WILMINGTON, Del. – A study by Transparency Market Research (TMR) offering an autonomous vehicles (AV) market forecast found that advanced ADAS standards and regulations are constantly evolving, and the factor is catalyzing the market growth.
As a result of the rising adoption of ADAS will help the autonomous car market expand at compound annual growth rate (CAGR) of 10.8 percent from 2022 to 2031 and reach $3 trillion by 2031.
Expansion of the self-driving car market size is driven by the growing demand for vehicles featuring level 1 and level 2 autonomy. On the other hand, key players are leaning on offering level 4 autonomy features to gain autonomous vehicle market share.
The TMR study has scrutinized autonomous vehicle industry growth dynamics and underscored that the demand for state-of-the-art autonomous driving systems will grow on the back of advanced driver safety features.
The TMR analysts asserted that application of artificial intelligence (AI) and machine learning systems in AVs and continuous advancements in sensors and actuator systems are extending the canvas for revenue generation.
Key Findings of Autonomous Car Market Study
Steady Demand for Vehicles with Advanced Safety Features to Spur Commercialization: Steady consumer demand for vehicles with smart safety features is a key driver for generating revenues in the autonomous car market. Features such as adaptive headlamp control, adaptive cruise control, traffic sign recognition, and forward collision warning have been increasingly embraced by consumers to ensure safe driving.
Car makers and automotive companies are incorporating a combination of state-of-the-art cameras, LiDAR, and RADAR in developing next-gen advanced driver assistance systems (ADAS).
Rising Sales of Level 1 & Level 2 Cars Generate Substantial Revenues: The popularity of steering assistance and braking and acceleration assistance features in vehicles has spurred the adoption of cars with Level 1 automation. The study found that the segment held a major market share in 2021 and is anticipated to hold dominance during the forecast period.
On the other hand, level 2 segment is expected to create tremendous growth opportunities, since production of level 2 autonomous cars is slated to rise in the coming years. Prominent vehicle makers are leaning on adopting advanced braking control systems and adaptive cruise control systems. Each of the segments held a key share of the global autonomous cars market in 2021.
Key Drivers
The increasing trend of eco-friendly and fuel-efficient vehicles is a key driver of autonomous car market. In addition, consumers worldwide are more than ever willing to pay more for advanced safety features, which has expanded the avenue.
Rise in spending on smart city transport infrastructure especially in urban areas is a key underpinning for the growth prospects for firms in the market. Of note, growing concerns of traffic congestion and the role of autonomous vehicles in addressing those has enriched the value chain.
AV Market: Regional Growth Dynamics
The TMR study has found that Asia Pacific and Europe have been lucrative markets. Furthermore, the prospects of North America market appear incredibly promising, with globally prominent manufacturers keen on tapping into the revenue streams.
Asia Pacific held a major market share in 2021. A buoyant growth of the automotive sector in the region has reinforced the profit streams for firms in the market. Of note, they are capturing value from the growing popularity of cars equipped with ADAS.
Autonomous Car Market: Competition Landscape
The competitive landscape of the autonomous car market is dotted by a large number of firms. Many automotive companies are spending sizably on product innovations. Some of the key market players are Hyundai Mobis, Aisin Corporation, Volvo Group, Robert Bosch GmbH, Toyota Motor Corporation, Valeo, Volkswagen AG, Mercedes-Benz Group AG, Ford Motor Company, General Motors Company, and Waymo LLC.
