The autonomous vehicle market encompasses vehicles that can travel between destinations without a human operator. These vehicles use a system of sensors, cameras, radar and other technologies to detect objects and navigate roads without human input. Prominent product types in this market include passenger cars and commercial vehicles that have varying degrees of autonomy ranging from driver-assistance to fully autonomous operation. The global autonomous vehicle market is gaining significant traction due to advancements in artificial intelligence, machine learning and computer vision that are enabling vehicles to drive autonomously with precision. Major companies are heavily investing in developing self-driving systems that can process massive amounts of road data to enable safe navigation. An increase in research and development of autonomous technologies is expected to make these vehicles a mainstream choice for personal transport as well as freight movement in the near future.
The global autonomous vehicle market is estimated to be valued at US$ 146.15 billion in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The Autonomous Vehicle Market size is expected to be flourished by advancements in artificial intelligence. AI is enabling autonomous vehicles to recognize visual information such as road signs, detect objects and predict behaviors with more accuracy. Automakers are developing upgraded AI systems that can learn from high-definition maps and real-time inputs from Vehicle-to-Everything (V2X) communication to navigate roads efficiently. Additionally, improvements in deep learning and neural network models are helping autonomous cars make better, faster and safer decisions. As AI capabilities continue to enhance, autonomous vehicles will get smarter at understanding complex traffic situations and handle any driving scenario.
Another driver for the autonomous vehicle market is the advantages that self-driving vehicles provide over traditional vehicles. Autonomous driving takes the human error out of driving which makes transportation safer. These vehicles can improve road capacity by traveling closer together. They also allow passengers to be more productive during commutes which provides economic benefits. As the benefits of autonomous mobility become clear, both governments and consumers will increasingly adopt these revolutionary vehicles.
Segment Analysis
The autonomous vehicle market can be segmented into semi-autonomous vehicles and fully autonomous vehicles. Fully autonomous vehicles currently account for around 10% of the overall market and are expected to be the dominating sub-segment going forward due to technological advancements enabling higher levels of autonomy. Compared to semi-autonomous vehicles that still require human intervention, fully autonomous vehicles provide more convenience and safety as they can drive and park themselves without any human assistance.
PEST Analysis
Political: Regulations around testing and commercial use of autonomous vehicles vary across countries and states. Favorable regulations promoting innovation and public safety can boost market growth.
Economic: Rising disposable incomes and demand for mobility services are increasing the adoption of autonomous vehicles for transportation across private and commercial sectors. Falling costs of key technologies will make autonomous vehicles more affordable.
Social: Younger generations are more receptive to new technologies. Autonomous vehicles can help expand mobility access for elderly and disabled. However, some people may have concerns around loss of control, cyber security and job losses in transportation sectors.
Technological: Continued improvements in artificial intelligence, connectivity, computer vision and sensor technologies are enhancing autonomous driving capabilities. Advancements in 5G networks and edge computing will help process vast volumes of real-time data from autonomous vehicles.
Key Takeaways
The global autonomous vehicle market is expected to witness high growth over the forecast period driven by rapid technological developments and higher investment in autonomy solutions by automakers and technology companies.
Regional analysis: North America accounts for the largest share of the global autonomous vehicle market currently due to major testing activities and commercial vehicle pilots underway in the US and Canada. The Asia Pacific region is expected to witness the fastest growth over the coming years led by China where the government is strongly promoting research and development in self-driving technologies.
Key players operating in the autonomous vehicle market are Atlas Copco, Caterpillar, Inc., CNH Industrial N.V., Deere & Company, Doosan Infracore, Hitachi Construction Machinery Co. Ltd., Hyundai Construction Equipment Americas, Inc., J C Bamford Excavators Ltd. (JCB), Komatsu America Corp., Liebherr Group, Sany Heavy Industries Co. Ltd, Terex Corporation, Ahern Rentals, Herc Rentals Inc., and United Rentals, Inc. Tier 1 automotive suppliers are collaborating with these key OEMs to develop advanced driver-assistance systems, high definition maps and other supporting technologies to enhance autonomous capabilities.