Autonomous Vehicle Market Size - By Level of Autonomy (Level 1, Level 2, Level 3, Level 4, Level 5), By Vehicle (Passenger, Commercial), By Fuel (ICE, Electric, Hybrid), By Application (Personal, Public, Goods, Industrial) & Global Forecast, 2024 - 2032

Autonomous Vehicle Market Size

Autonomous Vehicle Market size was valued at USD 2 trillion in 2023 and is estimated to register a CAGR of over 13.5% between 2024 and 2032. Increasing consumer inclination towards autonomous driving is propelling the market growth. Autonomous vehicles with their capacity to observe their surroundings through multiple sensors and make judgments based on complicated algorithms have the potential to drastically minimize accidents. This will result in fewer fatalities, injuries, and property damage, saving both lives & money.
 

Additionally, autonomous vehicles optimize their driving based on real-time traffic data and road conditions, reducing unnecessary acceleration, braking & idling. This results in increased fuel economy and lower emissions, contributing to both environmental sustainability and financial savings for users. To support the growing demand for autonomous vehicle market players are focusing on partnership and collaboration.
 

For instance, in May 2023, Mobileye, a subsidiary of Intel & specializing in self-driving technology, partnered with Daimler Truck, a leading global provider of commercial vehicles, to establish a joint venture. This collaboration was dedicated to researching and promoting Level 4 autonomous truck technology. The objective was to enhance safety and alleviate traffic congestion, thus fostering a more sustainable transportation network.
 

Government funding and regulatory frameworks are also some of the major factors driving growth in the autonomous vehicle market. Governments all around the globe are investing extensively in autonomous vehicle research & development grants, which benefit academic institutions, commercial firms, and industrial groups. Governments are establishing testing zones and pilot programs where corporations may install AVs in regulated environments & collect vital data. This enables a real-world assessment of the technology's safety, performance, and public acceptance.
 

Along with this, governments are developing clear & uniform legislation for autonomous vehicle deployment, covering concerns such as vehicle safety, cybersecurity, data privacy, and liability. This gives clarity and stability for businesses, promoting investment & innovation while protecting public safety. For instance, in May 2023, the U.S. Federal Highway Administration (FHWA) took a proactive role in overseeing the secure advancement, experimentation, and integration of Automated Vehicle (AV) technologies. This includes conducting research on Connected & Automated Vehicles (CAVs) and Cooperative Driving Automation (CDA). Furthermore, the FHWA has initiated grant & funding initiatives for states and private organizations to facilitate testing & infrastructure enhancement for autonomous vehicles.
 

High development cost is a major challenge in the autonomous vehicle market, potentially slowing down market growth. Creating autonomous vehicles requires the complex integration of numerous technologies such as modern sensors, powerful computer systems, sophisticated software, and solid communication infrastructure. Each component adds to the high cost, making autonomous vehicles much more expensive than traditional automobiles. Due to their expensive cost, autonomous vehicles remain unaffordable to a major section of the market, limiting their widespread adoption. This reduces the possibility for economies of scale, exacerbating the high-cost problem.
 

Autonomous Vehicle Market Trends

The autonomous vehicle industry is witnessing significant technological advancements in LiDAR, radar, cameras, and other sensors. These advancements improve the perception of the surroundings, enabling more precise and dependable navigation in various situations. Improved algorithms such as artificial intelligence & machine learning enable autonomous vehicles to make better real-time decisions, manage complicated circumstances, and adapt to changing driving settings. Lastly, advancements in chip technology enable quicker processing of sensor data on the vehicle, boosting reaction times and decision-making.
 

Technological improvements provide various backups and safety procedures, reducing the danger of system failure and boosting overall safety. For instance, in November 2023, Tesla released a new beta version of its "Full Self-Driving" capability, claiming improvements in lane-changing movements and overall performance. While still designated as a driver assistance system, this improvement highlights Tesla's continued attempts to push the limits of autonomous driving technology.
 

Autonomous Vehicle Market Analysis

Based on fuel, the ICE segment recorded around 65% of the market share in 2023. ICE vehicles are substantially less expensive, making them more viable for early research & testing. The current infrastructure for refueling stations is more developed for ICE vehicles, making these vehicles easier to test and deploy in varied places. ICE vehicles have larger driving ranges compared to other alternative vehicles, making them ideal for testing in various settings and on longer test drives.
 

Based on application, the personal segment held over 42% of the autonomous vehicle market share in 2023. The market is still in its early stages with applications mostly centered on passenger car autonomy. This reflects the original focus on creating key technologies and testing them in controlled settings. Personal cars are a larger and more accessible market sector than commercial vehicles, which require infrastructure & laws. Lastly, companies can anticipate profitability in providing personal autonomous vehicles to customers as a result of increased acceptability and readiness to pay a premium.
 

North America autonomous vehicle market accounted for 19% of the revenue share in 2023. Rising traffic congestion and deaths, along with a public desire for convenience, are driving demand for safer & more efficient transportation options across North America. Along with this, governments are actively developing regulations and guidelines to facilitate autonomous vehicle testing & deployment. North America has a tech-savvy consumer base, early adopters, and a strong desire to embrace new technologies offering a potential market for personal autonomous vehicles. Overall, the North America AV industry is set for enormous growth, driven by strong technology advancements, a favorable regulatory framework, and potential economic advantages.
 

Autonomous Vehicle Market Share

Volkswagen AG and Toyota Motor Corporation dominate the autonomous vehicle industry with over 15% of the market share. Volkswagen AG dedicates considerable resources to research and development (R&D) efforts, primarily directed towards advancing autonomous vehicle technology. Additionally, they allocate investments towards state-of-the-art sensors, artificial intelligence, and machine learning algorithms, aiming to elevate the safety, dependability, and effectiveness of autonomous driving systems.
 

Toyota Motor Corporation adopts a data-centric strategy in the development of autonomous vehicles, gathering and evaluating real-world driving data. Leveraging insights gleaned from data analytics, they refine autonomous driving algorithms, bolster predictive capabilities, and fine-tune vehicle performance and safety measures.
 

Autonomous Vehicle Market Companies

Major companies operating in the autonomous vehicle industry are:

• AB Volvo
• BMW AG
• Embark Trucks Inc.
• General Motors Company
• Honda Motor Company
• Nissan Motor Co. Ltd.
• Tesla Inc.
• Toyota Motor Corporation
• Volkswagen AG
   

Autonomous Vehicle Industry News

• In February 2024, Mobileye, a prominent global player in autonomous driving solutions, partnered with Project 3 Mobility (P3), a Croatian firm focused on developing an innovative ecosystem for urban autonomous mobility. This collaboration aims to investigate a novel mobility service leveraging Mobileye's adaptable self-driving technology, known as Mobileye Drive.
   
• In June 2023, Minus Zero, an Artificial Intelligence (AI) startup headquartered in Bengaluru, introduced India's inaugural autonomous vehicle. zPod, a fully electric prototype, relies on a sophisticated camera-sensor suite, enabling it to navigate through various environmental and geographical challenges autonomously. The vehicle can achieve Level 5 autonomy, representing a significant advancement in self-driving technology in the Indian market.
   

The autonomous vehicle market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and shipment (Units) from 2018 to 2032, for the following segments:

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Market, By Level of Autonomy

• Level 1
• Level 2
• Level 3
• Level 4
• Level 5

Market, By Vehicle

• Passenger
  • Sedan
  • SUV
  • Hatchback 
• Commercial
  • Truck
  • Bus
  • Van

Market, By Fuel

• ICE
• Electric
• Hybrid

Market, By Application

• Personal
• Public
• Goods
• Industrial
• Others

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

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