Categories: Automotive and Mobility
The Autonomous Cars Market is expected to expand at a faster rate over the forecast period, owing to a growing focus on reducing road accidents, as well as increased consumer awareness of the benefits of autonomous vehicles.
Increased impetus on the adoption of smart road infrastructures across developed economies, along with rising road accidents owing to human errors or traffic rule violations, are some of the key drivers driving the market throughout the forecast period. According to statistics compiled by the International Organization for Road Accident Prevention, more than 90% of road accidents are caused by human mistake or negligence, such as rash driving, drunk driving, and so on. The implementation of self-driving cars will reduce these collisions and improve passenger safety.
The market for self-driving cars will be fueled by rising traffic congestion issues in developing economies. According to Insights and Reports, developing autonomous car technologies would help customers save almost 30 minutes of their time in traffic jams, which can be decreased by using driverless cars, which will act as a significant driving factor for the global autonomous car industry. Furthermore, driverless vehicles do not require door opening spaces and can save up to 15% of available parking spaces. This will also aid in the reduction of parking space issues, particularly in busy regions. These elements linked with autonomous vehicles will present some promising chances for the market's growth.
The lack of smart infrastructure in underdeveloped economies will be a key impediment to the expansion of the autonomous vehicle sector.
BY AUTOMATION LEVEL
The global market has been divided into five levels based on the level of automation: level 1, level 2, level 4, and level 5. Currently, level 2 autonomous vehicles account for the majority of global market share. Because of the increased sales of automobiles with advanced driver aid systems, demand for these vehicles is increasing (ADAS). Automatic emergency braking systems, adaptive cruise control, and other ADAS features will be available in vehicles. Consumers are primarily seeking for vehicles that include all of these characteristics in order to assure their safety, which will fuel demand.
Until the conclusion of the forecast period, the level 3 autonomous car segment will see the most demand globally. In the coming years, rapid manufacturing and adoption of advanced driving technology for autonomous driving throughout developed economies will bolster the expansion of the level 3 autonomous car market. The market for level 3 autonomous vehicles is expected to rise till the end of the forecast period, which will enhance demand for level 3 autonomous vehicles by the end of 2025.
The global autonomous market has been divided into electric, hybrid, internal combustion, and fuel cell automobiles based on powertrain. The internal fuel combustion autonomous cars market dominated in 2017. This is mostly due to rising sales of partially and completely autonomous automobiles powered by internal combustion engines. In 2017, passenger car sales hit 71.0 million, according to the OICA.
Due to increased production and sales of electric vehicles, the market for electric autonomous cars will develop at a rapid pace until the end of 2025. Electric autonomous vehicles are expected to be commercialised between 2030 and 2035, according to major manufacturers around the world.
In 2017, North America is expected to lead the worldwide autonomous vehicle market, followed by Asia Pacific and Europe. Because it has some prominent manufacturers, the North America regional market is controlled by the United States. Furthermore, there are various OEMs in this region that cater to both domestic and worldwide product demand.
Because of the existence of important technology pioneers such as Microsoft, Google, and Delphi, which are investing in the testing of this technology for commercialization, the North American autonomous cars industry is expected to lead the global market in terms of volume and revenue by 2025.
Tesla, Daimler, BMW, Porsche, Basic Motor, Audi, BYD, Saic Motor Corporation, and NIO are just a few of the major companies in the worldwide autonomous vehicle market. Several major competitors in this market are investing heavily in the development of new and novel autonomous vehicle solutions, which will help them gain a considerable market share by the end of 2025.