Self-driving Cars Market Size - By Level of Autonomy, By Vehicle, By Propulsion, By Application, Growth Forecast, 2025 – 2034

Self-driving Cars Market Size

The global self-driving cars market was valued at USD 1.7 trillion in 2024 and is estimated to register a CAGR of 8.6% between 2025 and 2034. A major driver for the market is that over 1.3 million deaths occur around the world annually due to road traffic accidents, according to WHO. Self-driving cars can eliminate such human errors which cause more than 90% of these deaths by using the advanced driver-assistance systems and AI-powered decision-making.
 

Precise navigation, in a complex urban setting, has now become possible because of these sophisticated sensors. Similarly, vehicle-to-everything (V2X) connectivity is further reinforced by low latency communication via 5G with vehicles and infrastructure for traffic updates and real-time road information.

This has heightened the call for effective and sustainable transportation. Self-driving cars are now a part of smart city projects, indicating a possible driver-free future. For instance, according to the United Nations, 68% of the world's population is projected to live in urban areas by 2050. Autonomous shuttles, such as Navya's Autonom, are being deployed in smart city projects worldwide, making them reduce congestion and improve accessibility. These operate on fixed routes and easily fit into the urban infrastructure to enhance mobility in the city.
 

Self-driving Cars Market Trends

• The integration of EVs and autonomous technology is considered the most significant automotive industry trend because companies are manufacturing autonomous EVs to address all sustainability concerns that are expected soon due to stiffer environmental rules. Fully electric self-driving cars come from the producers Tesla and Rivian, and conventional producers, like Volkswagen and Ford, electrify their fleet of autonomous cars.
   
• According to the IEA, by 2030, EVs will occupy the manufacturing space for self-driving cars: by then they would already command 14% of the total number of automobiles sold worldwide as early as in 2023.
   
• Shared mobility, including robo-taxis, is one of the popular affordable and accessible means of transportation. For instance, in February 2025 Waymo announced that it is expanding its autonomous robotaxi service. In 2025, the company will be launching in Austin and Atlanta, with Uber managing the fleet. Miami will be included among future cities in 2026. Waymo has all-electric fleet. Jaguar I-Pace models are deployed; the company will have Hyundai’s Ioniq 5 SUVs on board.
   
• Level 4 and Level 5 fully autonomous vehicles are being developed is an upcoming trend. Waymo, Tesla, and Mercedes Benz are investing in advanced AI and sensor technologies for levels of autonomy.
   
• For instance, in August 2024, Mercedes-Benz begin testing of Level 4 autonomous driving technology in Shanghai, China. This is the first international automaker to secure such certification from local regulators in the country.
   
• Mercedes has also been expanding its Drive Pilot System which is certified as Level 3 in US and Germany, allowing hands-free driving in specific conditions where the automaker assumes full responsibility.
   

Self-driving Cars Market Analysis

Based on product, the self-driving cars market is divided into compact cars, mid-size cars and SUVs & luxury cars. In SUVs & luxury cars segment held a market share of over 43% and is expected to cross USD 2 trillion by 2034.  
 

• The largest portion of the autonomous car market are SUVs and luxury cars, as they are highly compatible with advanced autonomous technology, spacious in design, and enjoy larger profit margins through which manufacturers can afford to build premium features.
   
• These vehicles are ideal to be used as a base for autonomous technologies such as LiDAR, RADAR, and AI-enabled software because they are large enough to accommodate numerous sensors without having to sacrifice interior comfort. Luxury cars appeal to early adopters who are willing to pay more for advanced technology, improved safety, and more customized experiences.
   
• For instance, in July 2023, the Mercedes-Benz EQS, a luxury electric vehicle equipped with Level 3 autonomy (Drive Pilot system), offers features like adaptive cruise control, automated lane changes, and intelligent parking, positioning it as a benchmark in autonomous driving.
   
• Besides, SUVs are popular in terms of functionality and suitability for family and off-road use. This makes the vehicle a perfect choice for a consumer embracing autonomous technology. The combination of functionality, comfort, and sophistication in technology guarantees that SUVs and luxury cars will be ahead in the market of self-driving cars.
   

Based on propulsion, the self-driving cars market is categorized into ICE, electric and hybrid vehicle. The electric segment held a market share of 45% in 2024.
 

• Electric vehicles were originally equipped with advanced electronics, forming a good base for the complex systems and sensors that are required for manufacturing autonomous driving vehicles.
   
• For instance, Tesla's electric models like the Model S and Model X are equipped with Full Self-Driving (FSD) capabilities, leveraging their centralized software systems to support autonomous features effectively.
   
• This is creating a potential spurring which is pushing governments worldwide to encourage the use of EVs through mechanisms like tax benefits, subsidies, and investment in charging infrastructure. The above factors, in conjunction with rising interest for sustainable solutions in mobility systems, have influenced autonomous carmakers to consider EVs as their source of alternative propulsion. Being technologically advanced and green, such EVs will be the future for the automotive market of the autonomous future.
   

Based on the level of autonomy, the self-driving cars market is divided into L1, L2, L3, L4 and L5. In the L1 segment, it dominated the market accounting for USD 706.1 billion in 2024.
 

• L1 features are adaptive cruise control and lane-keeping assist that improve driving safety and convenience yet still demand complete driver control. These technologies can be afforded relatively cheaply for manufacturers to produce, and, therefore, such vehicles can appear in a broader range of the market, from budget models.
   
• L1 technologies offer consumers a way to experience autonomous features without the added complexity of higher levels.
   
• The demand for L1 systems is driven further by governments requiring the provision of basic driver-assistance features, including automatic emergency breaking in new vehicles sold globally. For instance, Toyota and Honda offer L1 features as standard in many of their vehicles, making them popular choices for safety-conscious buyers.
   
• This confluence of cost-effectiveness, accessibility, and regulatory support makes sure L1 remains the predominant level of autonomy in the marketplace.
   

Based on application, the self-driving cars market is divided into personal use, shared mobility, logistics & delivery and public transport. The logistics & delivery segment is projected to grow fastest at the CAGR of 14% during the forecast period.
 

• Autonomous cars for private use help alleviate the anxiety of driving so that people can concentrate on other activities or even sleep while going to work. Also, driverless cars with features like collision prevention and lane correction are appealing to safety-conscious customers, particularly family buyers.
   
• Consumers choose the option that allows having autonomy over scheduling when it comes to transportation. Self-driving vehicles also promise an improved experience related to comfort as well as efficiency in accomplishing work while entertained or just simply relaxing throughout journeys.
   
• Also, with decreasing prices for autonomous vehicles, and financial assistance being made more easily available, personal ownership is now reaching a larger market population, which is again propelling growth in this space.
   
• Shared mobility applications are also growing gradually, for instance, In January 2025, Uber Technologies and Lyft announced modifications to their businesses to integrate driverless taxis. They are enhancing app features for customer convenience and preparing infrastructure for servicing autonomous vehicles. Both companies are partnering with firms like Waymo and May Mobility to offer driverless options in select U.S. cities, beginning with Austin and Atlanta.
   

North America dominates the global self-driving cars market with a share of around 25% and U.S. leads the market in the region generating revenue of USD 376 billion in 2024.
 

• U.S. leads the market because of the front-running technology companies, such as Waymo, Tesla, and Cruise, in autonomous vehicle development and utilizing the most advanced AI, sensors, and connectivity.
   
• For instance, in August 2024, Tesla announced that will expand its Full Self-Driving (FSD) beta program, enabling autonomous capabilities in more states and highways, which boosted consumer interest and adoption.
   
• The U.S. government policies and regulatory frameworks are actively promoting the development of autonomous vehicles. The U.S. Department of Transportation (USDOT) has issued new guidelines for testing and deploying autonomous vehicles to ensure safety.
   
• State level initiatives like robo-taxi operations have received approval from California, thus speeding up adoption. Regulatory support in the country is further enabling the U.S. to dominate the global market for self-driving cars.
   

The self-driving cars market in Germany is expected to experience significant and promising growth from 2025 to 2034.
 

• The increase in the market in the area can be explained by the fact that Germany is integrating self-driving EVs into public transport and urban mobility systems.
   
• For example, in April 2024, Germany approved the deployment of autonomous buses in urban areas, aiming to reduce traffic congestion and improve accessibility. These advancements underline Europe’s commitment to integrating autonomous vehicles with sustainable transport systems.
   
• The European Union actively supports the self-driving car market through initiatives like Horizon Europe, which funds autonomous vehicle research and development.
   
• In March 2024, the EU launched approx. USD 1 billion fund aimed at advancing autonomous mobility solutions, emphasizing safety and sustainability.
   
• Europe’s focus on reducing carbon emissions and developing smart cities is a major driver for autonomous vehicles.
   

The self-driving cars market in China is expected to experience significant and promising growth from 2025 to 2034.
 

• The self-driving car market in China grew rapidly, driven by government support and major tech companies like Baidu and Huawei. Autonomous taxis and commercial vehicles saw increased adoption, especially in cities with favorable regulations.
   
• For instance, in February 2024 the Ministry of Industry and Information Technology (MIIT) introduced regulations to support the testing and deployment of Level 4 autonomous vehicles.
   
•  Similar, the Japanese smart city programs incorporate plans to integrate autonomous vehicles into transportation for senior citizens and people residing in the rural areas. For instance, in February 2024, Nissan announced plans to launch an autonomous ride-share service in Japan by 2027 to address a shortage of taxi drivers caused by the country’s aging population. The company would start trials in Yokohama’s Minato Mirai area using 20 Serena-based vehicles, each with a safety monitor in the driver’s seat. Passengers would be able to book rides through a reservation system.
   

The self-driving cars market in Mexico is expected to experience significant and promising growth from 2025 to 2034.
 

• Mexican authorities have tested driverless cars that operate as hailing and delivering. The bigger cities are already very interested in the AI-related movement.
   
• For instance, in March 2024, the North Central Regional Transit District announced a study on the feasibility of autonomous vehicles in Northern New Mexico’s public transit system. The district, which operated the Blue Bus system, aimed to determine if the region suited a pilot program.
   
• The rest of Latin America had its self-driving car market experience barriers in terms of inconsistent regulations and infrastructure gaps. However, countries like Brazil and Chile considered the autonomous technology for public transport and logistics.
   

Self-driving Cars Market Share

Top 5 companies leading the self-driving industry in 2024 are Volkswagen Group, Toyota Motor Corporation, General Motors (GM), Mercedes Benz and Tesla, Inc. Together, they hold around 24% market share in the market, due to their extensive investments in autonomous technologies, global presence, and robust product portfolios.
 

• Tesla Inc. has become the benchmark of the industry through its FSD technology, and it is at the forefront with over-the-air updates and the high adoption of its autonomous EVs. It exploits global distribution networks, R&D capabilities, and the ability to scale production to lead the market while driving technological advancements in autonomous mobility
  .
• For instance, in June 2023, Tesla revised its Full Self-Driving (FSD) software, allowing personal vehicle owners to benefit from the autonomous navigation feature by which the car can autonomously navigate on highways and city streets. This enables clients to enjoy a hands-free drive while the car manages tasks like changing lanes, recognizing traffic signals, and parking.
   
• Volkswagen Group uses huge production capacity along with strong brand loyalty to apply advanced driver assistance systems and self-driving capabilities throughout its vast array of vehicles.
   
• For instance, in March 2024, Volkswagen Group announced an intensified collaboration with Mobileye to advance its automated driving capabilities. Mobileye will provide technologies based on its SuperVision and Chauffeur platforms for partially and highly automated driving systems, Mobileye will supply components for Volkswagen Commercial Vehicles to enable Level 4 autonomy in electric models like the ID. Buzz. Volkswagen also plans to develop its own in-house autonomous driving system in the future.
   

Self-driving Cars Market Companies

Major players operating in the self-driving cars industry include:

• BYD
• Daimler
• Ford Motor
• General Motors
• Honda Motor
• Hyundai Motor
• Nissan Motor
• Tesla
• Toyota Motor
• Volkswagen
   
• Ford has focused on strategic alliances. They've also invested heavily in Argo AI, a self-driving technology company, aiming to develop a robust autonomous driving system. Ford is taking a more measured approach, prioritizing safety and reliability over rapid deployment.
   
• For instance, in June 2024, Ford confirmed that the company’s cars would feature hands-free, Level 3 autonomy with its enhanced BlueCruise system by 2026. This move follows Ford’s efforts to improve self-driving technology, with the company currently testing the system in prototypes. At Level 3, drivers will no longer need to engage with the vehicle, allowing them to take their hands off the wheel and even rest.
   
• Since electric vehicles dominate the autonomous vehicle sector, BYD takes an active role in the autonomous vehicle market and works on electric strategic partnerships as well.
   
• In August 2024, BYD collaborated with Huawei in integrating the Qiankun autonomous driving infrastructure into BYD's Fangchengbao EVs. This boosts BYD’s pursuit in modernizing its Denza, Fangchengbao, and Yangwang premium brand subdivisions.
   

Self-driving Cars Industry News

• In July 2024, Beijing announced plans to support self-driving cars in online ride-hailing services. The municipal government introduced draft rules to establish a clear regulatory framework for autonomous vehicles, seeking public feedback. Beijing had previously led China’s autonomous driving efforts by launching a demonstration zone in 2020. The move aimed to accelerate the integration of self-driving technology into commercial transport services.
   
• In March 2024, Nvidia strengthened its collaborations with Chinese automakers to create self-driving vehicles utilizing its DRIVE Thor platform. This AI computer, powered by Nvidia's Blackwell architecture, supports level 4 autonomous driving and AI-driven logistics.
   
• In February 2025, Waabi announced that it is teaming with Volvo's autonomous truck systems group to develop and commercialize a range of its driverless truck. The pact will integrate Volvo's VNL Autonomous truck with Waabi's virtual driver system, sensors, and computers.
   
• In January 2025, Nvidia unveiled new AI-focused technologies, including the Cosmos platform for robotics and autonomous vehicles. Nvidia announced partnerships with companies like Toyota for self-driving technology, emphasizing the potential of robotics.
   

The self-driving cars market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) and volume (Units) from 2021 to 2034, for the following segments:

Click here to Buy Section of this Report

Market, By Level of Autonomy

• L1
• L2
• L3
• L4
• L5

Market, By Vehicle

• Compact cars
• Mid-size cars
• SUVs & luxury cars

Market, By Propulsion

• ICE
• Electric
• Hybrid vehicle

Market, By Application

• Personal use
• Shared mobility
• Logistics & delivery
• Public transport

The above information is provided for the following regions and countries:

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