February 25, 2024

The Autonomous Car Market is driven by Advancements in Self-Driving Technologies

 Autonomous vehicles use a variety of techniques such as radar, laser light, GPS, odometry, and computer vision to detect their surroundings. Advanced driver assistance systems (ADAS) provide semi-autonomous capabilities by automatically controlling the steering, brakes, and acceleration under certain conditions. Many prototype vehicles have been developed with conditional automation, also known as Level 3 or Level 4 autonomy by companies such as Tesla, General Motors, Ford, BMW, Audi, and Mercedes-Benz.

The Global autonomous car market is estimated to be valued at US$ 170.07 Mn in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the autonomous car market are Kitchen Magic, Rev-A-Shelf, Knape & Vogt Manufacturing Company, Enclume Design Products, Kesseb√łhmer Clever Storage, ShelfGenie Franchise Systems, LLC, Old Dutch International, Anchor Hocking, LLC, Blum Australia Pty Ltd, Inter IKEA Systems B.V., Flywell International Corp, Masterclass Kitchens, and Others. These companies hold a significant share of the market owing to their robust product portfolios and global presence across major markets. For instance, Tesla has emerged as a prominent player in semi-autonomous vehicles with its Autopilot system.

The growing demand for autonomous vehicles is being driven by increasing demand for safety, convenience, and mobility. Self-driving cars can help reduce traffic accidents caused by human error. They allow drivers to utilize travel time productively for tasks such as working, reading or sleeping, while the vehicle handles driving duties. This has increased demand for autonomous ride-hailing and vehicle sharing services.

Major automotive companies are expanding their footprint globally to tap the growth potential of autonomous driving. For example, GM plans to launch a fleet of affordable autonomous vehicles by 2019. BMW, Volvo, Ford, Audi and other luxury automakers have also announced plans for large-scale deployment of autonomous vehicles across Europe and North America between 2020 and 2025. Partnerships with tech giants will help automakers fast-track autonomous technologies and commercialization.

Market drivers

The major driver for the autonomous car market is advancements in AI and machine learning. Continuous learning algorithms are helping autonomous vehicles make improved real-time decisions. Deep learning networks can learn from vast amounts of sensor data to safely navigate urban environments. Declining sensor costs and government funding for research is also fueling developments in advanced driver assistance systems and self-driving technologies. Regulatory acceptance of autonomous vehicles for public use will further accelerate the market over the forecast period.

Impact of Geopolitical Situation on Autonomous Car Market Growth
The current geopolitical tensions across various regions are impacting the growth of the autonomous car market. The ongoing trade war between US and China has disrupted the supply chains of key automotive components. This has led to increase in costs and delays in new product development for automakers. Furthermore, sanctions imposed on Russia due to the Ukraine conflict are restricting technology transfers for advanced driver-assistance systems and connectivity features. Looking ahead, automakers will need to closely monitor changes in trade policies and diversify their supplier networks across multiple countries to mitigate political risks. Localizing more production and establishing regional research hubs can help insulation from future trade restrictions. Collaborations with local technology firms will aid faster integration of indigenous solutions suited for diverse road conditions.

Geographical Regions with Highest Value Concentration in Autonomous Car Market
Currently North America accounts for the largest share of the autonomous car market in terms of value, estimated at over US$ 60 Mn in 2024. This is attributed to ongoing large-scale road testing of autonomous vehicles across multiple US states and increasing commercial operations of robo-taxis and delivery bots in the region. Europe is the second largest market led by significant investments from major German automakers in self-driving technologies. However, the Asia Pacific region is expected to witness the fastest gains and surpass North America to become the dominant market by 2028. This is fueled by supportive policies and infrastructure-related projects in countries such as China, Japan and South Korea to mass-deploy autonomous mobility services.

Fastest Growing Region in Autonomous Car Market
The Asia Pacific region is poised to emerge as the fastest growing regional market for autonomous cars during the forecast period of 2024 to 2030. This owes to increasing collaborations between global automakers and local technology companies in countries like China, Japan and South Korea for developing customized autonomous driving solutions. Growing funding from governments and private investors in self-driving vehicle demonstrations is propelling innovation across the region. In addition, infrastructure modernization projects in major Asia Pacific cities along with favorable testing regulations will help accelerate commercialization and adoption of autonomous taxis, shuttles and trucks. By 2030, Asia Pacific is estimated to capture over 35% share of the global autonomous car market revenues, mainly driven by traction in China.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it