Autonomous cars, also known as self-driving cars, use a combination of sensors, cameras, radars and artificial intelligence to drive themselves. They can detect their surroundings and navigate without any human input. Some key capabilities include adaptive cruise control, automated emergency braking, traffic jam assistance, parking assistance and fully autonomous driving. Major autonomous car companies are developing dedicated hardware and software systems to enable level 4 and 5 automation for passenger vehicles. Ongoing advancements in computer vision and machine learning are further enhancing the autonomous capabilities.
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 Enhanced Safety Features: Recent surveys indicate that over 80% of global consumers wish to purchase self-driving vehicles for enhanced safety. Autonomous vehicles utilize various sensors, radars and cameras to closely monitor the environment and detect hazards such as pedestrians, other vehicles and obstacles. Without any human errors in perception or judgment, they can avoid accidents more effectively. Automakers are actively developing advanced driver assistance systems and self-driving software to meet this rising demand for safer mobility options.
Opportunities Created by Ride Hailing Services: Popular autonomous ride hailing services such as Waymo and Cruise are conducting pilot programs across various cities to gauge consumer acceptance. Once fully autonomous vehicles are deployed at scale with necessary government approvals, these services could potentially replace human-driven taxis and provide accessible transportation options. New business models centered around mobility as a service are expected to spur demand and adoption of self-driving vehicles globally.
Segment Analysis
The autonomous car market is dominated by level 3 autonomous cars which account for around 60% of the market share. Level 3 autonomous cars have partial automation and require human intervention and observation in certain scenarios. They have advanced driver assistance systems (ADAS) such as adaptive cruise control, automated emergency braking, and lane assistance. However, humans need to remain engaged with the driving task and be ready to take control of the vehicle at all times in level 3 autonomous cars.
PEST Analysis
Political: Regulations around data privacy and usage are being formulated by regulatory bodies to ensure the safe and responsible development of autonomous vehicles. Various countries have their own policies regarding the testing and deployment of driverless cars.
Economic: The high costs associated with the development of autonomous driving technologies and acquiring the necessary sensors are limiting widespread commercialization. However, autonomous vehicles are expected to significantly reduce transportation costs for logistics companies and ride-hailing operators in the long run.
Social: Concerns aroundsafety,cybersecurity, and job losses are hampering consumer acceptance of driverless cars. However, demographic shifts and increasing road accidents indicate a growing need for autonomous mobility solutions.
Technological: Continued advancements in AI, 5G connectivity, radar and lidar sensors, and high-performance computing are enhancing the perception, localization and decision-making abilities of autonomous vehicles. Collaboration between tech giants and automakers has accelerated technology development.
Key Takeaways
The Global Autonomous Car Market Growth is expected to witness high. 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.
North America dominates the autonomous car market currently due to heavy investments by major tech players such as Google, Tesla, and General Motors in the region. China is also expected to emerge as a major market for autonomous vehicles over the coming years supported by increased focus of local automakers on electrification and automation.
Key players related content comprises Key players related content: Key players operating in the autonomous car market are Tesla, BMW, Ford, General Motors, Volkswagen Group, Toyota Motor Corporation, Nissan Motor Company, Honda Motor Company, Daimler AG (Mercedes Benz), and Waymo LLC.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
