Global Autonomous Driving Industry Market Outlook

The automotive industry is one of the manufacturing sector’s most powerful pillars. The global automobile industry accounts for 13% of the sector’s turnover, output, and investment. The development of autonomous vehicles has the potential to impact the global automotive sector significantly. New providers may be able to break into the market if they can combine technology advantage with vehicle construction competence, which can also be brought in by conventional manufacturers and suppliers.

Definition / Scope
Market Overview
Market Risks
Top Market Opportunities
Market Drivers
Market Restraints
Industry Challenges
Technology Trends
Pricing Trends
Regulatory Trends
Post COVID-19 Recovery
Market Size and Forecast
Market Outlook
Technology Roadmap
Distribution Chain Analysis
Competitive Landscape
Competitive Factors
Key Market Players
Strategic Conclusion
References
Further Reading
Appendix

Definition / Scope

Many industries and economies are changing rapidly today, powered by the emerging-market growth, innovation and sustainability policies. In addition, digitization and new business models have revolutionized every industry and there will be no exception in the automotive sector.

The advent of autonomous vehicles and other revolutionary technology could provide solutions to some of our most challenging social issues such as the high cost of traffic accidents and transportation infrastructure, traffic congestion and curbing the growing need for parking lots.

The automotive industry is currently developing and implementing sensor-based solutions to improve vehicle safety, known as Advanced Driver Assist Systems (ADAS), which uses a combination of advanced sensors such as stereo cameras and RADAR, together with actuators, control units and integrated software to allow vehicles to track and respond to their environment.

Levels of Driving Automation is as in the below table

Level	Name	Execution of steering and acceleration/ deceleration	Monitoring of driving environment	Fallback performance of dynamic driving task
Human driver monitors the driving environment
0	No automation	Human driver	Human driver	Human driver
1	Driver assistance	Human driver and system	Human driver	Human driver
2	Partial automation	System	Human driver	Human driver
Automated driving system (“system”) monitors the driving environment
3	Conditional automation	System	System	Human driver
4	High automation	System	System	System
5	Full automation	System	System	System

Market Overview

From 2020 until 2030, the autonomous vehicle (AV) market will expand significantly. Fully automated vehicles are expected to contribute some US$ 13.7 billion by 2030. By then, one in ten cars can auto-drive.

The growth of the market clearly depends on the pace of consumer acceptance and the willingness of the manufacturers to increase demand. Many consumers see hacker attacks as the biggest obstacle to autonomous vehicle adoption: Nearly four out of five consumers do not trust self-driving cars to provide adequate vehicle security. About 70 percent of customers do not believe that driverless vehicle systems are protected from hackers.

Robo-taxis poised to contribute US$ 1.2 trillion

Robotic taxis are expected to become the largest use case for driverless vehicles with an approximate market value of US$ 1.161 billion. As of today, corporations have already spent billions on relevant research and development activities in order to reap the robo-taxi market’s lucrative rewards.

Robotic taxis are expected to become the largest use case for driverless vehicles with an approximate market value of 1.161 billion U.S. dollars. As of today, corporations have already spent billions on relevant research and development activities in order to reap the robo-taxi market’s lucrative rewards.

Investments to the tune of 27.5bn U.S. dollars in 2018 alone

Autonomous driving has come a long way since Waymo started testing self-driving cars. Mobility provider Uber has begun investing in self-driving vehicles, spending over three years in excess of a billion US dollars. When General Motors affiliate “Cruise” received 3.4 billion U.S. dollars in funding in 2018, total funding for automotive start-ups expanded tenfold over the past five years: hitting a record-breaking 27.5 billion U.S. dollars in 2018.

Traditional automakers have been under pressure to collect capital to cope with the costs of employee training and development activities. companies such as Uber and General Motors are facing immense costs swallowed by their respective self-driving units.

ADAS market to grow more than six-fold until 2025

It is also expected that global demand for Advanced Driving (AD) and Advanced Driver Assistance Systems (ADAS) would fuel market growth for semiconductors and sensors in automobiles. These devices will prove critical as machines take over power to help driverless vehicles navigate and identify roadside obstacles.

AV test pilots were most successful in California but Beijing, China and the city of Hamburg, Germany have set up geo-fenced driverless vehicle testing networks. Starting in 2021 Hamburg will see automated public transport. Self-driving vehicles are starting to leave the test tracks after billions of miles of testing in simulations or on public roads. The curtain eventually rises on the next act of disruption to mobility: driverless vehicles.

Market Risks

Porters Five Forces is used to analyze the risk factors associated with the Global Autonomous Vehicles Market and the inference obtained from the analysis are as follows

Threat of new entrants: Low, the research required to develop the technology behind autonomous vehicles, patents and possible liability risks keeps threat of new entrants low.

Threat of rivalry: Low, as there is a very limited number of players, since the industry is fairly new. Patent protection also discourages entrants hold the right to use the patent.

Threat of substitutions: Moderate, while autonomous vehicles do provide drivers with great convenience, autonomous vehicles is bound by speed limits and roads. Other forms of transportation can still be threatening substitutes.

Bargaining power of customers: Moderate, because it is relatively new technology, dealerships may want to promote their product by offering early adopters better pricing.

Bargaining power of suppliers: Low, since the autonomous industry is fairly stable, and thus has a well-established distribution network. One example is Toyota, whose vehicles are mainly used to test autonomous Google vehicles. Google used Toyota vehicles in its Street view vehicle fleet long before the start of the self-driving technology.

Top Market Opportunities

Some of the top market opportunities in the Global Autonomous Driving Industry include

Transition from vehicle ownership to mobility-as-a-service

Given that vehicle prices have risen dramatically in the recent past, the mobility-as-a-service trend has emerged on the global market. Ride-hailing firms such as Uber, Lyft, Cabify, Ola, DiDi and others have begun developing their fleet for autonomous vehicles. Ride-hailing firms, in particular in emerging markets, have gained considerable traction on the world market.

According to the Government of India’s Transport Department, the number of cabs in Bangalore grew from 80,000 in 2015 to 166,000 in 2018. Consumers prefer cab services, since they are cheaper than owning a vehicle. Hence, integrating autonomous vehicles in terms of mobility-as-a-service is expected to provide excellent growth opportunities.

Emergence of technology companies in automotive sector

Many tech companies have entered the automotive sector with the main target being the autonomous vehicles. Consumer technology firms like Google and NVIDIA have invested heavily in innovative automotive software and technologies. Although these firms come from entirely different product markets (from mobile phones to vehicles), their technical experience and focused activities on usability, design, digital assistance, and battery life will help bring new kinds of developments and innovations to the automotive industry.

In India, automakers are collaborating with universities to do autonomous car research. For example, MG Motor India partnered with IIT Delhi’s Centre for Automotive Research and Tribology (CART) in March 2021 to conduct research in the realm of electrified and autonomous vehicles. IIT Delhi will assist MG in focusing on CASE mobility (Connected, Autonomous, Shared, and Electric) through facilitating research for the implementation of electric and autonomous vehicles in India’s urban terrain.

Market Drivers

The Major Factors driving the growth of the Global Autonomous Driving Industry are

The surging adoption of advanced safety systems and driver assistance features

Due to the increased number of traffic accidents, improved safety systems and driver aid features such as blind-spot detection and automated emergency braking systems are becoming more popular. As a matter of fact, according to the International Organization for Road Accident Prevention (OICA), 90% of road accidents worldwide account for human error. Autonomous vehicle adoption will reduce the number of road accidents and make the roads safer by automating safety features and reducing reliance on human interaction. This aspect is expected to drive the growth of the global autonomous vehicle market during the forecast period.

Furthermore, the autonomous vehicle market is expected to rise due to rising need for cost-effective autonomous vehicle safety solutions.

To reduce the number of accidents that occur on a daily basis, monitoring organizations in developed countries have made it mandatory to install advanced safety systems and anti-lock brake systems in vehicles, which is helping to boost the market. An increase in the frequency of incidents caused by human error is a primary element driving the market’s growth.

Widespread Adoption of ADAS

Advanced driver assistance systems (ADAS) assist drivers through their artificial intelligence and other advanced features, while preventing distractions and reducing driver strain. The rapid implementation of advanced technology in vehicle software algorithms, sensors, cameras, processors, and mapping has enhanced ADAS’ applicability.

Owing to rising concerns regarding vehicle safety, occupants and pedestrians and reducing the rate of traffic fatalities, automotive manufacturers are integrating ADAS into automobiles, thereby accelerating the development of the autonomous vehicle industry.

Rising Government Support Pertaining to Safety of Vehicles

The commercialization of autonomous vehicle technology is expected to transform the worldwide transport network. The governments of several countries are adopting strict safety standards and encouraging automation in vehicles to cater to the safety and security of the vehicles, passengers, and pedestrians.

In addition, manufacturers of the automotive industry are expected to comply with the standards and obtain the safety levels set by various organizations, such as the New Vehicle Assessment Program (NCAP), the Institute of Highway Safety Insurance (IIHS), and the International Automotive Technology Center (ICAT), in order to access the authorization of vehicles. The safety regulations require warning of the seat belt, electronic stability control, parking sensors, autonomous emergency brakes and driver and front-end air bags for driver and co-driver.

Market Restraints

The Key factors restraining the growth of the Global Autonomous Driving Industry include

High Component Cost

Due to ongoing technical advances, the software in autonomous vehicle needs to be frequently upgraded to keep it compatible with the external environment. In comparison, the cost of all components and the installation of sensors in autonomous vehicles is more than that of emerging vehicles. In addition, the ratio of luxury consumers to that of economic consumers is far less global, as high-end vehicles are hard to afford. High initial costs coupled with maintenance costs also hamper the autonomous vehicle adoption.

Inappropriate use of technology

Technological developments in autonomous vehicles have provided new avenues for technology abuse, such as hacking and ransomware, which eventually endangers the lives of passengers. Some cases have shown that hackers have been able to take full or partial control of autonomous vehicles in managed environments by leveraging their vulnerabilities.

In addition, most automakers and some of the leading IT companies are focusing on autonomous vehicles that use vehicle-to -vehicle communication. This, in fact, necessitated security platform standardization to reduce potential cyber-security-related risks. Thus, these factors are expected to hinder the global autonomous vehicle market growth over the forecast period.

Lack of infrastructure in developing nations

Many countries also lack the infrastructure for vehicle communication, which is hindering the autonomous vehicles’ progress and acceptance. It is important to rebuild roads equipped with sensors and other intelligent infrastructure, so that fully autonomous vehicles can drive without any human intervention, is a major challenge faced by several countries.

Industry Challenges

The Major Factors affecting the growth of the Global Autonomous Driving Industry are

Safety and Security Issues

As modern vehicles are capable to connect to an external infrastructure and Vehicle-to-Everything (V2X) communication technologies mature, the necessity to secure communications becomes apparent. There is a very real risk that today’s vehicles are subjected to cyber-attacks that target vehicular communications.

The sensing layer consists of vehicle dynamics and environmental sensors that are vulnerable to attacks by eavesdropping, jamming, and spoofing. The communication layer consists of both in-vehicle and V2X communications and is susceptible to attacks from eavesdropping, spoofing, man-in-the-middle and sybil.

The control layer is at the top of the hierarchy, enabling autonomous vehicular functionality, including automating the speed, braking and steering of a vehicle. Attacks targeting the layers of sensing and communication can propagate upwards and affect the functionality, and can compromise the control layer’s security.

Ambiguous laws and regulations

Different companies around the world handle autonomous vehicles in their own ways, making it difficult to have standardized policies and regulations related to the same. Similarly, for global adoption of autonomous vehicles, a universally accepted regulatory framework is required.

There are also various regulatory policies for the use of autonomous vehicles in different states. It is expected, therefore, that the significant ambiguities in the laws and regulations regarding the use of autonomous vehicles would in the near future hamper global autonomous market development.

Technology Trends

Some of the emerging technologies in the Global Autonomous Vehicle Market include

Integration of artificial intelligence

A recent development in the autonomous vehicle market is the integration of artificial intelligence to provide constructive feedback to drivers via a virtual personal assistant with active voice command. In addition, Autonomous Vehicle systems are responsible for linking the vehicle to other vehicles over the Internet. Connected vehicles can provide various benefits in increasing the road health, providing environmental benefits by reducing traffic congestion, and improving the user experience in the vehicle.

Ford’s SYNC 3 is an infotainment system that provides user access to the voice navigation and traffic information. SYNC 3 enables the user to keep eyes on the road and hands on the wheels with enhanced voice recognition, climate control, simple music search, and capacitive touchscreen display.

Emergence of (Vehicle-to-Everything) V2X

Vehicle-to-everything (V2X) communication is the transmission of information from a vehicle to any entity that may affect the vehicle, and vice versa; It is a vehicle communication system that integrates other, more complex communication types such as V2I (vehicle-to-infrastructure), V2N (vehicle-to-network), V2V (vehicle-to-vehicle), V2P (vehicle-to-pedestrian), V2D (vehicle-to-device) and V2G (vehicle-to-grid).

Road safety, traffic efficiency and energy savings are key motivations for V2X. The U.S. NHTSA predicts a decrease in traffic accidents of at least 13% if a V2V system was introduced, resulting in 439,000 fewer crashes each year.

Pricing Trends

The Price of Autonomous Vehicle depend on several factors such as the type of vehicle, software, hardware such as Cameras, Ultrasound devices, sensors, Lidars and Radars used, application installed. Adding driverless technology to a car would increase its cost by US$ 100,000 to US$ 200,000 in 2020. For instance, Google uses a complex system of LIDAR (like radar, but with lasers), cameras, sensors, and GPS that allow for precise computer-controlled driving. The first LIDAR components used by Google cost about US$ 75,000 per vehicle a few years ago.

Regulatory Trends

At Present, there are no new laws that oversee and regulate the adoption of autonomous vehicles in most of the developed and developing economies of North America, Europe and Asia-Pacific. Some of the emerging trends in the regulation of Autonomous Vehicle include

Regulatory Trends in USA

The Federal Autonomous Vehicle Policy includes no new rules or regulations only guidance for states. Although it will likely be many years before fully autonomous vehicles see widespread deployment, there is much for states to accomplish in areas such as traffic enforcement, insurance, registration, licensing and more.

Regulatory Trends in Europe

Road traffic is a highly regulated area as it bears huge risks for all traffic users. In order to autonomous vehicles to become commonplace in EU by 2030, the regulations will be implemented as mentioned by the European Union.

Regulatory Trends in China

The Chinese Government stipulates that for safety reasons, test vehicles must have self-driving data recorders and an emergency system that allows a human to manually override the automated driving system, and it is also stated that a new legislation to oversee the regulation of automated vehicles.

Post COVID-19 Recovery

The automotive industry has also been affected, along with many other sectors, and is facing many difficulties in the market in the midst of the novel coronavirus pandemic. China has been a significant contributor to the rapid growth of the automotive industry and a significant distributor to many countries of various automotive parts and technologies, due to the stringent cross-border trade restrictions. This has greatly influenced automobile sales across the globe.

In addition, the financial situation of various companies has been largely affected, which has forced them to recover their damages and losses rather than investing in other operations. It is also expected that the autonomous vehicle market will show a downturn for an interim period as buyers will concentrate more on meeting the basic needs rather than spending on luxury products.

Market Size and Forecast

The Global Autonomous vehicle market is valued at US$ 54.23 Billion in 2020 and due to the outbreak of the COVID-19 Pandemic which caused tumultuous economic repercussions across the world, but the autonomous driving industry witnessed a significant growth rate of more than 24% to reach a value of US$ 67.25 in 2020 and is poised to grow at 39.5% in the forecast period (2020 – 2025) to reach US$ 388.27 Billion in 2025.

On Volumetric terms the autonomous vehicle market reached a market size of 5.68 million Vehicles by 2020 and is poised to reach a total volume of 6.9 million Units in 2030.

Market size based on Vehicle Type

Based on Vehicle Type, The Global Autonomous Vehicle Market is classified into Commercial Vehicles and Passenger Vehicles.

The Passenger Vehicle segment dominates the market on the basis of vehicle type as it accounts for 80% of the market share and generated revenues to the tune of US$ 43.4 Billion in 2020 and is poised to grow at 38% to reach US$ 299.8 Billion in 2025.

Commercial Vehicle segment is the fastest growing and constitutes 20% of the market share and is poised to reach market size of US$ 87 Billion in 2025 from US$ 10.85 Billion in 2020 growing at a CAGR of 41.5% in the forecast period (2020 – 2025).

Market size based on Component

Depending on the component, the Global Autonomous Vehicle Market is classified into Software, Hardware and Services.

The Software segment dominates the market on the basis of Component accounting for 60% of the market share and US$ 32.54 Billion in market size in 2020 and is projected to grow at a CAGR of 40.5% to reach US$ 250.3 Billion in 2025.

Hardware segment constitutes 24% of the market share and US$ 16.38 Billion in market size in 2020 and is expected to grow at a CAGR of 38.5% to reach US$ 91.8 Billion in 2025.

Services segment accounts for 16% of the market share and US$ 10.96 Billion in 2020 and is projected to reach a market size of US$ 63.3 Billion in 2025 growing at 39.2% in the forecast period (2020 – 2025).

Regional Analysis

North America dominates the Global Autonomous Vehicle Market accounting for 34% of the market share and US$ 18.4 Billion in market size in 2020 and is projected to grow at a CAGR of 38.8% to reach US$ 131.6 Billion in 2025.

Europe is the second largest market contributing to 26% of the market share and US$ 14 Billion in market size in 2020; it is poised to grow at 39.4% to reach US$ 102.7 Billion in 2025.

Asia Pacific is expected to register lucrative growth in terms of revenue over the forecast period. APAC constitutes 21% of the market share and it is estimated to have generated revenues to the tune of US$ 11.4 Billion in 2020 and is projected to grow at 40.2% to reach US$ 86.58 Billion in 2025.

South America accounts for 11% of the market share and generated US$ 5.96 Billion of revenue in 2020 and is expected to grow at 39.7% to reach US$ 44.3 Billion in 2025.

Middle-East & Africa constitutes 8% of the market share and recorded revenues of US$ 4.3 Billion in 2020 and is poised to grow at 39.4% to attain market size of US$ 31.5 Billion in 2025.

Market Outlook

The Global Autonomous Vehicle Market is estimated to have generated revenues to the tune of US$ 54.23 Billion in 2020 and is projected to grow at 39.5% to reach US$ 399.65 Billion in 2025.

Based on Volume, the number of autonomous vehicles registered is accounted for 5.8 million in 2020.

The software segment currently dominates the market as demand for vehicles linked to digital technologies such as the Internet of Things and Artificial Intelligence is growing. Major factors that hinder the growth of the software segment are expensive software components and it needs to be regularly updated to meet the external environment.

The ride-hailing service and Consumer segment are leading the market. Companies like Uber, Lyft are introducing advanced technologies such as LIDAR, RADAR in automobiles to reduce human intervention in driving.

Due to the early adoption of technology and major automotive giants located in this region, North America and Europe Global Autonomous Vehicles Market currently dominates with its largest market share. North American countries such as the US, Canada, and Mexico are deploying digital infrastructure to accommodate vehicle-to – infrastructure connectivity. They gather useful information and thus reduce traffic congestion and increase safety on the roads.

Asia-Pacific Autonomous vehicle market is expected to grow significantly in the forecasted period of 2020-25. Countries like Singapore lead the region by embracing the autonomous vehicle technology. The favorable government policy towards autonomous vehicles has led to the emergence of numerous startups in this sector. The government expects to roll out self-driving buses by 2022. It plans to operate to check its feasibility in non-peak hours.

Technology Roadmap

The industry players are laying hopes on innovation as a key differentiator for the marketing of their Autonomous Vehicle portfolio. The key players such as Waymo, Tesla, Inc., General Motors Co., Daimler AG, Ford Motor Company, and Volkswagen AG are investing heavily on their Research & Development activities to improve the product portfolio and to cut down costs of production. They are introducing new age technologies such as ADAS and Level-5 of automation to improve the quality of automation in their range of vehicles.

The market players are focusing on introducing intelligent autonomous vehicles such as Smart Autonomous Vehicles to capture the majority of the market share. The large investments made by the players on the R&D of new product categories is expected to pay heed to the segment in the form of innovation in the long run.

Distribution Chain Analysis

The value chain of the Autonomous Vehicle Market is as follows

Competitive Landscape

The market consists of a large number of enterprises that are persistently striving to strengthen their positions in the global autonomous vehicle market. To do so, they are investing extensively in developing new technologies. Some of them are also joining hands with the other local start-ups to obtain their in-house products. Below are two latest industry developments:

In April 2021, Volvo Cars and DiDi Autonomous Driving agreed to collaborate on autonomous vehicles for DiDi’s self-driving test fleet. Volvo Cars will provide DiDi with XC90 cars that are equipped with backup systems for operations like steering and braking, as well as work with DiDi Autonomous Driving to incorporate the additional software and hardware required for autonomous driving.

in January 2021, Veoneer, Inc., an automotive technology firm, and Qualcomm Technologies, Inc. have inked a deal to work on the implementation of scalable Advanced Driver Assistance Systems (ADAS), Collaborative, and Autonomous Driving (AD) solutions.

Competitive Factors

Many players in the automotive industry, from hardware to software companies, have begun to focus on the developing trend of autonomous driving technologies. As a result, during the last three years, the automotive sector has seen a tremendous surge in partnerships, collaborations, and investments aimed at producing autonomous vehicles (i.e., 2018-2020). They are expected to continue growing during the projection period, owing to increased government and private sector backing for autonomous driving vehicle technologies in a number of nations.

For Instance, in January 2021, Automotive Grade Linux announced that it had included Aicas, AVL, and Citos as new bronze members. AGL is an open-source project at the Linux Foundation that brings together automakers, suppliers, and technology companies to accelerate the development of all technologies related to vehicles, including autonomous driving.

Key Market Players

Some of the major companies in the Global Autonomous Vehicle Market are General Motors, Daimler AG, Ford Motor Company., Volkswagen Group, BMW AG, Toyota Motor Corporation, and Tesla Inc., Waymo, Baidu.

Tesla, Inc., formerly Tesla Motors, Inc., designs, develops, manufactures and sells fully electric vehicles, and energy storage systems, as well as installs, operates and maintains solar and energy storage products. The Company operates through two segments: Automotive, and Energy generation and storage. The Automotive segment includes the design, development, manufacturing, and sales of electric vehicles. The Company produces and distributes two fully electric vehicles, the Model S sedan and the Model X sport utility vehicle (SUV). It also offers Model 3, a sedan designed for the mass market. It develops energy storage products for use in homes, commercial facilities and utility sites.

Waymo LLC is an American autonomous driving technology development company. It is a subsidiary of Alphabet Inc, the parent company of Google. Waymo was operating a commercial self-driving taxi service in Phoenix, Arizona called “Waymo One”; users in the Phoenix metropolitan area use an app to request a pick-up. According to Waymo, as of November 2020, Waymo offered the only commercial self-driving vehicle service that operated fully autonomously, without safety backup drivers in the vehicle. References talk about people from media being given rides.

Baidu, Inc. is a Chinese multinational technology company specializing in Internet-related services and products and artificial intelligence (AI), headquartered in Beijing’s Haidian District. It is one of the largest AI and Internet companies in the world. The holding company of the group is incorporated in the Cayman Islands. In April 2017, Baidu announced the launch of its Apollo project (Apolong), a self-driving vehicle platform in a bid to help drive the development of autonomous vehicles including vehicle platform, hardware platform, software platform and cloud data services. Baidu plans to launch this project in July 2017, before gradually introducing fully autonomous driving capabilities on highways and open city roads by 2020.

General Motors Co designs, builds and sells trucks, crossovers, vehicles and automobile parts worldwide. Its brands offer luxury vehicles, crossovers, sport utility vehicles (SUVs) and sedans. GM Cruise is its global segment engaged in the development and commercialization of autonomous vehicle technology.

Daimler AG (Daimler) is an automotive engineering company. The Company is engaged in the development, production and distribution of vehicles, trucks and vans in Germany, and the management of the Daimler Group. Daimler’s segments include Mercedes-Benz Vehicles, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services. The Company has production facilities in approximately 20 countries and over 8,500 sales centers around the world.

Ford Motor Company is a global automotive and mobility company. The Company’s business includes designing, manufacturing, marketing, and servicing a full line of Ford vehicles, trucks, and sport utility vehicles (SUVs), as well as Lincoln luxury vehicles. Ford Smart Mobility LLC is a subsidiary formed to design, build, grow, and invest in emerging mobility services. Ford Motor Co. has partnered with Intel corp’s autonomous driving unit Mobileye, to develop an improved collision avoidance system for its vehicles.

Volkswagen AG is a Germany-based company that manufactures and sells vehicles. It operates through segments including: Passenger Vehicles, which covers the development of vehicles and engines, the production and sale of passenger vehicles, and the corresponding genuine parts business; Commercial vehicles, which comprises the development, production and sale of light commercial vehicles, trucks and buses, the genuine parts business and related services.

Bayerische Motoren Werke (BMW) AG is a Germany-based automobile and motorcycle manufacturer. The Company divides its activities into four segments: Automotive, Motorcycles, Financial Services and Other Entities. The Automotive segment develops manufactures, assembles and sells vehicles and off-road vehicles under the brands BMW, MINI and Rolls-Royce, as well as spare parts and accessories.

Toyota Motor Corporation is a Japan-based company engaged in the automobile business, finance business and other businesses. The Automobile segment is engaged in the design, manufacture and sale of sedans, minivans, 2box, sports utility vehicles, trucks and related vehicles, as well as related parts and products

Strategic Conclusion

The US$ 70 Billion Autonomous Vehicle Industry is poised to grow at a healthy CAGR of 39.5% in the forecast period (2020 – 2025).

The Autonomous Vehicle segment is claimed to be the Sunrise Industry in the tech sector and shows immense potential to grow at a faster rate in the forecast period. The market is driven by the entry of large number of tech companies into the segment. Other factors such as Surging demand for Safe and Efficient Traveling Options, Widespread Adoption of ADAS and Rising Government Support Pertaining to Safety of Vehicles augurs well for the growth of the segment.

Though growth bottlenecks exist in the segment, the need to rapidly innovate and develop efficient autonomous vehicles is fueling the growth of the market.

Transition from vehicle ownership to mobility-as-a-service and Emergence of technology companies in automotive sector are offering lucrative opportunities for the Global Autonomous Vehicle Market.

References

Appendix

ADAS – Advanced Driver Assist Systems
NHTSA – National Highway Traffic Safety Administration
R&D – Research & Development
OICA – Organization for Road Accident Prevention
NCAP – New Vehicle Assessment Program
IIHS – Institute of Highway Safety Insurance
ICAT – International Automotive Technology Center
MIIT – Ministry of Industry and Information Technology
V2X – Vehicle-to-Everything
V2I – Vehicle-to-Infrastructure
V2N – Vehicle-to-Network
V2V – Vehicle-to-Vehicle
V2P – Vehicle-to-Pedestrian
V2D – Vehicle-to-Device
V2G – Vehicle-to-Grid