An autonomous car is a self-driving vehicle that can operate without human intervention. These vehicles are equipped with advanced sensors, cameras, and artificial intelligence (AI) software that enable them to navigate roads, avoid barriers, and interact with other vehicles and pedestrians.

In 2021, the autonomous car market was USD 25.14 billion, and by 2030, it will reach USD 196.97 billion, growing at a 25.7% CAGR during the forecast period. 

More autonomous cars are being produced with extremely sophisticated technologies integrated with smartphones, opening the potential for market players to attract customers due to increasingly tight government rules focusing on improving road safety. Manufacturers have improved self-driving capabilities in cars due to recent technological developments in artificial intelligence, machine learning, and other sensors, including RADAR, LIDAR, GPS, and computer vision.

Market Dynamics

Drivers

Adopting the driverless automobile in major cities like Los Angeles, Beijing, Tokyo, New York, and London is fueling the market's expansion. This is because more people are buying smaller homes, leading to an increase in homeownership. Furthermore, the industry for driverless cars is impacted by the quick urbanization and automotive sector growth. People in the United States are showing a rising desire for inexpensive sedans and compact cars suitable for their evolving lives, which is indicative of the growing trend toward the modern lifestyle in the automobile industry. Manufacturers are expanding their product lines to incorporate aesthetically pleasing features, offer comfortable rides, and support the expansion of the autonomous vehicle market to satisfy consumers' growing expectations.

Restraints

The increasing cost of raw materials, including graphics, lenses for cameras, and cutting-edge electronics, hampers the market expansion. Additionally, the demand for autonomous vehicles in China and the United States is being negatively impacted by the rising price of fuel.

Opportunity

Due to the exponential growth in the development of autonomous vehicles, many countries have passed legislation and regulations about infrastructure connectivity technologies. In China, the Ministries of Public Security, Industry & Information Technology, and Transport have all released laws governing the administration of autonomous vehicles for preliminary road testing. The main objectives are to incorporate autonomous driving into the overall national policy and to restructure the economy favoring a high-tech industrial model that includes autonomous vehicles and related technology.

Market Segmentation

By Type

The semi-autonomous segment led the entire market with the largest revenue share. On the basis of the level of automation, the semi-autonomous segment is segmented into levels 1, 2 & 3. Levels 2 & 3 will expand at the fastest rate. The semi-autonomous segment has several features of ADAS, like adaptive cruise control, intelligent park assist, and others. 

By Vehicle Type

The passenger car segment is the largest market on the basis of vehicle type. The passenger car category is expanding due to the rapid urbanization occurring in developing countries and the rise in population in developed countries. The most significant drivers of this market's rapid expansion are higher demographic growth, rising living standards, and rising purchasing power in developing countries.

By Application 

In 2021, the transportation segment was the major market contributor, with a share of nearly 93%. The market is driven by growing government funding for these self-driving car trials. The UK government established the Intelligent Mobility Fund to encourage additional innovations in the transportation sector. The mode of transport could be either commercial or industrial. 

Regional Analysis 

North America was the major regional market contributor, with a share of nearly 43% in 2021. The development of self-driving vehicles in this industry results from changes made to US traffic laws. These revisions will allow self-driving cars to be used on public highways in the U.S. This rule is being implemented across all of the states in the United States to make transportation entirely autonomous. The market for self-driving cars will expand strongly in the next years due to the rising demand for mobility as a service.

Key Players 

• Audi AG
• General Motors
• Toyota
• Waymo
• Tesla, Inc.
• BMW AG
• Volkswagen
• Daimler AG
• General Motors Company
• Ford Motor Company
• Volvo Car Corporation
• Uber Technologies, Inc.
• Honda Motor Co., Ltd.
• Nissan Motor Company
• Google LLC
• Nxp Semiconductors
• Voxx International Corp.
• Ficosa International Sa
• Texas Instruments
• Microsemi Corporation

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