Autonomous cars, also known as self-driving cars, use a combination of cameras, radar sensor, GPS, and artificial intelligence to navigate roads and transport passengers without human input. Major automotive companies such as General Motors, Toyota, Tesla, BMW and Daimler are investing heavily in developing autonomous driving technologies. The rising demand for transportation as a service owing to ride-hailing apps such as Uber and Lyft has further fueled interest in autonomous vehicles which can provide transportation services without human chauffeurs. Autonomous cars are being designed to improve road safety by reducing the possibility of human errors which lead to majority of road accidents.
The global Autonomous Car Market is estimated to be valued at US$ 147.63 Bn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing demand for self-driving vehicles: As mentioned in the heading, there is growing demand from consumers for autonomous vehicles which can drive themselves without human intervention. This is being driven by the increasing focus on safety aspects along with the evolving needs of an uberized economy with on-demand transportation services. The opportunities to provide transportation as a service using driverless vehicles is motivating major automakers to invest heavily in developing advanced autonomous driving technologies.
Technological advancements: Automakers and technology companies are continuously developing new innovations such as advanced sensors, high-resolution cameras, AI & machine learning algorithms, high-performance computers and lightweight materials to make autonomous driving a reality. Significant progress is being made in areas such as vehicle-to-vehicle communication, high definition 3D mapping and handling complex urban environments. Such rapid technological advancements are bringing self-driving vehicles closer to mass deployment and commercialization.
Segment Analysis
The global autonomous car market can be segmented into semi-autonomous vehicles and fully autonomous vehicles. Semi-autonomous vehicles currently dominate the market, accounting for over 70% market share, as they provide assistance to the driver but require continuous human intervention. Semi-autonomous vehicles have level 1-2 autonomy as per SAE scale and are commercially available now. Fully autonomous vehicles with level 4-5 autonomy as per SAE scale are still in testing phase and have a relatively lower market share currently due to technological challenges associated with developing full driving automation without any human assistance. However, their market share is expected to grow significantly in the forecast period as testing transitions to commercialization.
PEST Analysis
Political: Favorable regulations around vehicle and road testing of autonomous vehicles in key markets like US, Europe and China have encouraged R&D and testing. However, lack of legislation around liability issues act as a hurdle.
Economic: Rising economic cost of road accidents boosts the case for autonomous vehicles. However, high price of Level 4-5 automation technology impacts mass adoption.
Social: Younger generation is more comfortable with new technologies compared to older people, creating tailwinds for adoption. However, safety concerns remain a challenge.
Technological: Significant investments are being made in technologies like computer vision, radar and LiDAR sensing. Yet challenges around operational capabilities in all weather and road conditions persist.
Key Takeaways
The global autonomous car market share is expected to witness high growth over the forecast period led by advancement of technology and supportive regulations. The global Autonomous Car Market is estimated to be valued at US$ 147.63 Bn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030.
Regional analysis: North America accounts for over 40% market share currently owing to conducive regulatory environment and presence of major OEMs and technology players in the US and Canada. It is expected to continue leading over the forecast period as well. Asia Pacific is emerging as the fastest growing regional market with China and Japan at the forefront of testing and adoption. Supportive government policies for development of self-driving infrastructure is a big boost.
Key players: Key players operating in the autonomous car market are Kitchen Magic, Rev-A. Kitchen Magic is a global leader in semi-autonomous vehicles while Rev-A is focusing on developing fully autonomous solutions and is expected to commercialize its offerings by 2028.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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