Autonomous Cars Market Report 2026

The autonomous cars market size has grown rapidly in recent years. It will grow from $1.3 trillion in 2025 to $1.45 trillion in 2026 at a compound annual growth rate (CAGR) of 11.3%. The growth in the historic period can be attributed to driver assistance regulations, automotive safety improvements, early semi-autonomous adoption, sensor cost reduction, connected vehicle infrastructure.

The autonomous cars market size is expected to see rapid growth in the next few years. It will grow to $2.27 trillion in 2030 at a compound annual growth rate (CAGR) of 11.9%. The growth in the forecast period can be attributed to full autonomy commercialization, ai algorithm advancements, electric autonomous vehicle rollout, smart city integration, shared mobility growth. Major trends in the forecast period include development of advanced driver assistance systems, integration of lidar and sensor fusion, growth of robo-taxi programs, expansion of autonomous software platforms, increased testing of level 4 vehicles.

The increasing traffic congestion is expected to drive growth in the autonomous cars market. Traffic congestion occurs when vehicle volumes exceed road capacity, causing slower travel speeds and longer commute times. Autonomous cars can communicate with each other and with traffic infrastructure, enabling coordinated traffic flow, anticipating patterns, and making real-time adjustments to optimize road usage. For example, in January 2025, Highways News, a UK-based daily news service, reported that average traffic congestion in the UK rose to 20.4% in 2024, a 9% increase compared to 18.7% in 2023. Therefore, rising traffic congestion is fueling demand for autonomous vehicles.

Full-automation vehicles are a major trend in the autonomous car market. These vehicles can perform all driving functions under all conditions and are being developed for applications such as Robo-taxis. Autonomous cars progress through six levels of automation, from no automation (fully human-driven) to full automation (completely self-driving). For instance, in May 2024, Renault Group, a France-based automobile manufacturer, prepared to launch Level 4 autonomous shuttles for public transportation. These vehicles will operate autonomously in designated areas, integrating with existing transit networks. Using advanced AI, high-definition mapping, and sensor technologies, they navigate complex environments independently, prioritizing safety and reliability, and may also serve cargo transport and emergency services.

In April 2025, Toyota Motor Corporation, a Japan-based automaker, partnered with Waymo, a US-based autonomous driving software and robotaxi provider, to enhance its autonomous vehicle capabilities. This collaboration integrates Waymo’s self-driving technology into Toyota’s future vehicle platforms, accelerating development of next-generation personal autonomous vehicles and supporting Toyota’s long-term zero-accident mobility vision.

Major companies operating in the autonomous cars market report 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, Kia, Haval, Chevrolet, Fiat.

Asia-Pacific was the largest region in the autonomous cars market in 2025. Western Europe was the second largest region in the autonomous cars market share. The regions covered in the autonomous cars market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the autonomous cars market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, 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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