Autonomous Vehicles Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Germany, China, Japan, France - Size and Forecast 2024-2028

Autonomous Vehicles Market Size 2024-2028

The autonomous vehicles market size is forecast to increase by USD 974.5 billion, at a CAGR of 58.78% between 2023 and 2028. 

Autonomous vehicles are specifically engineered to operate and travel to various destinations without humans having to drive the car. Self-driving cars, also known as autonomous vehicles, can navigate obstacles and diverse terrain without human assistance. The market for autonomous vehicles is driven by factors such as intelligent transportation systems, the development of autonomous cabs for parcel delivery, and the adoption of cloud-based HD maps. Luxury car manufacturers, including Tesla and Mercedes-Benz, are major contributors to autonomous vehicles market growth with government support and initiatives further creating opportunities for industry players. The market research and growth also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the autonomous vehicles market research report includes historic market data from 2018 - 2022.

What will be the Size of the Market During the Forecast Period?

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Autonomous Vehicles Market Dynamic and Customer Landscape

The revolutionary technology in the Transportation sector, is experiencing rapid growth in the Radar, Lidar, and Camera markets. The RADAR systems enable autonomous vehicles to detect objects and measure their distance, while Lidar technology provides a 3D map of the environment for more precise navigation. The Cameras assist in recognizing traffic signs, pedestrians, and other vehicles. The Hardware components, such as Processing Units, are vital for the functioning of these advanced systems. Software solutions, like Machine Learning algorithms, enable the vehicles to learn and adapt to new situations. Machine vision is essential for autonomous vehicles, providing the critical visual data and real-time analysis needed for safe and efficient navigation on the roads. The Urban and Rural environments present unique challenges, necessitating the use of different Sensors and Systems.

The Public's acceptance is a significant factor in their market growth. Urban areas, with their high population density and complex traffic patterns, present a significant opportunity for autonomous vehicles to improve mobility and reduce congestion. The Concept of autonomous vehicles is gaining traction, with several companies investing in this technology. The transition to autonomous transportation is a complex process, involving significant technological advancements and regulatory considerations. The Attackers targeting these systems pose a significant threat, necessitating robust Cybersecurity measures. Despite these challenges, the future of autonomous vehicles looks promising, with the potential to revolutionize the way we travel and commute.

Key Autonomous Vehicles Market Driver 

The market's growth is propelled by automotive OEMs' emphasis on achieving autonomous vehicles. Major automotive manufacturers like Audi, Ford, Continental, Bosch, and Delphi have initiated projects to commercialize autonomous vehicles, while non-automotive giants such as Google and Apple are investing in the field leveraging their communication technology expertise. The market is poised to revolutionize logistics, transportation, ridesharing, and delivery services in various sectors, including e-commerce and last-mile delivery. Major OEMs and Tier-1 suppliers, such as Audi, Ford, Continental, Bosch, and Delphi, are collaborating with vendors in the automotive electronics industry to gain expertise in autonomous technologies. The transportation segment and defense sector are the primary revenue-generating areas for this technology.

New technologies like adaptive cruise control, lane-keeping assistance, artificial intelligence, and computing power are driving the development of autonomous vehicles. Governments worldwide are investing in these technologies, with Level 1 autonomy already available and Level 4 & 5 autonomy on the horizon. The cost savings through the use of complementary technologies like AI-based camera systems, adaptive headlamp control, traffic sign recognition, forward collision warning, pedestrian detection, and automated braking. The market also includes robo-taxis and compact form factor vehicles, making it an exciting and evolving industry. The market anticipates the launch of numerous AVs in the next decade, generating increased demand during the forecast period. Automotive dashboard cameras equipped with AI capabilities play a pivotal role in enhancing safety and providing critical data for autonomous vehicle operations.

Key Autonomous Vehicles Market Trends

The trend of utilizing cab and parcel delivery services is a significant factor contributing to the growth of the market. The market is experiencing significant growth in the transportation segment, particularly in ridesharing and delivery services. E-commerce and last-mile delivery are key drivers, as autonomous technologies enable more efficient and cost-effective logistics solutions. Major players, including Mercedes Benz, have partnered with companies like Uber to develop autonomous cars for these applications. It offers advanced features such as adaptive cruise control, lane-keeping assistance, and traffic sign recognition, all powered by artificial intelligence and high computing power.

Governments and tier-1 suppliers are investing in new technologies, including Level 1 autonomy and the development of robot-taxis. Cost savings and complementary technologies, such as AI-based camera systems and adaptive headlamp control, further enhance the appeal of autonomous vehicles. Safety features like forward collision warning, pedestrian detection, and automated braking are also crucial components. The defense segment is another potential revenue-generating area for autonomous vehicles, with applications ranging from logistics to reconnaissance. Consequently, the increasing adoption of technology in cab and parcel delivery services is anticipated to be a crucial driving factor for the uptake, thereby propelling the global autonomous car market growth during the forecast period. Additionally, the integration of autonomous driving technologies is increasingly prevalent in luxury cars, where advanced features and enhanced driving experiences cater to high-end consumers seeking cutting-edge automotive innovations.

Key Autonomous Vehicles Market Challenge

High driver distraction with an increase is the major challenge impeding autonomous vehicles market growth. The market is experiencing significant growth in logistics, transportation, ridesharing, and delivery services sectors, particularly in last-mile delivery and e-commerce. Autonomous technologies, including adaptive cruise control and lane-keeping assistance, are driving this trend in the transportation segment and defense industry. However, the reliance on these systems may lead to increased driver distraction and potential accidents during manual mode transitions.

Governments and new technologies, such as robo-taxis and AI-based camera systems, are supporting the development of Level 1 autonomy and the transition to Level 4 & 5 autonomy. Tier-1 suppliers are investing in AI-based cameras, adaptive headlamp control, traffic sign recognition, forward collision warning, pedestrian detection, and automated braking to enhance safety and generate revenue. These complementary technologies, with their compact form factor and high computing power, are essential for cost savings and the successful implementation of autonomous vehicles in various industries.Thus, increasing vehicle automation is expected to be a major cause of driver distraction, which is expected to impede the growth of the market during the forecast period.

Autonomous Vehicles Market Customer Landscape

The autonomous vehicles market industry 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 vehicles market growth and trends 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

Key Companies & Market Insights

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.

• Volkswagen AG - The Autonomous Vehicle Company manufactures passenger cars, light commercial vehicles, commercial vehicles, and power engineering. 

The autonomous vehicles market growth analysis report also includes detailed analyses of the competitive landscape of the market and information about 18 market companies, including:

• AB Volvo
• Alphabet Inc.
• Amazon.com Inc.
• Baidu Inc.
• BMW AG
• Continental AG
• Ford Motor Co.
• General Motors Co.
• Honda Motor Co. Ltd.
• Hyundai Motor Co.
• Intel Corp.
• Mercedes Benz Group AG
• Navistar International Corp.
• Renault SAS
• Robert Bosch GmbH
• Stellantis NV
• Tesla Inc.
• Toyota Motor Corp.

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.

Autonomous Vehicles Market Segmentation 

The significant innovation in the transportation sector, are experiencing rapid growth in various markets. The Vehicles market comprises companies involved in the development, production, and sale of Autonomous Vehicles, such as Tesla, Waymo, and Uber. Self-driving technology, driven by sensors, cameras, and machine learning algorithms, is revolutionizing the transportation industry. The Obstacles to the widespread adoption, it include regulatory challenges, safety concerns, and consumer acceptance. The Radar and Lidar technologies play a crucial role in enabling vehicles to detect and respond to their environment. The Cameras and machine learning algorithms help in recognizing objects and making decisions. The recent advancements in technology have made it a reality. The infrastructure and connectivity are essential for the successful implementation of Autonomous Vehicles. The transition to Autonomous Vehicles will require significant investment and collaboration between governments, industries, and consumers. The Future of transportation lies in the hands of these, offering convenience, safety, and efficiency.

By Application

The market share growth by the transportation and logistics segment will be significant during the forecast period. The use of AVs for logistics is expected to grow significantly during the forecast period. Many manufacturers, technology developers, and system integrators have been evaluating the commercial viability of buses for transportation and logistics. Different operational modes, such as line-based transit, shuttle services, and others, are under consideration for autonomous buses.

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The transportation and logistics segment showed a gradual increase in market share with USD 21.70 billion in 2018. The logistics and transportation sectors are set to witness substantial growth in the adoption of autonomous vehicles. Autonomous buses, specifically, are being explored for use in ridesharing, delivery services, and last-mile delivery in the transportation segment. In the defense sector, there is growing interest in Level 1 autonomy, while Level 4 & 5 autonomy is gaining traction in commercial applications. New technologies, such as adaptive cruise control, lane-keeping assistance, artificial intelligence, and computing power, are driving the development of autonomous vehicles. Governments and tier-1 suppliers are investing in AI-based camera systems, adaptive headlamp control, traffic sign recognition, forward collision warning, pedestrian detection, automated braking, and other complementary technologies.

Regional Analysis

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North America is estimated to contribute 32% 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. North America is transitioning from light-duty vehicles with the growing demand for safety and convenience from the American people with the US being the first country to introduce legislation permitting autonomous vehicle testing. This signifies a potential opportunity for advanced technologies to enable autonomous driving. Autonomous vehicles, or self-driving vehicles, are gaining momentum in North America, with the US leading the way. The region's light-duty vehicles are transitioning to autonomous technology due to the increasing demand for safety and convenience. Sensors, such as RADAR, LiDAR, cameras, and GPS, enable navigation routes and real-time decisions.

Further, safety measures and protective measures are crucial in addressing obstacles and ensuring secure connectivity. Interconnected infrastructure, including intelligent transportation systems and public Wi-Fi, is essential for urban connectivity solutions. Investments, collaborations, and research and development in automation technologies, machine learning systems, and 5G technology are driving the market's growth. However, challenges such as spoofing, jamming, and LiDAR vulnerabilities, as well as lane recognition and transceiver security, must be addressed. The federal government plays a role in enabling testing and implementing safety regulations. Overall, the market in North America is poised for growth, with advancements in AI, connectivity, and sensor capabilities. Additionally, the integration of autonomous driving technologies is increasingly prevalent in car rental (self-drive) services, where customers benefit from convenient, on-demand access to vehicles equipped with advanced automation features, further driving adoption and market expansion in urban and suburban environments.

Segment Overview

The autonomous vehicles market forecast 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.

• Application Outlook
  • Transportation and logistics
  • Military and defense

• Vehicle Type Outlook
  • Passenger car
  • Commercial vehicles 

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is evolving rapidly with AI-based camera systems at its core, enabling various safety features crucial for autonomous/self-driving applications. Developers prioritize adaptive cruise control, traffic sign recognition, and automated braking, enhancing pedestrian detection and forward collision warning. These innovations not only ensure safety but also promise significant cost savings. Compact form factors and complementary technologies like AI-based camera MPC3, supported by advanced software architecture and high-performance SoCs, enable scene understanding and object recognition.

Additionally, significant innovation in the transportation sector, are becoming increasingly popular due to their convenience and safety features. The Senors, vehicle controls, and decisons systems in these vehicles use real-time data to navigate and operate without human intervention. Navigation and obstacle detection are crucial components of  vehicles, relying on technologies like LiDAR, radar, and vision sensors. The market for these vehicles is projected to grow significantly, with Proactive measures and consumer acceptance being key factors. Obstacles to adoption include regulatory challenges and the high cost of technology.

Moreover, the infrastructure required, such as dedicated lanes and charging stations, also adds to the investment. The safety and efficiency of these vehicles make them an attractive option for the future of transportation. Invesments in research and development are crucial to improving the technology and making it more accessible to the masses. The market is expected to reach new heights in the coming years, with companies like Tesla, Waymo, and Uber leading the charge.

Further, the market's growth relies on well-organized roads, GPS connectivity, and emerging infrastructure like V2V and V2X communications, alongside government regulations shaping personal and commercial mobility segments, including ride-sharing and robo-taxi services. Key players like Waymo, AutoX, and Optimus Ride lead with their innovative offerings such as Chrysler Pacifica minivans and robotaxis, heralding a future of advanced mobility solutions beyond traditional car ownership models.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market report during the forecast period
• Detailed information on market analysis and report on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market  size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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