Autonomous Cars Market Size - By Level of Autonomy (Level 1, Level 2, Level 3, Level 4), By End-use (Personal, Shared Mobility), By Fuel (ICE, Electric, Hybrid), Regional Insights & Global Forecast, 2023 - 2032

Autonomous Cars Market Size

Autonomous Cars Market size was valued at USD 1.55 trillion in 2022 and is anticipated to register a CAGR of 10.3% from 2023 to 2032, owing to an increased emphasis on vehicle safety and efficiency.

Traffic fatalities and road accidents have witnessed a significant rise in recent years. According to the latest projections for traffic fatalities released by the National Highway Traffic Safety Administration, 42,795 people died in motor vehicle traffic crashes in 2022. Autonomous cars have the potential to significantly reduce road accidents caused by human errors and improve overall traffic efficiency, leading to increased demand from consumers, governments, and businesses. Moreover, increasing consumer awareness of autonomous vehicles' potential benefits, such as reduced stress during commutes and increased productivity, is driving interest in the autonomous cars market.

Companies offering ride-hailing and mobility services are keen on integrating autonomous vehicles into their fleets, reducing operational costs and increasing accessibility for users. Numerous companies have conducted pilot programs and extensive testing of autonomous vehicles, showcasing their potential and building public trust. For instance, Uber partnered with Aurora Innovation to launch an autonomous ride-hailing pilot program in Pittsburgh in 2022.

Likewise, in 2022, Lyft partnered with Motional, a joint venture between Aptiv and Hyundai, to launch an autonomous ride-hailing pilot program in Las Vegas. This, in line with the continuous development of artificial intelligence, sensor technology, and advanced computing systems, enabling the improvement of autonomous driving capabilities, and making self-driving cars more feasible and reliable, will propel autonomous cars market gains.

However, the increasing popularity of electric vehicles (EVs) has diverted attention and resources from autonomous vehicle development as companies focus on producing more EV models. Besides, the current technology required for autonomous driving, such as LiDAR sensors and advanced computing systems, can be expensive, making autonomous vehicles costly to produce and purchase, thus, impacting their adoption rate.

COVID-19 Impact

The COVID-19 pandemic had a mixed impact on the sales of autonomous cars. On the one hand, the automotive industry faced disruptions due to production halts, supply chain challenges, and decreased consumer demand as economic uncertainty prevailed during the pandemic. As a result, some autonomous car projects were delayed or scaled back. However, the pandemic also highlighted the potential benefits of autonomous vehicles in terms of reducing human-to-human contact and enhancing contactless delivery services. For instance, some autonomous delivery vehicles were deployed in certain regions to assist with essential goods transportation during lockdowns, showcasing the adaptability and relevance of autonomous technology during the pandemic.

Autonomous Cars Market Trends

Leading automotive manufacturers and technology companies are investing heavily in autonomous driving technology, creating a competitive landscape that drives innovation and adoption. For instance, in April 2023, Hyundai Motor Group and Aptiv announced a $4 billion joint venture, Motional, to develop autonomous driving technology.

Similarly, in March 2023, Toyota invested $500 million in Pony.ai, a Chinese company developing self-driving technology for use in both taxis and cars. The investment will help Pony.ai expand its R&D efforts and accelerate the commercialization of its technology. These efforts, in tandem with the growth of data analytics and connectivity solutions enhancing the capabilities of autonomous vehicles, will foster interest in their adoption, favoring the market dynamics.

Autonomous Cars Market Analysis

The ICE segment accounted for 65% of the autonomous cars market share in 2022. ICE engines are well-established and widely used, making them more accessible and affordable compared to alternative powertrains. The existing infrastructure for gasoline and diesel fuels supports ICE (Internal Combustion Engine) fueled vehicles, making refueling more convenient for consumers. Additionally, some regions and industries may have specific requirements or limitations that favor ICE engines over other types of powertrains. As autonomous technology advances, the combination of ICE engines and self-driving capabilities appeals to consumers seeking familiarity and practicality in their vehicles.

The personal segment held over 80% of the autonomous cars market share in 2022, due to the promise of enhanced safety, convenience, and improved driving experiences. Self-driving technology aims to reduce human errors and accidents, appealing to consumers seeking a safer mode of transportation. The convenience of hands-free driving also attracts individuals looking to optimize their time during commutes or long journeys. As technology advances, more consumers are showing interest in autonomous cars for their daily transportation needs. Instances like Tesla's Autopilot feature gaining popularity among Tesla owners demonstrate the growing demand for autonomous driving capabilities in personal vehicles.

North America autonomous cars market generated revenue of USD 86.7 billion in 2022. The region has a robust automotive industry with significant investments in autonomous vehicle research and development. The demand for safer and more efficient transportation options, in covalence with the region's extensive road infrastructure, fosters interest in autonomous technology. Moreover, the presence of major tech companies, such as Waymo and Tesla, pioneering autonomous driving solutions further fuels consumer curiosity and adoption. Instances like Waymo's autonomous taxi service launch in Phoenix, Arizona, demonstrate the growing interest and implementation of autonomous cars in North America.

Autonomous Cars Market Share

Some of the leading companies operating in the autonomous cars market include:

• Ford Motor Company
• Hyundai Motor Company
• Intel Corporation
• Honda Motor Company Ltd.
• Daimler AG
• Uber Technologies Inc.
• Nissan Motor Company Ltd.
• Toyota Motor Corporation
• Subaru of America Inc.
• Bosch GMBH
• Nvidia Corporation
• Continental AG
• Jaguar Land Rover Limited
• General Motors Company
• Volvo Car Corporation
• Tesla Inc.
• Waymo
• Volkswagen Group
• Fiat Chrysler Automobiles.( Acquried by stellantis)

Autonomous Cars Industry News

• In May 2023, Waymo announced that it would be expanding its self-driving car service to Phoenix, Arizona. The expansion of Waymo's self-driving car service is a sign that the company is confident in its technology and is ready to start commercializing its service.
   
• In March 2023, Uber announced that it would be spinning off its self-driving car division into a separate company called Aurora Innovation. This spin-off is a sign that Uber is no longer committed to developing its own self-driving technology.
   

This autonomous cars market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) and shipments (Units) from 2019 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Level of Autonomy

• Level 1
• Level 2
• Level 3
• Level 4

Market, By End-use

• Personal
• Shared Mobility

Market, By Fuel

• ICE
• Electric
• Hybrid

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
  • Sweden
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa