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Autonomous Vehicle Market

Autonomous Vehicle Market

Autonomous Vehicle Market - Global Industry Assessment & Forecast

Number Of Pages # Pages:


Base Year:



May - 2024



Report Code:


Segments Covered
  • By Vehicle Type By Vehicle Type Passenger Vehicle, Commercial Vehicle
  • By Level of Autonomy By Level of Autonomy Level 1, Level 2, Level 3, Level 4 & 5
  • By Application By Application Transportation, Defense
  • By Region By Region North America, Asia Pacific, Europe, Latin America, Middle East & Africa
Base YearBase Year: 2023
Forecast YearsForecast Years: 2024 - 2032
Historical YearsHistorical Years: 2018 - 2022
Revenue 2023Revenue 2023: USD 49.6 Billion
Revenue 2032Revenue 2032: USD 330 Billion
Revenue CAGRRevenue CAGR (2024 - 2032): 23.5%
Fastest Growing Region Fastest Growing Region (2024 - 2032) Asia Pacific
Largest Region Largest Region (2023): North America
Customization Offered
  • Cross-segment Market Size and Analysis for Mentioned Segments Cross-segment Market Size and Analysis for Mentioned Segments
  • Additional Company Profiles (Upto 5 With No Cost) Additional Company Profiles (Upto 5 With No Cost)
  • Additional Countries (Apart From Mentioned Countries) Additional Countries (Apart From Mentioned Countries)
  • Country/Region-specific Report Country/Region-specific Report
  • Go To Market Strategy Go To Market Strategy
  • Region Specific Market Dynamics Region Specific Market Dynamics
  • Region Level Market Share Region Level Market Share
  • Import Export Analysis Import Export Analysis
  • Production Analysis Production Analysis
  • Other Others Request Customization Speak To Analyst
Autonomous Vehicle Market Share

The global Autonomous Vehicle Market is valued at USD 49.6 Billion in 2023 and is projected to reach a value of USD 330 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 23.5% between 2024 and 2032.

Key Highlights of Autonomous Vehicle Market

  • The North American region led the Autonomous Vehicle market in 2023, with 39.5% of the total market share,
  • The Asia Pacific region is projected to remain the fastest-growing region during the forecast period,
  • In 2023, the Passenger Vehicle segment took the lead in the market, contributing a 72.1% substantial revenue share,
  • The Level 1 segment significantly contributed to the market’s expansion, constituting over 48.2% of the overall revenue share in 2023,
  • In 2023, the Transportation category dominated the market, accounting for a significant 86.5% of the total revenue,
  • Autonomous Vehicle testing and pilot programs are expanding globally, with increased government support. These programs offer valuable data & insights into real-world scenarios, aiding in developing and refining autonomous technology.

Autonomous Vehicle Market Size, 2023 To 2032 (USD Billion)

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Autonomous Vehicle Market: Regional Overview

In 2023, North America's Autonomous Vehicle market held a significant dominance with 39.5% of the total revenue. The market for Autonomous Vehicle in North America, due to technological advances, the favorable legal environment, and a strong automotive industry, is an important and fast-expanding segment. Extensive research and development in Autonomous Technology has led to significant investments by the main technology companies and car manufacturers in this area, given the region's emphasis on innovation and safety. In North America, several states allow Autonomous Vehicle trials on public roads, and in particular, the United States and Canada are actively pursuing this approach.

U.S. Autonomous Vehicle Market Overview

The Autonomous Vehicle market in the United States, with a valuation of USD 14.52 Billion in 2023, is projected to reach around USD 72.6 Billion by 2032. This forecast predicts a notable % Compound Annual Growth Rate (CAGR) of 19.6% between 2024 and 2032. The market's growth is driven by several factors, such as the increasing demand for more secure and efficient driving, advances in smart car technologies, rising R&D activity in Autonomous Vehicle, and policies and incentives from governments. The market is also expected to grow because of the rapid digitization of connected cars, enhancing their attractiveness.

Autonomous Vehicle Market: Vehicle Type Overview

In 2023, substantial expansion was observed in the Global Autonomous Vehicle market within the Passenger Vehicle category, commanding a revenue share of 72.1%. The Vehicle Type segment is divided into Passenger Vehicles and Commercial Vehicles. Due to consumer interest in safer and more comfortable transport, the passenger vehicle segment is a key growth area within the global market for Autonomous Vehicle. Autonomous Vehicle designed for personal use with advanced driver assistance systems and fully autonomous capabilities are covered by this segment. Increased use of AI, machine learning, and new sensor technologies such as LIDAR or radar will enhance these vehicles' perceptions and ability to make choices. Innovation is growing as governments set up regulatory frameworks to guarantee safety, and automobile manufacturers and technology companies work more closely together.

Autonomous Vehicle Market: Level of Autonomy Overview

In 2023, there was significant growth in the Level 1 segment, over 48.2% of the market share. Based on the Level of Autonomy, the Autonomous Vehicle market is segmented into Level 1, Level 2, Level 3, and Level 4 & 5. Level 1 autonomy in the global Autonomous Vehicle market refers to vehicles equipped with basic driver-assistance systems that support the driver in specific tasks without full automation. These systems include features such as adaptive cruise control, lane assist, and automatic emergency braking that help drivers manage their speed, steering, and stopping but require constant human supervision. This segment provides a bridge between traditional vehicles and higher levels of automation, which is a fundamental step towards full autonomy. A focus on safety and convenience drives the growing adoption of Level 1 features. Over time, the growth of Level 1 automation is symptomatic of a gradual shift to more sophisticated autonomous systems.

Autonomous Vehicle Market: Application Overview

In 2023, the Global Autonomous Vehicle market experienced considerable growth in the Transportation segment, capturing a revenue share of 86.5%. The Application segment is bifurcated into Transportation and Defense. A broad range of applications, ranging from city traffic to long-haul road haulage, are covered by the transportation sector in the Global Autonomous Vehicle Market. This category drives demand for efficiency, cost reduction, and improved security in transporting goods and persons. These vehicles can operate without human intervention, optimize the routes, and avoid accidents thanks to autonomous technologies like AI-driven software and modern sensors, including LIDAR or radar. To improve urban mobility, reduce costs, and improve reliability, public transport systems are exploring autonomous buses and shuttles, while logistics companies are adopting autonomous trucks for long-distance transport.

Key Trends

  1. Artificial intelligence and machine learning are the basis for Autonomous Vehicle. Improved perception, decision-making, and adaptation to challenging driving conditions are enabled by continued technological progress in these technologies.
  2. LIDAR, radar, camera, and other sensor technologies are being used more frequently. These sensors provide detailed information about the vehicle's perception, which is becoming more cost-effective in enabling Autonomous Vehicle to operate.
  3. The popularity of shared and taxi-sharing services has led to the emergence of a fleet of Autonomous Vehicle. Companies are looking at business models that enable them to reduce costs and increase efficiency by integrating their technologies into a single mobility platform.
  4. The rules and safety standards governing the testing and deployment of Autonomous Vehicle are being developed by governments worldwide. To ensure security and confidence, this legal framework plays a key role in the development of markets.
  5. Using Autonomous Vehicle is seen as a way of improving transport efficiency and reducing emissions. This trend is linked to the wider adoption of electric vehicles and sustainable transport solutions.

Premium Insights

According to a study, the introduction of advanced driver assistance systems, which are expected to reduce accidents in Europe by 15 percent by 2030, will positively impact safety. Self-driving technology holds major potential for drivers, the car sector, and society at large as a result of its ability to revolutionize the understanding of transportation. It will allow passengers to enjoy activities such as telephone calls, films or even working while they are on the move to make driving safer and more comfortable. This flexibility may also increase productivity and a shortening of working time for those with long commutes, enabling them to start their job before they arrive at work. By providing an alternative to traditional driving, Autonomous Vehicle could also encourage more people to move out of cities and into rural or suburban areas, which would help revive them. Better mobility, which would allow them to take advantage of different modes of transport instead of public transit or car-sharing services, can also benefit the elderly. In general, the comfort, safety, and flexibility of transport as a whole can be improved through autonomous driving.

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Market Dynamics

Mercedes-Benz made headlines recently by becoming the first automaker to offer Level 3 autonomous driving technology to U.S. consumers, signaling a significant shift in the Global Autonomous Vehicle Market. The EQS and S-Class sedans now come with Drive Pilot, a feature that allows drivers to take their eyes off the road, distinguishing it from Tesla's Full Self-Driving beta. Priced at 500 per year, this subscription-based service can be activated in specific conditions, such as clear daytime weather, heavy traffic jams, certain California and Nevada freeways, and when traveling under 40 mph. However, Drive Pilot has limitations, as it is restricted to preapproved roads and cannot be used in construction zones. Historically, Level 3 and Level 4 autonomous driving has been reserved for "robo-taxis" like Waymo. Still, Mercedes-Benz's pioneering efforts in obtaining regulatory approval allowed them to bring this technology to the consumer market.

The Global Autonomous Vehicle Market is undergoing significant developments, with Volvo Autonomous Solutions (VAS) launching a new autonomous transport solution designed for hub-to-hub operations across major U.S. highway networks. This solution is tailored to four key customer segments- shippers, carriers, logistics service providers, and freight brokers- addressing each of their unique business needs while responding to the growing demand for efficient goods movement in North America. This solution aims at enhancing safety & sustainability in the transport sector and facilitating the transition to an autonomous freight capacity for highway applications. To reinforce Volvo's commitment to deliver autonomous transport in a way that ensures all essential steps towards market readiness, VAS has worked together with DHL Supply Chain, one of the world's largest logistics companies. It is now testing this new solution in North America.

Competitive Landscape

Due to technological progress and market expansion, the Global Autonomous Vehicle Market is characterized by an intense competition landscape. Key players seek dominance with innovative AI, sensor technology, and network connectivity technologies to improve vehicle autonomy and safety. Established automotive giants compete alongside emerging startups, intensifying rivalry and fostering innovation. Continuous R&D fuels competition, with firms seeking to differentiate themselves through superior performance, reliability, and user experience in this rapidly evolving market.

Recent Market Developments

Volkswagen Group Strengthens Partnership with Mobileye for Automated Driving

  • In March 2024, Volkswagen Group is deepening its partnership with Mobileye, strategically boosting its automated and autonomous driving development. By strengthening this collaboration, Volkswagen aims to accelerate its progress in the realm of automated driving technology. Volkswagen and Mobileye will introduce new automated driving features into production vehicles through this intensified alliance. Mobileye will contribute its technologies, drawing from its Mobileye SuperVision and Mobileye Chauffeur platforms, to support partially and highly automated driving functionalities.

Uber and Waymo Launch Autonomous Delivery Services in Phoenix

  • In April 2024, Uber and Waymo debuted autonomous delivery services in Phoenix, expanding on their successful collaboration in offering self-driving rides in the city. We're excited to unveil the introduction of Uber Eats deliveries facilitated by Waymo vehicles. Initially launching in Phoenix, customers in Tempe, Mesa, and Chandler can receive their Uber Eats orders via Autonomous Vehicle. Uber and Waymo have partnered with various regional local merchants, featuring popular establishments such as Princess Pita, Filiberto’s, and BoSa Donuts.

Other Market Developments

  • In November 2023, starting in the spring of 2024, the new BMW 7 Series will feature Level 3 highly automated driving, enabling drivers to remove their hands from the steering wheel and shift their focus away from the road for a limited time. This new feature, called BMW Personal Pilot L3, reduces the driver's workload by controlling specific situations, such as managing speed, maintaining a safe distance from the vehicle in front, and keeping the car within its lane.
  • In July 2023, Volkswagen Group of America Inc. is launching its first Autonomous Vehicle test program in Austin. The program will start with 10 all-electric IDs. Buzz vehicles are equipped with an autonomous driving technology platform developed through a partnership between the global Volkswagen Group and technology company Mobileye. VWGoA plans to grow its test fleet in Austin over the next three years and gradually extend testing to at least four additional U.S. cities. With continued investments in this initial pilot, VWGoA aims to launch commercially autonomous driving vehicles in Austin by 2026.
  • In May 2023, Renault Group and Valeo are expanding their partnership further to develop the Software Defined Vehicle (SDV). As part of this collaboration, Valeo will provide several essential electrical and electronic components, including the High-Performance Computer, and will also participate in the software development process.
  • In March 2023, Ford launched Latitude AI to innovate future automated driving technology. By establishing Latitude, Ford brings on board a skilled team specializing in machine learning, robotics, software, sensors, systems engineering, and operations, enhancing the company's capabilities as it focuses on developing automated driving technology. This includes advancements in Ford BlueCruise, which has already logged over 50 million miles of hands-free driving.​

The global Autonomous Vehicle market can be categorized as Vehicle Type, Level of Autonomy, Application, and Region.

Parameter Details
Segments Covered

By Vehicle Type

  • Passenger Vehicle
  • Commercial Vehicle

By Level of Autonomy

  • Level 1
  • Level 2
  • Level 3
  • Level 4 & 5

By Application

  • Transportation
    • Industrial
    • Commercial
    • Personal
  • Defense

By Region

  • North America
    • U.S.
  • Asia Pacific
  • Europe
  • Latin America
  • Middle East & Africa

Regions & Countries Covered
  • North America - (U.S., Canada, Mexico)
  • Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
  • Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
  • Latin America - (Brazil, Argentina, Rest Of Latin America)
  • Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
Companies Covered
  • AB Volvo (Sweden)
  • General Motors Company (U.S.)
  • Tesla Inc. (U.S.)
  • Hyundai Motor Group (South Korea)
  • Ford Motor Company (U.S.)
  • Mercedes-Benz (Germany)
  • Volkswagen Group (Germany)
  • Renault Group (France)
  • Toyota Motor Corporation (Japan)
  • Bayerische Motoren Werke AG (Germany)
  • Waymo LLC (U.S.)
Report Coverage Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis
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Frequently Asked Question
  • The global Autonomous Vehicle valued at USD 49.6 Billion in 2023 and is expected to reach USD 330 Billion in 2032 growing at a CAGR of 23.5%.

  • The prominent players in the market are AB Volvo (Sweden), General Motors Company (U.S.), Tesla Inc. (U.S.), Hyundai Motor Group (South Korea), Ford Motor Company (U.S.), Mercedes-Benz (Germany), Volkswagen Group (Germany), Renault Group (France), Toyota Motor Corporation (Japan), Bayerische Motoren Werke AG (Germany), Waymo LLC (U.S.).

  • The market is project to grow at a CAGR of 23.5% between 2024 and 2032.

  • The driving factors of the Autonomous Vehicle include

  • North America was the leading regional segment of the Autonomous Vehicle in 2023.