Autonomous Vehicles Market Size, Share, & Trends Analysis Report By Application (Transportation, Defense), By Region (North America, Europe, Asia Pacific, South America, MEA) And Segment Forecasts, 2022 - 2030

Report Overview

The global autonomous vehicles market demand was estimated at 51.6 thousand units in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 53.6% from 2022 to 2030. Self-drive cars, also known as autonomous vehicles, are a key innovation in the automotive industry, with high growth potential, and act as a catalyst in the technological development of automobiles. Developing a supportive regulatory framework, government funding, and investment in digital infrastructure is expected to play a key role in positively affecting the market growth during the forecast period.

The improvements in the technology, such as adaptive algorithms, sensor processing, high-definition mapping, and enhanced infrastructure, are prompting various companies to expand the production of autonomous vehicles. The market has a wide range of products and systems that make up the autonomous vehicle infrastructure. Autonomous cars enable independent mobility for non-drivers and people suffering from certain disabilities. It allows travelers to travel with more comfort and flexibility to read, rest, or even work while traveling, increasing their efficiency. It will also reduce the paid driver cost for commercial vehicles and taxis. Other benefits such as increased safety with reduced crash risks and increased road capacity with reduced costs will significantly adopt these vehicles in the market.

Various leading players are working towards enhancing the experience of using autonomous vehicles, with the help of new technologies. For instance, in 2019, the leading automobile company Volkswagen announced its collaboration with Ford to invest in AI vendor Argo AI. The partnership's goal was to introduce autonomous vehicle technology in Europe and the US. The company decided to invest more than 4 billion USD through 2023 to develop and enhance its autonomous or self-driving services.

The autonomous car is made up of numerous sensors, such as LiDAR and RADAR systems, working concurrently to carry out operations automatically without the help of drivers. By performing situational analysis, motion planning, and trajectory control, these sensors help in navigation. The rising safety concerns and advancements in automotive technologies have led to the penetration and acceptance of autonomous vehicles by governments of various countries, such as the U.S., Germany, China, and Japan. Such factors are anticipated to drive market growth in the forecast period.

Many government entities are taking various initiatives to launch autonomous vehicles in their country. Additionally, the government has taken multiple initiatives to ensure the safety of autonomous vehicles. For instance, in February 2018, the European Union (EU), the ENSEMBLE consortium, and the Netherlands scientific research organization TNO announced the implementation plan for multi-brand truck platooning on European roads. The multi-brand truck platooning will enable a single truck to connect with other trucks.

Such initiatives will improve the fuel economy, increase traffic capacity, and reduce the carbon-dioxide emissions in the EU. Moreover, the National Highway Traffic Safety Administration (NHTSA) has announced several measures and guidelines to ensure safety. In 2021, NHTSA issued a standard general order, under which the manufacturers and the operator of the autonomous vehicles will have to report any crashes they face to the agency.    

Application Insights

The transportation segment accounted for the highest market share of 93.6% in 2021 in the global market. However, the defense sector is expected to emerge as the fastest-growing segment during the forecast period. This is due to the rising number of initiatives across various regions, such as North America. For instance, in March 2020, Sikorsky and the U.S. Defense Advanced Research Projects Agency (DARPA) announced testing autonomous flight software on S-70 Black Hawk and S-76 commercial helicopters. Based on application, autonomous vehicles are categorized into transportation and defense.

The transportation segment is expected to account for a high share of the autonomous vehicles market in the coming years, due to the rising adoption of AVs in transportation. For instance, in December 2019, Baidu, a provider of Internet-related products and services, announced that it had secured 40 licenses that will enable the company to test driverless cars. In the transportation type segment, the industrial segment is estimated to grow at a high CAGR in the forecast period. This is due to advances in technologies and the rising acceptance of autonomous vehicles by various governments across the globe.

Furthermore, the enhanced technology offered by various companies also attracts customers to adapt autonomous vehicles for their commercial use. Different leading companies are collaborating to provide hi-tech autonomous driving experiences. For instance, in March 2020, Toyota announced that it is working with TomTom and Denso to demonstrate fast, high, definition map building methods for the road that will help improve autonomous vehicle driving and provide a safer experience.

Regional Insights

North America accounted for the highest share of more than 45% in the global market in 2021. The growth across the mobility as a service sector is anticipated to provide an impetus to the autonomous car market. North America is expected to witness significant growth owing to amendments in traffic regulations in the U.S. to incorporate autonomous cars on public roads. The regulation is slowly being adopted across all the states of the U.S. to make transportation fully autonomous.

For instance, the National Highway Traffic Safety Association (NHTSA), a traffic regulations body in the U.S., under its policy in 2013, allowed self-driving car testing in several states, including Nevada, California, Florida, Michigan, and Washington D.C. Europe is expected to emerge as a potentially lucrative market for the adoption of autonomous cars, on account of growing consumer preference for using techno-advanced products. In addition to this, the government is taking various initiatives to enhance autonomous vehicles.

For instance, in August 2020 in the U.K., The Department of Transport (DFT) announced the launch of the Automated Lane-Keeping System (ALKS), which can automatically take control of vehicles running at low speed. This technology will enable the driver to delegate driving to the vehicles, and the system will keep the vehicle moving along its lane. The U.K. government plans for self-driving vehicles to be in use by 2021 in the country, and it also has further plans to make the required changes to the regulations that can support the development of autonomous vehicles in the region.  

Key Companies & Market Share Insights

Leading players in the market stay ahead of the competition through collaborations and the development of innovative solutions. For instance, in August 2019, Audi announced its partnership with Daimler and BMW to create and develop an advanced driving system. These collaborations will help the companies develop highly functioning autonomous vehicles with autonomous driving and autonomous parking.

In August 2017, BMW AG, Intel Corporation, Mobileye, a subsidiary company of Intel Corporation, and Fiat Chrysler Automobiles (FCA) signed an MoU for FCA to join the companies in developing autonomous vehicle driving platforms. The memorandum aims to combine the resources, capabilities, and strengths of all companies to reduce time to market, increase development efficiency, and enhance the application’s technology. Various leading companies collaborate to offer advanced technology, and such initiatives will substantially contribute to market growth. Some of the key players operating in the global autonomous vehicles market include:

• Audi AG

• BMW AG

• Daimler AG

• Ford Motor Company

• General Motors Company

• Google LLC

• Honda Motor Co., Ltd.

• Nissan Motor Company

• Tesla

• Toyota Motor Corporation

• Uber Technologies, Inc.

• Volvo Car Corporation

• Volkswagen AG

Autonomous Vehicles Market Report Scope

Segments Covered in the Report

This report forecasts volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2030. For the purpose of this study, Grand View Research has segmented the global autonomous vehicles market report based on application and region:

• Application Outlook (Volume, Thousand Units, 2021 - 2030)

  • Transportation

    • Industrial

    • Commercial

  • Defense

• Regional Outlook (Volume, Thousand Units, 2021 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Netherlands

    • Sweden

  • Asia Pacific

    • China

    • Japan

    • Singapore

    • Australia

  • South America

    • Brazil

  • Middle East and Africa