Autonomous Cars or Driverless Cars Market

The global Autonomous Cars or Driverless Cars Market is valued at USD 23.3 Billion in 2023 and is projected to reach a value of USD 59.7 by 2032 at a CAGR (Compound Annual Growth Rate) of 12.48 % between 2024 and 2032.

Key Highlights of Autonomous Cars or Driverless Cars Market

• The market was mainly led by the North America region in 2023, accounting for 47.1% of the total market share
• The Asia Pacific market is expected to grow significantly from 2024 to 2032 with a CAGR of around 13.1%.
• The US Autonomous Cars or Driverless Cars market, with a valuation of USD 8.89 billion in 2023, is projected to increase to approximately 22.1 billion by 2032.
• Based on Level of Autonomy, the L1 segment accounted for the largest market share in 2023,
• Based on Application, the personal mobility category accounted for the market share of about 78.2% in 2023,
• Advancements in AI, connectivity, and sensor capabilities are driving growth in the autonomous cars market.

Autonomous Cars or Driverless Cars Market: Regional Overview

The North American autonomous cars market exhibited substantial dominance in 2023, capturing 47.1% of the revenue share. This growth is primarily attributed to changes in US traffic regulations, allowing self-driving cars on public roads across states. The push for autonomy stems from the increasing demand for Mobility as a Service (MaaS). Regulation efforts, like the proposed SELF DRIVE Act, aim to streamline testing and safety standards under the National Highway Traffic Safety Administration (NHTSA). Furthermore, Canada's investment of USD 40 million in BlackBerry QNX underscores the region's commitment to developing safe and secure software for connected and autonomous vehicles. This initiative is set to create numerous jobs and bolster Canada's competitiveness in the global economy. As major players invest in AV technology, Canadians anticipate improvements in accessibility and productivity facilitated by autonomous vehicles.

U.S. Autonomous Cars or Driverless Cars Market Overview

The Autonomous Cars or Driverless Cars market in the United States, with a valuation of USD 8.89 Billion in 2023, is projected to reach around USD 22.1 Billion by 2032. This forecast indicates a substantial Compound Annual Growth Rate (CAGR) of 12.06% from 2024 to 2032. The well-established infrastructure and supportive ecosystem greatly boost the advancement and adoption of autonomous systems in the United States. The Department of Transportation (DOT) has increased funding for Autonomous Vehicle (AV) technology development through the Strengthening Mobility and Revolutionizing Transportation (SMART) Grant Program, allocating USD 94 million for states and local governments. The Insurance Institute for Highway Safety anticipates 3.5 million self-driving vehicles on U.S. roads by 2025, rising to 4.5 million by 2030. However, these vehicles are expected to possess autonomous capabilities within specific conditions rather than being entirely autonomous. Moreover, the Institute of Electrical and Electronics Engineers predicts that by 2040, 75% of cars worldwide will have autonomous features.

Autonomous Cars or Driverless Cars Market: Level of Autonomy Overview

In 2023, substantial expansion was observed in the global Autonomous Cars or Driverless Cars market within the L1 category. The Level of Autonomy segment is separated into L1, L2, L3, L4, and L5. Regulatory bodies like Europe’s Vehicle General Safety Regulation and programs like the New Car Assessment Program (NCAP) have pushed for the adoption of basic SAE L1 and L2 ADAS features. This includes features like automatic emergency braking (AEB) and automatic emergency steering (AES). Luxury car manufacturers such as Volvo, BMW, Audi, and Mercedes-Benz are developing vehicles with Level 1 and Level 2 autonomous capabilities. Major players like Waymo, Tesla, Audi, BMW, and others have been actively testing and implementing these technologies, with Level 1 autonomy features like adaptive cruise control and lane-keeping assistance leading the market due to their widespread integration and user-friendly nature.

Autonomous Cars or Driverless Cars Market: Mobility Type Overview

In 2023, the global autonomous cars market saw remarkable expansion, capturing a commanding 78.2% share in Personal Mobility. The Mobility Type segment is categorized into Shared Mobility and Personal Mobility. Autonomous vehicles promise hassle-free commuting, attracting those seeking relaxed and productive travel. Continuous technological advancements, such as enhanced sensors and AI algorithms, have made autonomous passenger vehicles more reliable. New tech players are entering the market, leveraging their system-on-chip expertise to develop software suites. There's potential for L4 robo-taxi and robo-shuttle providers to enter the auto-supply market, contingent on evaluating customer needs and cost positions. Confidence in vehicle safety and performance is growing, bolstering consumer interest. Ride-sharing models are poised to benefit from AVs, with potential labor cost savings. This shift could reduce energy consumption by 0-20%, bringing about numerous advantages including enhanced safety, accessibility, and reduced transportation costs.

Key Trends

1. The autonomous cars market is experiencing significant advancements driven by ongoing improvements in technology. These include enhancements in sensors, AI algorithms, and connectivity, which are making autonomous driving more reliable and feasible for everyday use. For Instance, Cyngn Inc., announced that it has been granted a new patent in the United States which covers its autonomous vehicle AV solution as well as driver solutions.
2. Autonomous vehicles are increasingly being integrated into ride-sharing on-demand models. This integration promises cost reductions for ride-sharing companies, leading to enhanced profitability and scalability. This trend is expected to continue as ride-sharing services incorporate more autonomous vehicles into their fleets.
3. There is a growing focus on enhancing safety features and optimizing performance capabilities of autonomous vehicles. Investments in research and development aim to address safety concerns and improve operational efficiency, building consumer trust in autonomous driving systems.
4. The United States had 42,915 vehicle fatalities in 2023, with 94% of accidents caused by human error. Autonomous cars have the potential to reduce human error and reduce mortality. AVs have the potential of reducing accidents by 90%, amounting to approximately USD 190 billion a year in savings.
5. One of the significant trends in the autonomous cars or driverless cars market is the increasing integration of Advanced Driving Assistance Systems (ADAS) aimed at maximizing driving safety.

The global Autonomous Cars or Driverless Cars market can be categorized as Level of Autonomy, Component, Electric Vehicle, System, Mobility Type and Region.

Premium Insights

Safety features rank as the top priority for automotive customers worldwide. Government regulations mandating features like LDW, AEB, and EBS have pushed manufacturers to integrate them into recent vehicles. The UK government's Intelligent Mobility Fund fosters innovation in transportation. With a growing demand for mobility services, the self-driving car sector is expected to thrive. The UK's Department of Transport permits self-driving vehicles on public roads without extra permits or insurance, signaling support for their development. However, the rise of fully autonomous vehicles could potentially replace around 2.2 million motor vehicle operator jobs, impacting the workforce significantly. By 2040, global sales of autonomous vehicles could exceed 33 million, revolutionizing travel and commuting. The United States leads in autonomous vehicle readiness, with a readiness index score of 26.22. It's projected that by 2035, one out of every ten cars sold could be a shared autonomous vehicle, indicating a shift towards shared, autonomous models in the automotive industry.

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Market Dynamics

Advancements in AI, connectivity, and sensor capabilities are driving growth in the autonomous cars market. These technologies enable vehicles to navigate complex environments efficiently, enhancing safety and reliability. For instance, SiMa.ai, a leading AI startup, recently secured million in funding to develop chip technology for autonomous vehicles. The introduction of safety features such as blind spot detection and automatic emergency braking as standard equipment in vehicles by major Original Equipment Manufacturers such as Honda and Toyota is paving the way for safer driving experiences. However, in particular with regard to infrastructure and legislation, challenges still exist. In countries like India, inadequate road infrastructure and regulations hinder the widespread adoption of autonomous vehicles, highlighting the need for continued technological innovation and policy support.

The integration of autonomous vehicles into shared mobility services presents a significant opportunity for market expansion. Autonomous vehicles are increasingly being used in shared mobility solutions, which offer convenient and cost-effective modes of transport as technological capabilities improve. However, in order to achieve commercial scale deployment of robotaxi services it is necessary to address challenges such as regulatory support and secure sufficient capital whilst early robotaxi services are available on certain markets. Despite these obstacles, the potential benefits, including enhanced safety and efficiency, make autonomous shared mobility a promising segment within the broader driverless cars market.

Competitive Landscape

There is a high level of competition in this market, with few major competitors taking significant market share. In particular, the creation and promotion of innovation products as well as cooperation between industry players is a priority. Major car manufacturers and technology companies are investing significantly in Autonomous Driving technologies with a view to creating an environment conducive to innovation and uptake. For example, a USD 4 billion joint venture, Motional, was announced by the Hyundai Motor Group and Aptiv in April 2023 to develop autonomous driving technologies. As a result of the rapid growth of the autonomous vehicle sector, the number of companies working on autonomous vehicle technology increased from 22 in 2014 to 90 in 2020.

Recent Market Developments

• In April 2024, Hyundai Ioniq 5 robotaxi passed the U.S. driver's licence test. In its campaign film, Hyundai Motor Company showed that IONIQ 5's all-electric and self-driving robotaxi passed a test equivalent to the U.S. driver's license exam with flying colors. This achievement highlights the reliability of the IONIQ 5 robotaxi and the inclusion of its autonomous vehicle technology, highlighting its potential for safe mobility for all.
• In March 2024, Volkswagen Group announced a collaboration with Mobileye Global, a major player in autonomous driving technology. The companies will cooperate to bring Level 4 autonomous vehicles to the commercial market. This collaboration will also focus on integrating Mobileye's self-driving technology into future Volkswagen cars across the group of brands.
• In March 2023, Toyota invested USD 500 million in Pony.ai, a Chinese company developing the technology to drive cars and trucks autonomously. This investment will help Pony.ai increase its research and development efforts and accelerate the commercialization of its technology.