PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1444039
PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1444039
The Autonomous Car Market size is estimated at USD 41.10 billion in 2024, and is expected to reach USD 114.54 billion by 2029, growing at a CAGR of 22.75% during the forecast period (2024-2029).
The COVID-19 pandemic has impacted the overall automotive sector, compelling automakers to reduce the output at their production plants. The pandemic has also affected the operations of many OEMs, ranging from production to R&D, and created short-term disruptions that have delayed autonomous cars' deployment and rollouts.
Due to increasingly stringent government regulations focusing on increasing road safety, more autonomous cars are being developed with highly advanced technologies integrated with smartphones and creating opportunities for market players to attract customers. The recent technological advancements in the fields of artificial intelligence, machine learning, and other sensors like RADAR, LIDAR, GPS, and computer vision, have enabled manufacturers to increase self-driving capabilities in cars.
At present, Level 2 and Level 3 autonomous cars are most prominent in the market, while Level 4 and Level 5 (as scaled by SAE) are expected to reach wider acceptance by 2030. As a result, the growth of these Level 2 and Level 3 cars is expected to propel the market during the forecast period.
North America is expected to play a significant role in the market, followed by Asia-Pacific and Europe. Major automaker companies, technology giants, and specialist start-ups across North America have started investing in developing autonomous vehicle (AV) technology. As demand for self-driving cars is picking up across countries like China, Japan, India, and South Korea, the Asia-Pacific region is also expected to witness growth over the forecast period.
Following the SAE (Society of Automotive Engineers) International Automated Driving Standards, cars with Level 1-3 automation features have been considered in the market segment for semi-autonomous vehicles. The growing need for safer and more efficient driving systems promotes the development and adoption of semi-autonomous vehicles. Moreover, several regional governments have placed stringent driving and safety laws, further encouraging companies to offer these technologies in their automobiles.
Several technological advancements have helped foster a conducive environment for the market's growth. Moreover, the presence of a high number of passenger cars has elevated the rising need to enhance the driving experience and is promoting the adoption of semi-automated vehicles. This has been evident in sales during the COVID-19 pandemic.
Even during the pandemic, autonomous cars witnessed a rise in sales, as in 2020, around 11.2 million cars were sold with Level 2 features, which was an increase of 78% over 2019. Owing to such a favorable environment in the market, automakers worldwide are introducing new semi-autonomous vehicle models to attract consumers. For instance,
In April 2021, Citroen unveiled its new model, C5 X SUV. This new model was offered in both gasoline and plug-in hybrid versions. C5 X offers semi-autonomous Level 2 driving in compliance with current legislation.
In April 2021, Beijing Hyundai Motor Co. Ltd launched the new Tucson L, a compact crossover SUV. The vehicle is built on the i-GMP platform, and it is equipped with a 1.5 liters turbocharged engine (maximum power output of 147 kW, peak torque of 253 Nm), mated to a 7-speed dual-clutch transmission. The vehicle features the Hyundai Smart Sense system, which includes 23 safety and assistance functions and supports Level 2 autonomous driving.
Based on the aforementioned factors, the semi-autonomous cars segment is likely to gain prominence over the forecast period.