Source: Technavio announcement
NEW YORK — The autonomous vehicles (AV) market size is expected to grow by 20.22-million units from 2020 to 2025. The growth momentum of the market will decelerate at a compound annual growth rate (CAGR) of 22.12 percent.
This has been outlined in a report from Technavio.
The growth of the market will be driven by factors such as increasing demand for autonomy of vehicles by original equipment manufacturers (OEMs). However, factors such as high driver distraction with the increase in vehicle automation may challenge the market growth.
Autonomous Vehicles Market: Driver
The increasing demand for autonomy of vehicles by OEMs will drive the growth of the market during the forecast period. An increase in vehicle automation has led to the development of semi-autonomous vehicles and the concept of fully autonomous vehicles.
These innovations have been introduced owing to factors such as increasing consumer expectation; higher competition leading OEMs to add features to maintain market share; and various government regulations demanding additional safety, fuel efficiency, and security features. Thus, the increasing demand for autonomy of vehicles by OEMs is expected to drive autonomous vehicles market growth during the forecast period.
Autonomous Vehicles Market: Key Vendor Offerings
The autonomous vehicles market report offers information on several market vendors, including AB Volvo, Alphabet Inc., Baidu Inc., BMW Group, Continental AG, Daimler AG, Ford Motor Co., General Motors Co., Hyundai Motor Group, and Robert Bosch GmbH, among others. The key offerings of some of the vendors are mentioned below:
- AB Volvo – The company offers adaptive cruise control, driver alert system, and collision warning for autonomous vehicles.
- Alphabet Inc. – The company offers autonomous vehicles, namely Waymo drivers.
- Baidu Inc. – The company offers autonomous vehicles, namely Apollo.
- BMW Group – The company offer driver assistance systems, such as speed, steering, and lane control assistants for autonomous vehicles.
- Continental AG – The company offers Camera, lidar, radar, and control units for autonomous vehicles.
Autonomous Vehicles Market: Segmentation Analysis
This report segments the AV market by type (passenger cars and commercial vehicles) and geography (North America, Europe, APAC, South America, and MEA).
North America led the autonomous vehicles market in 2021, followed by Europe, APAC, South America, and MEA, respectively. Moreover, market growth in this region will be faster than the growth of the market in other regions.
The U.S. is a key country for the AV market in North America. As most prominent vehicle manufacturers are moving their manufacturing facilities to Mexico to leverage labor arbitrage and low production costs, vehicle production in the country has increased. North American car manufacturers are investing significantly in advertising the development of technology for driverless cars or autonomous cars.
Most of the research and development of autonomous vehicles is conducted in the U.S. All these factors will drive the autonomous vehicles market’s growth in North America during the forecast period.