Self-driving cars may still be rare to see on the roads today, but the development of the global self-driving car market is certainly not slow. With an expected CAGR of 42% through 2022, the global self-driving car market will definitely make some more technological progress in terms of reduced accidents, better traffic management, and increased passenger comfort for the global automotive industry. It is estimated that 2019 will witness a string of automotive giants and startup self-driving car companies launching their new variants of autonomous vehicles.
Global Self-driving Car Market Overview
According to the latest market research from Technavio, the global self-driving car market size is projected to register an impressive CAGR of 42% from 2018-2022, while global self-driving car production will increase by over 5.6 million units during the forecast period. The rapid development of intelligent transportation system (ITS) corridors and smart road infrastructure are some of the main factors that will boost the market growth over the next few years. ITS corridors are highway sections with connecting services and enable communication between vehicle and infrastructure. Facilitated by national governments, extensive research and development are underway in the US and Europe to develop ITS test sites, which is expected to boost the global self-driving car market growth in the future.
In terms of regional markets, North America currently accounts for the largest global self-driving car market share and is estimated to retain its dominance throughout the forecast period, owning to the strong investment in research and development activities in self-driving car technologies. Europe is the second-largest market for self-driving vehicles. The supportive regulatory frame particularly in Sweden, the Netherlands, and Germany is expected to further facilitate the market growth over the forecast period in European market. The Asia Pacific is emerging as one of the fastest growth markets for autonomous vehicles globally, mainly due to the constant technological advancements. The self-driving car market in APAC is set to take soon pass Europe for the second largest regional market share, driven by strong performances in countries like China, Japan and South Korea.
Self-Driving Car Technologies Boosting the Market Growth
With the introduction of many advanced self-driving car technologies, the market can grow with exceptional speed. Continuously improving semi-autonomous technologies, such as adaptive cruise control, forward collision avoidance, and automatic parking are expected to pave the way for the adoption of self-driving cars in the coming years. Moreover, advances in artificial intelligence, blockchain, and cloud computing technologies have allowed many smaller, technically specialized startups to collaborate with major automotive manufacturers to develop more advanced self-driving cars.
The ongoing development of HD maps for self-driving cars is one of the major technical foundations that will have a huge positive impact on the market growth. A universal or harmonized mapping platform is a crucial requirement for self-driving cars to fully function. To support this, many of the world’s leading automotive manufacturers are investing heavily on developing HD mapping systems. A noted example is the consortium of BMW, Audi, and Daimler Group, which has introduced HD maps based on the data from LiDAR sensors and advanced algorithms to enable all safety-critical functions in self-driving.
Another latest trend that will gain traction in the global self-driving car market is the rising developments in open-source software. Compared to the proprietary software, the open-source software has several advantages. Self-driving car companies prefer to adopt open-source software due to a reduction in their operational costs and improved product quality. For instance, Baidu announced Project Apollo, an open-source software platform for its partners in the automotive and autonomous driving industry, to develop an autonomous driving system.
Check Technavio’s Global Autonomous Vehicles Market Report
Check Technavio’s Global Autonomous Vehicles Market Report for more market insights. This market research report provides the latest market size and market development for major market segments in terms of product types and regional market landscape. The report contains detailed market trends, market drivers, market challenges and key opportunities. In-depth market analysis such as Porter’s five force model, and comprehensive competitive landscape including detailed profiles of top companies are also included in the report.