A self-driving or autonomous car can carry out all necessary tasks without the assistance of a human. With built-in sensors in various car components, autonomous vehicles may build and maintain a map of their surroundings. Radar sensors in autonomous vehicles scan the positions of surrounding vehicles, while video cameras may read road signs, recognize traffic signals, and follow other moving objects. These vehicles incorporate sensors such as radars, sonar, thermographic cameras, GPS, and complex control systems.
The market for an autonomous car in 2021 was USD 25.14 billion, and by 2030 it will be worth USD 196.97 billion, growing at a 25.7% CAGR during the forecast period.
Automotive manufacturers and IT companies aim to ensure the highest safety requirements for drivers and the driving environment to increase customer acceptance of autonomous vehicles.
Market Dynamics
Drivers
With the aid of cutting-edge technology, the usage of AI-based camera systems for self-driving applications has proven helpful for a better customer experience while ensuring the safety of the passengers. Technological advancements in the automotive sector influence people to select these alternatives. The growth of connected automobile technology and dynamic mobility applications is another important market aspect.
Other factors that may contribute to market revenue growth over the forecast period include:
- The expanding trend of shared mobility in urban areas around the world.
- The quick integration of contemporary urban transportation modes into smart city networks.
- The increasing capability of self-driving cars to communicate with one another and prevent collisions and accidents.
Restraints
The lack of customer understanding of these cars’ advantages is a major barrier to the market for autonomous vehicles. The high cost of these cars compared to conventional cars is another important limitation. Additionally, the lack of infrastructure, like charging stations and lanes specifically designated for these vehicles, presents a hurdle in the market for autonomous vehicles.
Opportunity
Due to the exponential growth in the development of autonomous vehicles, many countries have passed legislation and regulations about infrastructure connectivity technologies. In China, the Ministries of Public Security, Industry & Information Technology, and Transport have all released laws governing the administration of autonomous vehicles for preliminary road testing. The main objectives are to incorporate autonomous driving into the overall national policy and to restructure the economy favoring a high-tech industrial model that includes autonomous vehicles and related technology.
Market Segmentation
By Type
The semi-autonomous car segment ruled the entire market on the basis of type. The levels are level 1, level 2, and level 3 levels of automation in semi-autonomous vehicles. The level two and three automation of semi-autonomous car segments will experience the fastest growth rate. The market is expanding because of the level 2 and level 3 technologies that are becoming more advanced. The segment of semi-autonomous vehicles also includes many other technologies, such as adaptive cruise control and intelligent park assist. The market categories anticipated to expand at the fastest rates are intelligent emergency braking and intelligent park helping.
By Vehicle Type
The passenger car segment held the greatest market share. The passenger car category will expand throughout the forecast period due to the rapid urbanization occurring in developing countries and the rise in population in developed countries. The most significant drivers of this market’s rapid expansion are higher demographic growth, rising living standards, and rising purchasing power in developing countries.
By Application
The transportation segment led the market with a revenue share of 93% in 2021. The market is driven by growing government funding for these self-driving car trials. The UK government established the Intelligent Mobility Fund to encourage additional innovations in the transportation sector. The mode of transport could be either commercial or industrial.
Regional Analysis
In 2021, North America contributed the largest share of 45.5% because of its strong government support and positive consumer acceptance. The Asia-Pacific area will experience substantial growth due to the introduction of driverless cars into the North American market and the increase in government funding by various countries to develop self-driving cars over the projection period. According to a study, the connected vehicle infrastructure’s explosive growth during the anticipated term in the market will cause the worldwide market for self-driving cars to grow quickly over the next ten years.
Key Players
- Audi AG
- General Motors
- Waymo
- BMW AG
- Ford Motor Company
- Tesla, Inc.
- Toyota
- Volkswagen
- Daimler AG
- Uber Technologies, Inc.
- Google LLC
- General Motors Company
- Honda Motor Co., Ltd.
- Volvo Car Corporation
- Texas Instruments
- Voxx International Corp.
- Nissan Motor Company
- Nxp Semiconductors
- Ficosa International Sa
- Microsemi Corporation
The market for an autonomous car in 2021 was USD 25.14 billion, and by 2030 it will be worth USD 196.97 billion, growing at a 25.7% CAGR during the forecast period. Demand for driverless cars is rising due to more of these vehicles being used in the logistics sector and the shift in ownership to Mobility-as-a-Service. (MaaS). Along with the quick development of high-definition technology, adaptive algorithms, and high-processing sensor technologies, the growing demand for autonomous vehicles from the military and defense industry is fueling the market’s expansion.
The upgrades in the innovation, for example, versatile calculations, sensor handling, top quality planning, and improved foundation, are provoking different organizations to grow the development of independent vehicles. The market has a great many items and frameworks that make up the independent vehicle foundation. Independent vehicles empower autonomous versatility for non-drivers and individuals experiencing specific inabilities. It permits voyagers to go with more solace and adaptability to peruse, rest, or even work while voyaging, expanding their productivity. It will likewise lessen the paid driver cost for business vehicles and cabs. Different advantages, for example, expanded security with decreased crash chances and expanded street limit with diminished costs will altogether take on these vehicles on the lookout.
Different driving players are pursuing upgrading the experience of utilizing independent vehicles, with the assistance of new advancements. For example, in 2019, the main car organization Volkswagen reported its coordinated effort with Portage to put resources into man-made intelligence seller Argo computer based intelligence.
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