renault lead the automotive sector. India's regulations hinder autonomous vehicle introduction, impacting HD maps market growth

The surge in the adoption of cost-effective mapping solutions, such as LiDAR technology, and increased government inclination to develop smart public infrastructure drive the market growth. Similarly, technological advancement in location-based services, an increasing number of road accidents, and surging number of self-driving test approvals provide an impetus to the market growth. However, high installation and maintenance costs, stringent government regulations, and the impact of COVID-19 restrict market growth.

Market Dynamics

Market Drivers

The HD maps for autonomous vehicles is a moderately consolidated market with a limited number of players active across the world. The players such as Here Technologies, NVIDIA, TomTom, and Navinfo and CE Info Systems Pvt. Ltd are actively working to develop enhanced mapping solutions. HD maps offer the minute data house level building data, updates regarding live traffic, and other location-based services. The World Market expects HD map to be integrated with self-driving cars by the end of 2023.  

The market is also backed by emerging startups in HD maps such as Mapbox, Deepmaps, and Camera that are engaged in integrating artificial intelligence (AI) in the ADAS system to provide enhanced mobility solutions. The players are also working in collaboration with software companies, original equipment manufacturers (OEMs), and other system integrators to provide high-resolution maps with centimeter-level accuracy in the autonomous vehicles. 

Rapid Developments in Autonomous Vehicles to Drive the Adoption of HD Maps

• China permitted leading auto-manufacturers such as Audi, BMW, and Daimler to test AV in Beijing and Shanghai
• Developed countries such as the Netherlands, the U.K., France, Sweden, Norway, and Germany have passed a resolution to legalize AV testing on public roads
• Startups such as Oxbotica, engaged in the provision of AV software and services, commenced the road testing of L4 AV that include taxis, shuttles, and automated grocery delivery vehicles
• Ford and General Motors established an automated driving division to speed up the autonomous vehicle deployment

Regional Analysis

Based on region, the global HD maps for autonomous vehicles industry is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Presence of Leading Players to Drive the North America Market Growth

Globally, North America accounted for the largest market share in 2019 and is expected to dominate the market during the forecast period. The presence of leading companies providing HD maps for automotive drives the market growth. Companies such as NVIDIA, Waymo, Google, and Apple are engaging in strategic partnerships with automotive brands such as Mercedes Benz, Audi, Toyota, and Volvo to provide HD maps services.

China — the Asia-Pacific Automotive Sector Leader 

China leads the automotive sector in the Asia-Pacific, and the country is backed by the presence of leading manufacturing companies such as General Motors, Honda, Nissan, Peugeot Group, and Renault. In India, government regulations have made the introduction of autonomous vehicles difficult, thereby affecting the HD maps for the automotive vehicles market. For instance, on September 24, 2019, the road and transports highway minister of India, Mr. Nitin Gadkari, said that driverless cars would not be permitted in India as it will cost the jobs of the people, further hampering the market growth.

Segmental Analysis

L2 and L3 Segment to Dominate the Market during the Forecast Period

The L2 and L3 segment accounted for the largest market share in 2019 and is projected to dominate the market during the forecast period. The rapid adoption of technology and the integration of ADAS systems drive the segment growth. However, the production halt and disruption in the supply chain to fulfill the demand of automotive parts hampers the segment growth. 

Increasing Number of Startups to Drive the Cloud Segment

The cloud segment dominates the market on account of the increasing number of startups offering cloud-based service and seamless turnkey solutions. The information about the roads, parking space, lanes, and footpaths collected by the sensors and cameras is used as inputs in the algorithm, implemented in cloud point technology, which helps in reducing the latency time whenever the same route is taken. The embedded segment, on the other hand, is expected to grow with a CAGR of 23.4% during the forecast period, 2020–2029.

Mapping Segment to Account for More than Half of the Overall Value Share

The mapping segment accounted for the largest market share of 55% in 2019 and is presumed to grow with a significant CAGR during the forecast period. The leading players such as TomTom, Here Technologies, and Navinfo are channelizing efforts to expand their product portfolio with existing solutions. For instance, Here Technologies offers a flexible solution, Here connected vehicle services, accompanied by a range of products and services. The Here HD Live Map is equipped with machine learning technology to recognize map data in real-time. 

Passenger Car Segment to Grow With a Significant CAGR

The passenger car segment is projected to grow with a significant CAGR as the level of expertise required to operate HD maps is comparatively low in passenger cars than that in commercial vehicles. Also, the installation cost associated with its maintenance is comparatively low, further driving the segment growth.