The Global Autonomous Vehicle Market was valued at USD 20.8 Bn in 2020 and is expected to grow at a CAGR of 23.2% during the forecast period.
The increasing adoption of LiDAR technologies propel the growth of the autonomous vehicle market. The main components of the autonomous vehicle are sensors and cameras, LiDAR acts as an eye for the autonomous vehicle as it offers a wide range of vision that helps vehicles drive on their own. It is utilized by numerous autonomous vehicles to navigate environments in real-time. Its benefits incorporate exact depth perception, which permits LiDAR to know the distance to an object to inside a couple of centimetres, up to 60 meters away. It’s also highly suitable for 3D mapping, this means that returning cars can then navigate the surroundings predictably a substantial advantage for most autonomous technologies.
The growing e-commerce industry is expected to create a significant opportunity for the growth of the autonomous vehicle market. The first mile and last mile delivery is expected to fuel the demand for autonomous technology during the forecast period as it is cost-effective, offer attractive ROI, and convenient. For instance, in 2020, Amazon partnered with Rivian, the electric startup company. With this partnership Rivian is aimed to supply the electric van fleet of around 100,000 by 2030. The vehicles can have extensive ADAS which includes automatic emergency braking, front-wheel, and all-wheel-drive options, lane-keep assist, a pedestrian warning system, traffic design recognition, and an automated warning system that detects and alerts distracted driver behavior. These vehicles are anticipated to start delivery in 2021, with at the least 10,000 in use through 2022 and the whole fleet on the road by 2030.
The development of smart cities across the globe is significantly on the verge to propel the autonomous vehicle market growth. The increase in growth of economies ensures robust development from transport infrastructure to development of smart cities. Many countries which include Mexico, Canada, and the U.S. are deploying digital infrastructure to facilitate connectivity among vehicles and infrastructures to acquire essential information, and thereby, reduce traffic congestion and increase road safety.
Based on application, the defense sector segment is projected to emerge as the largest segment during the forecast period due to the increasing adoption of robot carriers in combat. The various country initiated the adoption of such types of autonomous vehicles for combat such as U.S., China, Japan and others. For instance, In April 2019, the U.S. Armed force declared that it's going to see the deployment of autonomous fight vehicles to help soldiers with retaining far from injuries that can be caused due to driving.
The threat of cybersecurity is one of the essential factors that are considerably the major restraints for the development of the market. Moreover, the legal obstructions in autonomous vehicles would hinder the growth of the autonomous vehicle market. Furthermore, the emergence of advanced technologies such as artificial intelligence, the Internet of Things (IoT) and advanced driver-assistance systems (ADAS) is the significant opportunities that drive the growth of the global autonomous vehicle market.
Global Autonomous Vehicle Market by Region Outlook (Revenue, USD Billion, 2021-2027)
In terms of geography, North America is expected to dominate the market during the forecast period owing to the presence of automotive companies such as Waymo LLC, Tesla and others. Moreover, the stringent regulations by the government and rising concern for safety and security are among the major factor that influences the demand for the autonomous vehicle across the region.
The Global Autonomous Vehicle Industry Segmentation:
Global Autonomous Vehicle Market by Type Outlook (Revenue, USD Billion, 2021-2027)
Global Autonomous Vehicle Market by Application Outlook (Revenue, USD Billion, 2021-2027)
The key players operating in the autonomous vehicle market are: