Autonomous vehicle market to surpass 60 million units by 2024
Driven by the growing number of vehicle safety concerns worldwide, the advanced driver-assistance and autonomous vehicle market continues to expand. Research by Global Market Insights forecasts that the market will exceed shipments of 60 million units by 2024, and Level 1 cars are expected to account for more than 90% of the autonomous industry.
Government authorities continue working on improving the safety of vehicles by mandating the use of advanced driver-assistance systems (ADAS) in vehicles. This has led automakers to launch their own Level 1 self-driving solutions. Level 4 cars are still in the development phase and are expected to be commercially available by 2022. Automakers have increased their R&D spending to intensify efforts for the development of self-driving cars and are obtaining licenses from local authorities to test their Level 4 self-driving technologies.
Also expanding, the Level 2 autonomous car market is expected to grow at a CAGR of 45% during the projected period. Advancements in automotive technology such as the integration of artificial intelligence, GPS, and advanced electronic sensors such as radar, LiDAR, and ultrasonic sensors are promoting the market growth.
Internal combustion engine (ICE) cars hold a majority share in the autonomous cars market with a market share of more than 95% in 2017. This growth is attributed to the high demand for ICE-based cars in emerging nations such as India and Brazil. However, the rising concerns toward environmental safety and the increasing number of government regulations to reduce carbon emissions have restricted the growth of the ICE cars market. Supportive government policies such as tax benefits and subsidies are fostering the growth of the hybrid electric vehicle (HEV) market, which is estimated to grow at a CAGR of over 60% during the forecast timeline.
Europe holds a major share in the autonomous cars industry with a share of more than 40% in 2017. The market growth is attributed to the presence of the large number of automakers. The auto manufacturers have invested significantly in autonomous vehicle technology: governments in the region are investing in improving the road and telecom infrastructure, enabling self-driving vehicles to better interact with their surroundings. An example is the Netherlands government, which has invested money to install new traffic lights across the nation that will interact with self-driving cars.
The North American market is expected to register a high growth rate, with a CAGR of more than 14% in 2017. The growth in the region can be attributed to supportive government policies, which have allowed automakers and tech companies in the region to conduct testing of autonomous technologies on public roads and freeways.
Major companies in the autonomous cars market include Volkswagen, BMW, Fiat Chrysler Automobiles, Ford, GM, Honda, Hyundai, Jaguar, Mazda, Daimler, Mitsubishi, Nissan, Subaru, Tesla, Toyota, Volvo, Bosch, Waymo, Baidu, Uber, Continental GT, Aptiv, NVIDIA, Intel, and Autoliv. The technology players and OEMs are acquiring and forming alliances with automakers to develop their own self-driving vehicles. These players are also partnering with regional and technology startups to develop artificial intelligence (AI)-based solutions for autonomous vehicles.
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