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United States Autonomous Car Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

  • ID: 4544660
  • Report
  • April 2021
  • Region: United States
  • 60 Pages
  • Mordor Intelligence


  • Apple Inc.
  • Ford Motor Company
  • Honda Motor Company Ltd
  • Intel Corporation
  • Nissan
  • Tesla Inc.
The United States Autonomous Car Market was valued at over USD 3 billion in 2020 and is expected to reach over USD 8 billion by 2026 registering a CAGR of more than 17% during the forecast period (2021 – 2026).

The Ongoing COVID-19 pandemic has hit the overall automotive industry, compelling automakers to cut down the output at their production plants. COVID-19 has also impacted the operations of many OEMs, from production to R&D creating short-term disruption delaying Autonomous vehicles development and rollouts.

However, with more stringent regulations by the government to increase road safety, more autonomous vehicles are being developed with highly advanced technologies integrated with smartphones through the internet creating new interest among market players to attract customers. Due to rising health concerns and changing commuting patterns, demand amongst private consumers is also increasing for personal cars. According to Euromonitor’s Voice of the Industry survey, 13% of respondents indicated they plan to permanently increase usage of cars for commuting short distances.

Moreover, COVID-19 has accelerated interest in getting a driving license among the younger generation and city-dwellers. For example, automotive digital marketing company Hedges & Company projects total number of licensed drivers in the USA will increase by three million in 2020 to total of 230 million. Although, Level 4 and Level 5 (as scaled by SAE) autonomous cars are unlikely to reach wide acceptance, by 2030, there would be rapid growth for Level 2 and Level 3 autonomous cars, which have advanced driver assistance systems, like collision detection, lane departure warning, and adaptive cruise control.

More than 1,400 self-driving cars, trucks, and other vehicles are currently in testing by more than 80 companies across 36 U.S. states and Washington DC. Recently, Companies Lyft and Aptiv has successfully provided 100,000 commercial robotaxi rides in Las Vegas where 98% of these paying passengers have given 5 stars to their self-driving ride experience, with most stating this first-of-a-kind experience is something they are eager to try again indicating growing preference of people towards autonomous cars over others.

Key Market Trends

People are Showing Willingness for Buying Safer and Efficient Vehicles

US Autonomous car market is likely to be dominated by autonomous vehicle such as the need for ease in driving and the increasing concern for safety and security leading to demand for high-end technology resulting in the increased demand for semi-autonomous and autonomous vehicles.

The contributing factors in the market growth are the need for safe and efficient driving options, evolution in the connected car technology, increasing research and development in the autonomous car sector, and government support for these cars in terms of policies and rebates.According to the NHTSA (National Highway Traffic Safety Administration), about 94% of the accidents occurring on the US roadways can be attributed to human errors, like drunken driving and speeding, among others. These can be mitigated with an autonomous car, in which, the functionality may follow the speed regulations stated in particular areas.

Autonomous vehicles can predict the impact between vehicles and decide a proper course of action to avoid a similar fate, to provide safer traveling on roads. This is achieved through numerous driver assistance technologies, such as lane-keeping assistance, parking assistance, and adaptive cruise control systems that have been or are being incorporated into autonomous cars.

The United States autonomous car market is witnessing growth due to the rapid digitization in connected cars, which is adding to their demand. The two necessary components of vehicle autonomy - vehicle-to-vehicle and vehicle-to-infrastructure connectivity - can be more easily integrated in connected cars than conventional ones.

The Demand for Conditional Automation is Growing Rapidly across the County

The US autonomous car market, by the level of automation, is dominated by conditional automation (Level 3). In Level 3 automation, the autonomous vehicle driving system performs all the dynamic driving tasks, expecting the human driver to respond appropriately to the request to intervene. The dynamic driving task includes steering, braking, accelerating, and monitoring the vehicle, along with responding to events happening on the road.

Self-driving cars have already been tested and used in California, Texas, Arizona, Washington, Michigan, and other states of the United States. However, their mobility is currently restricted to specific test areas and driving conditions. Audi is the first company to come up with a Level 3 autonomous car by launching the Audi A8 in the market. However, there are few limitations for Level 3 autonomous cars, such as constant awareness needed from the driver. Thus, this makes Level 3 automation less dependable.

Consequently, several automotive manufacturers are pushing directly for level 4 autonomous cars, which do not require any inputs from humans. Cameras, RADAR, and navigation are some of the systems deployed in conditional automated cars. Various technology companies in the country are reaching new milestones in terms of total miles tested. For instance, Cruise LLC completed 2020 by doubling its figure of how far its cars can go before a safety driver needs to take over.

The company reported 27 disengagements during the 770,000 miles testing in California. During testing in 2020, the human driver had to take over every 28,520 miles compared to every 12,221 miles last year.

Competitive Landscape

The US Autonomous Car market is consolidated and is majorly dominated by a few players, such as Apple, Waymo, Tesla, Ford, Honda, BMW, Nissan, Intel, and Uber. These players have also encompassed strategies such as brand reinforcement, innovation, collaboration, and M&A to gain a higher competitive share.For instance,
  • Daimler Trucks is planning to invest a total of more than EUR 2.5 billion in R&D in 2018-2019, to focus on-going trends of the automotive industry, such as e-mobility, connectivity, and automated commercial vehicle technology.
  • Toyota is partnering with NVIDIA Corporation to develop automated driving technologies using Artificial Intelligence, aiming to develop automated driving systems using NVIDIA's graphics processing unit technology.
  • Vietnam's domestic automaker, Vinfast, announced that it had obtained a permit to test autonomous vehicles on California's public streets. The company was seeking this permit to commercialize its electric vehicles in the US market.

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  • Apple Inc.
  • Ford Motor Company
  • Honda Motor Company Ltd
  • Intel Corporation
  • Nissan
  • Tesla Inc.

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness-Porter's Five Force Analysis
4.3.1 Bargaining power of suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 Type
5.1.1 Fully autonomous vehicles
5.1.2 Semi-autonomous vehicles
5.2 Sensors
5.2.1 RADAR
5.2.2 LIDAR
5.2.3 Ultra Sonic
5.2.4 Others
5.3 Level of Automation
5.3.1 Conditional Automation (Level 3)
5.3.2 High Automation (Level 4)
5.3.3 Full Automation (Level 5)
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Waymo LLC
6.2.2 Tesla Inc.
6.2.3 Ford Motor Company
6.2.4 Honda Motor Company Ltd
6.2.5 Bayerische Motoren Werke AG (BMW)
6.2.6 Intel Corporation
6.2.7 Uber Technologies Inc.
6.2.8 Apple Inc.
6.2.9 Nissan
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A selection of companies mentioned in this report includes:

  • Waymo LLC
  • Tesla Inc.
  • Ford Motor Company
  • Honda Motor Company Ltd
  • Bayerische Motoren Werke AG (BMW)
  • Intel Corporation
  • Uber Technologies Inc.
  • Apple Inc.
  • Nissan
Note: Product cover images may vary from those shown