Autonomous Vehicles Market, Size, Global Forecast 2024-2030, Industry Trends, Share, Growth, Insight, Impact of Inflation, Company Analysis

Autonomous Vehicles Market Outlook

Global autonomous vehicle market size is projected to reach around US$ 200.31 Billion by 2030. The dream of seeing fleets of driverless cars efficiently delivering people to their destinations has captured consumers' imaginations and fuelled billions of dollars in investment in recent years. A driverless vehicle, also known as an autonomous vehicle, is a vehicle that can operate without the assistance of a human. It can perform required functions by sensing and responding to external conditions and surroundings using superior and built-in programs. Most self-driving systems create and maintain an internal map of their surroundings based on various sensors, such as RADAR. The Society of Automotive Engineers (SAE) defines 6 levels of driving automation ranging from level 0 (fully manual) to level 5 (entirely independent). 

United States Department of Transportation presents, many automobile manufacturers, such as Ford, Volvo, and Tesla, they have made dives and boundaries with self-driving technology, and many newer cars have come up with many autonomous systems. Furthermore, these vehicles have several advantages over conventional vehicles, including improved safety, limited use of fuel, and reduced traffic congestion & emissions by consuming less gas & battery capacity, which results in less pollution. These factors are advantageous to make it environment friendly. Further, rising technological advancement and diversity in the automotive industry have introduced autonomous cars. Autonomous vehicles are a breakthrough technology in the automotive industry after the introduction of electric vehicles and hybrid vehicles. 

Global Autonomous Vehicles Market is projected to register a CAGR of 19.50% from 2023 to 2030

Road accidents are on the rise, with over one million people losing their lives annually, as the Association for Safe International Road Travel (ASIRT) reported. Human error is the primary cause, stemming from uncertainties on the road, like misjudged head-on collisions. Machine or component failures, such as brake malfunctions or axle breakages, also contribute to accidents. To combat these issues, governments worldwide are bolstering road safety regulations. 

Autonomous vehicles present a promising solution, with advanced technology like navigation, lane management, and anti-collision systems, all linked to a central processing unit. Automotive World Ltd. predicts that by 2050, there will be over 2 billion cars globally, potentially leading to increased traffic congestion. However, autonomous vehicles can help alleviate this concern by communicating with other cars and offering efficient, congestion-free travel, especially in the growing sharing economy. 

Government initiatives to support electric and hybrid cars are expected to propel the market for autonomous vehicles in the coming years. Various leading players are working towards enhancing the experience of using autonomous vehicles with the help of new technologies. For instance, in 2019, the leading automobile company Volkswagen announced its collaboration with Ford to invest in A.I. vendor Argo AI. The partnership aimed to introduce autonomous vehicle technology in Europe and the U.S. The company decided to invest more than 4 billion USD through 2023 to develop and enhance its autonomous or self-driving services. Apart from this, the high cost of autonomous vehicles, rising concern for security & safety, and lack of proper infrastructure to support automated vehicles in developing countries restrict the market growth. The global autonomous vehicle market was valued at US$ 57.56 Billion in 2023.

Level 3 is experiencing the most rapid growth within the global autonomous vehicle market

By Level of Driving, Global Autonomous Vehicle Market is segmented into L1, L2, L3, L4 and L5. Level 3 is the fastest-growing segment, indicating surging demand for vehicles capable of autonomous operation with occasional human intervention. This shift underscores the rapid evolution towards advanced self-driving technology, promising value for consumers and the automotive industry. Basic ADAS is currently prevalent, with advancements towards SAE Level 4 autonomy on the horizon. Consumer interest in AD features may generate billions in revenue, with Level 2+ vehicles costing US$ 1,500 to US$ 2,000 in components and the potential for ADAS and AD to contribute over US$ 300-400 Billion to the passenger car market by 2035, as per Renub Research analysis.

Hardware sector holds the most extensive global autonomous Vehicle Industry Market Share

By Hardware vs. Software, Global Autonomous Vehicle Market is segmented into Hardware and Software. In the expansive landscape of the global autonomous vehicle industry, the hardware sector emerges as the dominant force, capturing the largest market share. This sector encompasses the vital components and systems that form the backbone of autonomous vehicles, including sensors, cameras, lidar technology, computing units, and other essential hardware components. These cutting-edge technologies serve as the eyes and brains of self-driving vehicles, enabling them to perceive their surroundings, process data, and make split-second decisions. The hardware sector supremacy underscores its critical role in advancing the autonomous vehicle revolution, driving innovation, and ensuring the safe and efficient operation of these ground-breaking vehicles on roads.

Lidar Hardware and V2X Software are set to dominate the global autonomous vehicle industry in the coming years

By Technology, the Global Autonomous Vehicle Market is subdivided into Hardware (Passive Components, Embedded Modem, Ultrasonic Sensors, Odometry Sensors, Other Electronics and architecture, Actuators, HMI Hardware, Mapping Hardware, Embedded Controls Hardware, V2X Hardware, Cameras, Radar and Lidar) and Software (HMI Software, Data Security Software, Mapping Software, Embedded Controls Software and V2X Software). Lidar technology is poised to assert its dominance in the global autonomous vehicle industry in the foreseeable future. Its significance lies in its ability to provide precise and real-time 3D mapping and object detection, which is essential for safe and efficient autonomous driving. As this technology continues to advance and integrate into more self-driving systems, it is anticipated to be a cornerstone in enabling vehicles to navigate, perceive, and respond to their surroundings, ultimately reshaping the landscape of the autonomous vehicle industry.

V2X (Vehicle-to-Everything) software is surging ahead in the dynamic realm of autonomous vehicles, marking the most rapid growth. V2X technology facilitates seamless communication between vehicles and their surrounding infrastructure, enhancing safety and traffic efficiency. With an increasing focus on connected transportation solutions, V2X software enables vehicles to exchange data with traffic signals, pedestrians, and other vehicles. This burgeoning sector reflects the industry drive towards comprehensive connectivity and advanced autonomous capabilities.

Passenger Vehicles command the largest market share within the Global Autonomous Vehicle Industry

By Vehicle Type, the Global Autonomous Vehicle Market is classified into Passenger Vehicles and Commercial Vehicle. In the expansive landscape of the global autonomous vehicle industry, passenger vehicles assert their dominance by claiming the largest market share. This commanding presence stems from the increasing adoption of autonomous driving technology in everyday commuting and personal transportation. The allure of enhanced safety, convenience, and reduced congestion drives the demand for self-driving passenger vehicles. This market prominence underscores the transformative impact of autonomous technology on our daily lives, as it reshapes the way we envision and interact with transportation, ultimately paving the way for a future where autonomous passenger vehicles are ubiquitous on our roads.

Defence sector holds the most significant market share of global autonomous vehicle industry

By Application, the Global Autonomous Vehicle Market is split into Civil, Defence, Transportation logistics, and Construction. The defence sector stands out with its commanding presence within the expansive global autonomous vehicle industry, capturing the largest market share. This prominence is driven by the increased adoption of autonomous technology in defence applications, from crewless aerial vehicles (UAVs) to ground-based autonomous systems. The defence industry leverages these innovations to enhance surveillance, reconnaissance, and logistics operations. As autonomous vehicles become integral to modern military and defence strategies, this sector's market dominance underscores the transformative role of autonomous technology in enhancing national security and expanding the boundaries of what is possible in defence applications.

Battery-electric vehicle market is poised to surge within the global autonomous vehicle industry

Propulsion subdivides the Global Autonomous Vehicle Market into Battery Electric Vehicle, Fuel Cell Electric Vehicles, Hybrid Electric Vehicle, Internal Combustion Engine, and Plug-in Hybrid Electric Vehicle. The battery-electric vehicle (BEV) market is on the cusp of a significant surge in the ever-evolving global autonomous vehicle industry. 

BEVs, powered by electric batteries, have gained considerable traction as a sustainable and eco-friendly option for autonomous transportation. Their integration with autonomous systems reflects a growing emphasis on reducing carbon emissions and promoting clean mobility. As governments worldwide enact policies to promote electric and autonomous vehicles, the BEV sector is well-positioned to flourish. This surge aligns with environmental goals and marks a pivotal moment in reshaping the future of transportation, where electrification and autonomy converge for a more sustainable and efficient mode of mobility.

Asia Pacific Autonomous Vehicle Industry rapidly advances with cutting-edge technology and Innovative Solutions

By Region, the Global Autonomous Vehicle Market is broken up into North America, Europe, Asia Pacific, Latin America and Middle East & Africa. The Asia Pacific Autonomous Vehicle (AV) Market has grown substantially due to the increasing demand for supply activities. Over the past decade, China has played a pivotal role by offering significant subsidies to Chinese consumers for electric vehicles and restricting the number of license plates available for internal combustion cars. The "Made for China 2025" initiative has further supported EV startups and mobility technology advancements. 

Consequently, China has not only emerged as the most significant global market for electric vehicles but also as the leading producer. While US companies excel in road-testing autonomous vehicles, Asian municipalities actively sponsor research efforts in autonomy. Shanghai, for instance, is the first city in China to test autonomous vehicles, boasting the National Intelligent Connected Vehicle (Shanghai) Pilot Zone with approximately 25 miles of dedicated autonomous vehicle testing roads. 

Singapore hosts prominent institutions specializing in connected autonomous vehicle research and encourages self-driving technology start-ups, even as private automobile sales have been restricted since 2018. Meanwhile, the Japanese government is preparing to establish dedicated and priority lanes for level 4 autonomous driving in Hitachi, Ibaraki prefecture, marking Japan's first public road introduction of such lanes for autonomous vehicles.

Key Player

The prominent players in the autonomous vehicle market include Alphabet Inc., Amazon.com, Inc., Apple Inc., Aptiv, Baidu, Inc., BayerischeMotorenWerke AG (BMW), Mercedes-Benz Group AG, DidiChuxing Technology Co., Ford Motor Company and General Motors. 

Renub Research report titled "Autonomous Vehicles Market Global Forecast by Level of Driving (L1, L2, L3, L4, L5), Hardware (Passive Components, Embedded Modem, Ultrasonic Sensors, Odometry Sensors, Other Electronics & Architecture, Actuators, HMI Hardware, Mapping Hardware, Embedded Controls Hardware, V2X Hardware, Cameras, Radar &Lidar), Software (HMI Software, Data Security Software, Mapping Software, Embedded Controls Software &V2X Software),  By Vehicle Type (Passenger Vehicle and Commercial Vehicle), By Application (Civil, Defense, Transportation & Logistics, Construction), By Propulsion (Battery Electric Vehicle, Fuel Cell Electric Vehicles, Hybrid Electric Vehicle, Internal Combustion Engine, Plug-in Hybrid Electric Vehicle), Regions (Europe, North America, Middle East & Africa, Asia Pacific, Latin America), Companies (Alphabet Inc., Amazon.com, Inc., Apple Inc., Aptiv, Baidu, Inc., BayerischeMotorenWerke AG (BMW), Mercedes-Benz Group AG, DidiChuxing Technology Co., Ford Motor Company and General Motors)" provides a detailed and comprehensive insight of the Global Autonomous Vehicles Industry.

Level of Driving – Market breakup from 5 viewpoints:

1.    L1
2.    L2
3.    L3
4.    L4
5.    L5

Hardware – Market breakup from 13 viewpoints:

1.    Passive Components
2.    Embedded Modem
3.    Ultrasonic Sensors
4.    Odometry Sensors
5.    Other Electronics & Architecture
6.    Actuators
7.    HMI Hardware
8.    Mapping Hardware
9.    Embedded Controls Hardware
10.    V2X Hardware
11.    Cameras
12.    Radar
13.    Lidar

Software – Market breakup from 5 viewpoints:

1.    HMI Software
2.    Data Security Software
3.    Mapping Software
4.    Embedded Controls Software
5.    V2X Software

Vehicle Type – Market breakup from 2 viewpoints:

1.    Passenger Vehicle
2.    Commercial Vehicle

Application – Market breakup from 4 viewpoints:

1.    Civil
2.    Defense
3.    Transportation & Logistics
4.    Construction

Propulsion – Market breakup from 5 viewpoints:

1.    Battery Electric Vehicle
2.    Fuel Cell Electric Vehicles
3.    Hybrid Electric Vehicle
4.    Internal Combustion Engine
5.    Plug-in Hybrid Electric Vehicle

Region – Market breakup from 5 viewpoints:

1.    North America
2.    Europe
3.    Middle East and Africa
4.    Asia Pacific
5.   South America

All companies have been covered from 3 viewpoints:

•    Overview
•    Recent Developments
•    Revenue

Company Analysis:

1.    Alphabet Inc.
2.    Amazon.com, Inc.
3.    Apple Inc.
4.    Aptiv
5.    Baidu, Inc.
6.    BayerischeMotorenWerke AG (BMW)
7.    Mercedes-Benz Group AG
8.    DidiChuxing Technology Co.
9.    Ford Motor Company
10.    General Motors

Report Details: