What Fueled The Previous Growth In The Autonomous Vehicle Market?
The autonomous vehicle market has seen considerable growth due to a variety of factors.
• There has been an astronomical expansion in the size of the autonomous vehicle market in the past few years. The market is anticipated to escalate from $73.53 billion in 2024 to $99.37 billion in 2025, marking a compound annual growth rate (CAGR) of 35.1%.
Factors such as an increase in elderly populations, greater public acceptance, heightened demands for delivery services, and expanding environmental consciousness, have fueled this growth throughout the historic period.
How Does the Forecast Look for the Autonomous Vehicle Market?
The autonomous vehicle market is expected to maintain its strong growth trajectory in upcoming years.
• It is projected that the size of the autonomous vehicle market will witness substantial expansion in the near future. The market is set to reach a valuation of $285.08 billion by 2029, with a compound annual growth rate (CAGR) of 30.1%.
This growth during the projected period can be linked to a heightened demand for safer and more effective transportation options, increased funding in autonomous vehicle research and development, escalating urbanization, a surge in the demand for energy-efficient vehicles, and a rising demand for autonomous cars. Key trends for the projected period encompass an intensified emphasis on safety and efficiency, technological progression, the growth of ride-sharing platforms, enhanced mobility for the elderly and handicapped, and swift advancement of autonomous vehicle technology.
What Are The Leading Drivers Of Growth In The Autonomous Vehicle Market?
The surge in energy-efficient vehicle demand is anticipated to significantly contribute to the expansion of the autonomous vehicle market. These vehicles, engineered to have a lesser energy footprint for regular operations than conventional less efficient ones, are becoming an important part of global efforts to fight climate change and shrink greenhouse gas emissions. Autonomous vehicles are seen as effective tools to lower energy use. The crafting and perfecting of these connected, self-operating vehicles is done with reducing fuel and energy expenditure being a priority. Here, energy-efficient vehicles emerge as pivotal to determining the performance and success of the autonomous vehicle market. For example, the International Energy Agency, a prominent intergovernmental organization in France, stated that in 2022, there was a 40% surge in fuel cell electric vehicles (FCEVs) compared to 2021, taking the worldwide inventory to beyond 72,000. Thus, the heightened demand for energy-efficient vehicles is fuelling the growth of the autonomous vehicle market.
How Are The Segments Defined Within The Global Autonomous Vehicle Market?
The autonomous vehicle market covered in this report is segmented –
1) By Level of Automation: Driver Assistance, Partial Automation, Conditional Automation, High Automation, Full Automation
2) By Component: Hardware, Software, Service
3) By Application: Transportation and Logistics, Civil, Defense, Other Applications
Subsegments:
1) By Driver Assistance: Adaptive Cruise Control, Lane Keeping Assistance, Parking Assistance
2) By Partial Automation: Automated Steering, Automated Acceleration And Braking
3) By Conditional Automation: Highway Autopilot, Traffic Jam Pilot
4) By High Automation: Self-Parking Systems, Fully Autonomous Urban Driving
5) By Full Automation: Fully Autonomous Vehicles
Pre-Book The Autonomous Vehicle Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
What Emerging Trends Are Influencing The Growth Of The Autonomous Vehicle Market?
Prominent firms in the autonomous vehicle market are focusing on the creation of cutting-edge solutions like drive pilot systems to improve safety and convenience, as well as to facilitate hands-free driving in regulated environments. The Drive Pilot system represents Level 3 autonomous driving technology, allowing for hands-free driving under certain circumstances while the car evaluates its environment. Mercedes-Benz Group AG, a Germany-based passenger car and premium van manufacturer, introduced in April 2024, the first Level 3 self-driving car in the US. The drive pilot system facilitates autonomous functioning of vehicles, yet necessitates driver preparedness for regaining control when required. This represents Level 3 autonomy according to the standards set by SAE International, distinguishing it from Level 2 systems such as Tesla's Autopilot, where continuous driver involvement is compulsory.
Who Are the Key Players In The Autonomous Vehicle Market?
Major companies operating in the autonomous vehicle market are:
• Volkswagen AG
• Google LLC
• Toyota Motor Corporation
• Ford Motor Company
• General Motors Company
• Bayerische Motoren Werke AG
• Honda Motor Co. Ltd.
• The Hyundai Motor Group
• Tesla Inc.
• Nissan Motor Co. Ltd.
• Audi AG
• Intel Corporation
• AB Volvo
• Groupe Renault
• Denso Corporation
• Mercedes-Benz Group AG
• Uber Technologies Inc.
• NVIDIA Corporation
• Baidu Inc.
• Waymo LLC
• WeRide Corporation
• Aurora Innovation Inc.
• Cruise LLC
• AutoX Inc.
• Oxbotica Ltd.
What Is The Most Dominant Region In The Autonomous Vehicle Market?
North America was the largest region in the autonomous vehicle market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the autonomous vehicle market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
