According to the report published by Precedence Research, the autonomous vehicle market is projected to surpass around USD 1808.44 billion by 2030, growing at a CAGR of 38.8% during the forecast period 2022 to 2030.
Demand for autonomous vehicles remains strong in 2021. Some sales insights revealing the strong growth of autonomous vehicles during the past few years are listed below:
- The global autonomous vehicle market size grew to US$ 126.19 billion in 2022
- By application, the transportation segment accounted for around 91% of the global autonomous vehicle market share in 2020
- The market value for Advanced Driver Assistance Systems (ADAS) technology is expected to reach US$35 billion in 2021
- According to DHL, about 40% of the transportation cost per Km can be reduced by adopting autonomous technology
- More than 80 companies were actively testing over 1,400 self-driving cars and other vehicles in Washington DC, in 2021
- Autonomous vehicles were involved in around 9.1 crashes per million miles as compared to 4.1 of the traditional cars in the US
- It is predicted that the adoption of autonomous vehicles can decrease the frequency of accidents by 90% by the year 2050
Leading Regions Market Review
Bearing Market Captured by North America
North America has been a pioneer of autonomous vehicles owing to various factors like the presence of established automotive clusters of companies and North America is also the home to the globe’s leading technology companies such as Apple, Microsoft, Amazon, and Google. Numerous self-driving or autonomous vehicles have been tested in Texas, Arizona, Michigan, California, and other states of the United States. Moreover, apart from the domestic companies, North America is also witnessing the entry of international companies. For instance, in February 2021 Vin Fast, a Vietnam-based auto manufacturer obtained a permit to test autonomous cars in California. The high expenditure on the adoption of novel technologies and higher demand for automatic technologies has fostered the growth of the North American autonomous vehicle market. Furthermore, the presence of strong and established infrastructure and the rising popularity of advanced electric vehicles with autonomous driving features are expected to boost the market growth exponentially during the forecast period.
What are the key trends in the Global Autonomous Vehicle Market?
The surging adoption of autonomous driver assistance systems (ADAS) across the global automotive industry is the major trend in the global market. Autonomous vehicles are primarily powered by ADAS technology. The ADAS technology operates using artificial intelligence technology that enhances the driving experience and reduces the stress on the drivers. Further, the adoption of other advanced technologies such as processors, cameras, sensors, and software algorithms is boosting the applicability of ADAS in vehicles. The ADAS can improve safety and reduce accidents in road traffic effectively and hence the demand for autonomous vehicles is expected to grow significantly during the forecast period. Further, the rising implementation of government regulations to promote the safety of the passengers on-road and reduce traffic accidents is expected to fuel the adoption of autonomous vehicles across various developed and developing nations in the near future.
What are the key challenges in the Global Autonomous Vehicle Market?
The lack of proper transport infrastructure in developing and underdeveloped nations is a major challenge for the market players that may restrict the growth of the autonomous vehicle market. Furthermore, the lower product acceptance in underdeveloped and developing economies may restrict market growth. In addition, the high costs of autonomous vehicles may result in low demand among the low and middle-income groups across the globe. Therefore, the high acquisition and maintenance costs of autonomous vehicles and the lack of adequate infrastructure are the major challenges for the autonomous vehicle market.
Europe and the Asia Pacific Forecast the Strongest Growth Rate during the Forecast Year (2021-2030)
The Asia Pacific is anticipated to be the fastest-growing autonomous vehicle market during the forecast period. A nation like China has a high potential of being the largest producer and consumer of autonomous vehicles. The strict government regulations pertaining to traffic rules and the rising demand for commercial vehicles at low cost and high efficiency is fostering the growth of the market. However, a big market like India may face difficulties in adopting autonomous vehicles in the forthcoming years, owing to the lack of proper infrastructure, huge population, and low consumer confidence in autonomous vehicles.
Europe is also expected to witness significant growth in the forthcoming years. In 2018, the UK government permitted autonomous vehicles on any public road without any requirement of additional permits or insurance. The rising government initiatives to promote the adoption of autonomous vehicles are expected to play a crucial role in the growth of the market in Europe.
Top Autonomous Vehicle Manufacturers:
BMW AG, Audi AG, Ford Motor Company, Daimler AG, Google LLC, General Motors Company, Nissan Motor Company, Honda Motor Co., Ltd., Toyota Motor Corporation, Tesla, Volvo Car Corporation, Uber Technologies, Inc., and Volkswagen AG are the leading autonomous vehicle manufacturers.
Segments Covered in the Report
This research report includes a complete assessment of the market with the help of extensive qualitative and quantitative insights and projections regarding the market. This report offers a breakdown of the market into perspective and niche sectors. Further, this research study calculates market revenue and its growth trend in global, regional, and country from 2016 to 2027. This report includes market segmentation and its revenue estimation by classifying it on the basis of application, and region.
