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Autonomous Vehicles Market By Vehicle Type, By Propulsion Type, By Level, By Application (Transportation and Defense) - Global Industry Outlook, Key Companies (General Motors, Renault SA, Hyundai Motor Group, and others), Trends and Forecast 2024-2033

Published on : October-2024  Report Code : RC-1157  Pages Count : 304  Report Format : PDF
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Market Overview

The Global Autonomous Vehicles Market is projected to reach USD 64.3 billion in 2024 and grow at a compound annual growth rate of 20.2% from there until 2033 to reach a value of USD 337.2 billion.

An autonomous vehicle can understand its surroundings and drive itself without the requirement for human involvement. A human passenger is not needed to take over the car's steering wheel at any time, nor is their presence inside the vehicle required. An autonomous vehicle may do all of the functions of a trained human driver while also traveling anywhere a conventional vehicle can.  

Autonomous Vehicles Market Growth Analysis

The autonomous vehicles market is growing quickly due to technological innovations in AI, machine learning and sensor technologies. Tech giants' and automakers' interest in self-driving cars has driven autonomous vehicle (AV) technologies forward quickly with hopes to improve safety while decreasing congestion and increasing mobility.

Recent events demonstrate an upswing in regulatory support for autonomous vehicle trials and deployments worldwide. Governments around the globe are creating frameworks to test and deploy self-driving cars on public roads, opening up more possibilities for greater integration into urban environments and commercial transport systems.

Consumer interest is driving demand for autonomous vehicles and companies have responded accordingly by developing various AV applications ranging from personal vehicles, delivery services and public transport AV systems that meet evolving consumer expectations while solving last-mile delivery challenges.

Opportunities in this market lie with the rapid innovation of autonomous vehicle software and hardware, along with partnerships among tech firms, automotive manufacturers and mobility providers that create an ecosystem to enhance vehicle autonomy while decreasing costs while expanding into new regions while meeting challenges like cybersecurity, infrastructure provisioning and public acceptance.

As per research.aimultiple A significant portion of U.S. adults remains cautious about autonomous vehicles, with 16% very likely to ride as a passenger and 28% unlikely to do so. Concerns about safety are prevalent, as 35% believe self-driving cars are less safe than human drivers. Additionally, 57% of Americans are willing to ride in autonomous cars, provided they can take over control if necessary.

Security concerns also top the list of barriers to adoption, with 73% of consumers citing vehicle security against hackers and 72% worried about system vulnerabilities. Furthermore, 71% believe self-driving cars may struggle in unexpected situations, while 57% want clear legal responsibility in the event of an accident. These factors hinder the global acceptance of autonomous vehicles.

The US Autonomous Vehicles Market

The US Autonomous Vehicles Market is projected to reach USD 21.5 billion in 2024 at a compound annual growth rate of 18.9% over its forecast period.

The US has many growth opportunities in the autonomous vehicles market, driven by developing infrastructure, government support, and a tech-savvy population. Key areas like expanding Mobility-as-a-Service (MaaS), improving smart city projects, and integrating autonomous systems in logistics and public transport. Constant innovation in AI, connectivity, and electric vehicles will further boost market expansion.

U.S Autonomous Vehicles Market Growth Analysis

A key growth driver for the U.S. autonomous vehicles market is technological advancements in AI, sensors, and connectivity, supported by government initiatives and consumer demand for safer, more efficient transportation. However, a major challenge is the high cost of development and regulatory challenges, like concerns around safety, liability, and public trust in fully autonomous systems.

Key Takeaways

  • Market Growth: The Autonomous Vehicles Market size is expected to grow by USD 261.2 billion, at a CAGR of 20.2% during the forecasted period of 2025 to 2033.
  • By Vehicle Type: The passenger vehicle segment is expected to lead in 2024 with a majority & is anticipated to dominate throughout the forecasted period.
  • By Propulsion Type: The semi-automated segment is expected to be leading the market in 2024
  • By Application: The transportation segment is expected to get the largest revenue share in 2024 in the Autonomous Vehicles Market.
  • Regional Insight: North America is expected to hold a 39.1% share of revenue in the Global Autonomous Vehicles Market in 2024.
  • Use Cases: Some of the use cases of Autonomous Vehicles include public transit, urban mobility, and more.

Use Cases

  • Urban Mobility: Autonomous vehicles can navigate city streets, minimizing traffic congestion and providing efficient transportation options. They can also help with ride-sharing and on-demand mobility services.
  • Long-Haul Trucking: Self-driving trucks can handle long-distance transportation with better safety and efficiency, reducing human fatigue and optimizing fuel consumption.
  • Public Transit: Autonomous buses and shuttles can enhance public transportation systems, providing reliable and consistent service with lower operational costs and potentially integrating with existing transit networks.
  • Last-Mile Delivery: Autonomous delivery vehicles can handle short-distance deliveries, like groceries or packages, directly to consumers' homes, enhancing convenience and reducing delivery times.

Market Dynamic

Driving Factors

Technological Advancements
Constant development in AI, machine learning, sensor technologies, and vehicle-to-everything (V2X) communication is driving the development and deployment of autonomous vehicles, improving their safety, reliability, and efficiency.

Government Regulations and Incentives
Many governments are introducing supportive policies, like tax incentives, research funding, and regulations promoting the adoption of autonomous vehicles to reduce traffic accidents, lower emissions, and promote smart city infrastructure.

Restraints

High Development Costs
The higher expenses linked with the research, development, and production of autonomous vehicle technology, like advanced sensors, AI systems, and regulatory compliance, can impact the broad adoption and make it difficult for smaller companies to compete.

Regulatory and Legal Challenges
The lack of uniform global regulations and legal concerns around liability in case of accidents involving autonomous vehicles creates uncertainty. It slows down the commercialization and deployment of these vehicles across many regions.

Opportunities

Expansion of Mobility-as-a-Service (MaaS)
Autonomous vehicles can transform transportation by allowing mobility-as-a-service platforms, where users can access on-demand, shared transportation, minimizing the need for personal car ownership and contributing to more sustainable urban mobility.

Integration with Smart City Infrastructure
As cities invest in smart infrastructure, autonomous vehicles can play a major role in developing more efficient, connected transportation ecosystems, optimizing traffic management, lowering congestion, and improving urban planning efforts.

Trends

Collaboration Between Automakers and Tech Companies
Traditional automakers are largely partnering with technology firms, like AI and software development companies, to enhance autonomous vehicle development, which allows for the incorporation of cutting-edge tech into automotive platforms, expediting progress toward fully autonomous driving.

Focus on Autonomous Delivery Solutions
There is higher interest in autonomous vehicles for last-mile delivery services. Companies are investing in self-driving delivery robots & drones to meet the growing demand for fast, contactless delivery, mainly driven by the e-commerce boom.

Research Scope and Analysis

By Vehicle Type

The passenger vehicle segment is expected to lead the autonomous vehicle market in 2024 with a majority share. Consumers are highly interested in transportation options that are more convenient, safe, and efficient. Autonomous vehicles provide a stress-free, hands-free commuting experience, making them appealing to those who want a more relaxed and productive way to travel. 

Developments in autonomous technology, such as smarter AI, better sensors, and enhanced connectivity, have made self-driving passenger vehicles more reliable. These enhancements are increasing consumer confidence in their safety and performance, further growing interest in autonomous vehicles.

Moreover, the commercial vehicle segment is also increasing significantly. Industries like logistics, transportation, and delivery services see the benefits of autonomous technology in enhancing their operations. Self-driving commercial vehicles can support streamlining logistics, optimize supply chains, and meet the growth in demands of customers. 

As a result, more companies are adopting autonomous solutions for their fleets. In addition, a strong network of tech developers, manufacturers, and investors is working to develop autonomous systems for commercial use. Constant innovation and investment will drive the development of even more advanced autonomous commercial vehicles in the coming years.

By Propulsion Type

Semi-autonomous vehicles are currently the top choice for many customers and by propulsion are also expected to lead the market in 2024. Factors like safety and fuel efficiency are driving demand for these vehicles, contributing to the growth of the semi-autonomous segment. 

The launch of features like Advanced Driver Assistance Systems (ADAS) has supported reducing accidents across the world, positively influencing the automotive insurance industry. However, insurance rating methods need updating to accurately assess risks. Governments have also implemented strict safety & driving regulations to reduce accidents caused by human error. 

These rules are encouraging automakers to integrate semi-autonomous systems into their vehicles, further boosting the growth of this segment in the market.

Moreover, fully autonomous vehicles are also gaining attention from customers. People consider factors like safety & fuel efficiency when choosing fully autonomous vehicles, making them highly popular. Governments have introduced strict regulations to improve road safety, which is pushing manufacturers to adopt fully autonomous technologies. 

These vehicles can work entirely without human intervention and are used in services like robo-taxis. With these developments, the complete autonomous vehicle segment is expected to grow rapidly, showing a high growth rate throughout the forecast period.

By Level

The Level 1 segment is expected to hold the largest share in the autonomous vehicle market in 2024. These vehicles include basic driver assistance features like adaptive cruise control and lane-keeping assist. While these systems support the driver, human oversight and input are still necessary. Level 1 automation is considered the most basic form of vehicle automation, unlike higher levels like Level 4 or 5, which provide complete autonomous functionality. 

As the first step toward advanced autonomous driving, Level 1 plays a major role in familiarizing both manufacturers and consumers with automated features, and assists in building trust in partially automated driving systems.

Further, the Level 4 and 5 segments are expected to grow the fastest in the coming years. Level 4 autonomous vehicles can operate without human input in most situations, providing higher mobility options for the elderly and disabled. 

However, they function only in certain areas or under special conditions, like certain types of roads or favorable weather. While they can manage most driving tasks on their own, some extreme situations may still demand quite human intervention. On the other hand, Level 5 vehicles are designed to handle all driving tasks independently, with no need for human supervision. These completely autonomous vehicles are expected to perform safely in any scenario that a human driver could manage.

By Application

The transportation sector will dominate the global autonomous vehicles market in 2024, holding the largest market share, as it is driven by major revenue growth, assisted by government initiatives focused at increasing the production of hybrid and electric vehicles. 

The need for these vehicles, mainly fully autonomous ones with different levels of automation, has risen sharply. Government backing and a rise in public awareness have further fueled the expansion of the transportation sector within the autonomous vehicle market.

Further, the defense sector is anticipated to see rapid growth with a high compound annual growth rate during the forecasted period. Governments across the world are highly adopting autonomous vehicles for military purposes, boosting the sector's growth. 

Many companies are collaborating with governments and their agencies to create advanced and innovative vehicle systems for defense use, which is driving the development of advanced autonomous technology customized for defense applications, further accelerating the sector's expansion.

Autonomous Vehicles Market Application Analysis

The Autonomous Vehicles Market Report is segmented on the basis of the following

By Vehicle Type

  • Passenger Car
  • Commercial Vehicle

By Propulsion Type

  • Semi-autonomous
  • Fully Autonomous

By Level

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

By Application

  • Transportation
    • Industrial
    • Commercial
    • Personal
  • Defense

Regional Analysis

North America is projected to hold the largest share of the autonomous vehicles market in 2024, accounting for over 39.1%. The region's advanced infrastructure, mainly in areas like California's Silicon Valley, makes it an ideal testing ground for autonomous vehicles and related technologies, which combined with a supportive innovation ecosystem, plays a significant role in the development and adoption of autonomous systems. 

Autonomous Vehicles Market Regional Analysis

In addition, the population in North America is open to adopting new technologies, creating a strong market for autonomous vehicles, drones, and other automated systems, which continues to drive innovation and growth in the sector.

In addition, the Asia-Pacific region is set to experience the fastest growth over the forecast period. Countries like China, Japan, and South Korea have densely populated urban areas struggling with transportation issues. 

Autonomous vehicles are seen as a promising solution to minimize congestion, enhance mobility, and increase transportation efficiency in these cities. Furthermore, the region's focus on electric and connected vehicles aligns with the rise of autonomous technology. The increase in focus on clean energy in Asia-Pacific has fueled interest in autonomous systems, contributing to the expansion of the market for these vehicles.

By Region

North America
  • The U.S.
  • Canada
Europe
  • Germany
  • The U.K.
  • France
  • Italy
  • Russia
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
Asia-Pacific
  • China
  • Japan
  • South Korea
  • India
  • ANZ
  • ASEAN
  • Rest of Asia-Pacific
Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
  • Rest of Latin America
Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Israel
  • Egypt
  • Rest of MEA

Competitive Landscape

The autonomous vehicles market is highly competitive, with many companies competing to develop advanced technologies and gain market share. The competition centers on the development of AI, sensor systems, and connectivity to enhance safety, efficiency, and full automation capabilities. 

Players in the market are developing partnerships and collaborating with tech firms, automotive manufacturers, and governments to accelerate innovation. In addition, R&D investments are driving the race to bring fully autonomous vehicles to the market, while regulatory hurdles and consumer trust remain key challenges.

Some of the prominent players in the Global Autonomous Vehicles are:
  • General Motors
  • Renault SA
  • Hyundai Motor Group
  • Tesla
  • Toyota Motors
  • AB Volvo
  • Ford Motor Company
  • Mercedes Benz
  • Volkswagen Group
  • Honda Motor
  • BMW AG
  • Other Key Players

Recent Developments

  • In September 2024, Nuro unveiled a major expansion of its business model, by offering its advanced autonomy platform, the Nuro Driver, for licensing to automotive OEMs and mobility providers, which marks the first time Nuro’s AI-powered system, capable of assisting up to Level 4 autonomy, will be available for passenger vehicles alongside goods delivery.
  • In August 2024, Uber and Cruise announced a partnership for multiyear to launch Cruise autonomous vehicles on the Uber platform, where, the companies will launch several Chevy Bolt-based autonomous vehicles in 2025. Uber riders who request a qualifying trip may then be given the choice to receive their ride in a Cruise autonomous vehicle.
  • In June 2024, Robotaxi service Waymo announced that its autonomous vehicles would be available for rides to anyone in San Francisco who downloads the company's app, as the company had been only accepting requests from riders selected from a waiting list that had grown to 300,000 people. In addition, San Francisco becomes the second major city where Waymo's robotaxis are open to all interested riders.
  • In March 2024, Volkswagen ADMT GmbH, part of Volkswagen AG introduced a cooperation agreement with Mobileye Global Inc, where the agreement covers the delivery and use of a self-driving system (SDS) based on the Mobileye Drive platform for a particular version of the ID. Buzz, which has been under development for autonomous driving since 2021.
  • In September 2023, Qatar's Minister of Transport announced the country's national Self-Driving Vehicles Strategy, in a 5-year plan, which focuses on developing autonomous vehicle (AV) regulations for Qatar, and providing smart, 'environmentally conscious' transport.

Report Details

                            Report Characteristics
Market Size (2023) USD 64.3 Bn
Forecast Value (2032) USD 337.2 Bn
CAGR (2023-2032) 20.8%
The US Market Size (2024) USD 21.5 Bn
Historical Data 2018 – 2023
Forecast Data 2024 – 2033
Base Year 2023
Estimate Year 2024
Report Coverage Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc.
Segments Covered By Vehicle Type (Passenger Car and Commercial Vehicle), By Propulsion Type (Semi-autonomous and Fully Autonomous), By Level (Level 1, Level 2, Level 3, Level 4 & 5), By Application (Transportation and Defense)
Regional Coverage North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
Prominent Players General Motors, Renault SA, Hyundai Motor Group, Tesla, Toyota Motors, AB Volvo, Ford Motor Company, Mercedes Benz, Volkswagen Group, Honda Motor, BMW AG, and Other Key Players
Purchase Options We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively.

Contents

    1.Introduction
      1.1.Objectives of the Study
      1.2.Market Scope
      1.3.Market Definition and Scope
    2.Autonomous Vehicles Market Overview
      2.1.Global Autonomous Vehicles Market Overview by Type
      2.2.Global Autonomous Vehicles Market Overview by Application
    3.Autonomous Vehicles Market Dynamics, Opportunity, Regulations, and Trends Analysis
      3.1.Market Dynamics
        3.1.1.Autonomous Vehicles Market Drivers
        3.1.2.Autonomous Vehicles Market Opportunities
        3.1.3.Autonomous Vehicles Market Restraints
        3.1.4.Autonomous Vehicles Market Challenges
      3.2.Emerging Trend/Technology
      3.3.PESTLE Analysis
      3.4.PORTER'S Five Forces Analysis
      3.5.Technology Roadmap
      3.6.Opportunity Map Analysis
      3.7.Case Studies
      3.8.Opportunity Orbits
      3.9.Pricing Analysis
      3.10.Ecosystem Analysis
      3.11.Supply/Value Chain Analysis
      3.12.Covid-19 & Recession Impact Analysis
      3.13.Product/Brand Comparison
    4.Global Autonomous Vehicles Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by By Vehicle Type, 2017-2032
      4.1.Global Autonomous Vehicles Market Analysis by By Vehicle Type: Introduction
      4.2.Market Size and Forecast by Region
      4.3.Passenger Car
      4.4.Commercial Vehicle
    5.Global Autonomous Vehicles Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by By Propulsion Type, 2017-2032
      5.1.Global Autonomous Vehicles Market Analysis by By Propulsion Type: Introduction
      5.2.Market Size and Forecast by Region
      5.3.Semi-autonomous
      5.4.Fully Autonomous
    6.Global Autonomous Vehicles Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by By Level, 2017-2032
      6.1.Global Autonomous Vehicles Market Analysis by By Level: Introduction
      6.2.Market Size and Forecast by Region
      6.3.Level 1
      6.4.Level 2
      6.5.Level 3
      6.6.Level 4 & 5
    7.Global Autonomous Vehicles Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by By Application, 2017-2032
      7.1.Global Autonomous Vehicles Market Analysis by By Application: Introduction
      7.2.Market Size and Forecast by Region
      7.3.Transportation
      7.4.Defense
    10.Global Autonomous Vehicles Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by Region, 2017-2032
      10.1.North America
        10.1.1.North America Autonomous Vehicles Market: Regional Analysis, 2017-2032
          10.1.1.1.The US
          10.1.1.2.Canada
      10.2.1.Europe
        10.2.1.Europe Autonomous Vehicles Market: Regional Trend Analysis
          10.2.1.1.Germany
          10.2.1.2.France
          10.2.1.3.UK
          10.2.1.4.Russia
          10.2.1.5.Italy
          10.2.1.6.Spain
          10.2.1.7.Nordic
          10.2.1.8.Benelux
          10.2.1.9.Rest of Europe
      10.3.Asia-Pacific
        10.3.1.Asia-Pacific Autonomous Vehicles Market: Regional Analysis, 2017-2032
          10.3.1.1.China
          10.3.1.2.Japan
          10.3.1.3.South Korea
          10.3.1.4.India
          10.3.1.5.ANZ
          10.3.1.6.ASEAN
          10.3.1.7.Rest of Asia-Pacifc
      10.4.Latin America
        10.4.1.Latin America Autonomous Vehicles Market: Regional Analysis, 2017-2032
          10.4.1.1.Brazil
          10.4.1.2.Mexico
          10.4.1.3.Argentina
          10.4.1.4.Colombia
          10.4.1.5.Rest of Latin America
      10.5.Middle East and Africa
        10.5.1.Middle East and Africa Autonomous Vehicles Market: Regional Analysis, 2017-2032
          10.5.1.1.Saudi Arabia
          10.5.1.2.UAE
          10.5.1.3.South Africa
          10.5.1.4.Israel
          10.5.1.5.Egypt
          10.5.1.6.Turkey
          10.5.1.7.Rest of MEA
    11.Global Autonomous Vehicles Market Company Evaluation Matrix, Competitive Landscape, Market Share Analysis, and Company Profiles
      11.1.Market Share Analysis
      11.2.Company Profiles
        11.3.1.Company Overview
        11.3.2.Financial Highlights
        11.3.3.Product Portfolio
        11.3.4.SWOT Analysis
        11.3.5.Key Strategies and Developments
      11.4.General Motors
        11.4.1.Company Overview
        11.4.2.Financial Highlights
        11.4.3.Product Portfolio
        11.4.4.SWOT Analysis
        11.4.5.Key Strategies and Developments
      11.5.Renault SA
        11.5.1.Company Overview
        11.5.2.Financial Highlights
        11.5.3.Product Portfolio
        11.5.4.SWOT Analysis
        11.5.5.Key Strategies and Developments
      11.6.Hyundai Motor Group
        11.6.1.Company Overview
        11.6.2.Financial Highlights
        11.6.3.Product Portfolio
        11.6.4.SWOT Analysis
        11.6.5.Key Strategies and Developments
      11.7.Tesla
        11.7.1.Company Overview
        11.7.2.Financial Highlights
        11.7.3.Product Portfolio
        11.7.4.SWOT Analysis
        11.7.5.Key Strategies and Developments
      11.8.Toyota Motors
        11.8.1.Company Overview
        11.8.2.Financial Highlights
        11.8.3.Product Portfolio
        11.8.4.SWOT Analysis
        11.8.5.Key Strategies and Developments
      11.9.AB Volvo
        11.9.1.Company Overview
        11.9.2.Financial Highlights
        11.9.3.Product Portfolio
        11.9.4.SWOT Analysis
        11.9.5.Key Strategies and Developments
      11.10.Ford Motor Company
        11.10.1.Company Overview
        11.10.2.Financial Highlights
        11.10.3.Product Portfolio
        11.10.4.SWOT Analysis
        11.10.5.Key Strategies and Developments
      11.11.Mercedes Benz
        11.11.1.Company Overview
        11.11.2.Financial Highlights
        11.11.3.Product Portfolio
        11.11.4.SWOT Analysis
        11.11.5.Key Strategies and Developments
      11.12.Volkswagen Group
        11.12.1.Company Overview
        11.12.2.Financial Highlights
        11.12.3.Product Portfolio
        11.12.4.SWOT Analysis
        11.12.5.Key Strategies and Developments
      11.13.Honda Motor
        11.13.1.Company Overview
        11.13.2.Financial Highlights
        11.13.3.Product Portfolio
        11.13.4.SWOT Analysis
        11.13.5.Key Strategies and Developments
      11.14.BMW AG
        11.14.1.Company Overview
        11.14.2.Financial Highlights
        11.14.3.Product Portfolio
        11.14.4.SWOT Analysis
        11.14.5.Key Strategies and Developments
    12.Assumptions and Acronyms
    13.Research Methodology
    14.Contact
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