North American autonomous car market projects growth
The North American fully autonomous car market is projected to grow at a 17% CAGR during 2023-2030 and be worth over $52 billion by 2030.
The North American autonomous car market is expected to grow at a compound annual growth rate (CAGR) of 17% from 2023 to 2030 to reach a value of over $52 billion by 2030. According to a report by ResearchAndMarkets.com, contributing factors in the market growth are the need for safe and efficient driving options, evolution in connected car technology, increasing research and development in the autonomous car sector, and government support for these cars in terms of policies and rebates.
The North American autonomous car market is subdivided into internal combustion engine (ICE), battery electric vehicle (BEV), and hybrid electric vehicle (HEV), based on vehicle type. Among these, during the forecast period, BEV is expected to be the fastest growing category. Compared to other vehicle types, integration of fully autonomous technology is simpler in BEVs. These cars offer smoother connectivity among electrical components when compared to conventional and hybrid cars.
Based on vehicle autonomy, the categories of the North American autonomous market are fully autonomous and semi-autonomous cars. The market, during the historical period, was dominated by the semi-autonomous category. In terms of volume, over 95% market share was held by Level 1 semi-autonomous cars that also led the semi-autonomous car market of the U.S. in 2018. The mandate of many governments across the world to incorporate the necessary safety features is adding to the market growth. For instance, the use of electronic stability control in all passenger vehicles being produced since 2012 is mandated by the National Highway Traffic Safety Administration.
In 2018, higher sales volume and larger revenue share in the North American autonomous car market were achieved by the U.S. The presence of a large number of OEMs involved in the launch of new car models with advanced automation levels and a strong customer base has added to the market growth.
Increasing collaborations and partnerships are occurring among key players in the North American autonomous car market. As the designing, manufacturing, and testing of an autonomous automobile is expensive, many companies are opting for mergers and collaborations to minimize financial risks. For instance, to acquire autonomous technology, established manufacturers are increasingly collaborating with startups. In addition, companies are collaborating with various service providers to test the viability of autonomous cars. In 2018, Ford partnered with Walmart to test self-driving cars for consumer goods and grocery delivery.
Unlike conventional cars, unique features offered by connected cars, such as real-time traffic monitoring, smartphone connectivity with vehicles, traffic and collision warnings, and roadside assistance, are adding to the growing demand for these cars in North America. The North American autonomous car market is witnessing growth due to the rapid digitization in connected cars, which is adding to their demand. The two necessary components of vehicle autonomy—vehicle-to-vehicle and vehicle-to-infrastructure connectivity—can be more easily integrated in connected cars than conventional vehicles.