Autonomous Vehicle Market Size, Share & Growth Projections

Autonomous Vehicle Market Intelligence, Benchmarking & Growth Strategies

The autonomous vehicle market size is expected to increase from USD 76.88 billion in 2025 to USD 458.27 billion by 2034, growing at a CAGR of 21.94% throughout the forecast period from 2025 to 2034.

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Introduction

The autonomous vehicle market is a crucial branch of the automotive industry. This industry deals in manufacturing and distribution of autonomous vehicles across the world. There are several types of vehicles manufactured in this industry comprising of passenger vehicle and commercial vehicle. These vehicles are equipped with different level of autonomy such as level 1, level 2, level 3, level 4 & 5. It finds numerous applications in several sectors including commercial, personal, industrial and defense. The growing demand for electric vehicles in different parts of the world has contributed to the industrial expansion. This market is projected to rise significantly with the growth of the electric vehicles industry around the world.

• According to the IEA, around 1.4 million BEVs were sold in Europe in 2020 that increased to 6.7 million units in 2023.

Highlights of the Autonomous Vehicle Market

• North America dominated the autonomous vehicle market due to the rapid advancements in ADAS technology coupled with presence of several companies in this region.
• Asia Pacific is expected to grow with the highest CAGR due to the growing demand for automotive safety and increasing focus on enhancing transportation efficiency.
• The passenger vehicle segment held the largest share of the market due to the increasing sales of passenger cars in different parts of the world.
• The level 1 segment led the market due to the advancements in ADAS technology along with technological advancements in automotive sector.

Stats and Figures

• According to the Institute of Electrical and Electronics Engineers, 75% of cars on the roads globally will be autonomous by 2040.
• According to the IEA, around 1.9 million electric vehicles were sold in China in the 1st quarter of 2024.
• According to the S&P Global Mobility, the sales of autonomous light vehicles in the U.S. is projected to reach about 230,000 autonomous mobility-as-a-service units.
• According to the Goldman Sachs, around 79% of the car sales in Europe is predicted to be autonomous by 2040.

Industry Leader Announcement

In December 2024, Noah Zych, the Uber’s Global Head of Autonomous Mobility and Delivery Operations made an announcement stating that, “We’re thrilled to launch our partnership with WeRide, and receive the support of Abu Dhabi’s Integrated Transport Centre. As we take this next step in Abu Dhabi, we are excited to build on the strength of the Uber platform, helping our partners make autonomous vehicles a part of everyday life.”

Competitive Landscape

The autonomous vehicle market is a fragmented industry with the presence of numerous dominant players. Some of the prominent market players in this industry comprises of Tesla, AB Volvo, Bayerische Motoren Werke AG, Ford Motor Company, General Motors, Hyundai Motor Group, Mercedes-Benz AG and some others. These market players are constantly engaged in developing autonomous vehicles to maintain their dominance in this industry.

• According to the annual report of Tesla, the automotive segment revenue in 2022 was US$ 24318 million in 2022 that increased to US$ 25167 million in 2023.

Market Segmentations

By Type

• Passenger Vehicle
• Commercial Vehicle

By Level of Autonomy

• Level 1
• Level 2
• Level 3
• Level 4 & 5

By Application

• Transportation
• Industrial
• Commercial
• Personal
• Defense

By Region

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Asia Pacific
• China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • KSA
  • UAE
  • South Africa