Self-Driving Cars Market Size, Share, and Trends 2024 to 2034

Self-Driving Cars Market (By Type: Fully Autonomous, Semi- Autonomous; By Vehicle Type: Passenger Cars, Commercial Vehicles; By Application: Transportation, Defense; By Electric Vehicle: BEV, HEV, PHEV, FCEV; By Component: Camera Unit, LiDAR, Radar Sensor, Ultrasonic Sensor, Infrared Sensor; By Level of Autonomy; By System) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023 – 2032

  • Last Updated : September 2023
  • Report Code : 1779
  • Category : Automotive

Self-Driving Cars Market Size to Reach USD 80.43 Mn by 2032

The global self-driving cars market size was valued at USD 23.80 million units in 2022 and it is expected to reach at USD 80.43 million units by 2032, growing at a CAGR of 13% during the forecast period 2023 to 2032.

Self-Driving Cars Market Size 2023 to 2032

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The self-driving cars are also known as autonomous vehicles which have a great potential for growth in the automobile sector. In order to carry out the operations automatically the self-driving cars are made up of numerous sensors. These sensors help the navigation process by performing situational analysis, trajectory control and motion planning. Due to the increased connectivity of these vehicles the threat of these cars getting hacked is increasing. Many organizations are developing anti hacking algorithms for the self-driving cars in order to prevent hacking. The developments of electric vehicle charging points would greatly affect the growth of autonomous vehicles as many autonomous vehicles are driven using the electrical power. Demand for luxury cars will further increase the demand for these self-driving cars during the forecast period. There has been a considerable growth in China and India, among others developing nations. The standard of living has also changed and improved in many developing countries due to a considerable increase in the spending power.

There was an increased use of personal transportation during pandemic. Increase in the fear of acquiring the disease and in order to follow the government restrictions there was a significant effect on the transportation and the mobility sector. There was a great amount of uncertainty in the market during the pandemic. This hampered the business growth. There was a growing panic among the consumers due to the increasing number of Hospitalized patients and that's occurring due to COVID 19. This fear increased the use of personal transport.

Growth Factors

Safety features is the most important factor for automotive customers across the world. The compulsion imposed by the government regarding safety features of LDW, AEB, EBS and many others have forced the manufacturers to incorporate such facilities into the recent vehicles. These facilities prove to be the basic feature in the self driving vehicles which proves to be a driving factor for the company. This improves the driving experience and quality provided by the vehicle. Many different types of safety features have been developed in order to help the drivers and lower the number of accidents across the world. Major OEMs such as Honda and Toyota are launching vehicles with safety features like blind spot detection, forward collision warning, rear cross traffic, and automatic emergency braking as a standard in all its vehicles. Self-driving cars could play a important role in reducing this number of accidents and provide a safe and efficient driving experience for the customers. Active safety systems such as blind spot detection, automatic emergency braking are the technologies that are providing a boost to the self-driving cars market. Increasing demand for the luxury vehicles in developing and developed nations will further strengthen the demand for self-driving cars in the coming years. In developing countries such as China and India, among others the growth rate for the self-driving cars is more. German car brands like as BMW, Mercedes-Benz, and Audi dominate the global luxury automobiles market.

Report Scope of the Self-Driving Cars Market

Report Coverage Details
Market Size by 2032 USD 80.43 Million Units
Growth Rate from 2023 to 2032

CAGR of 13%

North America Market Share in 2022 45%
Transportation Segment Market Share in 2022 92%
Base Year 2022
Forecast Period 2023 to 2032
Segments Covered Type, Vehicle, Application, System, Electric Vehicle, Components, Level of Autonomy, Geography
Companies Mentioned Autoliv Inc.  (Stockholm, Sweden), Aptiv (Dublin, Ireland), Daimler AG (Stuttgart, Germany), Baidu (Beijing, China), AutoX, Inc. (California, US), HYUNDAI MOTOR GROUP (Seoul, South Korea), Volvo (Gothenburg, Sweden), (Fremont, California, US), Ford Motor Company (Michigan, US), Waymo LLC (California, US), Robert Bosch GmbH (Gerlingen, Germany)


Type Insights

On the basis of the type, the semi autonomous car segment is expected to dominate the market during the forecast period. Semi autonomous segment has the largest market share in the global market. The semi autonomous cars have various levels of automation. The various levels are level 1, 2 and 3. They shall be our fastest growth of level two and Level 3 automation of semi autonomous car segment in the market. The penetration rate of level two and three is more as compared to level one. Increasing technological developments in level 2 and Level 3 is driving the growth of the market. There are many other features that are included in the semi autonomous vehicles segment like the adaptive cruise control, intelligent park assist etc. The intelligent emergency breaking and intelligent park assisting are the segments that are expected to show the fastest growth in the market. The automatic emergency breaking system is expected to be a standard across all the vehicles according to the National Highway Traffic Highway Safety Association.

Vehicle Type Insights

On the basis of the vehicle type, the passenger car segment is expected to have the largest market share during the forecast period. Due to the rapid urbanization across the developing nations and increase it to manned in the developed nations the passenger car segment is expected to grow during the forecast period. Higher demographic growth, improved standards of living and the increase in the purchasing power in the developing nations are the most important factors that are leading to high growth of this market. There's an increased production of cars across the globe in many developed as well as the developing nations due to a great demand for these self driven cars. Various organizations and governments or investing a great amount of percentage in the development of these technologically advanced vehicles which will help in enhancing the safety features in order to prevent accidents on the roads. Self driven cars are able to provide convenience and comfort which is helping in creating a high demand for the self driven cars in the market.

Apart from the passenger car segment the commercial car segment is also expected to have a good amount of share in the self driven cars market. The Ensemble consortium and Netherlands organization partnered with the European Union. This partnership is aiming for applied scientific research in order to implement a multi brand truck for the European highways which will help in improving the traffic capacity. These technologically advanced drugs will be able to reduce the carbon dioxide emissions in Europe. And the fuel consumption shall be less as compared to the other vehicles.

Application Insights

On the basis of application, the transportation segment has dominated the market for the self-driving cars which had a share of about 92% in 2022. Due to an increased funding provided by the government for this self-driving car trails is driving the market. In order to have more innovations in the transportation industry the Intelligent Mobility Fund was provided by the government in the UK. The transportation could be either commercial or industrial transportation. In the future it is expected that there shall be a hired option of driverless technology in transportation as there is and increasing amendment in the transport regulations by the US government. These improved transport regulations are creating a gateway for the self driving cars in this region.

Self-Driving Cars Market Share, By Application, 2022 (%)

Apart from US the Europe is also expected to emerge as a lucrative market for self-driving cars. Due to an increasing preference from the consumers there is a growth in the market of self-driving cars which are technologically advanced products offered to this market.

Regional Insights

The North America region had the largest market share till the recent years. The North American region accounted for a volume a share of about 45% till the year 2022. The growth of the self driving cars in this market is due to the amendments in the traffic regulations in the US. Due to these amendments there shall be an incorporation what is self driving cars on the public roads in the United states. In order to make transport completely autonomous this regulation is being adopted across all the states in the United states. Due to an increasing demand of the mobility as a service sector it is expected that the market shall grow well for the self driving cars in the future. The Department of Transport of UK had allowed the self driving vehicles on public roads without any additional permits or insurance. The UK government is also working on making changes to the current regulations in order to support the development of the self-driving cars in this market.

Self-Driving Cars Market Share, By Region, 2022 (%)

The market size in Asia Pacific region stood at USD 0.72 billion in the year 2020. There has been an increase in the adoption of electric vehicles and hybrid vehicles in United States. Due to a change in the traffic regulations in this region the market is expected to grow well during the forecast period. The European region has also seen a great demand for autonomous cars in the recent years. UK is determined to convert all the vehicles running on the roads of this region to the autonomous vehicles in the coming years. The autonomous car manufacturers are able to provide a good amount of variants in the cars due to the software and technology developers.

Key market players in the self-driving cars market

  • Autoliv Inc.  (Stockholm, Sweden)
  • Aptiv (Dublin, Ireland)
  • Daimler AG (Stuttgart, Germany)
  • Baidu (Beijing, China)
  • AutoX, Inc. (California, United States)
  • HYUNDAI MOTOR GROUP (Seoul, South Korea)
  • Volvo (Gothenburg, Sweden)
  • (Fremont, California, United States)
  • Ford Motor Company (Michigan, United States)
  • Waymo LLC (California, United States)
  • Robert Bosch GmbH (Gerlingen, Germany)

Recent Development

  • Mobileye, Intel Corporation, Fiat Chrysler Automobiles , and BMW Group Signed MoU in August 2021 to Develop Autonomous Vehicles.
  • Announces to Raise $400 Million from in February 2020 to Develop Autonomous Driving
  •, which is an autonomous driving company, raised USD 400 million from Toyota Motor Corporation to expand their partnership in mobility services that they provide. This collaboration will help in developing autonomous driving technology and it will also help in deploying mobility services.
  • Mobileye and Willer Announced their Partnership on Autonomous in July 2020
  • Mobileye which is an Intel Company, announced its partnership with Willer which is a transportation service provider. The collaboration will help in order to launch a self-driving robo taxi service in the region of Japan and many other parts of Southeast Asia region.
  • The Center for connected and autonomous vehicles was established in the UK. This government department it's focusing on all the legislations which could allow the testing of motorways in the nation 
  • January 2021 – Cruise and General Motors (G.M.) Partnered with Honda company in order to Expand its Autonomous Vehicle Mobility Service across the world.
  • Honda announced its collaboration with G.M. and Cruise on self-driving vehicles for the autonomous vehicle mobility service (MaaS) business in Japan which is based on the developmental and the commercial agreements which were signed in the year 2018.

Segments covered in the self-driving cars market report

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By Type

  • Fully Autonomous
  • Semi- Autonomous

By Vehicle Type

  • Passenger Cars
  • Commercial Vehicles

By Application

  • Transportation
  • Defense

By System

  • Adaptive Cruise Control (ACC)
  • Adaptive Front Light (AFL)
  • Automatic Emergency Braking (AEB)
  • Blind Spot Detection (BSD)
  • Cross Traffic Alert (CTA)
  • Driver Monitoring System (DMS)
  • Forward Collision Warning (FCW)
  • Intelligent Park Assist (IPA)
  • Lane Departure Warning (LDW)
  • Night Vision System (NVS)
  • Pedestrian Detection System (PDS)
  • Road Sign Recognition (RSR)
  • Tire Pressure Monitoring System (TPMS)
  • Traffic Jam Assist (TJA)

By Electric Vehicle

  • Battery Electric Vehicles (BEV)
  • Hybrid Electric Vehicles (HEV)
  • Plug-in Hybrid Electric Vehicle (PHEV)
  • Fuel Cell Electric Vehicle (FCEV)

By Component

  • Camera Unit
  • LiDAR
  • Radar Sensor
  • Ultrasonic Sensor
  • Infrared Sensor

By Level of Autonomy

  • L1
  • L2
  • L3
  • L4
  • L5

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Philippines
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • North Africa
    • South Africa
    • Rest of the Middle East & Africa

Frequently Asked Questions

The global self-driving cars market size was reached at USD 23.80 million units in 2022 and it is anticipated to rake around USD 80.43 million units by 2032.

The global self-driving cars market is expected to drive growth at a CAGR of 13% from 2023 to 2032.

The major players operating in the self-driving cars market are Autoliv Inc. (Stockholm, Sweden), Aptiv (Dublin, Ireland), Daimler AG (Stuttgart, Germany), Baidu (Beijing, China), AutoX, Inc. (California, US), HYUNDAI MOTOR GROUP (Seoul, South Korea), Volvo (Gothenburg, Sweden), (Fremont, California, US), Ford Motor Company (Michigan, US), Waymo LLC (California, US), Robert Bosch GmbH (Gerlingen, Germany).

Development of self-driving modular systems enabling OEMs to handpick the technology is an important factor for the growth of the self-driving cars market.

Asia pacific region will lead the global self-driving cars market over the forecast period.

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