ReportCrux Market Research has published a new report titled “Autonomous Vehicle Market by Component (Hardware, Software, and Services); by Level of Automation (Level 1, Level 2 & 3, Level 4, and Level 5); by Type (Conventional, Hybrid Vehicle, and Electric Vehicle); by Application (Transportation [Industrial, and Commercial], and Defense); and by Region: Global Industry Trends, Dynamics, Competitive Insights and Forecast Analysis, 2020 – 2027”.
Autonomous Vehicle Market Size
Autonomous Vehicle market was valued at approximately USD 13.62 Billion in 2019 and is expected to generate revenue of around USD 142.41 Billion by end of 2027, growing at a CAGR of around 34.1% between 2020 and 2027.
Autonomous vehicle or self-driving car or driverless car is a modern car design capable of sensing and reading the environment, and working without human intervention. A lot of major players are currently contributing to the development of semi-autonomous and fully autonomous vehicles. Companies since the 1980’s have been working on various projects to make the autonomous vehicle a reality. All prototypes are currently being tested in various automobile companies, universities research centers. Policy funding, supportive regulatory environment and digital infrastructure investments are likely to play a key role in the forecast period positively influencing the growth of the autonomous car industry. The industry has a wide variety of systems and goods which make up the autonomous architecture of the vehicles.
Autonomous vehicles allow non-drivers, as well as people with certain disabilities, to have independent mobility. They make it easier and more flexible for travelers to read, rest or even work while travelling, thereby enhancing their efficiency. They can also reduce the cost to commercial vehicles and taxis for the driver fee. Other benefits like decreased risk of collisions, improved protection, and increased road ability are contributing significantly to these vehicles since its introduction in the market.
Growing safety concerns and advances in automotive technology have led the governments of countries like Germany, U.S., China, and Japan to accept and penetrate autonomous vehicles, among others. Such factors are likely to fuel the growth of the market for autonomous vehicles over the forecast period. Many governmental agencies are taking different steps in their countries to introduce autonomous vehicles. For instance, in February 2018, the European Union (EU) announced the implementation plan for multi-brand truck platooning on European roads together with the ENSEMBLE consortium and TNO, the Netherlands organization for applied scientific research.
The platooning of multi-brand trucks will allow for a single truck to form a connected convoy with other trucks. These policies will boost the economy, reduce EU carbon-dioxide emissions and increase the efficiency of traffic.
Based on component, the market for autonomous vehicle is segmented into software, hardware, and services. The software segment is likely to grow at high CAGR in the forecast period. In this the artificial intelligence market is expected to be the largest for autonomous vehicles, since it will be the vehicle’s brain. Compared with other segments, its contribution will be the largest.
By Level of Automation
Based on level of automation, the market is categorized into Level 2 & 3, Level 4, Level 1, and Level 5. The autonomous vehicles market level segment held almost 70% share of the market in 2019 however Level 2&3 is likely to grow at high CAGR in the forecast period. Government across regions is constantly working to improve vehicle safety by mandating the use of Advanced Driving Assistance Systems (ADAS) within vehicles. The adoption rate of level 2&3 is currently low but will have more penetration compared to level 1 due to rising technical developments later.
On the basis of application, the global market for autonomous vehicle is segmented into transportation, and defense. The transportation segment is further divided into industrial, and commercial. The defense segment accounted for almost 55% share of the market in 2019. Due to the rising number of initiatives across various regions the defense sector is expected to emerge as the largest segment over the forecast period. The U.S. Army, for instance, announced in April 2019 that it will see the deployment of autonomous combat trucks to help soldiers avoid accidents caused by driving.
Based on type, the market is categorized into conventional, hybrid vehicle, and electric vehicle. The conventional vehicle segment held 60% share of the in 2019. Market growth is due to a growing demand in developing countries of Russia, Brazil, and India for Internal Combustion Engine (ICE) vehicles. The lack of electric vehicle infrastructure in developing countries also supports demand for the ICE vehicles market. However, the growing concern for environmental health and government initiatives and efforts to reduce emissions of carbon dioxide can hinder market growth of this segment in near future.
Geographically, the market is classified into Latin America, Middle East & Africa, Asia Pacific, North America, and Europe. Europe held major share of the market with almost 40% in 2019 while Asia Pacific is likely to rise at the highest CAGR in the forecast period. As autonomous vehicles are gradually embraced and customer demand for technologically advanced goods is growing the market is Europe is likely to show lucrative growth. In 2018, U.K. Transport Agency, introduced a authority to run autonomous vehicles on any public road without any additional insurance or permits. In 2018 the country also set up the Connected and Autonomous Vehicles Centre. The U.K. government is committed to having autonomous vehicles on the roads in the country by 2021, and is also planning to make the necessary changes to the regulations to support the development of autonomous vehicles in this country.
Key Market Analysis
Some of the major players in autonomous vehicle market are Daimler (Germany), Robert Bosch (Germany), Volkswagen (Germany), Continental AG (Germany), Google (U.S.), Nissan Motor (Japan), Robert Bosch (Germany), Cisco Systems (U.S.), Tesla (U.S.), Visteon (U.S.), Denso (Japan), Continental (Germany), Delphi Automotive (UK), and Valeo (France) among others.
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