PUBLISHER: KBV Research | PRODUCT CODE: 1555909
PUBLISHER: KBV Research | PRODUCT CODE: 1555909
The Global Autonomous Driving Software Market size is expected to reach $4.3 billion by 2031, rising at a market growth of 13.3% CAGR during the forecast period.
As autonomous vehicles become more prevalent, consumer interest and demand for these technologies increase. The desire for improved safety, convenience, and efficiency in transportation drives the adoption of this software. The expansion of autonomous vehicle fleets, including ride-hailing services and delivery vehicles, creates a growing market for autonomous driving software. Fleet operators require advanced software solutions to manage and optimize their operations. Therefore, the Vehicle Type Segment captured a $1.6 Billion revenue in 2023.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In April, 2024, Huawei Technologies Co., Ltd. unveiled its new software brand Qiankun on Wednesday, aiming to boost its presence in the electric vehicle sector. Qiankun, named after heaven and the Kunlun Mountains, will offer self-driving systems encompassing driving chassis, audio, and driver's seat, according to Jin Yuzhi, CEO of Huawei's IAS unit. Moreover, In January, 2024, Intel Corporation unveiled new automotive AI chips, competing with NVIDIA and Qualcomm. To bolster its position, Intel acquired the French startup Silicon Mobility, known for its SoC technology for electric vehicles and in-car systems. Intel's new automotive chips will adapt its AI PC tech to meet vehicle performance needs.
Market Growth Factors
Advances in computer vision algorithms allow for more accurate detection and classification of objects, such as vehicles, pedestrians, and road signs. Enhanced algorithms enable autonomous vehicles to understand their environment better and make safer driving decisions. Modern computer vision systems process visual data in real time, enabling immediate response to dynamic changes in the driving environment, such as sudden obstacles or traffic signal changes. In conclusion, computer vision and sensor fusion advancements are driving the market's growth.
Additionally, 5G networks provide ultra-low latency, meaning there is minimal delay in data transmission. This is critical for autonomous vehicles, which must instantly process and respond to data from their surroundings. For instance, detecting a sudden obstacle and making a quick maneuver requires real-time communication to ensure safety and efficiency. Therefore, the expansion of 5G and connectivity infrastructure propels the market's growth.
Market Restraining Factors
Developing this software requires cutting-edge technology, including sophisticated algorithms, high-performance computing hardware, and advanced sensors like LiDAR, radar, and cameras. The initial research and development (R&D) costs of these technologies are substantial. Developing autonomous driving systems involves long research, testing, and iteration cycles. Thus, high development and implementation costs are impeding the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches and Product Expansions.
Propulsion Outlook
Based on propulsion, this software market is categorized into ICE and electric vehicles. The electric vehicles segment witnessed 32% revenue share in this software market in 2023. EVs are often built with more advanced electronic architectures, making integrating ADS easier. The software systems in EVs are designed to handle complex tasks, facilitating the addition of autonomous features. EVs have simpler mechanical systems than internal combustion engine (ICE) vehicles, reducing the complexity of integrating autonomous software.
Level of Autonomy Outlook
On the basis of level of autonomy, this software market is segmented into L1, L2, L3, and L4 & L5. In 2023, the L4 & L5 segment attained 8% revenue share in this software market. L4 and L5 systems aim to eliminate human error, a significant cause of accidents. By removing the human driver from the equation, these systems promise a significant increase in road safety. Autonomous vehicles can optimize traffic flow and reduce congestion through better coordination and communication with each other and traffic infrastructure.
Vehicle Type Outlook
Based on vehicle type, this software market is divided into passenger vehicle and commercial vehicle. The commercial vehicle segment attained 30% revenue share in the autonomous driving software market in 2023. ADS in commercial vehicles can optimize routes to reduce fuel consumption, travel time, and maintenance costs. Sophisticated algorithms analyze traffic patterns, weather conditions, and road types to find the most efficient routes.
Type Outlook
This software market is divided by software type into perception & planning software, chauffeur software, interior sensing software, and supervision & monitoring software. The interior sensing software segment procured 20% revenue share in this software market in 2023. Interior sensing ensures a seamless transition between human and autonomous control. For instance, the system can verify that the driver is prepared to take over when transitioning from autonomous to manual driving. In fully autonomous vehicles (Level 4 and 5), interior sensing can monitor passenger behavior, detect emergencies, and provide appropriate responses, ensuring passenger safety even without a human driver.
Regional Outlook
Region-wise, this software market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe region generated 31% revenue share in the autonomous driving software market in 2023. Europe has some of the world's most stringent vehicle safety regulations, which drive the development and integration of advanced autonomous systems to meet these high standards. European Union policies are increasingly supportive of autonomous driving technology. Initiatives such as the EU's "Roadmap for Connected and Automated Mobility" aim to facilitate the deployment of ADS and ensure regulatory frameworks keep pace with technological advancements.
Recent Strategies Deployed in the Market
List of Key Companies Profiled
Global Autonomous Driving Software Market Report Segmentation
By Propulsion
By Level of Autonomy
By Vehicle Type
By Type
By Geography