Global Market Insights Inc, market research and strategy consulting firm, said the global autonomous car market is set to exceed 60 million units by 2024, according to its research report. The autonomous car market is driven by increasing investments in auto technology, with this industry promising huge profits and lucrative returns on investment for all parties involved in their manufacturing and distribution. This is encouraging large corporations and venture capitalist (VC) investors to invest in the auto-technology and to secure their share of future profits, the report showed.
The report said that the Level 1 autonomous car market will grow at a CAGR of 6 % over the forecast timespan. This market growth is attributed to the increasing vehicle safety concerns and governmental regulations for vehicle safety across the globe, it added. In addition to this, the integration of the advanced driving assistance and safety systems into passenger cars also supports the market. Meanwhile, the Level 2 autonomous car market is expected to grow at a CAGR of 45 % during the projected period. This would be attributed to advancements in automotive technology such as the integration of artificial intelligence, GPS, and advanced electronic sensors such as radar, LiDAR, and ultrasonic sensors.
Global Market Insights said the Hybrid Electric Vehicle (HEV) market is estimated to grow at a CAGR of over 60 % during the forecast period. The demand for the HEV cars is driven by the growing investments by automotive manufacturers in the development of EVs across the globe, the report noted. It also said that supportive government initiatives, such as subsidies and tax benefits to EV manufacturers also propel the autonomous car market.
A challenge faced in the growth of the autonomous vehicles market is high cost. Autonomous vehicles employ a large number of advanced sensors and electronic systems to enable V2V and V2X communication. The costs associated with these advanced sensors and communication networks increase the overall cost of production, the company said.
The report also shared that Europe holds a major share in the autonomous cars market with over 40 % in 2017. The market growth here is attributed to the presence of large number of automakers, with them having invested significantly in autonomous vehicle technology to accelerate innovative processes in the self-driving vehicle landscape. This is complemented by the governments in the region investing in improving the road and telecom infrastructure, enabling the self-driving vehicles to better interact with surroundings. Meanwhile, the North American autonomous car market is expected to register a high growth rate of over 14 % CAGR in 2017. The growth in this region can be attributed to the supportive government policies, which have allowed automakers and tech companies in the region to conduct testing of autonomous technologies on public roads.