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The autonomous cars software market size is forecast to increase by USD 9.18 billion, at a CAGR of 39.04% between 2023 and 2028. The market's expansion relies on various factors, including increasing OEM demand for vehicle autonomy and the numerous benefits associated with automatic cars. These benefits encompass a lower chance of human errors, leading to a decrease in road fatalities. With Original Equipment Manufacturers (OEMs) persistently prioritizing autonomy and the wider dissemination of the advantages of automatic vehicles, the market is set for further growth. This trend highlights the escalating significance of safety and efficiency in defining the future of transportation.
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The report includes a comprehensive outlook on the market, offering forecasts for the industry segmented by Type, which comprises proprietary software and open-source software. Additionally, it categorizes Product into level 3 autonomous cars, level 4 autonomous cars, and level 5 autonomous cars, and covers Geography regions, including North America, Europe, APAC, South America, and Middle East and Africa. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
In the market, key players are focusing on the development and integration of advanced driver-assistance systems (ADAS) and safety features. These include AI-based cameras for traffic sign recognition, adaptive cruise control, adaptive headlamp control, forward collision warning, pedestrian detection, and automated braking. OEMs and automotive manufacturers are investing heavily in this domain to create self-driving cars that utilize interconnected infrastructure and digital technology. The advancement of technology, such as AI and connectivity, is crucial in reducing traffic congestion and enhancing safety measures. Self-driving cars, also known as driverless vehicles, rely on computers and smartphones to communicate with each other and the surrounding digital infrastructure. This interconnectedness enables real-time traffic updates, optimized routes, and improved overall driving experience. The automatic vehicle domain is expected to grow significantly in the coming years, with the market size projected to reach billions of dollars. The integration of these advanced technologies not only offers convenience but also promises to revolutionize the automotive industry by making roads safer and more efficient.
The benefits associated with autonomous cars are the key factor driving market growth. The market is gaining significant traction in the automobile sector as human error is identified as a leading cause of road accidents. Autonomous technology is expected to revolutionize the industry by reducing the risk of machine or parts failure, ensuring enhanced safety and security. OEMs and Tier-1 suppliers are collaborating with vendors in the automotive electronics industry to develop advanced networking systems for automatic vehicles.
Moreover, these systems enable vehicle platooning and real-time traffic management, mitigating traffic congestion and traffic jams. The market is poised for growth as it addresses critical challenges such as machine failure, parts failure, and traffic management, ultimately leading to a safer and more efficient transportation system. Thus, such benefits will drive the growth of the market during the forecast period.
Cloud computing in autonomous driving is the primary trend shaping market growth. In the automobile sector, the shift towards autonomous technology is gaining momentum as a means to mitigate human error and enhance safety on roads. Cloud-based platforms are playing a pivotal role in this transition by enabling the development and management of advanced software solutions for automatic cars. These systems utilize deep learning technology and HD maps to ensure reliable performance, even in the face of machine or parts failure, traffic congestion, or traffic jams.
Furthermore, vehicle platooning and networking systems are crucial components of autonomous cars that rely on cloud technology for seamless communication and coordination. Security is a paramount concern in this market, as any vulnerabilities in the software could lead to serious consequences, such as road accidents. Therefore, cloud computing in autonomous driving is expected to positively affect the growth of the market during the forecast period.
The lack of adoption of autonomous cars in developing countries is a challenge that affects market growth. The global market is anticipated to experience significant growth in developed countries, including the US, UK, Canada, Germany, Australia, Japan, and South Korea. In these regions, the implementation of autonomous technology is more feasible due to the adherence to traffic rules and the presence of a well-developed transportation infrastructure. Conversely, in developing countries like India and Brazil, the likelihood of autonomous cars adoption is low due to human error and infrastructure challenges.
Moreover, the absence of autonomous cars in these markets could pose risks to safety and security, as well as increase the likelihood of machine or parts failure, traffic congestion, and road accidents. A vehicle platoon or networking system could potentially mitigate some of these issues, but extensive investment in these technologies may not be economically viable in the absence of a larger market for autonomous cars. Thus, the lack of adoption of self-supported cars in developing countries is expected to negatively affect the growth of the market during the forecast period.
The market report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
In the market, key players are focusing on the development and integration of advanced driver-assistance systems (ADAS) and safety features. These include AI-based cameras for traffic sign recognition, adaptive cruise control, adaptive headlamp control, forward collision warning, pedestrian detection, and automated braking. OEMs and automotive manufacturers are investing heavily in this domain to create self-driving cars that utilize interconnected infrastructure and digital technology. The advancement of technology, such as AI and connectivity, is crucial in reducing traffic congestion and enhancing safety measures. Self-driving cars, also known as driverless vehicles, rely on computers and smartphones to communicate with each other and the surrounding digital infrastructure. This interconnectedness enables real-time traffic updates, optimized routes, and improved overall driving experience. The autonomous vehicle domain is expected to grow significantly in the coming years, with the market size projected to reach billions of dollars. The integration of these advanced technologies not only offers convenience but also promises to revolutionize the automotive industry by making roads safer and more efficient.
The market share growth by the proprietary software segment will be significant during the forecast period. The market encompasses Advanced Driver-Assistance Systems (ADAS) and safety features developed and owned by OEMs and automotive manufacturers. Self-driving cars incorporate Artificial Intelligence (AI), cloud technology, and advanced sensors for analytics. Ride-hailing automobiles, insurance, healthcare, and the Internet are key sectors leveraging this technological advancement.
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The proprietary software segment showed a gradual increase in the market share of USD 0.58 billion in 2018. Level 3 and Level 4 automation, geofencing, high-precision positioning, and 5G modules are integral components. Companies like May Mobility, CVIS, and those specializing in driverless and autonomous vehicles, are leading this revolution. Human involvement is gradually diminishing with automation, connectivity, and digital infrastructure. Consequently, the proprietary software segment is expected to grow at a moderate rate in the market during the forecast period.
Level 3 autonomous cars, also known as conditional autonomy, are advanced enough to allow drivers a hands-free driving experience. The market is experiencing significant growth as human error continues to be a leading cause of road accidents in the automobile sector. Autonomous technology, including machine learning and AI, is being developed to mitigate these errors and enhance safety. However, security and safety concerns persist, as autonomous vehicles are vulnerable to machine or parts failure, which could lead to traffic congestion and traffic jams. To address these challenges, autonomous systems are being designed to operate in vehicle platoons and networking systems, enabling smoother traffic flow and reducing the risk of accidents. Thus, the level 3 autonomous cars segment is expected to drive the growth of the market during the forecast period.
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in North America is primarily driven by the US, with significant contributions from ADAS & safety features developed by OEMs and self-driving car technology leaders like Tesla and Intel. The USDOT's commitment to innovation and safety in transport positions North America as a hub for autonomous vehicle development.
Moreover, advanced sensors, analytics, and AI are key components of this technological advancement, with applications in ride-hailing automobiles, insurance, healthcare, and more. Level 3 and Level 4 automation, geofencing, high-precision positioning, and 5G modules are essential features of this digital infrastructure. Companies like May Mobility, CVIS, and others are pioneering driverless and autonomous vehicle technology. This shift towards automation and connectivity impacts various sectors, including the automotive industry, electric and hybrid vehicles, and non-drivers, offering increased efficiency and safety. Government funding and regulatory frameworks continue to support the growth of this market, with implications for mobility, disability, and the human role in transportation.Thus, such factors are expected to fuel the growth of the regional market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research and growth report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market is experiencing significant growth due to the increasing demand for advanced driving technologies. The adoption of self-driving cars is on the rise, with companies like Ford, Tesla, and Objetivectives leading the way. The use of artificial intelligence and machine learning algorithms in cars is driving the market, enabling cars to recognize traffic signals, avoid collisions, and adapt to driving conditions. The market for autonomous cars is expected to grow at a CAGR of 20.2% from 2020 to 2027. The market landscape depends on Robo-taxis, technology advancement, traffic congestion reduction, safety measures enhancement, and driverless vehicles. The market is segmented by components, including sensors, software, and hardware.
The software segment is expected to dominate the market due to the increasing demand for advanced driver assistance systems (ADAS) and autonomous driving systems. The market is also driven by the growing trend of connectivity and the increasing demand for safety and convenience features in cars. The market is expected to reach USD556.67 billion by 2027. The Radar and Lidar technologies are playing a crucial role in the development of autonomous cars, enabling cars to detect and respond to their environment in real-time. The market is also witnessing significant investments from governments and private organizations to develop and deploy autonomous cars. The market is expected to be a game-changer in the transportation industry, offering significant benefits in terms of safety, efficiency, and convenience.
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Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 39.04% |
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Market Growth 2024-2028 |
USD 9.18 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
37.85 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 39% |
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Key countries |
US, China, Japan, South Korea, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
aiMotive, Alphabet Inc., Amazon.com Inc., Aptiv Plc, Aurora Innovation Inc., Baidu Inc., BlackBerry Ltd., Cohda Wireless Pty. Ltd., General Motors Co., Intel Corp., Luminar Technologies Inc., Minus Zero Robotics Pvt. Ltd., NVIDIA Corp., Oxa Autonomy Ltd., Ridecell Inc, Robert Bosch GmbH, Siemens AG, Tata Consultancy Services Ltd., Tesla Inc., and TIER IV INC. |
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Market dynamics |
Parent market growth analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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