Autonomous Vehicles Market

The global market for autonomous vehicles reached a value of $76.13 billion in 2020 and is projected to reach $2,161.79 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 40.1% from 2023 to 2030.

The COVID-19 pandemic has introduced uncertainty into the market, resulting in the slowdown of logistics services, hindering business growth, and causing increased customer concern. Governments worldwide implemented total lockdowns and temporary industry closures, leading to border closures and restrictions on transportation and logistics services. The global business landscape has undergone significant changes following the health crisis caused by COVID-19. Additionally, the overall service activities of market players have declined due to a sharp decrease in cash usage to minimize the risk of contamination. However, the world is slowly recovering with the implementation of new restrictions, policies, and a notable rebound in product sales across the retail sector. These factors may positively impact the autonomous vehicle market, supporting economic activities across all industries.

An autonomous vehicle, also known as a driverless vehicle, has the ability to operate and perform necessary functions without human intervention, thanks to its capability to sense its surroundings. It relies on technologies such as artificial intelligence (AI) software, light detection and ranging (LiDAR), radio detection and ranging (RADAR), and cameras to perceive the environment and navigate by creating an active 3D map. Most self-driving systems maintain an internal map of their surroundings using a variety of sensors, including RADAR. Autonomy levels range from semi-autonomous, which requires driver assistance, to fully autonomous. The Society of Automotive Engineers (SAE) has defined six levels of driving automation, from level 0 (fully manual) to level 5 (fully autonomous), which have been adopted by the U.S. Department of Transportation. Currently, several automobile manufacturers, such as Ford, Volvo, and Tesla, have made significant advancements in self-driving technology, with many newer car models featuring autonomous systems.

Moreover, autonomous vehicles offer several advantages over conventional vehicles, including enhanced safety, reduced fuel consumption, and decreased traffic congestion and emissions. By consuming less gas and battery capacity, they contribute to a more environmentally friendly transportation system.

Various factors contribute to the growth of the autonomous vehicle market worldwide, including safety improvements, reduced traffic congestion, the development of connected infrastructure, and the shift from ownership to mobility-as-a-service (MaaS) models. However, challenges such as high manufacturing costs and data management issues impede market growth. On the other hand, the development of smart cities and supportive government regulations present significant opportunities for market expansion during the forecast period.

The global autonomous vehicle market is segmented based on the level of automation, component, application, propulsion type, vehicle type, and region. The levels of automation are categorized into level 1, level 2, level 3, level 4, and level 5. Applications include civil, defense, transportation and logistics, and construction. Propulsion types are divided into semi-autonomous and fully autonomous, while vehicle types are bifurcated into passenger cars and commercial vehicles. The market is analyzed across regions such as North America, Europe, Asia-Pacific, and LAMEA.

Key players operating in the global autonomous vehicle market include AB Volvo, BMW AG, Daimler AG, Ford Motor Company, General Motors, Honda Motor Co., Ltd., Nissan Motors Co., Ltd., Tesla, Inc., Toyota Motor Corporation, and Volkswagen AG.

Improved Safety Along with the Reduction in Traffic Congestion

The emergence of autonomous vehicles has brought numerous advantages to existing road systems. These vehicles offer several benefits compared to traditional vehicles, such as enhanced safety, reduced fuel consumption, and alleviation of traffic congestion and emissions. Autonomous vehicles are equipped with various sensors, including LiDAR, RADAR, cameras, and GPS, which enable efficient processing of traffic information and minimize machine-to-machine (M2M) latency. Additionally, this advanced connectivity facilitates the integration of AI-based traffic management and navigation services through smart streets, connecting with sensors in autonomous vehicles. This results in optimized traffic signals, predictive merging, and slowdowns. In September 2018, AB Volvo developed a next-generation transport solution for commercial vehicles, incorporating an autonomous system. The coordination of vehicles takes into account factors like location, battery charge, and load to ensure efficient and safe transportation. Furthermore, safety has improved as traffic becomes more organized and lane transitions are reduced. Consequently, due to such advancements in connectivity and security within the automotive industry, there has been a significant increase in the demand for autonomous vehicles.

Growth in Connected Infrastructure

The concept of automating repetitive tasks has captured the interest of numerous industries. As a result, the global transportation infrastructure is undergoing rapid transformation with the widespread implementation of the Internet of Things (IoT). Leading companies like Cisco and IBM have developed digital platforms aimed at automating street and traffic lights, optimizing waste collection, and enhancing surveillance systems. Additionally, connected infrastructure encompasses various elements such as parking lots, toll booths, and intelligent street and traffic lights. By interacting with these smart street lights, autonomous vehicles can facilitate traffic flow and minimize congestion. In 2018, Audi A8 became the first commercially available car equipped with an automated driving system capable of connecting to multiple telecommunication networks. Public authorities are also promoting the integration of connected technologies in areas such as mobility, environmental sustainability, and public health, which can create new sources of revenue. According to consulting firm KPMG, the Netherlands is considered the most prepared country in terms of new infrastructure and could serve as a model for other nations, accelerating the global adoption of this technology. Consequently, the growth of connected infrastructure is expected to drive the demand for autonomous vehicles.

Data Management Challenges

Autonomous vehicles consist of various components, each with its own distinct data management needs that interface with other intelligent transportation systems. This interaction generates a significant volume of data, necessitating a robust system for data storage and processing. Additionally, autonomous vehicles demand substantial computational power due to the vast amount of data they generate. Furthermore, they rely on extensive datasets for training purposes. The neural networks of autonomous vehicles must be trained using comprehensive datasets that encompass a wide range of scenarios, including different driving conditions, weather conditions, road types, and various situational factors.

Supportive Government Regulations

The progress of autonomous vehicle technology is gaining momentum, leading many countries to establish laws and regulations pertaining to this technology. These guidelines are designed to address various aspects such as safety, liability, privacy, and security concerning these advanced automobiles. For example, in China, regulations for the road testing of autonomous vehicles have been introduced by the Ministry of Industry & Information Technology, Ministry of Public Security, and Ministry of Transport. This regulatory framework aims to support the autonomous driving industry and align the country's economy with a more high-tech industrial model that includes autonomous vehicles and related technologies. Similarly, the U.S. Department of Transportation (USDOT) has collaborated with a wide-ranging coalition of industry stakeholders, academic institutions, state and local authorities, safety organizations, advocacy groups, and transportation experts to develop the Automated Vehicles Comprehensive Plan. This plan facilitates the safe development, testing, and integration of automated vehicle technologies. Consequently, the presence of a modernized regulatory environment and supportive government regulations provides significant opportunities for the autonomous vehicle market.

Covid-19 Impact Analysis

• The market is experiencing uncertainty due to the COVID-19 crisis, which has resulted in the slowdown of logistics services, hindered business growth, and increased customer panic.
• Governments in various regions have implemented total lockdowns and temporary shutdowns of industries, leading to border closures that restrict the movement of transportation and logistics services.
• The global business outlook has undergone significant changes following the COVID-19 health crisis.
• Furthermore, market players have observed a decline in overall service activities due to a sharp decrease in cash usage to mitigate the risk of contamination.
• Presently, the world is slowly recovering with the implementation of new restrictions, policies, and witnessing a significant rebound in product sales in the retail sector. These factors are expected to have a positive impact on the autonomous vehicle market, supporting economic activities across all industries.

Autonomous Vehicle Market Report Segmentation

By Level of Automation

• Level 1
• Level 2
• Level 3
• Level 4
• Level 5

By Application

• Civil
• Defense
• Transportation & Logistics
• Construction

By Propulsion Type

• Semi-autonomous
• Fully Autonomous

By Vehicle Type

• Passenger Car
• Commercial Vehicle

By Region

• North America  (U.S., Canada, Mexico)
• Europe  (Germany, France, UK, Italy, Rest of Europe)
• Asia-Pacific  (China, Japan, India, South Korea, Rest of Asia-Pacific)
• LAMEA  (Latin America, Middle East, Africa)

Key Benefits For Stakeholders

• This study provides an analytical overview of the global autonomous vehicle market, analyzing current trends and offering future estimations to identify potential investment opportunities.
• By comprehending profitable trends, one can determine the overall market potential and establish a stronger position.
• The report highlights key drivers, restraints, and opportunities in the market, accompanied by a detailed impact analysis.
• Quantitative analysis is conducted on the current market, covering the period from 2020 to 2030, in order to assess its financial competence.
• Porter's five forces analysis is employed to evaluate the power of buyers and suppliers in the industry.