Self-Driving Cars and Trucks Market

Market Overview

The global self-driving cars and trucks market was 50.2 thousand units in 2021. It is projected to reach 2123.23 thousand units by 2030, growing at a CAGR of 51.60% during the forecast period (2022-2030).

A self-driving car, also known as an autonomous, driverless, or robotic (robo-car), is a ground vehicle that can sense its environment and move safely with little to no human input. A self-driving car combines sensors and networking technologies to let the computer operate the vehicle. As a result, several technology companies have entered the market and contributed to the study and development of self-driving cars, including Google Inc. and Tesla Motors. The auto sector is dynamic and adapts to new technological developments. Many prominent market participants, like General Motors Company, Volkswagen AG, Mercedes-Benz, and Bayerische Motoren Werke AG (BMW), devote a sizeable portion of their earnings to developing new technology. Self-driving cars are currently gaining popularity in the automotive sector, which has led to increased investment in their creation.

Market Dynamics

Global Self-Driving Cars and Trucks Market Drivers

Rising Need for Road Safety

Road accidents are becoming more frequent every day. Every year, more than one million individuals lose their lives in traffic accidents, according to the Association for Safe International Road Travel (ASIRT). Human error, which happens in a situation when events are unknown, such as head-on collisions caused by a driver's misunderstanding, is the main contributor to accidents. Accidents may also happen due to equipment or component failures, such as brake or axle failure. Many governments are tightening the laws that can address concerns about road safety. Self-driving cars and trucks are safer than conventional vehicles because they are more technologically advanced, furnished with various driving assistance systems, such as navigation systems, lane management systems, and anti-collision systems, and linked to a central processing and decision-making system.

A computer controls the self-driving car. As a result, it commits fewer mistakes than people, such as distracted driving, drunk driving, failing to buckle up, going too fast, and driving when tired. Self-driving cars are mechanical devices that can do the duty of driving at their best without being weary, bored, or distracted. So, compared to a human-driven car, the traveler is safer in self-driving cars and trucks. In 2050, there will be more than 2 billion cars on the planet, predicts Automotive World Ltd., a leading source of information on the automotive industry. Therefore, there would be a significant concern about traffic congestion with many cars. It may be possible to reduce traffic congestion with the help of self-driving cars and trucks.

Global Self-Driving Cars and Trucks Market Restraints

Automotive Safety and Cybersecurity Issue

Since self-driving cars and trucks include parts of the natural and virtual worlds, they are considered cyber-physical systems. In contrast, AI-based driving assistance technologies like car-to-car communication, navigation, and cloud connectivity make up the virtual system. As a result, connectivity also compromises self-driving cars and trucks. Traditional hackers can access autonomous automobiles to steal personal information, like behavior patterns. Additionally, ransomware can infect self-driving cars and trucks, raising the risk of vehicle theft and causing accidents. For instance, researchers from the cybersecurity solutions provider IOActive, Inc. broke into a Jeep Cherokee in 2015. The entertainment system, linked to the cloud via the internet, was used to hack the vehicle.

The primary social impression impeding the adoption of self-driving cars and trucks is that their malfunctioning can be lethal. Redundancy in autonomous systems and thorough testing are both essential. These automobiles can continue to operate safely if there are backup plans or alternatives in case something goes wrong. However, this would increase the price of self-driving cars and trucks. In addition, individuals are also anxious about how well their vehicles would operate in various weather and traffic situations.

Global Self-Driving Cars and Trucks Market Opportunities

Rapid Technological Development by OEMs for Self-Driving Cars and Trucks

The rapid technological improvements that aim to provide more features at a lower cost are key elements anticipated to fuel demand for self-driving cars and trucks over the forecast period. The adoption of self-driving cars and trucks is expected to be driven by developments in security, driver support, comfort and convenience, electronic suspension, powertrain, instruments, braking, and safety. Adaptive headlamps, passive cruise control, lane departure warning, night vision, blind spot recognition, and self-parking functions are all included in the driving aid technology. In addition, remote keyless entry and passive car entry are included in the security features. Air conditioning, LED lighting, electric windows, rain-sensing wipers, electric seats, power sliding doors, and electric roof are all comfort-enhancing features in self-driving cars and trucks.

Both an active and a passive suspension are available with the electrical suspension. The power train features include steer-by-wire, an automatic gearbox, electrical and electro-hydraulic power steering, and engine management. Head-up displays are provided via equipment. ABS is now available with and without electronic stabilization thanks to developments in braking. Both occupant detection and airbags are included in the safety features.

Novel Business Strategy for Insurance Providers

Auto insurance is predicted to change as driverless vehicles become more prevalent. The owner of the car is responsible for securing traditional auto insurance. For instance, car owners must insure their vehicles as an accident-avoidance precaution. Over 90% of accidents are the result of human mistakes. Therefore, taking into account such accidents, insurance firms offer assistance in the form of financial advantages. However, given that robot drivers will operate them, it is anticipated that the number of accidents will decline as self-driving cars and trucks become more common. Automakers would gain control of the vehicles as self-driving cars would be less likely to be involved in collisions and would also be better able to support the sharing economy by delivering self-driving cars and trucks as needed around the clock.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global self-driving cars and trucks industry is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific is the most significant shareholder in the global self-driving cars and trucks market and is anticipated to grow at a CAGR of 66.30% over the forecast period. Growing consumer demand for a convenient, safe driving experience, rising disposable income in emerging nations, and stringent safety requirements globally are pushing the market for self-driving cars and trucks. The market is estimated to expand in the Asia-Pacific region due to the region's developing partnerships with suppliers of self-driving cars and truck technology.

As an illustration, China's Baidu is a renowned service provider of self-driving cars and truck technology. The items of this company have already undergone successful testing over a million kilometers in 13 Chinese cities. It is collaborating with Ford and NVIDIA to enhance investments in driverless vehicles in China. One of the most developed industries in the Asia-Pacific is ride-hailing. China, Japan, India, South Korea, and Thailand are just a few of the nations of Asia Oceania. Recently, China has become a more important center for manufacturing. The infrastructure development and efforts to industrialize emerging nations have created new prospects for auto OEMs. Due to China's rapid technological development and rising demand for semi-self-driving cars and trucks, the market for self-driving cars and trucks will expand.

North America is expected to grow at a CAGR of 59.30% during the forecast period. The self-driving cars and trucks market is expected to grow significantly in North America over the next few years as a result of modifications made to U.S. traffic rules that permit them to operate on public roads. All 50 states in America are gradually applying the rule to automate transportation fully. For instance, the American Army announced in April 2019 that it would use autonomous combat trucks to assist soldiers in preventing vehicle-related mishaps. As the usage of self-driving cars and trucks in transportation increases in the following years, it is projected that the transportation sector will expand dramatically. The industrial sector in the transportation type category is expected to grow quickly.

Europe is projected to develop into a potentially lucrative self-driving car market in the coming years due to the increased popularity of self-driving cars and trucks and the growing need for high-tech goods. Additionally, the U.K. Department of Transport created a jurisdiction in 2018 that permits the use of self-driving cars and trucks on any public road without requiring additional insurance or licenses. In addition, the Center for Connected and Self-driving cars and trucks was inaugurated in 2018. The U.K. government has pledged to have self-driving cars and trucks on the country's roads by 2021 and has plans to change the law to support the development of self-driving cars and trucks in the U.K.

Segmental Analysis

The global self-driving cars and trucks market is segmented by application and transportation type.

Based on application, the global self-driving cars and trucks market is bifurcated into transportation and defense.

The transportation segment is the highest contributor to the market and is expected to grow at a CAGR of 55.90% during the forecast period. Self-driving cars and trucks adoption would improve comfort and efficient transportation. It would significantly cut down on both the cost and travel time, encouraging more significant automobile usage. Self-driving taxis would expand their range during empty backhauls, benefiting the transportation sector. As self-driving transit cars finally become a reality, the transportation sector is anticipated to provide avenues for transit services. Lowering pedestrian dangers and parking needs would also increase urban living's appeal. Driverless car adoption is expected to be accelerated by the notion of "smart cities," which aims to improve transportation infrastructure and introduce new technologies.

The defense sector is predicted to surpass all other segments during the forecast period due to increased activity across several regions, including North America. For instance, the U.S. Army announced in April 2019 that it would use autonomous combat trucks to help soldiers avoid mishaps caused by driving. The transportation industry is expected to grow significantly in the following years due to the growing use of self-driving cars and trucks for transportation. The transportation type segment's industrial sector is predicted to expand quickly over the forecast period. Governments worldwide are beginning to accept driverless vehicles thanks to technical advancements.

Based on transportation type, the global self-driving cars and trucks market is bifurcated into industrial and commercial.

The commercial category owns the highest market share and is anticipated to expand at a CAGR of 53.50% during the forecast period. A lot of laws and rules would need to be put in place by the government before self-driving cars could be sold on the market. Developing appropriate parking facilities and traffic management systems is also essential. The government also wants self-driving vehicles to become a commercial reality to benefit the general public and society. The adoption of self-driving cars would cut down on traffic congestion, accelerating travel times. The upshot would be increased productivity and better adaptability in the work market. Car passengers would be better able to utilize their time while driving. All of these benefits would subsequently boost the economy.

Vehicles are used to transport people and products inside industrial structures. The development of self-driving cars would reduce the likelihood of accidents due to technological innovation, which would lessen the significance of vehicle insurance. The revenue generated by the insurance industry may be impacted, affecting the jobs held by those working in this industry. Strategic planning is therefore required to manage the change. This change and the rise of industrialization and automatization in the past are comparable.

Recent Developments

• March 2022- The self-driving division of Alphabet Inc., Waymo, declared on Monday that it is prepared to introduce a fully autonomous driving service in San Francisco. The business unveiled the Waymo Driver, which described it as a significant step toward raising a fully autonomous commercial service.
• September 2022- Tesla’s most recent vehicle, Model Y, to receive 5-star safety certification from the European New Car Assessment Programme. The Model Y got the highest Overall Score of any vehicle evaluated for this evaluation using the most recent and rigorous test protocol from Euro NCAP. This choice was decided after assessing the Model Y's safety assistance features and its ability to protect vulnerable road users, including cyclists and pedestrians.