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The demand for autonomous cars due to their eco-friendly nature and smooth driving experience is majorly responsible for propelling the associated market. Moreover, with rising number of road accidents, the requirement for safety features is increasing too. As these features are found in vehicles with automatic make, the global autonomous car market is expected to grow with leaps and bounds in the near future. With rising population and increasing disposable income, more people can now prefer to buy vehicles with state-of-the-art features. This also is propelling expansion in the global autonomous car market at a fantastic pace.

According to market experts, the global autonomous cars market is anticipated to gain revenue worth US$0.60 mn by the end of 2025. This growth is prophesized to occur at a meteoric CAGR of 47.5% during the forecast period from 2025 and 2035.

autonomous car market

Level 3 Automation Cars Comes Out as Leader in the Market

The global autonomous car market is segregated into five segments from the perspective of level of automation. Level 1, level 2, level 3, level 4, and level 5, are the segments. Of these, the level 3 automation cars segment holds a leading position with respect to revenue earned. This is mainly due to the fact that these types of cars are witnessing a rising demand mainly due to their various advantages and budget-friendly nature as compared to the other segments. The demand for these cars is expected to grow extensively in various regions all over the globe. This is majorly due to a rising demand for vehicles equipped with sophisticated features in many developed regions. In comparison to level 3 automation cars, the other segments are prophesized to grow at a lesser pace.

North America Provides Maximum Support to Global Autonomous Cars Market

Region-wise, the global autonomous cars market is spread across North America, Europe, South America, Asia Pacific, and the Middle East and Africa. Among all the regions, North America holds maximum number of shares in the market. Rising employment of advanced technologies in the automobile sector in North America is primarily responsible for driving the market in the region. In addition, the frequent launch of autonomous vehicles manufactured with sensors and other autonomous technology as compared to other regions also are main factors propelling growth in the global autonomous car market. Such vehicles are majorly being demanded in countries like Canada and United States from North America.

However, compared to North America, Asia Pacific showcases the existence of better opportunities for the autonomous car market to expand. Increasing development of the automobile industry in countries like Singapore, India, Japan, and China are prophesized to be favorable to the global autonomous car market.  In addition, with rising income of masses in these countries, the demand for new and technologically developed vehicles is witnessing a surge in Asia Pacific.

The global autonomous car market depicts the presence of a highly emerging and competitive landscape. Nissan Motor Co. Ltd., Toyota Motor Corporation, The Volvo Group, Ford Motor Co., and Uber Technologies Inc., are key players operating in the global autonomous cars market.

The race for autonomous vehicle development in the pre-Covid-19 era was dotted by numerous big players as well as small automakers. The autonomous car market thrived on the back of some unprecedented technology developments on one hand and the evolving venture capital funding on the other hand. However, unsurprisingly, the market had hit some snags in Covid-19 era. In the ensuing months of post-Covid-era, joint ventures have begun driving the engine of growth, with only serious players aspiring to pump in money.

On the whole, the Covid-19 virus has veritably expanded the avenue—the use case and regulatory landscape—propelled by the worldwide popularity of contactless transportation technologies. New ventures will inevitably crop up that will guide the growth dynamics of the autonomous cars market. This will bring sensors pioneering companies, machine learning technology developers, automakers, and institutional investors on the same page. Small players in recent months have already opted out of the landscape, the reason having to do with reluctance in navigating the complex microeconomics. Stalwarts such as Toyota, Diamler, BMW, Uber, and Toyota are likely to flex their financial muscle more aggressively to put autonomous cars on road.

The driverless vehicles landscape is already seeing gathering significant momentum as numerous companies have intensified their efforts in testing and unveiling driverless features. Aspirants in the autonomous car market will test new business models, and technological frameworks that comprise unique combinations of sensors, machine learning, cameras, and radars. Still the autonomous vehicles of level 4 and the ultimate level 5 are still unattainable goals. The industry players seeking to get a stronghold will have to navigate the complex landscape of regulations that is largely not standardized. Further, in the post-Covid-19 world, skepticism will surely impede the pace of developments. However, the inroads that the automation is making across industries will invade this space faster than expected. Expectedly, more test drives and training camps will boost the growth.

Global Autonomous Car Market: Overview

This report on the global autonomous car market provides analysis for the period 2025–2035, wherein 2025 to 2035 is the forecast period. The report covers market dynamics including drivers, restraints opportunities, and trends expected to influence the global autonomous car market growth during the said period. Technologies that are playing a major role in driving the global autonomous car market have also been covered in the study. The study provides a comprehensive analysis on market growth throughout the above forecast period in terms of Volume estimates (in Mn Units), across different geographies.

The report further includes key developments in the autonomous car market from 2009 onwards. Porter Five Force analysis is also included in the report. The report also covers segment wise comparison matrix, market attractiveness analysis and market share analysis for all regions covered in the scope of study.

Comparison matrix includes segment growth matrix, 2025 - 2035 (%), segment volume share contribution, 2025 - 2035 (%), and segment compounded growth matrix (CAGR %). Market attractiveness identifies and compares segments market attractiveness on the basis of CAGR and market share index.

Global Autonomous Car Market: Segmentation

The autonomous car market has been segmented on the basis of level of automation and geography. Based on level of automation, the market has been further classified into Level 1, Level 2, Level 3, Level 4 and Level 5. In Level 1 autonomous cars, the driver is in full control of the vehicle. Intelligent features add a layer of comfort and safety like cruise control mode.  Such type of autonomous cars require human driver to carry on all critical functions and monitor driving environment.

Cars with Level 2 automation provide additional automation compared to Level 1 cars. Automation of at least two control functions are provided in such vehicles; for example, automated lane changing. The driver is still required to monitor driving environment and be ready to take control of the vehicle at a short notice. In Level 3 autonomous cars, the driver can transfer the control of safety critical functions to car in certain weather or traffic conditions. The driver is not required to monitor the driving environment, but can be asked by the car to take control. The Level 4 autonomous cars do not require human inputs to drive. The car can maneuver itself in a variety of situations.  In Level 5 autonomous cars, the driver does not need to be present in the car.

Geographically, the report classifies the global autonomous car market into North America, Europe, Asia Pacific, Middle East & Africa (MEA), and South America; the regions are analyzed in terms of units. Furthermore, region wise prominent countries covered in the report include the following - the U.S, Canada, Germany, France, the U.K., China, Japan, UAE, Saudi Arabia, Brazil and Argentina.

Global Autonomous Car Market: Competitive Outlook

The report also includes competitive landscape which include competition matrix, market share analysis of major players in the global autonomous car market based on their projected volume share, and business profiling of major players. The Competition Matrix benchmarks leading players on the basis of their capabilities and potential to grow. Factors including market position, offerings and R&D focus are attributed to company’s capabilities. Factors including top line growth, market share, segment growth, infrastructure facilities and future outlook are attributed to company’s potential to grow. This section also identifies and includes various recent developments carried out by the leading players.

Company profiling includes company overview, major business strategies adopted, SWOT analysis and R&D Investments. The key players profiled in the global autonomous car market include Audi AG, Bayerische Motoren Werke AG, Ford Motor Company, General Motors Company, Nissan Motor Company Ltd., Tesla Motors, The Volvo Group, Toyota Motor Corporation, Uber Technologies Inc. and Waymo LLC.

The global autonomous car market is segmented as below:

By Level of Automation

  • Level 1
  • Level 2
  • Level 3
  • Level 4
  • Level 5

By Geography

  • North America
    • The U.S.
    • Canada
    • Rest of North America
  • Europe
    • The U.K
    • France
    • Germany
    • Rest of Europe
  • Asia Pacific (APAC)
    • China
    • Singapore
    • Japan
    • South Korea
    • Rest of APAC
  • Middle East and Africa (MEA)
    • UAE
    • Saudi Arabia
    • Rest of MEA
  • South America
    • Brazil
    • Argentina
    • Rest of South America

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