By Aratrika Dutta
According to Fortune Business Insights, the global autonomous vehicle market is projected to grow from US$1.64 billion in 2021 to US$11.03 billion in 2028 at a CAGR of 31.3% in the 2021-2028 period. The growth of the market is driven by the growing demand for driver assistance systems and stringent safety mandates for a safer driving experience.
The recent technological advancements in the fields of artificial intelligence, machine learning, and other sensors like RADAR, LIDAR, GPS, and computer vision, have enabled manufacturers to increase self-driving capabilities in cars. Though there are varying levels of autonomy, major players are working towards more advanced control systems integrated into the car that can interpret the sensory inputs to detect signboards or avoid collisions.
Due to the COVID-19 pandemic, most of the countries imposed complete lockdowns for more than two months, which, in turn, impacted vehicle production. Manufacturing units around the world were shut down, and vehicle sales were significantly affected. In the long run, this may not have a significant impact as the sales and investments have already resumed after a short pause.
The autonomous vehicle market is segmented based on the level of automation, component, application, and region. Based on the level of automation, the market is divided into level 3, level 4, and level 5. By component, it is classified into hardware, software, and service. Based on region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
However, Asia Pacific 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 autonomous vehicle 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.