Global Autonomous Vehicles Market By Type (Semi-Autonomous Vehicles and Fully Autonomous Vehicles), By Application (Defense and Transportation), By Automation Level, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: Sep 2023
- Report ID: 100259
- Number of Pages: 203
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Report Overview
The Global Autonomous Vehicles Market size is expected to be worth around USD 4206.40 Billion by 2032 from USD 1.7 Billion in 2022, growing at a CAGR of 41.0% during the forecast period from 2023 to 2032.
Autonomous vehicles are vehicles that have automation technology in the vehicles, which enables the benefits of driving the car without any human intervention, and the vehicle can perform all its activities without the intervention of humans.
Autonomous vehicles sense the environment around the vehicle and process it to give the output to complete all the functions in autonomous vehicles. Manufacturers use various software and sensors like AI software, LiDAR, cameras, radio detectors, and RADAR to sense the environment around the vehicle and give the output to navigate the vehicle in the given direction. Many sensors like LiDAR and RADAR are used in these vehicles to perform various activities to assist the car.
On the other hand, semi-autonomous vehicles need driver assistance while driving the car. The Society of Automotive Engineers has stated the 6 levels of driving automation in vehicles which are accepted by the U.S. Department of Transportation. Level 0 automation vehicle is basically a manual car that needs 100% human intervention to drive the car, Whereas a level 6 automation vehicle is a fully automated vehicle that doesn’t need any human intervention while driving the car.
Major companies in the automobile industry, like Ford, Tesla, Audi, and BMW, are advancing their autonomous technology for autonomous vehicles. These companies offer various advantages over non-autonomous vehicles, like safety, fuel efficiency, low congestion, etc. These factors are making autonomous vehicles more eco-friendlier than traditional vehicles.
Driving Factors
The Government Support and Funding Boosts the Global Autonomous Vehicles Market.
Heavy Investment and funding in the infrastructure from the government for autonomous vehicles is expected to increase the demand for these vehicles throughout the forecast period. Autonomous vehicles offer adaptability to disabled people and people who don’t drive often.
These vehicles also present a luxurious experience by providing comfort and luxurious features in the vehicles, which also improve the safety and efficiency of the vehicle. Autonomous vehicles were introduced due to innovation and advancement in the automobile industry. The introduction of autonomous vehicles has revolutionized the automotive industry.
The automotive industry has seen many accidents caused by human error. High security, fuel efficiency, and high cost are driving the autonomous vehicles industry to grow. However, government initiatives and regulations for hybrid and electric vehicles are anticipated to be the key drivers boosting the autonomous vehicles industry through the forecast period.
Autonomous vehicles offer many more advantages over traditional vehicles, such as high safety features to protect from accidents, lower fuel consumption than traditional vehicles, navigation through traffic congestion, and less emission or 0 emissions from the vehicles. Various sensors used in these vehicles, like LiDAR, RADAR, and camera, allow the driver to possess all the above factors in the vehicles, which improves the driving experience and also increases the safety of the driver.
Many companies are offering different technologies in these vehicles to increase their market share and improve the driving experience. In 2018, Volvo announced next next-generation transportation solution for their commercial segment vehicles, which helps to coordinate the vehicle by monitoring the functions of the vehicle like location, charge percentage, and load to offer.
Restraining Factors
Bad Weather Conditions Pose a Threat Towards Autonomous Vehicles Market.
The growth of autonomous vehicles can be obstructed by factors like the bad performance of these vehicles during rough weather conditions. These vehicles are unable to perform their functions in bad weather owing to the failure of sensors in rough weather conditions.
Sensors in autonomous vehicles perform their functions seamlessly, but if there is a disturbance in these sensors in the functioning, it affects the driving experience of the driver. If there is snow on the road, then the cameras and sensors are not able to track the lines and markings on the road. Also, if there is a fog, then these vehicles are unable to track the environment and function properly.
These vehicles can perform in the rain, but they are unable to analyze the environment in the snow or fog. Therefore, these rough weather conditions can be fatal and may lead to an accident. Autonomous vehicles have to perform seamlessly in all weather conditions, or if not, it can be very dangerous for the people in the vehicle.
Autonomous vehicles perform their functions through various sensors attached to the vehicles. These sensors analyze the environment and send the intel to the processing system in the vehicle. These processing systems store the data from the sensors for functioning. Therefore, it is important to keep the data secure.
Growth Opportunities
Advanced Technology Use in Autonomous Vehicles is Expected to Expand the Autonomous Vehicles Market.
A group of vehicles called vehicle platoon functions on advanced technology and runs in the same line from start to end at high speed. All the vehicles in the platoon move at the same high speed. Every vehicle coordinates with another vehicle to function at the same level. This technological innovation in vehicle platooning is creating many opportunities in the autonomous vehicles market.
It plays a major role in safety and fuel efficiency and reduces time travel by functioning with advanced features. Many governments and major companies are funding and investing in research and development for the development of vehicle platooning technology. This technology will increase the demand for autonomous vehicles in the market.
Luxurious autonomous cars are in high demand in the market. Therefore, many major companies like Volvo, BMW, and Audi are investing heavily in the development of luxurious autonomous cars in level 1 or level 2. Countries like China, India, and Vietnam are showing high growth in the automotive sector. These countries are home to many important autonomous manufacturing companies. Major players are entering new markets for the expansion of the business by launching new products, acquisitions, and partnerships.
Key Players in the market are offering features like ADAS, blind spot detection, speed limit sensors, and many more to attract customers. These strategies will help the companies to increase their share in the market.
Latest Trends
Fully Autonomous Vehicles are Gaining the Popularity Around the Globe.
Fully autonomous vehicles are used as Robo taxis in most parts of the U.S. These vehicles can perform all their functions in any weather conditions. In upcoming years these vehicles are anticipated to blend with the traditional vehicles on the road. Over the years, the technology has improved from no automation to full automation or without human intervention. These advancements in technology are used in autonomous vehicles to be used as Robo taxis in the market.
MaaS offers services like efficient travel, cost-cutting, and decongestion. These services are changing the future of mobility services very quickly. MaaS permits a combination of new advancements and the adoption of autonomous vehicles. It is expected to reduce the use of private cars and increase the use of car-pooling services like Robo Taxi and Waymo. This will also lower the travel cost, fuel cost, and toll cost as the dependency on privately owned cars will decrease.
Vehicles having automation level 1 to 3 systems are attracting many customers in the autonomous vehicles market, according to the report from the Society of Engineers Engineers. These semi-autonomous vehicles are becoming more and more popular due to their safety and fuel efficiency features. Additionally, governments of many countries are imposing various rules and regulations for the companies to encourage them for more opportunities in the autonomous vehicles industry. Many factors are propelling the growth of the semi-autonomous vehicles segment, like the adoption of passenger cars in the autonomous vehicles segment.
Manufacturers of autonomous vehicles are becoming more focused on product innovation with artificial intelligence and differentiation as they move toward centralization through mergers and acquisitions, joint ventures, and collaborative partnerships. These trends are driving the market, boosting the demand for autonomous vehicles.
By Type Analysis
Semi-Autonomous Vehicles are the 1st choice of Vehicles for Customers in the Market.
Factors like safety and fuel efficiency are increasing the demand for semi-autonomous vehicles, which is driving the growth of the semi-autonomous vehicles segment in the market. The introduction of ADAS and semi-autonomous system in vehicles have decreased the number of accidents all over the world, which is positively impacting the growth of the automotive insurance industry.
However, to measure the risks correctly, rating methods must be upgraded. Many governments have imposed heavy rules and regulations like strict driving and safety regulations to lower the impact of driving skills on accidents. These rules and regulations are encouraging many vehicle manufacturers to add semi-autonomous systems to their vehicles, which is boosting the growth of the semi-autonomous vehicles segment in the autonomous vehicles market.
Fully- autonomous vehicles range from level 4 to level 5. According to a report from the Society of Automotive Engineers, autonomous vehicles having automation features from level 4 – to level 5 are majorly considered by the customers in the market. Customers are taking various factors into account while choosing vehicles, such as safety and fuel efficiency.
These factors are attracting more customers toward fully autonomous vehicles. Also, many governments have applied strict safety and driving rules to avoid accidents. These rules are promising market growth to the major manufacturers in the market to adopt autonomous vehicles.
These vehicles can perform all the functions without any human intervention. These vehicles are used in various services like Robo-taxis and Waymo. All these factors are anticipated to drive the growth of the fully autonomous vehicles segment, with a high CAGR in the autonomous vehicles market during the forecast period 2023 to 2032.
By Applications
The Transportation Sector Dominates the Global Autonomous Vehicles Market with a Major Market Share.
The transportation segment dominated with a major revenue share in the global market. Governments across the regions are taking various initiatives and supporting manufacturers to increase the production of hybrid and electric vehicles.
The demand for hybrid and electric vehicles has significantly increased especially fully autonomous vehicles, which have various automation levels. Government support and rising awareness among the public have boosted the growth of the transportation sector in the autonomous vehicles market.
The defense sector is anticipated to grow at a high rate of CAGR during the forecast period of 2023 to 2032. The increasing acceptance of autonomous cars by governments across the world for their defense sector has increased the growth rate of autonomous vehicles in the defense sector.
Different companies are collaborating with the government and their agencies for the development of more advanced and innovative systems for vehicles in the defense sector. In March 2020, High-quality map building techniques that can be used to improve the navigation system for safety and better quality were launched by the partnership of Toyota and other leading companies.
By Automation Level
Level 1 is the dominant segment in the global autonomous vehicle market.
Level 1 autonomous vehicles hold a significant share of the market due to their functions to control the speed and direction of the vehicle through the steering. Level 1 autonomous vehicles are mainly handled by the driver. It only assists the driver with functions like cruise control and lane tracing.
Level 2 of autonomous vehicles gives relief to the driver by self-controlling the steering and braking with acceleration. But the driver has to be available all the time to intervene in the vehicle function any time. These features are generally offered in many vehicles today.
Automation level 3 in the vehicles uses many sensors for seamless working, like LiDAR and RADAR. These sensors allow the vehicles to analyze the environment and give output to perform the functions seamlessly. These vehicles can control driving and monitor the environment.
Whenever the vehicle comes over an obstacle, the vehicle informs the driver to take significant control to avoid the obstacle. Major companies like Audi and BMW are offering traffic jam assist and autopilot system, which is anticipated to drive the growth of autonomous vehicles over the forecast period from 2023 to 2032.
Level 4 vehicles can be operated without human intervention but only with certain conditions. On the other hand, the vehicles at level 5 have the ability to be manually controlled, so they can drive in all road conditions. These vehicles can be used as robotaxis, such as Waymo. The demand for level 4 and level 5 is anticipated to grow exponentially during the forecast period of 2023 to 2032.
Key Market Segments
Based on Type
- Semi-Autonomous Vehicles
- Fully Autonomous Vehicles
Based on Application
- Defense
- Transportation
Based on the Automation Level
- Level 1
- Level 2
- Level 3
- Level 4
- Level 5
COVID-19 Impact Analysis
Shortage of Semiconductors in the Pandemic Adversely Affected the Autonomous Vehicles Market.
The COVID-19 pandemic has created havoc in the market. It has created a series of misery for markets by halting the logistical services, restraining growth, and panicking the public. The governments of many countries announced a complete lockdown and shut down all industries for a temporary period. Various rules of governments, like the closure of the borders, have halted logistical services and transport.
In the aftermath of the COVID-19 pandemic crisis, businesses worldwide are seeing drastic changes in the autonomous vehicles market. People preferred cashless transactions after the COVID to prevent from the COVID infection, which reduced the cash flow. After COVID, policies of the governments are helping the market to recover at a substantial level in retail sales and slowly recovering the world to back on track. All these factors are anticipated to positively impact the autonomous vehicles market.
The COVID-19 pandemic caused a big drop in the autonomous vehicles industry in the first half of 2020. After the pandemic, This was replaced by a surprising rise in demand for autonomous vehicles. This led to the current shortages of microelectronic items. Shortage of key components and raw materials, especially for semiconductors, threatens the possibility of an equally rapid economic recovery within the automotive industry.
The so-called “semiconductor crisis” is an example of how short-term supply disruptions can be combined with long-term structural features in the semiconductor industry. Both of these factors are hindering the improvement in the supply chain for the automotive industry.
Regional Analysis
North America holds the largest share, more than 45%, in the global market. The form will prosper the autonomous vehicles market. North America will see significant growth due to changes in U.S. traffic rules and regulations to allow autonomous cars on public roads. Transportation to be completely autonomous, these rules and regulations are being adopted across the U.S.
Europe is expected to be the most lucrative market for autonomous vehicles during the forecast period due to the increasing adoption of autonomous vehicles and shifting consumer preferences towards automated products. The U.K. Department of Transport announced in 2018 that autonomous vehicles could be permitted on public roads without any insurance or permits. The UK government has also shown its support for autonomous vehicles by committing to make all roads autonomous by 2021, which required changes in regulations.
The Asia Pacific region is anticipated to experience significant growth over the forecast period. Autonomous vehicles are being adopted in large numbers by developing countries like India and China in the Asia Pacific region. Due to this, autonomous vehicles’ growth in the Asia Pacific region is expected to grow significantly.
Key Regions and Countries Covered in this Report:
- North America
- The US
- Canada
- Mexico
- Western Europe
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia & New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
Market leaders stay ahead of their competition by collaborating and developing innovative solutions to strengthen their position in the market. Audi, Daimler, and BMW announced their collaboration in August 2019 to develop and market an advanced driving system. These partnerships will allow the companies to develop autonomous vehicles that are capable of autonomous driving and parking.
In 2017, Intel Corporation and BMW AG signed a contract for Mobileye to permit FCA to collaborate with the companies on developing autonomous vehicle driving platforms. This move will combine all the strengths, resources, and capabilities of these companies in order to speed up the period of the market to improve development potential and improve technology. Advancements in technology will be significantly supported by the collaboration of leading companies.
Market Key Players:
- Honda Motor Co. Ltd.
- Ford Motor Company
- Daimler AG
- BMW AG
- Volvo Car Corporation
- Volkswagen AG
- Toyota Motor Corporation
- Tesla Inc.
- Uber Technologies Inc.
- Audi AG
- General Motors Company
- Google LLC
- Nissan Motor Co. Ltd
- Other Key Players
Recent Developments:
- In April 2021, Toyota Motor Corp. released new Lexus LS and Toyota Mirai models in Japan. They are equipped with advanced drive features and a Level 2 autonomous system. This helps maintain the car’s lane, keep it from other vehicles, and assist with lane changes.
- In March 2021, Volvo Group and NVIDIA signed an agreement to jointly develop autonomous commercial vehicle and machine decision-making systems. The resulting system will use NVIDIA’s artificial intelligence platform to train, simulate, and in-vehicle computing. It is designed to safely handle autonomous driving on highways and public roads.
- In May 2022, Hyundai Motor Company launched an international manifesto campaign titled “Innovation Begins from Very Human Things” to promote its vision of self-driving robotaxis. Motional is the global leader in driverless technology and will partner with ride-hailing companies to begin deploying Level 4 autonomous vehicles in major U.S. cities in 2023.
- In June 2022, Geespace, a subsidiary company of the Geely Technology Group, launched the satellites into low-earth orbit as part of a plan to create a high-precision network that will help guide autonomous cars.
- In November 2022, Waymo expanded its robotaxi service to downtown Phoenix, adding pickups and drops at Phoenix Sky Harbor International Airport. This will be the first time that a U.S. robotaxi operator has offered paid trips to and from airports. It will be a crucial use case for autonomous vehicle businesses looking to scale.
Report Scope:
Report Features Description Market Value (2022) USD 147.5 Bn Forecast Revenue (2032) USD 4,206.4 Bn CAGR (2023-2032) 41% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Type – Semi-Autonomous Vehicles, and Fully Autonomous Vehicles; By Application – Defense, and Transportation; By Automation Level – Level 1, Level 2, Level 3, Level 4, and Level 5. Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape Audi AG, Honda Motor Co., BMW AG, Daimler AG, General Motors Company, Google LLC, Ltd., Ford Motor Company, Nissan Motor Co. Ltd, Tesla Inc., Toyota Motor Corporation, Volvo Car Corporation, Uber Technologies, Inc., Volkswagen AG, and Other Key Players. Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is the value of the global Autonomous Vehicles Market?In 2022, the global Autonomous Vehicles Market was valued at USD 147.5 billion.
What will be the market size for Autonomous Vehicles Market in 2032?In 2032, the Autonomous Vehicles Market will reach USD 4,206.4 billion.
What CAGR is projected for the Autonomous Vehicles Market?The Autonomous Vehicles Market is expected to grow at 41% CAGR (2023-2032).
List the segments encompassed in this report on the Autonomous Vehicles Market?Market.US has segmented the Autonomous Vehicles Market Market by geographic (North America, Europe, APAC, South America, and MEA). By Type, market has been segmented into Semi-Autonomous Vehicles and Fully Autonomous Vehicles. By Application, the market has been further divided into Defense and Transportation.
Which segment dominate the Autonomous Vehicles industry?With respect to the Autonomous Vehicles industry, vendors can expect to leverage greater prospective business opportunities through the Semi-Autonomous Vehicles segment, as this dominate this industry.
Name the major industry players in the Autonomous Vehicles Market.Honda Motor Co. Ltd, Ford Motor Company, Daimler AG, BMW AG, Volvo Car Corporation, Volkswagen AG, Toyota Motor Corporation and Other Key Players are the main vendors in this market.
- Honda Motor Co. Ltd.
- Ford Motor Company
- Daimler AG
- BMW AG
- Volvo Car Corporation
- Volkswagen AG
- Toyota Motor Corporation
- Tesla Inc.
- Uber Technologies Inc.
- Audi AG
- General Motors Company
- Google LLC
- Nissan Motor Co. Ltd
- Other Key Players
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