The autonomous car market is estimated to be valued at US$ 147.63 Bn in 2023 and is expected to exhibit a CAGR of 7.7% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Autonomous cars, also known as driverless cars or self-driving cars, are automobiles that drive themselves without human conduction. These autonomous vehicles use a variety of techniques such as sensors, GPS, radar, computer vision and artificial intelligence to navigate roads and make decisions about braking, changing lanes, turning, etc. independently. The key advantages of autonomous cars include increased mobility, reduced traffic collisions, enhanced productivity use of commute time and reduced costs with more efficient use of energy.
Market key trends:
One of the key trends driving the growth of the autonomous car market is the increasing adoption of autonomous driving technologies by automotive OEMs and technology players. Leading automakers and technology companies are making significant investments to develop advanced driver-assistance systems (ADAS) and fully autonomous driving technologies. For example, in 2021, Audi AG announced plans to invest over $US 37 billion between 2020 to 2025 in electrification and digitalization of vehicles including autonomous driving technologies. Similarly, Tesla Motors aims to offer level 5 full autonomous driving technology by 2023. Growing investments in autonomous driving R&D along with rapid advancements in support technologies like AI, cloud computing, ML and processors are expected to boost the adoption of autonomous cars globally.
Porter’s Analysis
Threat of new entrants: The autonomous car market requires heavy investment in technology development and infrastructure which poses high entry barriers for new players.
Bargaining power of buyers: Consumers have high bargaining power due to availability of options from different automakers and availability of substitutes like conventional vehicles.
Bargaining power of suppliers: Major technology and component suppliers like chipmakers, sensor manufacturers and software developers hold significant power over automakers in demanding high prices.
Threat of new substitutes: Traditional vehicles remain a substitute though its attractiveness is reducing owing to advantages of autonomous vehicles in safety, convenience and mobility.
Competitive rivalry: Intense competition exists among major automakers to capture greater market share through continuous investment in research and development of advanced technologies.
SWOT Analysis
Strength: Autonomous vehicles offer advantages of enhanced safety, mobility for elderly and disabled, and traffic congestion reduction.
Weakness: High development cost, technology limitations, data security & privacy concerns, lack of regulatory framework and public acceptance hurdles.
Opportunity: Growing demand for mobility services, rise of smart cities with advanced infrastructure support autonomous driving adoption.
Threats: Cyber attacks, technology obsolescence risk with continuous advances, and stringent liability issues in case of accidents pose threats.
Key Takeaways
The Global Autonomous Car Market Demand is expected to witness high growth, exhibiting CAGR of 7.7% over the forecast period, due to increasing focus on safety and declining costs of technologies. North America dominated the market in 2023 due to presence of major players and higher technology adoption. However, Asia Pacific is expected to grow at fastest pace backed by supportive government initiatives and investments in developing smart transportation infrastructure in countries like China and Singapore.
Regional analysis- Asia Pacific region is set to emerge as the fastest growing market for autonomous cars driven by government initiatives and investments in smart cities across major countries like China, Singapore and South Korea. China is planning large scale deployment of autonomous vehicles for public transportation in major cities by 2025.
Key players operating in the autonomous car market include Audi AG, Bayerische Motoren Werke AG, General Motors Company, Nissan Motor Co., Ltd., Tesla Motors, Inc., The Volvo Group, Toyota Motor Corporation, Uber Technologies Inc., Waymo LLC, Kia- Hyundai, Poni.ai. Major players are investing heavily in developing advanced self-driving technologies and partnerships for commercialization of autonomous vehicle services.
Read More:
https://www.pressreleasebulletin.com/autonomous-car-market-insights-size-and-growth/
