Originally published on Technavio:Autonomous Vehicles Market Analysis across North America, Europe, APAC, South America, Middle East, and Africa - US, China, Japan, Germany, France - Size and Forecast 2023-2027
Autonomous Vehicles Market Forecast 2023-2027
The estimated global Autonomous Vehicles Market is poised to expand by USD 319.41 billion at a CAGR of 38.45% from 2022 to 2027. These vehicles, engineered for operation and travel without human drivers, are set to redefine transportation. Also known as self-driving cars, they possess the capability to navigate obstacles and varied terrains independently. Factors driving market growth include intelligent transportation systems, autonomous cabs for parcel delivery, and the integration of cloud-based HD maps. Key players, such as Tesla and Mercedes-Benz, along with governmental support, are significant contributors, paving the way for industry opportunities.

Market Dynamics
Key Driver
Automotive Original Equipment Manufacturers (OEMs) emphasizing autonomous vehicles propel market growth. Major players like Audi, Ford, Continental, Bosch, and Delphi are undertaking projects to commercialize these vehicles. Simultaneously, non-automotive giants like Google and Apple are leveraging their communication technology expertise in the field. Collaborations between automotive OEMs, Tier-1 suppliers, and electronic companies to enhance electronics and communication capabilities are in full swing. Regulatory bodies like the NHTSA in the US are encouraging such collaborations through regulations, foreseeing numerous autonomous vehicle launches in the next decade, generating increased demand.

Key Trends
The adoption of cab and parcel delivery services is a crucial trend driving market growth. Service providers in these sectors rely heavily on vehicles for transportation, prompting automakers to conduct real-life simulations for testing safety and reliability. Major manufacturers have focused on developing self-driving cars for cab and delivery services since 2017. For instance, Ford Motor and Argo AI partnered with Lyft Inc. to launch a self-driving ride-hailing service, planning to introduce nearly 100 self-driving hybrid Ford Escape SUVs in Austin and Miami by the end of 2021. The increasing adoption of technology in these services is anticipated to be a significant driving factor for global autonomous car market growth.

Key Challenge
High driver distraction with increased automation poses a major challenge. As vehicles become more automated, semi-autonomous and fully independent vehicles have emerged. However, the availability of these systems has led to higher dependence on them, resulting in driver distraction and an increased risk of accidents during the transition from autonomous to manual mode. This heightened automation necessitates awareness among users about the limitations of safety technologies, such as driver-state monitoring systems and collision avoidance systems. The challenge lies in managing the driver's dependence on these technologies, hindering market growth during the forecast period.

Learn more about drivers, trends, and challenges by downloading the sample reports!

Key Customer Landscape
The market trends and analysis report cover the adoption lifecycle, from innovators to laggards. It focuses on adoption rates across different regions based on penetration. Additionally, the market forecasting report includes key purchase criteria and drivers of price sensitivity to aid companies in evaluating and developing growth strategies.

Autonomous Vehicles Market Share by Geography

Market Segmentation
The market share growth by the transportation and logistics segment is expected to be significant during the forecast period. The use of Autonomous Vehicles (AVs) in logistics is projected to see substantial growth, with various manufacturers, technology developers, and system integrators evaluating the commercial viability of autonomous buses. Different operational modes, including line-based transit and shuttle services, are under consideration for these vehicles.

Autonomous Vehicles Market Size

Explore the market contribution of various segments with a PDF sample.

The transportation and logistics segment demonstrated a gradual increase in market share, reaching USD 16.19 billion in 2017 and continuing to grow by 2021. The emergence of new public transportation modes is anticipated to impact conventional bus transit systems, driving the deployment of fully autonomous transportation vehicles. Fully autonomous buses are expected to find initial uptake in public transportation, serving as shuttles with small capacities ranging from 12 to 18 people. This will enable higher trip frequencies.

Regional Analysis
Autonomous Vehicles Market Share by Geography

For additional insights into the market share of various regions, access a PDF sample now.

North America is expected to contribute 37% by 2027. Technavio’s analysts have provided detailed explanations of regional trends and drivers shaping the autonomous car market during the forecast period.

To Learn deeper into this report , View Sample PDF

North America, with the US leading the way, is transitioning to light-duty vehicles due to increasing demands for safety and convenience. The US, as the first country to introduce legislation permitting autonomous vehicle testing, signifies a potential opportunity for advanced technologies in autonomous driving. The region's readiness to upgrade to higher levels of automation, as defined by the Society of Automotive Engineers (SAE), is evident. The integration of multiple Advanced Driver Assistance Systems (ADAS) enhances vehicle safety and reduces road accident fatalities.
For more information please contact.

Technavio Research
Jesse Maida
Media Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/