Autonomous Cars Global Market Opportunities and Strategies to 2032

This report describes and explains the autonomous cars market and covers 2017-2022, termed the historic period, and 2022-2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and for the major economies within each region.

The global autonomous cars market reached a value of nearly $931.34 billion in 2022, having grown at a compound annual growth rate (CAGR) of 9.6%since 2017. The market is expected to grow from $931.34 billion in 2022 to $1,651.37 billion in 2027at a rate of 12.1%. The market is then expected to grow at a CAGR of 12.3% from 2027 and reach $2,953.89 billion in 2032.

Growth in the historic period resulted from 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. Factors that negatively affected growth in the historic period were the lack of infrastructure in developing countries and the high cost of autonomous vehicles.

Going forward, increasing R&D investments for self-driving vehicles, supportive government initiatives, the growing demand for electric vehicles, the increasing concerns about vehicle safety and the rising urbanization will drive the growth. Factors that could hinder the growth of the autonomous cars market in the future include security and safety concerns among consumers, the lack of skilled labor in the automotive sector and the restrictions on free trade.

The autonomous cars market is segmented by product type into semi-autonomous cars, and fully-autonomous cars. The semi-autonomous cars market was the largest segment of the autonomous cars market segmented by product type, accounting for 100% of the total in 2022. Going forward, the semi-autonomous cars segment is expected to be the fastest growing segment in the autonomous cars market segmented by product type, at a CAGR of 11.8% during 2022-2027.

The autonomous cars market is also segmented by application into civil, offline taxis, ride hailing and ride sharing, robo taxis, and others. The civil market was the largest segment of the autonomous cars market segmented by application, accounting for 67.4% of the total in 2022. Going forward, the ride hailing and ride sharing segment is expected to be the fastest growing segment in the autonomous cars market segmented by application, at a CAGR of 13.4% during 2022-2027.

The autonomous cars market is segmented by automation level into level 1, level 2, level 3, level 4, level 5. The level 1 market was the largest segment of the autonomous cars market segmented by automation level, accounting for 55.5% of the total in 2022. Going forward, the level 3 segment is expected to be the fastest growing segment in the autonomous cars market segmented by automation level, at a CAGR of 55.9% during 2022-2027.

Asia Pacific was the largest region in the autonomous cars market, accounting for 45.6% of the total in 2022. It was followed by Western Europe, and then the other regions. Going forward, the fastest-growing regions in the autonomous cars market will be Africa and Asia Pacific where growth will be at CAGRs of 16.4% and 14.2% respectively.

The global autonomous cars market is highly concentrated with large players operating in the market. The top ten competitors in the market made up to 78.37% of the total market in 2021. Toyota Motor Corporation was the largest competitor with 15.13% of the market, followed by Volkswagen AG with 13.69%, The Mercedes-Benz Group AG with 9.05%, Ford Motor Company with 8.46%, General Motors Company with 7.96%, BMW AG with 6.87%, Honda Motor Co., Ltd. with 5.56%, Tesla Inc. with 4.57%, Nissan Motor Co., Ltd. with 4.51%, , Volvo Car Group with 2.57%.

The top opportunities in the autonomous cars market segmented by product type will arise in the semi-autonomous cars segment, which will gain $693.3 billion of global annual sales by 2027. The top opportunities in the autonomous cars market segmented by application will arise in the civil segment, which will gain $497.0 billion of global annual sales by 2027. The top opportunities in the autonomous cars market segmented by automation level will arise in the level 1 segment, which will gain $289.7 billion of global annual sales by 2027. The autonomous cars market size will gain the most in China at $263.8 billion.

Market-trend-based strategies for the autonomous cars market include investing in AI (artificial intelligence), collaborating with telecom service providers to set up 5G network infrastructure for 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.

Player-adopted strategies in the autonomous cars market include focusing on sustainable investments and partnerships, strengthening business through collaborations and enhancing business through acquisitions.

To take advantage of the opportunities, the publisher recommends the autonomous cars companies to focus on artificial intelligence (AI), focus on cloud-based technologies, focus on 3D printing, focus on augmented reality (AR) and virtual reality (VR) technologies, focus on cybersecurity, focus on lightweighting, continue expanding in developed markets, focus on partnerships and collaborations, provide competitively priced offerings, participate in trade shows and events, continue to target fast-growing application areas, and focus on targeting transportation services providers.