According to a recent report published by Allied Market Research, titled, “Autonomous Vehicle Market by Level of Automation, Application, Drive Type, and Vehicle Type: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the global autonomous vehicle market was valued at $76.13 billion in 2020, and is projected to reach $2,161.79 billion by 2030, registering a CAGR of 40.1% from 2021 to 2030.
North America dominates the market in terms of revenue, followed by Europe, Asia-Pacific, and LAMEA. However, Asia-Pacific is expected to grow at a significant rate during the forecast period, due to increase in demand for advanced vehicles across the region.
Autonomous vehicle is a robotic vehicle designed to travel between destinations without a human operator. It can perform necessary functions by sensing and responding to external conditions and surroundings through superior and in-built programs. It consists of advanced sensor technology, advanced driver assistance system (ADAS), complex algorithm processors, intelligent control systems, and actuators to gather information, perform tasks, and responsive actions, such as steering, braking, and acceleration. Furthermore, it uses light detection & ranging (LiDAR), radio detection and ranging (RADAR) sensor technology to create & maintain an internal map of their surroundings. In 2019, Tesla, Inc. developed its existing seamless navigation system on autopilot to offer road trips & highway driving more relaxing, with new guidance experience such as customized navigation solutions that allow drivers to check their surroundings and offer notification for the lane change before it’s made.
In addition, the autonomous vehicle market has witnessed significant growth in recent years, owing to rapid technological advancements, significant infrastructure investment, increase in collaboration between vehicle manufacturers and tech firms, and the emergence of new business models & ecosystems. For instance, in October 2019, Volkswagen AG announced the expansion of the automotive business by the foundation of Volkswagen Autonomy GmbH in Munich & Wolfsburg as a center of excellence for autonomous driving from Level 4, VWAT solutions for automated vehicles. Furthermore, Dubai's Roads and Transport Authority (RTA) signed a partnership agreement with the Cruise Company, a subsidiary of General Motors, to operate Cruise autonomous vehicles in the Emirate. The company would offer taxi and e-Hail services in the Emirate by the end of 2022. In addition, the adoption of vehicle sharing services such as cars or taxis is anticipated to use automated vehicles frequently due to affordability & convenience. For instance, Audi opened up its “Audi on-demand” model, where passengers can choose the premium service and avail themselves of the additional benefits the platform provides. Hence, the modernized regulatory environment & shift of people thinking toward social, technological, and economic attitudes create lucrative opportunities for the autonomous vehicles market during the forecast period.
Autonomous vehicle market report is segmented into level of automation, component, application, propulsion type, vehicle type, and region. Depending on level of automation, it is segmented into level 3, level 4, and level 5 automation. By component, it is fragmented into hardware, software, and service. As per application, it is classified into civil, defense, transportation & logistics, and construction. According to propulsion type, it is divided into semi-autonomous and fully autonomous. On the basis of vehicle type, it is bifurcated into passenger car and commercial vehicle. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Factors such as improvement in safety, reduction in traffic congestion, growth in connected infrastructure, and transition from ownership to mobility-as-a-service (MaaS) supplement the market growth across the globe. However, factors such as high manufacturing cost and data management challenges hinder the market growth around the world. Conversely, factors such as development of smart cities and supportive government regulations create ample opportunities for the market growth during the forecast period.
Key Findings Of The Study
- By Level of Automation, the L3 segment is expected to register a significant growth during the forecast period.
- Depending on application, the Defense segment is anticipated to exhibit significant growth in the near future.
- On the basis of drive type, the fully autonomous segment is anticipated to exhibit significant growth in the near future.
- On the basis of vehicle type, the commercial vehicle segment is projected to lead the global autonomous vehicle market owing to higher CAGR.
- Asia-Pacific is anticipated to register the highest CAGR.
Covid-19 Impact Analysis
- The COVID-19 crisis is creating uncertainty in the market by slowing down the logistics services, hampering business growth, and increasing panic among the customer segments.
- Governments across different regions announced total lockdown and temporarily shutdown of industries, leads to the border closures that restricted the movement of transportation & logistics services.
- The global business outlook has changed dramatically post COVID-19 health crisis.
- Moreover, the overall service activities of market players have declined, owing to drastic fall of demand in the cash usage to avoid the risk of contamination.
- As per current scenario, world is getting back on track slowly with the new restriction and policies along with a significant recovery in product sales across the retail sector . These factors may assert a positive influence on the autonomous vehicle market to support the economic activities across all industries.
The key players operating in the global autonomous vehicle market are AB Volvo, BMW AG, Daimler AG, Ford Motor Company, General Motors, Honda Motor Co., Ltd., Nissan Motors Co., Ltd., Tesla, Inc., Toyota Motor Corporation, and Volkswagen AG.