The increasing adoption of ADAS & safety features, the focus of governments to enhance vehicle and pedestrian safety, initiatives by OEMs to provide advanced safety features, and the advent of new-age technologies will surge the market for self-driving cars to grow at a CAGR of 13.3% till 2030.
According to the new market research report -Self-driving cars market by component, vehicle, level of autonomy, mobility type, EV, and region - Global Forecast to 2030', published by MarketsandMarkets,the global self-driving cars market size is projected to grow from 20.3 million units in 2021 to 62.4 million units by 2030
Vehicle production witnessed a decline in 2020 worldwide due to the ongoing COVID-19 pandemic. Earlier, the self-driving cars market was expected to witness rapid growth from 2022 onward as major safety regulations are outlined to be imposed, and deployment of autonomous driving systems was planned during the same timeline. However, as vehicle production got affected due to the pandemic and chip shortage, any new investment for advanced technology may become uncertain, the report said.
OEMs and Tier-1 players use cash reserves or acquire funds to continue operations during the crisis. OEMs have experienced a recovery in vehicle sales in 2021, and the market is expected to grow significantly from the second quarter of 2022.
The self-driving cars market is dominated by global players such as General Motors, Ford, Daimler, Volkswagen, Toyota and Waymo. These companies have adopted strategies such as new product development, expansion, collaborations, partnerships, and mergers & acquisitions to gain traction in the market.
Sedan To Lead
Currently, most semi-autonomous cars models are available in sedan type. Most Level-2, Level-3, and Level-4 car developments too are focused on sedan segments. For example, the German OEM, Mercedes-Benz, deployed its V-class sedan equipped with Baidu Apollo for extensive testing at the National Pilot Zone (Beijing and Hebei). In March 2021, Honda launched the first Level-3 semi-autonomous car for the Japanese market. The car is a luxury sedan type that operates without the driver's supervision under certain conditions. Thus, considering the developments and focus on sedan type, the segment would continue to lead the market.
BEV To Propel Self-driving Cars
Governments of several countries such as the US, Canada, China, India, South Korea, Japan, and European countries have exempted BEVs from road or registration taxes. These schemes prove successful as per the BEV sales reports of electric vehicles in several regions. BEVs are electric vehicles that use chemical energy stored in rechargeable battery packs for power. The growth and success of BEVs are dependent on innovations in battery technology. Therefore, many automotive players are taking the initiative to develop battery technology. This will result in the BEV segment having a key market for self-driving cars.
Asia Pacific
The Asia Pacific region is expected to account for the largest market share by 2030, followed by Europe and North America. Increasing demand for a safe, efficient, and convenient driving experience; rising disposable income in emerging economies; and stringent safety regulations across the globe are factors driving the self-driving cars market. The market in the Asia Pacific is expected to grow at the highest rate during the forecast period owing to increased partnerships adopted by self-driving cars technology providers in this region. For example, Baidu is a major service provider of self-driving technology in China. This company has already successfully test-driven more than one million miles in more than 13 Chinese cities. In addition, it is partnering with Ford and NVIDIA to increase investments for self-driving vehicles in China. The Asia Pacific also has one of the largest ride-sharing industries, the research report noted.
Courtesy: MarketsandMarkets. NB: Photo is representational; courtesy: Waymo.