The global autonomous vehicle market demand was estimated to be around 6.5 thousand units in the year 2019 and expected to witness a compound annual growth rate (CAGR) of 63.5% during the forecast period 2020 to 2027.
The global autonomous vehicle market size is projected to reach around US$ 560 billion by 2027.
The government funding, supportive regulatory framework and investment in digital infrastructure are pretended to positively drive the demand for autonomous cars during the forecast period. In addition, it provides independent mobility for the person suffering from disability as well as for the non-drivers. They offer high-level of flexibility and comfort to rest, read, or even work while traveling that improves their efficiency. Further, rising technological advancement and diversity in the automotive industry has introduced autonomous cars. Autonomous vehicles are a breakthrough technology in the automotive industry after the introduction of electric and hybrid vehicles. Rising number of accidents because of human error has triggered the need for the autonomous technology to invade in the automobile sector.
Apart from the benefits, high cost of autonomous vehicle, rising concern for security & safety, and lack of proper infrastructure to support automated vehicles in the developing countries restrict the growth of the market. On the other hand, government initiatives to support electric and hybrid vehicles expected to propel the market for autonomous vehicles in the coming years.
By application, the global autonomous vehicles market is bifurcated into defense and transportation segments. Among them transportation segment cover nearly 91% of the market value share in 2020 and anticipated to witness a proliferating growth over the analysis period. The transportation segment is further categorized into commercial and industrial applications. Rising adoption of electric and hybrid vehicles with various level of automation has significantly triggered the demand for autonomous vehicles in transportation application. Furthermore, public awareness and government support for shared mobility in commercial sector has prominently boosted the trend of autonomous vehicles in the segment. For instance, in December 2019, a manufacturer and supplier of Internet-related services and products, Baidu, announced to secure 40 licenses that help company to test its driverless cars. Other than commercial application, industrial segment also projected to expand at a rapid rate owing to surge in logistics and e-commerce platform that require heavy vehicles for goods transportation.
However, defense sector experience flourishing growth in the demand for autonomous vehicles and expected to emerge as one of the most prominent application during the forecast period owing to various initiatives across different regions such as North America. For instance, in April 2019, the U.S. military announced to deploy autonomous combat trucks to assist soldiers while driving to avoid accidents especially in rough terrain.
Surge in adoption of hybrid and electric vehicles in North America has projected the region as the global leader in the year 2019 and expected to witness explicit growth over the forecast period. The prime factor supporting the accelerating growth of the region is amendments from government in the traffic regulations to support the autonomous mobility on public road. For example, in 2013, a traffic regulation institute in the U.S., the National Highway Traffic Safety Administration (NHTSA), allowed testing for self-driving cars in various states, including California, Nevada, Michigan, Florida, and Washington D.C.
On the contrary, Europe expected to emerge as the most lucrative region for autonomous car market in the coming years due to shifting consumer preference towards automated product along with rising adoption of autonomous vehicles. In 2018, the U.K. Department of Transport announced a jurisdiction to permit autonomous vehicles on any public road without the requirement of extra insurance or permits. In 2018, the country has successfully established centers for autonomous and connected vehicles. Further, the government of UK has shown its commitment towards autonomous vehicles and planned to convert all vehicles on-road into autonomous one by the year 2021 by making necessary changes in the regulations.
Key Companies & Market Share Insights
The global autonomous vehicle market is highly competitive and dominated by the presence of major automotive giants. Leading market players are significantly focused towards inorganic growth strategies such as collaboration, partnership, merger & acquisition, and regional expansion. In August 2017, Intel Corporation, BMW AG, Fiat Chrysler Automobiles (FCA), and Mobileye, affiliated business of Intel Corporation contracted a memo of understanding for Fiat Chrysler Automobiles to link companies for the development of autonomous vehicle driving platform. The memorandum aimed at collaborating capabilities, resources, and strengths of all the companies to reduce the product launch time, in addition, also enhances the development efficiency and platform technology.
Moreover, industry participants also invest significantly for the product development as autonomous vehicles require high-end electronic devices for advanced automotive features. Rapidly changing consumer preference and increasing awareness among the people for environment-friendly vehicles motivate the market players to incorporate such features in their vehicles. These market players tie up with the electronic hardware manufacturing companies to meet the consumer demand.
Some of the prominent players in the autonomous vehicle market include:
Segments Covered in the Report
This research report includes complete assessment of the market with the help of extensive qualitative and quantitative insights, and projections regarding the market. This report offers breakdown of market into prospective and niche sectors. Further, this research study calculates market revenue and its growth trend at global, regional, and country from 2016 to 2027. This report includes market segmentation and its revenue estimation by classifying it on the basis of application, and region:
By Regional Outlook
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