Autonomous Vehicle Market Projected to Grow to $448.6 Billion by 2035

By Component, the hardware segment dominated the global autonomous vehicles market in terms of growth rate.

WILMINGTON, NEW CASTLE, DE, UNITED STATES, November 21, 2024 /EINPresswire.com/ -- The global 𝐀𝐮𝐭𝐨𝐧𝐨𝐦𝐨𝐮𝐬 𝐕𝐞𝐡𝐢𝐜𝐥𝐞 𝐌𝐚𝐫𝐤𝐞𝐭 size was valued at $60.3 billion in 2025, and is projected to reach $448.6 billion by 2035, growing at a CAGR of 22.2% from 2025 to 2035. Market expansion is being propelled by various factors, including the development of interconnected infrastructure facilitated by technological advancements, a decrease in traffic congestion coupled with enhanced safety measures, and a rise in the trend of investments and collaborations among companies operating in the autonomous vehicle sector. However, the high manufacturing cost of the hardware and cybersecurity issues have hampered the growth of the market.

𝐃𝐨𝐰𝐧𝐥𝐨𝐚𝐝 𝐒𝐚𝐦𝐩𝐥𝐞 𝐑𝐞𝐩𝐨𝐫𝐭 (𝐆𝐞𝐭 𝐅𝐮𝐥𝐥 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 𝐢𝐧 𝐏𝐃𝐅 - 250 𝐏𝐚𝐠𝐞𝐬) 𝐚𝐭: https://www.alliedmarketresearch.com/request-sample/4649

Automotive manufacturers have developed autonomous vehicles featuring advanced AI functionalities, such as personal AI assistants, radar detection systems, and cameras, all aimed at emphasizing safety and various other functions. These self-driving cars have incorporated AI-enhanced features that represent a significant leap forward from their earlier iterations. These self-driving systems can learn from the driver's habits, including driving speed, preferred cabin temperature, adherence to traffic signals, favorite songs, and radio station preferences. By evaluating driving skills, these autonomous vehicles have contributed to modifying undesirable driving behaviors and patterns. Autonomous driving technology enhances road safety, optimizing traffic flow, facilitating personal mobility, promoting eco-friendly driving practices, and boosting driver productivity. These various technologies that support human drivers can be categorized based on their degree of autonomy such as level 3, level 4 and level 5.

Based on application, the self-driving truck segment held the highest market share in 2025, accounting for nearly half of the global autonomous vehicle market, however others segment is estimated to lead the market segment during the forecast period. The self-driving truck technology is used in numerous sectors for applications such as long-haul transportation, last mile delivery, mining, and ports. Government strategies for the development of self-driving vehicle infrastructure have significantly expanded the potential of the global market. However, civil segment is projected to manifest the highest CAGR of 22.7% from 2025 to 2035. Digital platforms developed by firms such as Cisco and IBM that enhance surveillance, optimize waste collection, and manage traffic and streetlights are driving market growth. An autonomous vehicle is one that can carry out the difficult task of driving without the assistance of a human driver. It is also referred to as a self-driving vehicle, driverless vehicle, or automated vehicle.

𝐁𝐮𝐲 𝐍𝐨𝐰 & 𝐆𝐞𝐭 𝐄𝐱𝐜𝐥𝐮𝐬𝐢𝐯𝐞 𝐃𝐢𝐬𝐜𝐨𝐮𝐧𝐭 𝐨𝐧 𝐭𝐡𝐢𝐬 𝐑𝐞𝐩𝐨𝐫𝐭 : https://www.alliedmarketresearch.com/autonomous-vehicle-market/purchase-options

𝐓𝐡𝐞 𝐤𝐞𝐲 𝐩𝐥𝐚𝐲𝐞𝐫𝐬 𝐩𝐫𝐨𝐟𝐢𝐥𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐫𝐞𝐩𝐨𝐫𝐭 𝐢𝐧𝐜𝐥𝐮𝐝𝐞

𝐌𝐞𝐫𝐜𝐞𝐝𝐞𝐬-𝐁𝐞𝐧𝐳 𝐀𝐆 (𝐃𝐚𝐢𝐦𝐥𝐞𝐫 𝐀𝐆), 𝐑𝐞𝐧𝐚𝐮𝐥𝐭 𝐒𝐀, 𝐆𝐞𝐧𝐞𝐫𝐚𝐥 𝐌𝐨𝐭𝐨𝐫𝐬, 𝐕𝐨𝐥𝐤𝐬𝐰𝐚𝐠𝐞𝐧 𝐆𝐫𝐨𝐮𝐩, 𝐀𝐁 𝐕𝐨𝐥𝐯𝐨, 𝐁𝐚𝐲𝐞𝐫𝐢𝐬𝐜𝐡𝐞 𝐌𝐨𝐭𝐨𝐫𝐞𝐧 𝐖𝐞𝐫𝐤𝐞 𝐀𝐆 (𝐁𝐌𝐖 𝐀𝐆), 𝐇𝐲𝐮𝐧𝐝𝐚𝐢 𝐌𝐨𝐭𝐨𝐫 𝐆𝐫𝐨𝐮𝐩, 𝐅𝐨𝐫𝐝 𝐌𝐨𝐭𝐨𝐫 𝐂𝐨𝐦𝐩𝐚𝐧𝐲, 𝐓𝐞𝐬𝐥𝐚, 𝐈𝐧𝐜., 𝐓𝐨𝐲𝐨𝐭𝐚 𝐌𝐨𝐭𝐨𝐫 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧

Growth in development and innovation continues to fuel the growth of autonomous vehicles. In addition, the global market is fueled by the positive impact of robo taxi developments by many startups and major players, such as in May 2023, Waymo, a division of Alphabet announced a multi-year partnership with Uber to offer autonomous driving and delivery through Uber Eats, starting at the end of 2023 in the largest fully autonomous service area in the world. Moreover, in May 2023, DiDi Autonomous Driving, the self-driving technology division of DiDi Global, announced the strengthening of its partnership with GAC AION, a subsidiary of Guangzhou Automobile Group (GAC Group) to establish a joint venture for mass production of electronic robot taxi under the joint project AIDI.

On the basis of region, North America held the highest market share in terms of revenue in 2022, accounting for two-fifths of the global autonomous vehicles market revenue. However, the LAMEA region is expected to witness the fastest CAGR of 16.2% from 2025 to 2035. LAMEA regions the adoption of autonomous vehicles, as they can address the complex challenges associated with extensive transportation routes, which are integral to the economic growth of these nations.

𝐆𝐞𝐭 𝐂𝐮𝐬𝐭𝐨𝐦𝐢𝐳𝐞𝐝 𝐑𝐞𝐩𝐨𝐫𝐭𝐬 𝐰𝐢𝐭𝐡 𝐲𝐨𝐮'𝐫𝐞 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭𝐬: https://www.alliedmarketresearch.com/request-for-customization/4649

The development of self-driving technology is still in its early stages due to the lack of infrastructure required for its proper implementation. However, various automotive companies have made substantial investments in Mexico and expanded their facilities within the country. For example, in July 2023, ZF commenced the production of its advanced driver assist system (ADAS) technology at its Monterrey, Nuevo Leon plant in Mexico. Similarly, another company, Luminar, has expanded its presence and is anticipated to commence operations in Mexico in 2023. Mexico is poised to emerge as a significant manufacturing hub for self-driving truck technology in the forecast period.

On the basis of component, the autonomous vehicles market accounted for the largest share in 2025, contributing to nearly half of the global autonomous vehicles Market revenue, however, software and services are projected to lead the market during the forecast period. Many auto manufacturers have focused on developing advanced hardware systems for autonomous vehicles, due to which investments have gone on in the market. For instance, in May 2022, Hyundai Motor Group invested $5 billion in the development of autonomous driving capability. However, the software and services segment are expected to portray the largest CAGR of 21.5% from 2025 to 2035. Software is used for mapping and localization, planning and decision-making, connectivity, and communication among others which are necessary for the sensors to work properly. Digitization and technological advancement have introduced multi-function software platform that is deployed in the autonomous vehicles.

𝐈𝐧𝐪𝐮𝐢𝐫𝐲 𝐁𝐞𝐟𝐨𝐫𝐞 𝐁𝐮𝐲𝐢𝐧𝐠: https://www.alliedmarketresearch.com/purchase-enquiry/4649

𝐊𝐄𝐘 𝐅𝐈𝐍𝐃𝐈𝐍𝐆𝐒 𝐎𝐅 𝐓𝐇𝐄 𝐒𝐓𝐔𝐃𝐘

By level of automation, the level 5 segment dominated the global autonomous vehicles market in terms of growth rate.

By Component, the hardware segment dominated the global autonomous vehicles market in terms of growth rate.

By application, the civil segment dominated the global autonomous vehicles market in terms of growth rate.

𝐎𝐭𝐡𝐞𝐫 𝐓𝐫𝐞𝐧𝐝𝐢𝐧𝐠 𝐑𝐞𝐩𝐨𝐫𝐭𝐬:

Autonomous Bus Door System Market - https://www.alliedmarketresearch.com/autonomous-bus-door-system-market-A06270

Robo Taxi Market - https://www.alliedmarketresearch.com/robo-taxi-market

Automotive Garage Equipment Market - https://www.alliedmarketresearch.com/automotive-garage-equipment-market

Automotive Intelligence Park Assist System Market - https://www.alliedmarketresearch.com/automotive-intelligence-park-assist-system-market-A13654

David Correa
Allied Market Research
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