The autonomous car market is a rapidly growing industry driven by advancements in technologies and increased investments in connected vehicle solutions. Autonomous vehicles offer several advantages compared to conventional vehicles including enhanced safety, reduced traffic collisions, mobility for elderly and disabled and potential fuel savings through optimized routing and platooning of vehicles. Key components enabling autonomous driving features include lidars, radars, cameras and ultrasonic sensors that provide 360-degree visibility along with high-precision localization and navigation systems.
The Global autonomous car market is estimated to be valued at US$ 7.74 Bn in 2024 and is expected to exhibit a CAGR of 6.0% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the autonomous car market are Kitchen Magic, Rev-A-Shelf, Knape & Vogt Manufacturing Company, Enclume Design Products, Kesseböhmer 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. The rising demand for autonomous vehicles from logistics, mobility as a service and personal use applications is a major factor propelling market growth. OEMs are actively working on developing advanced driver-assistance systems along with partnerships for developing key autonomous driving technologies such as lidar, radar and high-performance computers.
Market Trends
Increased investments in connected vehicle technologies by OEMs and technology companies: Major automakers and tech giants are pumping in billions of dollars to develop cutting-edge connectivity and autonomous driving solutions. Examples include GM's $27 billion investment in electric and autonomous vehicle programs through 2025.
Rising demand for autonomous Mobility as a Service (MaaS): Advancements in autonomous driving and connectivity technologies are enabling new mobility models such as self-driving taxis, shuttles and delivery bots. MaaS solutions are poised to disrupt conventional transportation with their enhanced convenience and sustainability.
Market Opportunities
Development of autonomous trucks and logistics vehicles: Autonomous Car companies and logistics firms are actively working with automakers and technology providers for developing autonomous trucks for long-haul freight transport. This can potentially address driver shortage problems and improve road safety.
Utilization of autonomous vehicles for transportation of elderly, disabled and passengers requiring special needs: Autonomous vehicles offer the scope to enable independent mobility for special needs groups at affordable costs through on-demand autonomous shuttles/taxis.
Impact of COVID-19 on Autonomous Car Market Growth
The COVID-19 pandemic severely impacted the Autonomous Car Market Growth in the initial months. As countries went into lockdowns to curb the spread of the virus, automobile production and sales declined significantly. This affected the development and testing of autonomous vehicles considerably. With movement restrictions in place, autonomous vehicle testing and data collection were disrupted. Supply chains were also impacted forcing companies to halt production temporarily. However, as lockdowns eased, companies resumed work gradually with safety protocols. They also accelerated efforts to develop autonomous delivery vehicles to enable contactless delivery of goods and services.
There is renewed focus on delivering an autonomous future post-pandemic to support social distancing. Companies are investing more in technologies like 5G that will enhance connectivity and support autonomous driving. Autonomous shuttles and delivery bots can help reduce dependency on public transportation. Regulators are fast-tracking rules to allow driverless deliveries. The pandemic has highlighted the importance as well as commercial applications of autonomous vehicles for cargo transport, deliveries, emergency response etc. Going forward, autonomous driving solutions will play a key role in ensuring safer, more efficient mobility solutions.
Geographical Regions with Highest Concentration of Autonomous Car Market Value
North America has been the largest and fastest growing regional market for autonomous cars in terms of value. This is attributed to massive technology investments and presence of major automakers and technology companies in the US and Canada. Countries like the US, Germany and China are at the forefront of development and testing of self-driving vehicles. Significant funding from both private and public sectors is accelerating research. Europe and Asia Pacific markets are also growing steadily with strong government support for autonomous mobility projects.
Fastest Growing Regional Market for Autonomous Cars
Asia Pacific region, led by China, is expected to witness the fastest growth in the autonomous car market over the forecast period. This can be attributed to growing automobile demand, improving infrastructure and supportive government policies promoting new mobility technologies. Countries like China, Japan, South Korea and India are investing heavily in autonomous driving platforms. Their focus is on developing domestic autonomous technology capabilities and autonomous vehicle deployment at scale. Mass production of self-driving vehicles and commercialization of mobility services will drive the Asia Pacific market for autonomous cars.
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About Authors
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
