Autonomous Cars Global Market Report 2025

The autonomous cars market size has grown rapidly in recent years. It will grow from $1.17 trillion in 2024 to $1.3 trillion in 2025 at a compound annual growth rate (CAGR) of 10.8%. The growth in the historic period can be attributed to emerging markets growth, high adoption of connected cars, the growing demand for driverless vehicles, increased occurrences of vehicle theft, and increased focus on road safety.

The autonomous cars market size is expected to see rapid growth in the next few years. It will grow to $2.02 trillion in 2029 at a compound annual growth rate (CAGR) of 11.6%. The growth in the forecast period can be attributed to increasing R&D investments for self-driving vehicles, supportive government initiatives, the growing demand for electric vehicles, increasing concerns about vehicle safety, and rising urbanization. Major trends in the forecast period include investing in ai (artificial intelligence), collaborating with telecom service providers to set up 5g network infrastructure for the smooth functioning of autonomous cars, investing in cyber security software to protect autonomous cars from hackers, building relationships with taxi services to increase revenue through a differentiated service, integrating improved vision solutions in cars for better-quality direction and object recognition, utilizing AR (augmented reality) and VR (virtual reality) technologies and focusing on pre-collision assist and pedestrian detection technology.

The forecast of 11.6% growth over the next five years reflects a modest reduction of 0.4% from the previous estimate for this market.This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through tariffs on lidar sensors, AI processors, and high-performance GPUs sourced from Taiwan and China, raising the cost of full-stack autonomy development and limiting scalability.The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The proliferation of smart cities stands as a pivotal driver propelling the expansion of the autonomous cars market. Electric autonomous vehicles play a crucial role in reducing air pollution and combating climate change within these smart city environments. Their deployment contributes to a substantial decrease in traffic accidents, potentially lowering incidents by as much as 90%, thereby significantly enhancing road safety. Countries such as Mexico, Canada, and the United States are actively implementing digital infrastructure to facilitate seamless communication between vehicles and networks, leveraging essential data exchange to alleviate traffic congestion and bolster road safety. Consequently, the ascent of smart city development is poised to fuel the growth of the autonomous cars market.

The escalating issue of traffic congestion serves as a catalyst driving the trajectory of the autonomous cars market. As traffic congestion intensifies - characterized by increased vehicle queues, slower speeds, and extended travel times - autonomous vehicles emerge as a solution. These vehicles possess the capability to communicate with each other and traffic infrastructure, orchestrating coordinated traffic flow efficiently. Their ability to anticipate traffic patterns and enact real-time adjustments optimizes roadway utilization. Notably, a report published by Government Technology in January 2023 revealed that drivers in the United States spent nearly 4.8 billion hours stuck in traffic in 2022, with the average American driver experiencing losses of $869 due to traffic delays, a significant increase from $305 in 2021. Hence, the mounting traffic congestion is a driving force behind the growth of the autonomous cars market.

Cybersecurity and safety issues are primary obstacles to the growth of the autonomous car market. Despite the significant growth potential, many customers remain hesitant to relinquish control due to the risks posed by hackers. These risks include data theft, exposure of driving routes and destinations, which could compromise passenger privacy, and the alarming prospect of hackers potentially taking control of the vehicles. For example, in April 2024, Parachute Technology, a US-based IT solutions company, reported that government agencies experienced 49 cyber incidents in the first half of 2023, reflecting an 11% increase from 2022.

An autonomous car refers to a vehicle capable of navigating without human input from passengers, utilizing sensing equipment such as LIDAR, environmental-sensitive control equipment, and navigation tools.

The primary product types within the autonomous cars market include semi-autonomous vehicles and fully-autonomous vehicles. Semi-autonomous vehicles possess the ability to accelerate, decelerate, and stop without requiring direct human intervention. Applications of autonomous cars encompass civil use, robot taxi services, ride-hailing, ride-sharing, and other related sectors. Various vehicle types are involved, including battery electric vehicles (BEV), internal combustion engines (ICE), and hybrid electric vehicles (HEV).

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and ensuing trade tensions in spring 2025 are placing significant strain on the transport sector, especially in areas such as fleet maintenance and logistics. Increased duties on imported commercial vehicles, tires, and engine parts have driven up operating costs for trucking and freight firms, forcing them to either raise shipping rates or accept lower profit margins. Airlines and maritime operators are also under pressure, as tariffs on aircraft components and shipbuilding materials have pushed capital expenditures higher. Meanwhile, retaliatory tariffs in key export markets have weakened demand for U.S.-manufactured transportation equipment, further squeezing revenues. To cope, the industry is turning to fuel efficiency measures, alternative supply sources, and greater automation to manage rising costs while maintaining dependable service.

The autonomous cars market research report is one of a series of new reports that provides autonomous cars market statistics, including global market size, regional shares, competitors with an autonomous cars market share, detailed autonomous cars market segments, market trends and opportunities, and any further data you may need to thrive in the autonomous car industry. This autonomous cars market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Fully automated vehicles represent a key trend in the autonomous car market, with the capability to perform all driving functions in any situation. These vehicles are being developed for uses such as Robo-taxis, with companies like Waymo leading the way. Over time, self-driving cars are expected to merge into U.S. roadways by advancing through six stages of driver assistance during the forecast period, ranging from no automation (requiring a fully engaged driver) to full automation (where the vehicle operates entirely independently of human drivers). For instance, in May 2024, Renault Group, a France-based automaker, is set to launch Level 4 autonomous vehicles for public transportation. These shuttles will operate autonomously within specific areas, smoothly integrating with current public transport systems. Equipped with advanced AI, high-definition mapping, and sensor technology, these vehicles will independently navigate complex environments with a focus on safety and reliability. This initiative seeks to enhance urban mobility and may also serve cargo transport and emergency medical services.

Prominent entities within the autonomous car market are actively innovating to introduce new products, such as mapping platforms tailored to cater to broader customer bases, bolster sales, and augment revenue streams. Mapping platforms encompass digital tools and systems devised for the creation, visualization, and analysis of maps and geospatial data. A case in point is Nvidia, a US-based software company, which unveiled Drive Map in March 2022, marking a significant addition to its product portfolio. Drive Map distinguishes itself by its capacity to cover an extensive network of approximately 300,000 miles of roads across North America, Europe, and Asia by 2024, providing comprehensive ground truth mapping capabilities. Designed to facilitate advanced levels of autonomous driving, this platform is accessible to all Nvidia customers and serves as a complementary offering to the company's existing suite of solutions tailored for the autonomous vehicle industry.

In January 2022, Magna International, a Canadian company specializing in the development of car mobility technology, successfully acquired Optimus Ride for an undisclosed amount. This strategic acquisition enhances Magna International's capabilities in advancing advanced driver assistance systems (ADAS). Optimus Ride, a United States-based autonomous vehicle company, focuses on the development of autonomous cars and provides mobility services.

Major companies operating in the autonomous cars market include Toyota Motor Corporation, Volkswagen AG, The Mercedes-Benz Group AG, Ford Motor Company, General Motors Company, BMW AG, Honda Motor Co. Ltd., Nissan Motor Co. Ltd., Volvo Car Group, Tesla Inc., Hyundai Motor Company, Audi AG, PSA Group, Renault, Jaguar Land Rover, NIO, Daimler AG, Vauxhall, Kia, Haval, Chevrolet, Fiat.

Asia-Pacific was the largest region in the autonomous cars market in 2024. Western Europe was the second largest region in the autonomous cars market share. The regions covered in the autonomous cars market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the autonomous cars market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The autonomous cars market consists of sales of driver assistance cars, partial automation cars, conditional automation cars and high automation cars. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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