Autonomous Vehicle (AV) Development Platform Market Growth by Vehicle Type, End-user, and Geography - Forecast and Analysis 2023-2027

Autonomous Vehicle Market: Trends, Growth and Future Prospects

The Autonomous Vehicle Development Platform Market Size is estimated to grow at a CAGR of 30.94% between 2022 and 2027. The size of the market is forecast to increase by USD 82,788.43 million. The growth of the market depends on several factors, including the increasing presence of strategic alliances in the autonomous vehicle development platform market, testing and validation of autonomous vehicle software code, and increased demand for driver assistance systems.The global autonomous vehicle market is projected to grow at a rapid pace in the coming years.

This report extensively covers market segmentation by vehicle type (passenger car and commercial vehicle), end-user (mixed AVDP, image-based AVDP, and sensor fusion-based AVDP), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Autonomous Vehicle Development Platform Market During the Forecast Period?

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Market Overview

The increasing demand for driver assistance systems is notably driving the market growth, although a multitude of compliance standards may impede the autonomous vehicle industry growth. Autonomous vehicles are equipped with advanced technologies that allow them to operate without human intervention.The adoption of autonomous vehicles has the potential to revolutionize transportation by reducing accidents, congestion, and carbon emissions.Our researchers analyzed the data with 2022 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.

Key Autonomous Vehicle Development Platform Market Driver

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.

For instance, , many of the ADAS in use are discrete single-function systems capable of handling low data throughput. However, a thought leader in the field has proposed using an integrated ADAS SoC that integrates data from multiple streams such as vision, ultrasound, infrared, LiDAR, and radar. These SoCs contain multiple CPU cores, signal processors, and graphics processing units to capture and process large amounts of real-time data. By utilizing these SoCs, automakers can have more control over their offerings.

Types of Autonomous Vehicles

There are various autonomous car in the market. Furthermore, the SoCs used in self-driving cars ( autonomous cars market) can also power vehicles with additional Level 2 and Level 1 self-driving capabilities.

For instance, Self-driving cars play a crucial role in the evolution of mobility as a Service (MaaS) platforms. AVs are expected to redefine urban mobility by providing efficient, accessible, and cost-effective transportation options. Additionally, autonomous technology has the potential to optimize road traffic flow, minimize congestion, and enhance overall mobility and transportation efficiency.Hence, the increasing demand for driver assistance systems is expected to be a crucial driver of the AV Development Platform Market during the forecast period.

Industry Trends and Growth

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.  

Technological Advancements in Autonomous Vehicles

1. Technological advancements in the autonomous vehicle industry encompass several key , Advancements in LiDAR, radar, cameras, and ultrasonic sensors improve vehicle perception, enabling better object detection and navigation.
2. Machine learning capabilities aids in decision-making, allowing vehicles to interpret complex scenarios and make real-time driving decisions.
3. Enhanced connectivity through 5G networks facilitates vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication.
4. 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. 

Major Autonomous Vehicle Development Platform Market Challenge

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.

With a large number of early adopters of autonomous driving technology expected in the passenger car market, users will repeatedly rely on access to new technology-enabled systems and subsystems. A rapidly growing automotive market, such as India, can pose challenges for players involved in emerging technologies such as ADAS and semi-autonomous vehicles. Such challenges can arise due to extreme price sensitivity, lack of adequate supporting infrastructure, and regulations mandating their use. Therefore, the uncertainty regarding user acceptance of system reliability and autonomy is also expected to be one of the major challenges to the growth of the market during the forecast period.

Regulatory Environment and Challenges

Regulations in the autonomous car industry refer to governmental rules, standards, and guidelines set to oversee the development, testing, deployment, and operation of autonomous vehicle. Regulations cover various aspects, including vehicle design level, testing protocols, cybersecurity, data privacy, liability, and the interaction between autonomous vehicles and other road users.

• Determining liability in road accidents involving autonomous vehicles poses complexities, necessitating clarity between manufacturers, developers, and users.
• Building public confidence and acceptance of autonomous technology and innovation is vital among people.
• Regulations need to evolve at the same pace as technological advancements

Regulatory frameworks and policies are crucial factors influencing the widespread adoption of self-driving cars. Governments worldwide are working on standards, regulations, and safety certifications to ensure the safe deployment of AVs while addressing ethical regulations, legal, and liability concerns associated with autonomous technology.

Key Autonomous Vehicle Development Platform Market Customer Landscape

The market 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 autonomous vehicle industry also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Autonomous Vehicle Development Platform Market Customer Landscape

Key Players in the Autonomous Vehicle Market

Vendors 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 market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• 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

The SoCs used in autonomous vehicles are also being used today to power cars having more level 2 and level 1 autonomy features. Tesla decision to use the NVIDIA Drive PX 2 (an AVDP for autonomy) to power its Model S and Xs, along with its upcoming Model 3, is an interesting development in the field.Companies like Tesla, Waymo, and Uber are major players in the autonomous vehicle market.

Market Segmentation by Application (Passenger, Commercial, Delivery)

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

Automakers are focusing on developing self-driving technology for passenger vehicles as demand for AVDPs from ride-hailing and logistics companies increases.

Developed regions such as North America and Europe are at the forefront of innovation of  self-driving cars market . Luxury automakers are the largest contributors to the focus autonomous vehicle development platform market, and rising demand for luxury vehicles is key to the growth of the autonomous vehicle development platform market globally. Hence, the factors drive the growth of the passenger car segment in the global autonomous vehicle development platform market during the forecast period. 

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The passenger car segment was valued at USD 6,748.63 million in 2017 and continued to grow until 2021. 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.

However, innovation of electric powertrains, autonomous technology, and innovative mobility solutions is revolutionizing the passenger car industry, paving the way for a future of safer, more efficient, and sustainable transportation.

Regional Analysis 

North America is estimated to contribute 33% 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.

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Global Adoption and Market Penetration

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. 

Future Outlook and Opportunities in the Autonomous Vehicle Market

• AV technology aims to enhance road safety by reducing human error, which is a significant cause of accidents.
• Ongoing advancements in sensors, AI, connectivity, and computing power will continue to enhance AV capabilities, making them more reliable, responsive, and adaptable to various environments and conditions.
• AVs could contribute to environmental sustainability by optimizing routes, reducing emissions through efficient driving patterns, and facilitating the adoption of electric and alternative fuel-powered vehicles.
• However, future outlook for the Autonomous Vehicle (AV) market holds considerable promise and opportunities.

Segment Overview

The autonomous vehicle industry research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Vehicle Type Outlook (USD Million, 2017 - 2027)
  • Passenger car
  • Commercial vehicle

• End-user Outlook (USD Million, 2017 - 2027)
  • Mixed AVDP
  • Image-based AVDP
  • Sensor fusion-based AVDP

• Region Outlook (USD Million, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America 
    • Chile
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Parent Market Analysis

Technavio categorizes the global autonomous vehicle development platform market as part of the global auto parts and accessories market within the global auto parts market. The market includes companies that manufacture automotive parts and accessories for passenger cars (PC), electric vehicles (EV), commercial vehicles (CV), heavy-duty vehicles, ATVs, motorcycles, scooters,  and automobiles. 

Autonomous Vehicle Development Platform Market Scope
Report Coverage	Details
Page number	173
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 30.94%
Market growth 2023-2027	USD 82,788.43 million
Market structure	Fragmented
YoY growth 2022-2023(%)	30.6
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 33%
Key countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading Vendors, Market Positioning of Vendors, 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 analysis, 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 forecast period
Customization purview	If our 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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What are the Key Data Covered in this Autonomous Vehicle Development Platform Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the autonomous vehicle development platform market between 2023 and 2027
• Precise estimation of the size of the autonomous vehicle development platform market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, Europe, APAC, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of autonomous vehicle development platform market vendors

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