Autonomous Cars Market Growth, Size, Share, Trends, and Forecast 2030

Autonomous Cars Industry Prospective:

The global autonomous cars market size was worth around USD 54.78 billion in 2023 and is predicted to grow to around USD 340.30 billion by 2032 with a compound annual growth rate (CAGR) of roughly 22.50% between 2024 and 2032.

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Autonomous Cars Market: Overview

Autonomous cars are vehicles designed to be operated with minimal to zero human intervention. These vehicles are highly sensitive to the surrounding environment which ultimately determines its driving operations. Autonomous cars do not require human assistance. They operate similarly to traditional cars except for the mandatory requirement of human help. Currently, autonomous cars are divided into 6 categories, especially by the Society of Automotive Engineers (SAE). The categories range from level 0 to level 5. The former defines fully manual cars while the latter category represents fully autonomous cars.

These self-driving vehicles operate with the aid of complex algorithms, actuators, sensors, extremely powerful processors, machine learning systems, and intelligent software. Using sensors placed on several parts of the vehicle, autonomous vehicles are known to create and use a map representing their neighboring environment. The information is used to make informed choices for accurate and safe driving. While self-driving cars have become highly popular in the last few years, these vehicles are prone to specific challenges and restrictions that also limit the growth rate in the autonomous cars industry.

Key Insights:

• As per the analysis shared by our research analyst, the global autonomous cars market is estimated to grow annually at a CAGR of around 22.50% over the forecast period (2024-2032)
• In terms of revenue, the global autonomous cars market size was valued at around USD 54.78 billion in 2023 and is projected to reach USD 340.30 billion, by 2032.
• The market is projected to grow at a significant rate due to the rising need for smarter alternatives to traditional fuel-burning vehicles
• Based on propulsion segmentation, semi-autonomous was predicted to show maximum market share in the year 2023
• Based on vehicle segmentation, commercial vehicle was the leading segment in 2023
• On the basis of region, Asia-Pacific was the leading revenue generator in 2023

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Autonomous Cars Market: Growth Drivers

Rising need for smarter alternatives to traditional fuel-burning vehicles to push the industry adoption rate

During the forecast period, the global autonomous cars market is expected to grow at a rapid rate. One of the primary reasons expected to fuel the demand for self-driving smart cars is the growing need to introduce and adopt smarter alternatives to traditional manual or semi-autonomous fuel-run vehicles. These cars are known to consume large amounts of fuel when being driven at extremely high speeds or during other driving motions such as excessive re-acceleration and braking. Autonomous cars are known to be more environmentally friendly since they use limited battery power or limited fuel resulting in reduced air pollution. One of the most concerning global impacts of industrialization and consumerism is the exponentially growing air pollution rate across the globe.

A recent study implied that almost the entire land on Earth is now affected by unhygienic air. More than 99.79% of Earth’s land is currently exposed to high levels of particulate matter. The awareness rate about the negative implications of higher dependence on manual fuel-run cars will trigger more consumers to opt for autonomous vehicles. In addition to this, the market players offer consumers an intelligent method to reduce traffic congestion. Autonomous cars are smart vehicles. These cars can self-drive to various locations and park themselves when not in use. This means that using autonomous cars is an excellent way to reduce the number of cars per family thus translating to fewer private or passenger vehicles on the road.

Increasing focus of government bodies on the promotion of environmentally-inclined vehicles may impact vehicle usage

Governments globally are undertaking several projects and initiatives to promote the production, awareness, and adoption of vehicles that are environmentally-inclined. In November 2023, the current UK government announced its intention to develop measures that will allow autonomous cars to become a reality on roads in the region. The government is planning to introduce new legislation and regulatory policies in the coming years that could drastically impact the global autonomous cars market.

Autonomous Cars Market: Restraints

Technical expertise required to develop highly efficient models may restrict market expansion

The global autonomous cars industry is expected to be impacted by the limitations faced during the design and production of self-driving smart vehicles. These cars require technically sophisticated car parts and designs which can be difficult to achieve especially if there is a lack of efficient human resources.

For instance, autonomous cars use technologies such as Light Detection & Ranging (LIDAR). The current models of the sensing technology are not only expensive but also pose technical challenges such as unpredictability on how the autonomous cars would behave if the road was filled with self-driving vehicles.

Autonomous Cars Market: Opportunities

Growing investments in the development of modern autonomous cars hold high growth opportunities

The global autonomous cars market is projected to deliver exceptional results since there has been a steady growth in the investments surrounding the development of advanced autonomous cars. Dominant automotive companies worldwide have diverted extensive research and financial resources toward the development of autonomous cars.

For instance, in the latest move, BMW, a Germany-based automotive company, announced that it will launch L3-level autonomous cars in Shanghai to meet regional laws. To promote easy integration of autonomous cars, the China-based Geely, in January 2024, announced the launch of 11 low-orbit satellites that are expected to facilitate the movement of autonomous cars.

Growing demand for electric vehicles with self-driving capabilities will generate high revenue in the coming years

There is a growing market for electric vehicles (EVs) with autonomous driving capabilities. EVs have become widely popular in the last few years among car enthusiasts. Apart from being less harsh on the environment, there has been a rise in the number of EV developers and financial aid provided to allow more purchases of electric vehicles. Autonomous vehicles that can be driven on battery are expected to find a large consumer base during the forecast period thus impacting the global autonomous cars market.

Autonomous Cars Market: Challenges

Creating a balance between new technology and the threat of human skill replacement will act as a potential challenge

The products and technology offered by the global autonomous cars industry pose threats to human employment since there is rising concern over the replacement of human drivers by self-driving cars. For instance, the transportation ministry of India has shown rejection of the idea of allowing autonomous cars on Indian roads. Additionally, the high cost of raw materials as well as the high price of the vehicles will add to overall growth restraints.

Autonomous Cars Market: Segmentation

The global autonomous cars market is segmented based on propulsion, application, vehicle, level of automation, and others.

Based on propulsion, the global market is divided into fully autonomous and semi-autonomous.

• In 2022, the highest growth was witnessed in the semi-autonomous segment. Automotive companies have begun offering different levels of automated cars and the most widely used autonomous cars do not offer full automation.
• Additionally, the technology required for developing fully autonomous cars is highly refined and thus difficult to attain. As per experts, fully autonomous cars will be accessible by 2035.

Based on application, the global autonomous cars industry is divided into transportation and defense.

Based on vehicle, the global market segments are commercial vehicle and passenger vehicle.

• In 2022, the commercial segment was the fastest-growing primarily due to the higher use of autonomous cars in commercial settings such as mining and transportation services. Moreover, autonomous cars offer higher utility in commercial applications.
• Passenger variants may prove more expensive and hence affordable. For instance, level 2 autonomous cars with Lidar functionalities have component cost between USD 1500 to USD 2000.

Based on level of automation, the global market is divided into level 5, level 4, level 3, level 2, level 1, and level 0.

Autonomous Cars Market: Report Scope

Autonomous Cars Market: Regional Analysis

Asia-Pacific to witness exceptional growth in China as per market projections

The global autonomous cars market will be dominated by Asia-Pacific during the forecast period. China is expected to emerge as a regional market leader. The country is currently one of the most dominant leaders in terms of the production and research rate of autonomous cars. In October 2023, China was projected to become the largest operator of robotaxi fleet in the coming decade, by 2040, it is expected to host over 12.01 million autonomous cars. China is the largest economy in the global automotive sector with the highest number of EV cars being produced and exported annually.

Moreover, the growing inclination of China’s government to emerge as the next superpower will help in regional market growth. North America is expected to deliver remarkably during the forecast period. The US will be the leading region as luxury regional automakers are eyeing the environmentally-friendly segment of vehicles. The rise in government initiatives to reduce air pollution as well as traffic congestion will become the regional driving factors. By 2040, the US is projected to become home to over 6.9 million autonomous taxis as per official reports.

Autonomous Cars Market: Competitive Analysis

The global autonomous cars market is led by players like:

• Cruise (a subsidiary of General Motors)
• Waymo (a subsidiary of Alphabet Inc.)
• Aurora Innovation
• Tesla
• Uber ATG (Advanced Technologies Group)
• Zoox (owned by Amazon)
• Mobileye (a subsidiary of Intel)
• Argo AI (backed by Ford and Volkswagen)
• Didi Chuxing
• Baidu
• NVIDIA
• Pony.ai
• Volvo Cars
• Nuro
• Aptiv.

The global autonomous cars market is segmented as follows:

By Propulsion

• Fully Autonomous
• Semi-Autonomous

By Application

• Transportation
• Defense

By Vehicle

• Commercial Vehicle
• Passenger Car

By Level of Automation

• Level 5
• Level 4
• Level 3
• Level 2
• Level 1
• Level 0

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa