Autonomous Vehicles Market to Grow by USD 974.5 Billion (2024-2028), Driven by OEM Demand for Vehicle Autonomy, AI-Powered Report Highlights Market Transformation - Technavio

NEW YORK, Nov. 13, 2024 /PRNewswire/ -- Report with market evolution powered by AI - The global autonomous vehicles market size is estimated to grow by USD 974.5 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 58.78% during the forecast period. Increasing demand for autonomy of vehicles by OEMs is driving market growth, with a trend towards development of autonomous vehicles for cab and parcel delivery services. However, high driver distraction with increase in vehicle automation poses a challenge.Key market players include AB Volvo, Alphabet Inc., Amazon.com Inc., Baidu Inc., BMW AG, Continental AG, Ford Motor Co., General Motors Co., Honda Motor Co. Ltd., Hyundai Motor Co., Intel Corp., Mercedes Benz Group AG, Navistar International Corp., Renault SAS, Robert Bosch GmbH, Stellantis NV, Tesla Inc., Toyota Motor Corp., and Volkswagen AG.

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Market Driver

Autonomous vehicles have gained significant attention in the cab and parcel delivery sectors due to the vast data generated from traditional vehicles. Major autonomous vehicle manufacturers, such as Mercedes Benz and Ford Motor, have partnered with ride-hailing services like Uber and Lyft to develop and launch self-driving cars for commercial use by the end of 2021. These collaborations aim to deploy around 1,100 autonomous vehicles across multiple US cities, driving the growth of the global autonomous vehicles market. 

The Autonomous Vehicles market is experiencing significant growth with technologies such as vehicle sensors, connectivity, and computer vision driving innovation. The use of vehicle sensors allows for real-time data collection and analysis, enabling vehicles to make decisions based on their environment. Connectivity enables vehicles to communicate with each other and the infrastructure around them, enhancing safety and efficiency. Computer vision technology enables vehicles to identify and respond to objects and road conditions. Additionally, companies are investing in developing capacitive sensors for improved tactile feedback and lidar technology for more accurate distance measurement. The trend towards autonomous driving is expected to continue, with traction by the desire for increased safety and convenience. The market is also seeing the emergence of new players and collaborations, as well as regulatory developments. 

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Market Challenges

• The rise of semi-autonomous and fully autonomous vehicles is driving market growth in automotive driver state monitoring systems. However, over-reliance on these technologies can lead to driver distraction and potential accidents. As automation increases, users must remain vigilant and aware of technology limitations. This distraction may hinder the expansion of the global autonomous vehicles market. Consumers should not overlook their responsibility to safely operate vehicles, even with advanced safety features.
• The Autonomous Vehicles market faces several challenges. One key challenge is the development of reliable and effective sensor technology for environment perception and object detection. Another challenge is the creation and secure communication system between vehicles and infrastructure. Additionally, regulatory frameworks and ethical considerations surrounding data privacy and safety are major hurdles. Furthermore, the high cost of research and development, as well as consumer acceptance and trust, pose significant challenges to the widespread adoption of autonomous vehicles. Lastly, the integration of various technologies, such as artificial intelligence and machine learning, into the vehicle systems is a complex task that requires extensive testing and validation.

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Segment Overview

This autonomous vehicles market report extensively covers market segmentation by

1. Application 
• 1.1 Transportation and logistics
• 1.2 Military and defense
2. Vehicle Type
• 2.1 Autonomous passenger car sales
• 2.2 Autonomous commercial vehicles sales
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Transportation and logistics- The autonomous vehicles market in transportation and logistics is projected to expand substantially during the forecast period. Several bus manufacturers, autonomous technology companies, and system integrators are assessing the financial feasibility of self-driving buses for transit and logistics applications. Operational models like line-based transit, shuttle services, and others are being explored for autonomous buses. The rise of new public transportation modes is anticipated to challenge traditional bus transit systems, accelerating the adoption of self-driving transportation vehicles. Initially, autonomous buses are expected to gain traction in the public transportation sector as mini buses, providing shuttle services for small groups of up to 18 people, ensuring high trip frequencies. These factors are poised to fuel the growth of the autonomous vehicles market in the transportation and logistics sector.

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Research Analysis

The Autonomous Vehicles Market is experiencing significant growth due to advancements in self-driving technology. Sensors, such as RADAR, LiDAR, and cameras, play a crucial role in navigation routes by providing real-time data. Safety measures and protective measures are prioritized through the implementation of collision avoidance systems and obstacle detection. Real-time decisions are facilitated by advanced software and hardware, including GPS and trunk latch sensors. Collaborations between industry leaders and the federal government are essential for the development and implementation of 5G technology and connected infrastructure. Automation technologies, including sonar and visual sensors, enable vehicles to make real-time decisions in response to traffic congestion. However, potential threats such as spoofing, jamming, and attackers pose challenges to the security and reliability of these systems. Public Wi-Fi and urban connectivity solutions are essential for ensuring seamless communication between vehicles and their surroundings. The integration of GPS, sonar, and other sensors allows for accurate navigation and obstacle detection, even in complex urban environments. Overall, the Autonomous Vehicles Market is poised for continued growth as technology advances and safety concerns are addressed.

Market Research Overview

The Autonomous Vehicles market is experiencing significant growth due to advancements in technology and increasing consumer demand for safer and more convenient transportation solutions. These vehicles utilize a combination of sensors, artificial intelligence, and machine learning to navigate roads and make real-time decisions. The market is segmented by vehicle type, technology, and geography. Autonomous vehicles are expected to revolutionize various industries, including transportation, logistics, and ride-hailing services. The global market is projected to reach substantial growth in the coming years, driven by factors such as government initiatives, increasing investments, and the growing need for sustainable transportation solutions. The future of autonomous vehicles holds immense potential, with applications ranging from personal transportation to industrial use cases.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Transportation And Logistics
• Military And Defense
• Vehicle Type
• Autonomous Passenger Car Sales
• Autonomous Commercial Vehicles Sales
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

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With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio