Semi-Autonomous Vehicle Market Size, Share & Trends Analysis Report By Level of Automation (Level 1, Level 2, Level 3), By Vehicle Type (Passenger Car, Commercial Vehicle), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global semi-autonomous vehicle market size demand was valued at 14.22 million units in 2020. The market is expected to expand at a compound annual growth rate (CAGR) of 20.8% from 2021 to 2028. The rising need for safer and more efficient driving systems promotes the development and adoption of semi-autonomous vehicles. Semi-autonomous offers better driving control and driver safety, thus offering promising growth opportunities. Moreover, several regional governments have placed stringent driving and safety laws further encouraging companies to offer these technologies in their automobiles.

Several technological advancements have helped to foster a conducive environment for the growth of the market. 5G delivery model, Wireless Local Area Network (WLAN), GPS, and vehicle-to-vehicle technology have improved the driving experience. This has improved fuel efficiency, thereby enabling companies to conform to their environmental sustainability goals and obey government rules and laws. Moreover, the ability to switch between manual automatic offers drivers to have better control over the vehicle.

Machine Learning (ML) algorithms within semi-automatic vehicles have further enhanced the efficiency and functionality of automobiles. ML has several use cases such as detection and classification of objects, driver monitoring, and deep-learning-based vision, which can be used in image processing and study objects to react to their environment readily. ML is used to classify objects using neural networks to distinguish between pedestrians, cars, lamp posts, animals, and cyclists. Determining the proximity of objects with their speed and direction also aids drivers in engaging in safe navigation and effective lane changing.

Internet of Things (IoT) offers promising growth opportunities to the semi-autonomous cars market. IoT aids in real-time decision-making and controlling vehicle operations to mitigate road accidents. IoT enables automotive manufacturers to offer automatic emergency detection, diagnostic data for drivers and manufacturers, and connected infrastructure. Furthermore, the ability to offer real-time insights about vehicle performance and driving conditions such as types of roads and weather conditions aids in better control and efficient navigation of vehicles during sharp turns and avoiding obstacles.

Level of Automation Insights

The level 1 automation segment captured the highest volume share of the semi-autonomous vehicle market in 2020 and is anticipated to register a CAGR of 20.0% from 2021 to 2028. This can be accredited to the rising demand for automobile users to engage in assisted driving technologies. Level 1 automation in cars aids in increasing vehicle efficiency by offering an optimum level of manual control and easy maneuverability. Thus, the ability to offer a comfortable driving experience and enhanced efficiency drives wide-scale adoption of semi-autonomous vehicles.

Semi-autonomous vehicles are further segmented into level 2 and level 3 automation levels. Level 2 automation captured a significant share in 2020 owing to the ability to offer advanced driver assistance systems (ADAS). ADAS enables the vehicle to control both accelerating/decelerating, lane centering, adaptive cruise control. And steering functions, thus minimizing human effort and risks associated with human judgment. The rising demand for level 2 automation cars has promoted companies such as Tesla and Cadillac to offer level 2 automation in their cars-Tesla Autopilot and Cadillac Super Cruise systems, respectively.

Vehicle Type Insights

The passenger cars segment captured the highest volume share of 69.90% in 2020. The presence of a high number of passenger cars the rising need to enhance the driving experience promotes the adoption of semi-automated vehicles. Semi-autonomous technology enables drivers to navigate through traffic and maneuver sharp turns more effectively and safely, thereby ensuring lesser stress on the driver. Furthermore, features such as obstacle avoidance, connected features, and ADAS enable the driver to take their hands and feet of the steerings and pedals according to their convenience.

The commercial vehicle segment captured significant share in 2020 and is expected to witness a substantial CAGR over the forecast period. Commercial vehicles are usually used over long distances to move goods and products essential for other businesses. The safe movement of goods and the need to allow drivers to maintain their posture and health over long journeys offer wide-scale adoption of semi-autonomous vehicles. Furthermore, it also allows drivers to relax for stipulated time intervals over long journeys, thus improving their efficiency.

Regional Insights

North America dominated the global market in 2020 with a volume share of 31.0%. The high share can be attributed to the penetration of advanced technologies such as the Internet of Things (IoT) and Machine Learning (ML). The presence of a significant IoT market due to companies such as Google, Inc.; Cisco Systems, Inc.; and IBM Corporation creates a strong ecosystem for IoT-based applications, thus resulting in the growth of the market. Moreover, stringent government regulations and rising demand for safer and more fuel-efficient vehicles in the U.S. promote automakers to integrate these technologies and produce semi-autonomous vehicles.

Europe captured a volume share of 28.6% in 2020 and is expected to witness substantial growth over the forecast period. A significant automotive industry in countries such as Germany, France, the U.K., and Italy has resulted in the growth of the market. Favorable regulatory mandates regarding the deployment of the 5G delivery system offers growth opportunities to the market, owing to enhanced data transfer capability. The EU has also laid down plans to deploy truck platooning practices, which helps in linking multiple trucks in convoy, thus offering promising growth prospects for semi-autonomous commercial vehicles.

Key Companies & Market Share Insights

Significant companies in the market have started partnering with other companies to improve business operations and enter new markets. This has resulted in increased revenue generation and opened up new business opportunities for technology suppliers. For instance, in August 2020, Audi AG announced a new partnership with FAW to expand fully electric and autonomous cars in China. In October 2020, Daimler AG announced a global strategic agreement with Waymo to advance the technology movement of autonomous vehicles.

Companies have also been engaging in M&A activities to improve revenue share and increase market penetration. For instance, in February 2019, Continental Ag acquired Rosenheim-based antenna and satellite technology manufacturer Kathrein Automotive GmbH to foster Continental AG’s vehicle antenna technology. Companies have also started increasing R&D activities to improve automotive technology and offer a more comfortable and safer environment. For instance, in November 2020, BMW AG opened a new R&D center with FIZ Projekthaus Nord, intending to expand its R&D network for future cars. Some of the prominent players operating in the semi-autonomous vehicle market are:

• Audi AG

• BMW AG

• Continental AG

• Daimler AG (Mercedes Benz)

• Ford Motor Company

• General Motors

• Honda Motor Corporation

• Nissan Motor Company

• Toyota Motor Corporation

• Volvo Car Corporation

• Valeo S.A.

• Volkswagen AG

Semi-Autonomous Vehicle Market Report Scope

Segments Covered in the Report

This report provides forecasts for shipment growth at the global, regional, and country levels and provides analyses of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global semi-autonomous vehicle market report based on level of automation, vehicle type, and region:

• Level of Automation Type (Volume, Million Units, 2017 - 2028)

  • Level 1

  • Level 2

  • Level 3

• Vehicle Type (Volume, Million Units, 2017 - 2028)

  • Passenger Car

  • Commercial Vehicle

• Regional Outlook (Volume, Million Units, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • South America

    • Brazil

  • Middle East and Africa (MEA)