The Autonomous Vehicle Market is estimated to be valued at US$ 146.15 Bn in 2023 and is expected to exhibit a CAGR of 39% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Autonomous vehicles, also known as self-driving vehicles, use a combination of radar, lasers, video cameras and artificial intelligence to drive themselves. They are capable of sensing its environment and navigating without human input. Automakers are focusing on developing fully autonomous vehicles that operate independently without any human intervention for transportation of passengers and goods.
Market Dynamics:
Government support for autonomous technology is one of the major drivers propelling growth of autonomous vehicle market. Various governments across the world are supporting R&D of autonomous vehicles by providing funds and formulating favorable regulations. For instance, the U.S. government announced a USD 4 billion investment in autonomous vehicle R&D as a part of the Bipartisan Infrastructure Deal. Additionally, rising concerns regarding road accidents caused due to human errors is also fueling demand for autonomous vehicles. Autonomous vehicles uses new technologies such as radars, LiDARs and artificial intelligence that can detect objects and react accordingly to avoid accidents, which is encouraging automakers to invest more in this technology.
Segment Analysis
The Global Autonomous Vehicle Market Size can be segmented by level of autonomy – level 3, level 4, and level 5. The level 3 autonomous vehicles segment currently dominates the market due to the availability of level 3 vehicles like BMW 7 series, Audi A8, and Mercedes-Benz S-class in the market. These vehicles have conditional automation and can perform driving functions under certain circumstances but still require human supervision. The level 3 vehicles allow drivers to engage in other activities like entertainment, work, etc while the vehicle is self-driving, making them popular.
PEST Analysis
Political: Regulations related to data privacy, self-driving, and licensing are being formulated which will impact the market. Coordination between automakers and governments is important.
Economic: High investment is required for laser radar, sensors, computing power etc which is driving partnerships. Consumer demand and adoption will affect revenues.
Social: Concerns around safety, job losses, and ethical issues related to control need addressing. However, the social benefits of increased mobility are driving acceptance.
Technological: Continuous innovation is important in AI, 5G networks, sensors, and cybersecurity to improve functionality safely. Partnerships are enabling technologies to develop quickly.
Key Takeaways
The global autonomous vehicle market is expected to witness high growth, exhibiting CAGR of 39% over the forecast period, due to increasing investment in R&D by automakers and technology companies. The market size is estimated to reach US$ 1.2 trillion by 2030.
The Asia Pacific is expected to witness the fastest growth in the autonomous vehicle market due to supportive government policies and increasing consumer demand in countries like China and Japan. China is emerging as the largest autonomous driving technology development and testing hub globally.
Key players operating in the autonomous vehicle market include Audi AG, BMW AG, Daimler AG, Ford Motor Company, General Motors, Google LLC, Honda Motor Corporation, Nissan Motor Company, Tesla, Inc., Toyota Motor Corporation, Uber Technologies, Inc., and Volvo Car Corporation. Strategic partnerships are important for technology advancement and roll-out of self-driving solutions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
