July 14, 2024

Rising Adoption Of ADAS Functions To Boost Growth Of Autonomous Car Market

Market Overview:

An autonomous car, also known as a driverless car or robot car, is a self-driving vehicle that travels between destinations without a human operator. Autonomous cars use sensors like radar, cameras, and other technologies like LIDAR (Light Detection and Ranging) to detect their surroundings and navigate without human input. The advantages of autonomous cars include reduced human errors which lead to increased road safety, optimized fuel usage which leads to better mileage, and mobility solutions for the elderly and disabled.

Market key trends:

One of the key trends in the autonomous car market is the rising adoption of Advanced Driver Assistance Systems (ADAS) functions. Major automakers are focusing on equipping their vehicles with ADAS features like adaptive cruise control, lane keep assist, park assist, automatic emergency braking, and blind spot monitoring which provide semi-autonomous capabilities. As consumers experience the benefits of ADAS features, their confidence in autonomous driving is increasing. This is expected to drive the demand for fully autonomous vehicles over the forecast period. Another major trend is the development of 5G networks which will facilitate safer vehicle-to-everything (V2X) communication and updates over-the-air (OTA). This will enable continuous improvement in autonomous driving algorithms.
Porter’s Analysis:

Threat of new entrants: The threat of new entrants into the autonomous car market is moderate. Developing and testing autonomous vehicle technology requires huge investment which pose entry barriers for new players.

Bargaining power of buyers: The bargaining power of buyers is high in this market. Buyers have many alternatives as autonomous cars are still in development phase with limited availability and higher prices.

Bargaining power of suppliers: Major suppliers for autonomous cars include technology companies providing hardware, software, and data for navigation, sensors etc. The bargaining power of suppliers is moderate as OEMs can choose from multiple technology partners.

Threat of new substitutes: The threat of new substitutes is moderate. Technologies like shared mobility and electric vehicles can act as substitutes, however autonomous driving feature remains unique.

Competitive rivalry: The competitive rivalry in autonomous car market is high. Major automotive players are aggressively investing in development and testing of autonomous vehicles to gain early mover advantage.

Key Takeaways:

The Global Autonomous Car Market Demand is expected to witness high growth, exhibiting CAGR of 7.7% over the forecast period 2023 to 2030, due to increasing investments by automakers in autonomous driving technologies. The market size for autonomous cars is estimated to reach US$ 147.63 Bn in 2023.

Regional analysis: North America dominates the global autonomous car market currently due to presence of major technology companies and free testing environment for autonomous vehicles. China and Europe are also emerging as high potential markets for autonomous cars, with growing focus of regional OEMs as well as local technology startups.

Key players operating in the autonomous car market are Audi AG, Bayerische Motoren Werke AG, General Motors Company, Nissan Motor Co., Ltd., Tesla Motors, Inc., The Volvo Group, Toyota Motor Corporation, Uber Technologies Inc., Waymo LLC, Kia- Hyundai, Poni.ai. These players are aggressively investing in developing autonomous driving technologies and partnering with other mobility companies.

Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it