Organizations around the globe are working on delivering autonomous vehicle’s projected social benefits. These comprise the prospect of more efficient freight services and public transport, improved road safety, and cleaner cities with more room for green spaces and people. There are also probable challenges to mitigate, such as vast changes to labor markets as well as industries including cybersecurity and privacy risks, motor insurance, and greater suburban sprawl.

The autonomous vehicles will enable all the vehicle passengers to read, rest, work, and stream videos, along with facilitating safety features. According to the New York Times in 2017, manufacturers shall probably make vehicles equipped with seats that can be converted into mobile offices and beds. However, for the foreseeable future, the self-driving vehicles will be incapable to function on unpaved roads, snow or heavy rain, or where special maps and GPS services are relatively slow, or inaccessible in the mixed urban traffic. Micro-transit services and self-driving taxis are likely to be cheaper compared to the human-operated taxis, however delivering minimal service quality.

Component Segment

On the basis of the component of autonomous vehicles, the market is categorized into hardware, and software & services. Autonomous vehicles include various technologies such as LiDAR, RADAR, computer vision, and GPS, so as to sense the nearby environment. Advanced control structures that are connected to the vehicle can construe the sensory inputs to avoid collisions or identify the signboards. Most of the autonomous vehicle systems produce and maintain an internal map of the environment, derived on a range of sensors, such as radars. In 2019, Sony will be introducing a silicon-based vision sensor dedicated to autonomous vehicles, thus, joining the global competition to advance in the LiDAR vision-sensing technology in the near future.

Vehicle Segment

On the basis of vehicles, this market covers categories like passenger cars, low commercial vehicles (LCV), Medium commercial vehicles (MCV), and high commercial vehicles (HCV). In 2019, the market for autonomous passenger vehicles was valued at 53% market share and is anticipated to dominate the market over the forecast period. With the help of the internet of things (IoT), vehicle drivers enhance their performance by getting real-time data from high-speed in-built computing systems in connected cars. These inbuilt computers enable features such as analyzing, collecting, and storing information that assists in decision making. The wide acceptance of connected cars is anticipated to offer lucrative opportunities for autonomous vehicles in the coming future.

On the geographical front, North America dominated the global autonomous vehicles market in 2019 and is expected to do so over the forecast period 2019 – 2025. The region is presented potential prospects for key stakeholders owing to the obtainability of high-end infrastructure, government initiatives, and growing investments from automotive companies. Canada has experienced substantial growth, particularly due to vigorous government investments in technology that support IIoT solutions.

The growth for the autonomous vehicles market in the Asia Pacific region is expected to be the largest during the forecast period. In the coming years, the market in China is likely to surpass in terms of revenue compared to the European as well as the American market for self-driving cars. The adoption of autonomous vehicles in South America, as well as the Middle East & Africa, is anticipated to be less compared to the other regions. In general, the overall autonomous car industry is projected to grow at a considerable rate during the forecast period considering its noteworthy benefits with respect to traditional vehicles.

The major players of the global autonomous vehicles market are Audi, Google, BMW, Tesla Motors, Volvo, nuTonomy, General Motors, and Mercedes-Benz, among others. As of 2019, the market for autonomous vehicle providers is fragmented with the presence of established global and domestic players across the globe. Moreover, the established companies are coming up with upgraded connected cars and autonomous vehicle technologies to offer innovative solutions to the customers so as to capture a higher market share.