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The autonomous cars software market size is forecast to increase by USD 9.18 billion, at a CAGR of 39.04% between 2023 and 2028. The market's growth hinges on multiple factors, such as rising OEM demand for vehicle autonomy and the myriad benefits linked with autonomous cars. These benefits include a reduced likelihood of human errors, which in turn decreases the occurrence of road fatalities. As Original Equipment Manufacturers (OEMs) continue to prioritize autonomy and as awareness of the advantages of autonomous vehicles spreads, the market is poised for further expansion. This trend underscores the growing importance of safety and efficiency in shaping the future of transportation.
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The report includes a comprehensive outlook on the market, offering forecasts for the industry segmented by Type, which comprises proprietary software and open-source software. Additionally, it categorizes Product into level 3 autonomous cars, level 4 autonomous cars, and level 5 autonomous cars, and covers Geography regions, including North America, Europe, APAC, South America, and Middle East and Africa. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
The market is driven by the proliferation of self-driving technology, with features like lane departure warning, automatic emergency braking, and adaptive cruise control leading the way. Trends include the rise of robo-taxis and AI-based cameras for enhanced vehicle perception. However, challenges persist, such as ensuring the reliability and safety of self-sufficient vehicles in various scenarios. Interconnected infrastructure and advancements in digital infrastructure are vital for overcoming hurdles like traffic congestion and improving safety measures. Automotive manufacturers and technology companies are at the forefront, developing software solutions to usher in the era of driverless vehicles and revolutionize transportation.
The benefits associated with autonomous cars are the key factor driving market growth. Many miscellaneous benefits are associated with the adoption of cars which encourage investors, governments, and venture capitalists to invest in R&D associated with autonomous technology. The adoption of such cars increases road capacity as they occupy less space. Lesser traffic violations allow the police force to shift focus from issuing traffic tickets and handling accidents to other serious crimes.
Moreover, parking issues would be solved since cars can locate a parking space autonomously. People with disabilities and the elderly do not require a driver for transportation. The adoption of driverless cars by taxi companies, such as Uber Technologies, would make public transportation easy. Thus, such benefits will drive the growth of the market during the forecast period.
Cloud computing in autonomous driving is the primary trend shaping market growth. Cloud computing and data play an essential role in developing independent driving and advanced driver assistance systems, where the management, reuse, and analytical capabilities can have a major impact on development costs and timelines. The automotive industry is going through a 'Tech-Tonic' change, principally focusing on autonomous driving development in the cloud. In order to make a driving decision, the self-reliant vehicle processes data from different sensors.
Furthermore, cloud computing is really a game changer for the automotive industry. With the potential, it gives rise to data management, hyperscale computation, and massive analysis. The cloud will help to create unique features, provide faster testing, and save huge costs and resources during the development process. Therefore, cloud computing in autonomous driving is expected to positively affect the growth of the market during the forecast period.
The lack of adoption of autonomous cars in developing countries is a challenge that affects market growth. Level 3, 4, and 5 autonomous cars are expected to be adopted in developed countries such as the US, the UK, Canada, Germany, Australia, Japan, and South Korea. However, in countries such as India and Brazil, the chances of the adoption of self-sufficient cars are very low due to the non-adherence to traffic rules. These countries do not have a highly-developed infrastructure for transportation, which is a must for implementing autonomous technology.
Consequently, many major players in the automotive industry specializing in self-reliant technology will avoid investing in these countries. Thus, the lack of adoption of self-supported cars in developing countries is expected to negatively affect the growth of the market during the forecast period.
The market report includes the adoption lifecycle of the market research and growth, 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
In the market, segmentation is key to understanding the diverse landscape of technological advancements shaping the future of transportation. With a focus on safety and efficiency, features like lane departure warning (LDW) and automatic emergency braking (AEB) drive the development of autonomous vehicles. Robo-taxis and AI-based cameras cater to the demand for convenient and intelligent transportation solutions. Meanwhile, adaptive cruise control and traffic sign recognition enhance vehicle autonomy and navigation. As technology continues to evolve, forward collision warning and pedestrian detection systems play pivotal roles in preventing accidents and ensuring passenger safety. Interconnected infrastructure and digital advancements further propel the autonomous vehicle domain, with automotive manufacturers investing heavily in ADAS & safety features for self-driving cars. From computers to smartphones, the integration of digital infrastructure underscores the transformative potential of autonomous vehicles in reducing traffic congestion and enhancing safety measures on the road.
The market share growth by the proprietary software segment will be significant during the forecast period. The proprietary software is developed and owned by a particular company, which means that it cannot be modified or distributed freely. There are more control and customization options in the proprietary software. The vast majority of software is proprietary because they are largely commercial in nature. They come with an endless licensing scheme and are created using hidden source code.
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The proprietary software segment showed a gradual increase in the market share of USD 0.58 billion in 2018. Users must accept the licensing terms, which essentially means that they agree not to use the program or software for any purpose that hasn't been expressly approved by the developers. However, proprietary software is less flexible and often comes with restrictions. Consequently, the proprietary software segment is expected to grow at a moderate rate in the market during the forecast period.
Level 3 autonomous cars, also known as conditional autonomy, are advanced enough to allow drivers a hands-free driving experience. Automotive artificial intelligence (AI) within level 3 automation is capable of actively monitoring various environmental inputs and regulating vehicle speeds without requiring any assistance from drivers. Moreover, level 3 autonomous cars need human intervention, as they are not programmed or ready to make decisions during complicated traffic situations. These vehicles have become more advanced since 2021, as they are able to operate on both highways as well as city roads. In addition, the Level 3 autonomous cars are called conditional automation by SAE, as drivers must be on hand to respond to a request to intervene. Thus, the level 3 autonomous cars segment is expected to drive the growth of the market during the forecast period.
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North America is estimated to contribute 39% 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 market in North America is driven by the US. North America accounted for a major portion of the market due to the presence of a large number of companies, such as Tesla and Intel, in the US.
Moreover, the presence of a well-developed road infrastructure and connectivity solutions and the development of autonomous technologies by original equipment manufacturers (OEMs) have made North America a hub for pilot testing programs in vehicle autonomy. In addition, OEMs and autonomous system developers and integrators are increasingly focusing on developing self-driving vehicles that integrate the advanced forms of automotive AI by acquiring technology startups and/or entering into partnerships with technology companies and fleet operators, such as Uber. Thus, such factors are expected to fuel the growth of the regional market during the forecast period.
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.
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 report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028.
In the market, cutting-edge technology reshapes the future of transportation. With a focus on safety and efficiency, software architecture integrates advanced features like adaptive headlamp control and automated braking to enhance vehicle handling and mitigate road accidents. Image-processing algorithms and scene understanding capabilities enable precise object recognition and scene interpretation, crucial for autonomous navigation. Connectivity infrastructure, including V2V and V2X communications, ensures seamless interaction between vehicles and the surrounding environment, supported by robust IT infrastructure and high-speed communication networks like 3G and 4G-LTE.
In addition, autonomous shared mobility, including ride-sharing and car-sharing platforms, revolutionizes transportation, bolstered by technology advancement in electric and hybrid vehicles. Government funding and regulatory frameworks play essential roles in fostering technological advancement and ensuring safety standards. As the industry progresses, a focus on mobility, accessibility, and security drives innovation, shaping the future of transportation for both drivers and non-drivers alike.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 39.04% |
Market Growth 2024-2028 |
USD 9.18 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
37.85 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 39% |
Key countries |
US, China, Japan, South Korea, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
aiMotive, Alphabet Inc., Amazon.com Inc., Aptiv Plc, Aurora Innovation Inc., Baidu Inc., BlackBerry Ltd., Cohda Wireless Pty. Ltd., General Motors Co., Intel Corp., Luminar Technologies Inc., Minus Zero Robotics Pvt. Ltd., NVIDIA Corp., Oxa Autonomy Ltd., Ridecell Inc, Robert Bosch GmbH, Siemens AG, Tata Consultancy Services Ltd., Tesla Inc., and TIER IV INC. |
Market dynamics |
Parent market growth analysis, Market forecasting, 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 report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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