Autonomous Cars Market Trends & Forecast | 2023-2028

Market Insights

The Global Autonomous Cars Market is expected to grow from USD 21.98 million in 2022 to USD 47.37 million by 2028 at a healthy CAGR of 13.6% during the forecast period of 2023-2028.

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What are autonomous cars?

An autonomous car, also known as a ‘driverless car’ or ‘self-driving car’ is a vehicle that consists of sensors to sense the environment, and software to control & navigate. It can operate without human involvement.

These cars use sensors such as GPS, LIDAR, and RADAR, among others, to perceive their surroundings. These self-driving cars have become the major revolution in automation and connectivity technology.

Key Players

Some of the major players in the global market are-

• BMW AG
• Mercedes-Benz Group AG (former Daimler AG)
• Ford Motor Company
• Honda Motor Co., Ltd.
• Hyundai Motor Company
• Robert Bosch GmbH
• Tesla
• TOYOTA MOTOR CORPORATION
• Volkswagen
• Volvo Car Corporation.

Market Drivers

The global autonomous cars market is expected to increase due to some of the key factors, including -

1. Safety and Accident Reduction:  According to research, >90% of car accidents occur due to human errors. Autonomous vehicles are designed to be equipped with advanced sensors, cameras, etc. that help in detecting potential hazards accurately and prevent accidents. This is one of the primary factors that drive the demand for autonomous cars globally.
2. Better Traffic Management: Autonomous cars have the capability to enhance the lance capacity resulting in lesser traffic congestion. Better route planning, coordination with signals, smooth acceleration, etc. are a few features of autonomous cars that help in managing the traffic flow.
3. Time and Cost Savings: Autonomous cars might be high in cost initially, but they can lead to significant cost savings in the long run. Self-driven cars and ride-sharing cabs eliminate the need for car ownership and reduce overall transportation costs for consumers. Not only cost but ~40% of the time can be saved via autonomous cars states a report.
4. Reduction in Emissions: Though autonomous cars can be hybrid, solar-powered, gasoline-powered, hydrogen-powered, or electric, major developments are happening around electric robotaxis. A widescale adoption of autonomous cars will certainly lead to a significant emission reduction since these cars emit less harmful emissions compared to gasoline-powered and other types of vehicles.
5. Support from the Governments: Governments across the globe are supporting consumers who show interest in autonomous vehicles. Countries like China, the U.S., Finland, etc. have issued guidelines that encourage the usage of autonomous cars and trials are being permitted.

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Market Segments Analysis

By Level of Autonomy Type

The market is segmented into Level 1, Level 2, Level 3, and Level 4.

In 2022, Level 1 cars accounted for a large share of the overall market. With the growing demands for vehicular and driver/passenger safety concerns, several governments are charting out initiatives to improve the safety of cars.

In various countries, they are encouraging consumers to use advanced driver assistance systems (ADAS). As a result, several autonomous car industries have integrated Level 1 automation in their vehicles.

Moreover, Level 4 cars haven’t been launched in the market yet and are still under the R&D phase. Therefore, there is a significant demand for Level 1 cars currently.

By Type

The market is segmented into internal combustion engine (ICE) vehicles, hybrid electric vehicles (HEV), and battery electric vehicles (BEV).

As of 2022, the cars propelled by ICE are leading the global autonomous cars market, with the largest market share. Although there has been a high demand for electric vehicles in recent years, there is still a strong demand for ICE-propelled cars in developing economies such as India, China, South Africa, Indonesia, and Brazil.

Also, the necessary infrastructure for electric vehicles is inadequate in developing countries, increasing the demand for ICE-propelled vehicles. Hence, it is estimated that the internal combustion engine (ICE) vehicle market sub-segment will gain the maximum traction and grow steadily during the forecast period.

By Region

Among these regions, Europe is expected to dominate the ‘Driverless cars’ market throughout the forecast period. The region is home to several leading automobile manufacturers across the globe, such as Daimler AG, BMW AG, Volkswagen, and Volvo Car Corporation, among others. The market in the region is largely driven by extensive investments of car manufacturers along with supportive government initiatives for the market.

In addition, several European countries such as Germany, the UK, and France, have already promoted the use of autonomous vehicle technology. North America and Europe are also expected to offer considerable growth opportunities over the forecast period.

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The global autonomous cars market is segmented into the following categories. 

By Level of Autonomy

• Level 1
• Level 2
• Level 3
• Level 4

By Type

• Internal Combustion Engine (ICE) Vehicle
• Hybrid Electric Vehicle (HEV)
• Battery Electric Vehicle (BEV)

By Region

• North America (Country Analysis: the USA, Canada, and Mexico) 
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. 

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. 

We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

The following are the key features of the report:

• Overview, industry life cycle analysis, supply chain analysis.
• Environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Trend and forecast analysis.
• Segment trend and forecast.
• Competitive landscape and dynamics: Market share, product portfolio, Technology launches, etc.
• Attractive segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Target Audience

The following is a list of the customers that the market aims to convert the most:

• Manufacturers
• Suppliers
• Distributors
• Organizations
• Government bodies

Customization Option

Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research

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