Autonomous Vehicle Market Size, Share & COVID-19 Impact Analysis, By Level (L1, L2, & L3 and L4 & L5), By Vehicle Type (Passenger Cars and Commercial Vehicles), and Regional Forecast, 2023-2030

The global autonomous vehicle market size was valued at USD 1,500.3 billion in 2022 and is projected to grow from USD 1,921.1 billion in 2023 to USD 13,632.4 billion by 2030, exhibiting a CAGR of 32.3% during the forecast period. Asia-Pacific dominated the autonomous vehicle industry with a market share of 50.44% in 2022.

An autonomous vehicle (AV), commonly referred to as a self-driving or driverless vehicle, is a type of vehicle that is capable of navigating and operating without human intervention. These vehicles use a combination of advanced technologies and sensors to identify their environment, make decisions, and control their movement. Continuous advancements in sensor technologies, artificial intelligence, and machine learning are driving improvements in the capabilities of these types of vehicles. These technologies perform a crucial role in enhancing the perception, decision-making, and overall safety of autonomous systems.

Continuous advancements in artificial intelligence, machine learning, sensor technologies, and connectivity play a pivotal role in enhancing the capabilities of AVs. Improvements in perception, decision-making, and overall system reliability contributes to the growth of the market.

COVID-19 IMPACT

Supply Chain Disruptions and Advantages Provided by AVs Led to a Mixed Impact on the Market Growth

The COVID-19 pandemic had a mixed impact on the global self-driving vehicle industry. On one hand, it led to disruptions in supply chains, slowed down the manufacturing processes, and caused delays in testing and development activities. The pandemic also resulted in economic uncertainties and reduced consumer spending, affecting the overall automotive industry.

On the other hand, the pandemic highlighted the potential benefits of self-driving vehicles in situations where human interaction posed health risks. This brought attention to the role of autonomous technologies in enhancing safety, such as contactless delivery services and autonomous shuttles for essential workers.

In addition, some companies in the automated vehicle sector adapted to the challenges by focusing on software development, remote testing, and strategic partnerships. In October 2020, Waymo launched its self-driving taxi service, offering its AVs for public use. The service is limited because of the regulations imposed by the government of some regions.

Autonomous Vehicle Market Trends

Increasing Focus on Commercial Applications of AVs Boosts the Market Growth

One of the ongoing market trends includes the increasing focus on the commercial applications of AVs. Several companies are shifting their attention from purely passenger vehicles to autonomous solutions for logistics, delivery services, and ride-sharing. For instance, in December 2022, Baidu, Inc., a prominent AI firm rooted in a robust internet infrastructure, received authorization to conduct trials of AVs on public roads devoid of any human driver or safety operator within the vehicle.

Moreover, strategic collaborations and partnerships between traditional automakers, tech companies, and startups are becoming more prevalent, aiming to leverage complementary strengths and accelerate the development and deployment of autonomous technologies. This trend reflects a recognition of the potential for AVs to transform various industries beyond personal transportation.

Autonomous Vehicle Market Growth Factors

Consistent Advancement in the Technology of AVs Fuels the Market Growth

One key factor driving the global autonomous vehicle (AV) market growth is the continuous advancement in technology. Breakthroughs in artificial intelligence, sensor technologies, and connectivity contribute to improving the capabilities of AVs, making them safer, more efficient, and increasingly viable for widespread adoption. Technological innovation remains a critical force propelling the growth and development of the autonomous vehicles industry.

In June 2023, Minus Zero, an artificial intelligence (AI) startup, revealed its fully autonomous vehicle incorporating a camera-sensor suite. The innovative zPod concept vehicle was created using technological concepts, namely Nature Inspired AI (NIA) and True Vision Autonomy (TVA).

Thus, companies are focused on the development and incorporation of the latest technologies to produce high-tech, reliable, and safe vehicles. This factor is expected to fuel the growth of the market over the forecast period.

RESTRAINING FACTORS

Lack of Steady Regulatory Framework May Hinder the Market Growth

One key restraining factor in the global autonomous vehicle market is the lack of clear and consistent regulatory frameworks. The absence of standardized regulations across regions creates uncertainties and obstacles to the widespread deployment of AVs. Regulatory challenges, including legal liabilities, safety standards, and compliance requirements, pose significant hurdles and can slow down the progress of self-driving vehicle adoption. Despite rapid advancements, self-driving vehicles still face technological challenges. Adverse weather conditions, complex urban environments, and unique and unpredictable situations pose difficulties for current autonomous systems. Achieving full autonomy in all driving scenarios remains a significant hurdle.

In September 2023, California Governor Gavin Newsom rejected the bill mandating the presence of human drivers in self-driving trucks, a move opposed by union leaders and truck drivers who argued it would preserve thousands of jobs in the state. The vetoed legislation, announced on Friday night, aimed to prohibit self-driving trucks weighing over 10,000 pounds (4,536 kilograms), covering vehicles from UPS delivery vans to large big rigs, from operating on public roads unless accompanied by a human driver.

Autonomous Vehicle Market Segmentation Analysis

By Level Analysis

Focus on Improving Existing Driving Capabilities of AVs Augmented the L1, L2, and L3 Segment Growth

In terms of level, the market is divided into L1, L2, and L3 and L4 & L5.

The L1, L2, and L3 segment held the largest market share in 2022. The primary driver is the integration of technologies such as automated braking systems, lane-keeping assistance, and adaptive cruise control, enhancing vehicle safety, convenience, and overall driving experience.

The focus is on improving existing driving capabilities rather than achieving full autonomy, making these features more widely accessible in modern vehicles, which fuels their demand. In September 2023, during IAA Mobility 2023 in Munich, Mobileye and Valeo revealed a new alliance to provide software-defined, top-of-the-line imaging radars for ADAS and AD features in the next-generation vehicles.

The L4 & L5 segment is considered to be in the developing stage. Governments and companies are exploring commercial applications of levels of automation, such as L4 & L5, to be incorporated in delivery vehicles and trucks. These applications have the prospective to transform industries, reduce operational costs, and increase efficiency in logistics and transportation. In August 2023, San Francisco initiated an autonomous shuttle service, just under a week after regulatory approval in California expanded the use of robotaxis despite raised concerns about traffic and safety.

By Vehicle Type Analysis

Rise of Ride-Hailing Services Contributes to the Passenger Cars Segment Expansion

Based on vehicle type, the market is divided into two sub-segments: passenger cars and commercial vehicles.

The passenger cars segment held a dominant autonomous vehicle market share in 2022. The rise of ride-hailing and ride-sharing services contributed to the integration of autonomous technologies in passenger cars. Companies are exploring and utilization of AVs for on-demand transportation services, enhancing the overall passenger experience. In July 2023, Volkswagen outlined its strategic initiative to introduce autonomous, or self-driving, vehicles designed for ride-hailing and goods delivery services in Austin, Texas, with the targeted launch set for 2026.

The commercial vehicles segment is expected to grow with the highest CAGR during the forecast period. Several trucking and logistics companies are involved in the inculcation of self-driving vehicles in the transportation and logistics sector to increase operational efficiency and safety.

For instance, In July 2023, Kodiak Robotics, Inc., a prominent autonomous trucking company, enrolled itself in the Commercial Vehicle Safety Alliance (CVSA) Enhanced Commercial Motor Vehicle (CMV) Inspection Standard (Enhanced Inspections) program. This program enables autonomous trucks to undergo pre-clearance for roadside inspections, which augments the growth of the market.

REGIONAL INSIGHTS

This market is analyzed across North America, Europe, the Asia Pacific, and the rest of the world.

Presence of Leading Companies in the Region Fuels the Asia Pacific Market Growth

The Asia Pacific market for autonomous vehicle dominated the global market in 2022. The region is a major manufacturing powerhouse for the automotive industry. The presence of leading automakers and technology companies in the region fosters innovation and the integration of autonomous features into vehicles.

For instance, in 2022, according to the California Department of Motor Vehicles, among the 40 companies authorized to conduct automated vehicle trials in California, 10 were Chinese-based firms, representing a larger proportion than any other foreign nation. Following China, Germany, Israel, and Japan each have two licensed companies in the state. Ending on November 30^th, 2022, these China-affiliated companies collectively operated 124 automated vehicles in California, covering a total distance of 438,379 miles.

North America market for autonomous vehicle accounted for a significant share in 2022. North America, particularly the U.S., is a hub for technological innovation. The region is home to several leading technology establishments and research institutions actively involved in advancing technologies, including sensors, artificial intelligence, and connectivity. In October 2023, Austin hosted approximately 125 AVs, as reported by the city's Transportation and Public Works Department.

Europe market for autonomous vehicle held a significant share in 2022. The proactive approach of several European countries in creating regulatory frameworks to support the deployment of automated vehicles fuels the market growth in the region. For instance, in July 2021, Germany allowed driverless vehicles based on level 4 automation technologies. The Act allows driverless AVs within specified zones under "technical supervision," where a remote human backup can intervene in critical situations.

The rest of the world held a prominent market share in 2022. The rise of ride-sharing services in Latin America has increased interest in self-driving vehicles for mobility services. Companies exploring autonomous ride-sharing solutions are poised to drive market growth in the region.

List of Key Companies in Autonomous Vehicle Market

Capitalization and R&D Focus by the Key Market Players Drives the Competitive Edge

Key players in the market offer a comprehensive range of AVs and their services. These companies are also capitalizing on R&D activities to focus on the improvement of the technology. Some of the major players include Waymo, Tesla, Inc., and Cruise (General Motors), among others. Tesla is known for its electric vehicles and it has a strong presence in the autonomous driving space. The company’s vehicles are equipped with the company's proprietary Autopilot system, which provides advanced driver assistance features and aims for full self-driving capabilities.

List of Key Companies Profiled: 

• Waymo (U.S.)


• Tesla, Inc. (U.S.)


• Cruise (General Motors) (U.S.)


• Aurora Innovation (U.S.)


• Aptiv (Ireland)


• Uber ATG (U.S.)


• Nuro (U.S.)


• Baidu Apollo (China)


• Mobileye (Intel) (Israel)


• Zoox (Amazon) (U.S.)


• Valeo (France)


• Yandex Self-Driving Group (Russia)


• Volvo Car Corporation (Germany)


• Hyundai (South Korea)

KEY INDUSTRY DEVELOPMENTS:

• October 2023 – Uber forged a partnership with Waymo, the autonomous car company under Google's parent company, Alphabet. Phoenix has become the inaugural city where Uber has officially introduced access to Waymo's autonomous cars. Waymo vehicles are responsible for providing the autonomous rides offered by Uber and the pricing for these rides is consistent with traditional car rides provided by Uber. 


• August 2023 – Baidu, Inc. declared the extension of its autonomous ride-hailing platform, Apollo Go, to encompass Wuhan Tianhe International Airport, broadening the reach of its driverless car service.


• May 2023– Valeo and DiDi Autonomous Driving entered into a strategic collaboration and investment pact. Valeo is set to invest in DiDi Autonomous Driving and the collaborative effort between the two entities focuses on crafting intelligent safety solutions for L4 robotaxis.


• December 2022 – Apple revised its self-driving objectives for the forthcoming electric vehicle, opting to delay the vehicle’s targeted launch date by approximately one year to 2026.


• October 2022 – Ford opted to pursue the development of lower-level automated driving technology internally rather than engage with Argo in the development of self-driving car technology. The technology designed for vehicles by Argo lacked steering wheels, brakes, or accelerator pedals (referred to as L4 technology).

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation