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The autonomous vehicle (AV) development platform market size is forecast to increase by USD 230.24 billion, at a CAGR of 47.86% between 2023 and 2028. The expansion of the market hinges on various factors, notably, the rise of strategic alliances among industry players, intensifying efforts in testing and validating autonomous vehicle software code, and the growing demand for driver assistance systems. These alliances foster collaboration and innovation, propelling market growth. Additionally, stringent testing and validation procedures ensure the reliability and safety of autonomous vehicle software, instilling confidence among consumers and stakeholders. Moreover, the increasing adoption of driver assistance systems augments the market's momentum, driven by a collective push towards safer and more efficient transportation solutions. Overall, these factors collectively contribute to the burgeoning growth and evolution of the market.
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The market is driven by the increasing demand for efficient storage solutions in the ever-expanding data center landscape. With the proliferation of software platforms and machine-driven technologies, the need for scalable and adaptable rack infrastructures is paramount. Test fleets of autonomous cars generate vast amounts of data, necessitating robust storage solutions to manage the influx effectively. Additionally, the production-level deployment of autonomous vehicles requires reliable data centers to support the processing and storage of critical instructions and machine-generated data. Challenges lie in ensuring optimal functionality and user experience while accommodating diverse functionalities and sensor simulations. Moreover, human intervention may be required to make judgments and intervene in case of system malfunctions. Nonetheless, advancements in data center rack technologies continue to address these challenges, driving trends towards enhanced functionalities and adaptability to surrounding technological landscapes. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The market growth of AV development platforms is notably being driven by the increasing demand for driver assistance systems. In Level 3 autonomous vehicles and their development platforms, driver assistance systems play a central role. Advanced Driver Assistance System (ADAS) capabilities have evolved over the years into a robust, reliable, and resilient system.
For instance, the market predominantly features Level 2 and Level 3 autonomous cars, with projections indicating wider acceptance for Level 4 and Level 5 (categorized by SAE). Consequently, the anticipated growth of Level 2 and Level 3 cars is expected to drive market expansion in the forecasted period. However, ADAS has so far been limited to luxury vehicles due to high cost, but with technological advancements, it is expected to be introduced in other vehicle segments during the forecast period.
The 3D printing of hardware-based AVDPs is a key trend influencing the AV development platform market growth. 3D printing is widely used in the manufacturing industry to enable on-demand production. 3D printing eliminates traditional manufacturing steps by delivering a finished product from a 3D design file, impacting supply chains and spare parts inventories. It also helps make optimal use of raw materials that are often wasted in traditional production processes.
For instance, 3D printing is rapidly being adopted by consumers and manufacturers due to improved additive manufacturing machine performance, falling printer and material prices, and an expanding range of printed materials. For instance, development platforms based on ROS provide a framework for integrating sensors, controlling hardware, and implementing algorithms for autonomous car market is upcoming innovation in autonomous vehicle industry. Therefore, hardware-based 3D printing of AVDP is one of the major growth trends of the market during the forecast period.
The growth of the market is being hindered by a plethora of compliance standards. The abundance of compliance standards available complicates product development. The original purpose of automation systems was to provide driver comfort, but it has shifted towards providing safety features. Safety is a top priority for the development of autonomous vehicles, with various sensors and systems in place to ensure secure operations. As a result, autonomous system components must be certified to the required Automotive Safety Integrity Level (ASIL). The system supplier may be required to comply with the ISO 26262 standard, as well as the supplier of the Active Safety system. ISO 26262 is based on the functional road safety standard IEC 61508 for automotive electric or electronic systems. ISO 26262 defines functional safety for vehicle equipment, which applies to the entire lifecycle of all automotive electronic and electric safety-related systems.
For instance, compliance with several other industry standards, such as the Motor Industry Software Reliability Association (MISRA) and Automotive Electronics Council (AEC), is required before being accepted by automotive OEMs. Thus, the presence of multiple compliance standards is expected to pose significant challenges to the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Amazon.com Inc: The company offers different autonomous vehicle development platform solutions such as Data Management, Processing and Analytics, Data Labeling and Anonymization, Model and Algorithm Development, Simulation, and Verification.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the passenger car segment will be significant during the forecast period. The passenger car segment dominates the market. Autonomous car industry with, cars with Level 1-3 automation features have been considered in the market segment for semi-autonomous vehicles
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The passenger car segment was valued at USD 8.75 billion in 2018. The shift towards innovation of electric car forth advancements in battery technology, allowing for increased range, faster charging times. Self-driving cars with continuous innovation in battery design and manufacturing processes, enable vehicles to perceive their surroundings, make real-time decisions, and navigate complex environments autonomously. The emergence of shared mobility services and ride-hailing platforms leveraging electric and autonomous technology is transforming urban transportation. Self-driving cars aligns with sustainability goals, reducing greenhouse gas emissions and reliance on fossil fuels, thus contributing to a cleaner environment and future.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The United States is the largest contributor to revenue generation and investment in the North American autonomous vehicle development platform market. Because the country is home to a number of providers such as Nvidia and Qualcomm, which are developing self-driving cars, including buses. Considerable investment goes into R&D to advance autonomous vehicle technology. Investments are made in infrastructure development to support autonomous vehicles, including the creation of smart road, traffic management systems, and 5G connectivity.
Additionally, M&A activity and increasing partnerships in the field of self-driving cars are boosting the investment and development of the self-driving bus market in the countries. The presence of well-developed road infrastructure and connectivity solutions, as well as the development of autonomous driving technology by OEMs, has made North America a focal point for pilot testing programs for autonomous vehicle driving. Investment in autonomous cars spans multiple facets, covering technological innovation, manufacturing, testing, infrastructure, partnerships, and regulatory compliance, representing a substantial commitment from various countries and stakeholders aiming to advance the autonomous vehicle industry.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market is driven by the need for software platforms to facilitate the development of self-driving technologies. Test fleets utilize these platforms to integrate functionalities such as sensor simulation, computer vision, and sensor fusion for mapping and control systems. Developers rely on detailed descriptions and instructions within the platform to program production-level AVs, ensuring optimal user experience and adherence to privacy policies. Despite advancements, human intervention and judgments remain essential in refining autonomous functionalities for passenger cars and commercial vehicles. Simulation environments provided by these platforms enable thorough testing and validation of AV functionalities, enhancing safety and performance. The market continues to evolve to meet the demands of the rapidly growing autonomous vehicle industry, offering comprehensive solutions for AV development.
Additionally, leveraging artificial intelligence, machine learning, and advanced sensor technologies such as lidar systems, these platforms enable path planning, trajectory generation, and decision-making for improved transportation efficiency and road safety. Clearpath Robotics and OutdoorNav are leading providers offering solutions for obstacle detection, blind spot detection, and navigation. With a focus on risk reduction and accelerated development, these platforms facilitate testing frameworks and data monitoring, ensuring compliance with privacy policies and regulations. In the logistics and ridesharing sectors, autonomous systems offer safety features and enhanced navigation, driving revenues and market growth in major regional markets amidst a competitive environment and technological advancements.
Market Scope |
|
Report Coverage |
Details |
Page number |
183 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 47.86% |
Market Growth 2024-2028 |
USD 230.24 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
34.84 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 35% |
Key countries |
US, China, Germany, UK, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amazon.com Inc., ANSYS Inc., BMW AG, FiveAI Ltd., Ford Motor Co., General Motors Co., Green Hills Software LLC, Hexagon AB, Honda Motor Co. Ltd., Hyundai Motor Co., Mercedes Benz Group AG, NVIDIA Corp., Porsche Automobil Holding SE, Qualcomm Inc., Renault SAS, Siemens AG, Tata Consultancy Services Ltd., Tesla Inc., Toyota Motor Corp., and Trimble Inc. |
Market dynamics |
Parent market growth analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Vehicle Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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