Near Autonomous Passenger Car Market - North America, Europe, EMEA, APAC : US, Canada, China, Germany, UK - Forecast 2023-2027

Near Autonomous Passenger Car Market Size 2023-2027

The Global Near Autonomous Passenger Car Market size is estimated to grow by USD 294.81 billion at a CAGR of 38.23% between 2022 and 2027.

The market is experiencing positive growth, fueled by the demand for semi-autonomous vehicles and the escalating interest of OEMs in advancing vehicle autonomy. Semi-autonomous vehicles are gaining popularity among consumers, driving the market towards full autonomy. OEMs are increasingly prioritizing autonomy features, fuelling technological advancements in the sector. Furthermore, the integration of intelligent transport systems is playing a pivotal role in accelerating the adoption of autonomous technology and facilitating seamless communication and coordination between vehicles and infrastructure. These factors collectively contribute to the rapid expansion of the market, shaping the future of transportation worldwide.

What will be the Size of the Near Autonomous Passenger Car Market During the Forecast Period?

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The market is witnessing significant growth driven by advancements in last-mile delivery services and the evolution of smart cities infrastructure. Integration of smart roads, wireless connections, and smart traffic signal systems enhances the efficiency and safety of near-autonomous passenger cars. Leveraging road sensors and digital infrastructure, these vehicles navigate seamlessly through urban landscapes, complemented by government funding and a supportive regulatory framework. With technological advancements propelling the development of driverless and semi-autonomous vehicles, the near-autonomous passenger car segment emerges as a key player in the future of transportation, offering enhanced mobility and connectivity in urban environments.

Market Segmentation

This market research and growth report extensively covers market segmentation by technology (ADAS level 1 and ADAS level 2) and geography (North America, Europe, APAC, South America, and Middle East and Africa).  The technology segment of the market is rapidly evolving, driven by advancements in autonomous vehicle technology and safety features. Self-driving cars integrate sophisticated AI-based camera systems, along with technologies like lane departure warning (LDW) and automatic emergency braking (AEB), ensuring passenger safety and reducing the risk of accidents. Robo-taxis, a subset of autonomous shared mobility, are gaining traction, offering convenient ride-sharing services in urban areas. These vehicles rely on V2V and V2X communications to navigate efficiently and avoid collisions. LiDAR technology enhances perception, enabling vehicles to detect obstacles and navigate complex environments with precision. In collaboration with smart cities initiatives, smart roads and traffic signal systems are being developed to support the seamless integration of driverless vehicles. Control units manage vehicle operations while ensuring regulatory compliance and adherence to safety standards. The passenger segment is witnessing the integration of semi-autonomous features, providing drivers with enhanced assistance and control. Key players like Waymo and Chrysler Pacifica are leading the way in developing near-autonomous technologies, driving the market forward. As the regulatory framework evolves and technological advancements continue, the near-autonomous passenger car market is poised for significant growth, reshaping the future of transportation and mobility.

• Technology Outlook 
  • ADAS level 1
  • ADAS level 2

• Region Outlook 
  • North America
    • The U.S.
    • Canada

By Technology

The market share growth by the ADAS level 1 segment will be significant during the forecast period. ADAS refers to a class of technologies that help drivers with driving and parking. It improves vehicle and road safety by using a secure human-machine interaction. ADAS uses automated technology, including sensors and cameras, to detect and respond to surrounding impediments or driver mistakes.

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The ADAS level 1 segment was valued at USD 14.99 billion in 2017 and continued to grow by 2021. ADAS can enable varying levels of autonomous driving, depending on the features installed in a vehicle. ADAS level 1 enables vehicles to steer, accelerate, and brake independently under most environmental conditions. In addition, vehicles have to learn the behaviour of other vehicles and road environments to navigate safely. Therefore, ADAS level 1 provides is expected to be implemented in future AVs. Such factors are expected to fuel the growth of the ADAS level 1 segment during the forecast period.

Market Dynamics and Customer Landscape

The market is witnessing rapid growth, fueled by advancements in autonomous/self-driving technology. Safety features like lane departure warning (LDW) and automatic emergency braking (AEB) ensure passenger safety. Robo-taxis, equipped with AI-based camera systems, are reshaping urban mobility. Infrastructure development, including V2V/V2X communications and smart city initiatives, supports autonomous shared mobility and ride-sharing services. Control units and sensors, including LiDAR, enhance vehicle autonomy. Government funding and regulatory frameworks drive innovation, while last-mile delivery services leverage wireless connections and road sensors. With technological advancements, the market is poised for exponential growth, catering to both passenger and semi-autonomous vehicle segments. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Drivers

The growth of the autonomous cars market is being driven by the increasing popularity of semi-autonomous vehicles. Automotive manufacturers are responding to the rising demand for comfort and convenience by integrating automation in vehicles. Due to intense competition, the time required to develop innovative technologies for autonomous vehicles is decreasing, resulting in the development of semi-autonomous vehicles.

Automakers are striving to improve the safety and security of vehicles to meet consumers' demands for comfort and convenience. Semi-autonomous vehicles are designed to shift controls between automatic and manual modes based on the driver's requirements. As a result, the increasing popularity of semi-autonomous vehicles is expected to have a positive impact on the growth of the global market during the forecast period.

Significant Market Trends

The autonomous vehicle market growth is significantly influenced by the increasing funding for research and development in this field. The development of autonomous technology requires substantial investment, and therefore, automotive manufacturers, technology providers, and tier-1 suppliers are competing to develop fully functional autonomous vehicles and gain market share.

Currently, most of the investments made by automotive manufacturers are focused on self-driving car technologies. For instance, in June 2021, General Motors Co. announced that it would invest USD 35 billion in EV and AV technology from 2020 to 2025. Similarly, Hyundai is investing USD 35 billion over a 5-year period to develop affordable driver assistance and autonomous driving technologies, aiming to bring an autonomous vehicle to the market by 2025.

The growing trend of funding for autonomous technologies is expected to continue, leading to the development of more advanced autonomous vehicles in the future. As a result, the global market is expected to witness significant growth during the forecast period.

Major Market Challenges

Concerns related to cybersecurity may impede the autonomous cars market growth. There have been cases of intruders electronically hacking into the operations of connected vehicles. Hackers can take control of air-conditioning, radio, windshield wipers, and accelerator pedals in vehicles. Therefore, strong data and network security are crucial for the adoption of semi-autonomous and full-autonomous systems.

Automotive OEMs use different standards for data communication. Each automotive OEM uses its proprietary technology and different Wi-Fi communication technologies to communicate with other vehicles and infrastructure. Such variations make the development of new technologies challenging, as the product has to support several interfaces. Such factors can hinder the growth of the global market during the forecast period.

Customer Landscape

The autonomous (driverless) car 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Who are the Major Market Companies?

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.

Bayerische Motoren Werke AG - The company offers an HD map for autonomous vehicles such as Here HD live map.

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

• Amazon.com Inc.
• Chery Automobile Co. Ltd.
• Chongqing Changan Automobile Co. Ltd.
• Ford Motor Co.
• Geely Auto Group
• Honda Motor Co. Ltd.
• Hyundai Motor Co.
• Mazda Motor Corp.
• Mercedes Benz Group AG
• NIO Ltd.
• Nissan Motor Co. Ltd.
• Tata Motors Ltd.
• Tesla Inc.
• Toyota Motor Corp.
• Volkswagen AG

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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 autonomous cars 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.

Key Regions

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North America is estimated to contribute 38% to the growth of the global autonomous vehicle market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

In this region, US, Canada, and Mexico are the key contributors to the growth of the regional near-autonomous passenger car market. Many prominent vehicle manufacturers are moving their manufacturing facilities to Mexico owing to the country's labor arbitrage and low production costs. This, in turn, has increased vehicle production in the country. The US is the major country for the R&D of autonomous vehicles. Carmakers are focusing on self-driving vehicles that integrate advanced forms of automotive AI by acquiring technology startups and entering into partnerships with technology companies and fleet operators. Such developments will drive the growth of the autonomous cars market in North America.

Market Analyst Overview

The market is witnessing rapid growth driven by advancements in Autonomous / self-driving cars. These vehicles come equipped with sophisticated safety features like Lane Departure Warning (LDW) and Automatic Emergency Braking (AEB), ensuring passenger safety. Robo-taxis and AI-based camera systems enhance the passenger experience, while V2V and V2X communications enable seamless connectivity. IT infrastructure supports autonomous shared mobility and ride-sharing services, with control units ensuring regulatory compliance. LiDAR technology, exemplified by industry leaders like Waymo and Chrysler Pacifica, enables last-mile delivery services and facilitates initiatives for smart cities. Smart roads and Smart traffic signal systems, along with wireless connections and road sensors, optimize navigation for the driverless vehicle. Supported by government funding and a good regulatory framework, this market thrives on digital infrastructure and continuous technological advancement.

The market is experiencing significant advancements with key players like Robert Bosch and AutoX leading the charge. Innovations like the MPC3 system are revolutionizing the commercial mobility segment, while companies such as Optimus Ride and Yandex are making strides in autonomous technology. Road signs and human factors are crucial considerations in ensuring passenger safety in both the semi-autonomous vehicle segment and fully autonomous vehicles passenger segment. The market also addresses the needs of non-drivers and individuals with disabilities, enhancing mobility and efficiency. With a focus on reducing accidents and traffic congestion, major automotive industry players like BMW, Audi, and Tesla are investing heavily in R&D to improve fuel efficiency and minimize environmental impact. The rise of electric and hybrid vehicles further contributes to energy savings and supports the sharing economy, all driven by advancements in artificial intelligence.

Segment Overview

The global near-autonomous passenger car market research report market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

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

Market Scope
Report Coverage	Details
Page number	146
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 38.23%
Market growth 2023-2027	USD 294.81 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	37.8
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 38%
Key countries	US, China, Japan, Germany, and France
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Amazon.com Inc., Bayerische Motoren Werke AG, Chery Automobile Co. Ltd., Chongqing Changan Automobile Co. Ltd., Ford Motor Co., Geely Auto Group, Honda Motor Co. Ltd., Hyundai Motor Co., Mazda Motor Corp., Mercedes Benz Group AG, NIO Ltd., Nissan Motor Co. Ltd., Tata Motors Ltd., Tesla Inc., Toyota Motor Corp., Volkswagen AG, and General Motors Co
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, and 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.

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

• CAGR of the autonomous (driverless) car market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of the key market companies

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