Autonomous Vehicle Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The autonomous vehicle market size has grown exponentially in recent years. It will grow from $73.53 billion in 2024 to $99.37 billion in 2025 at a compound annual growth rate (CAGR) of 35.1%. The growth in the historic period can be attributed to rising aging populations, increasing consumer acceptance, increasing geriatric population, growth in delivery demands, and growing environmental awareness.

The autonomous vehicle market size is expected to see exponential growth in the next few years. It will grow to $285.08 billion in 2029 at a compound annual growth rate (CAGR) of 30.1%. The growth in the forecast period can be attributed to growing demand for safer and more efficient transportation solutions, increasing investments in autonomous vehicle research and development, rising urbanization, growing demand for energy-efficient vehicles, and increasing demand for autonomous vehicles. Major trends in the forecast period include rising focus on maintaining safety and efficiency, technological advancements, rise of ride-sharing platforms, improved mobility for elderly and disabled, and rapid development of autonomous vehicle technology.

The growing demand for energy-efficient vehicles is expected to propel the growth of the autonomous vehicle market going forward. Energy-efficient vehicles are designed to use less energy to perform the same tasks as their non-efficient counterparts. As governments worldwide intensify efforts to combat climate change and reduce greenhouse gas emissions, autonomous vehicles are predicted to reduce energy consumption. The development of connected and autonomous vehicles is being carried out with a focus on minimizing fuel and energy consumption, and energy-efficient vehicles play a crucial role in shaping the success of the autonomous vehicle market. For instance, according to the International Energy Agency, a France-based intergovernmental organization, in 2022, fuel cell electric vehicles (FCEVs) increased by 40% compared to 2021, reaching over 72,000 vehicles globally. Therefore, the rise in demand for energy-efficient vehicles is driving the growth of the autonomous vehicle market.

Major companies in the autonomous vehicle market are advancing innovative solutions, such as drive pilot systems, to improve safety, convenience, and facilitate hands-free driving in controlled environments. The Drive Pilot system, which represents Level 3 autonomy, allows vehicles to operate autonomously under specific conditions, with the vehicle monitoring its surroundings. In April 2024, Mercedes-Benz Group AG, a Germany-based manufacturer of premium passenger cars and vans, launched the first Level 3 self-driving car in the United States. The Drive Pilot system enables hands-free driving but requires the driver to be ready to take control if necessary. This system, classified as Level 3 autonomy by SAE International, differs from Level 2 systems (like Tesla’s Autopilot), which require continuous driver supervision and engagement.

In December 2022, Stellantis N.V., a Netherlands-based automotive manufacturing corporation and provider of innovative mobility solutions, acquired AiMotive for an undisclosed amount. This acquisition aims to bolster Stellantis' position in the autonomous driving sector, allowing the company to offer integrated software, tools, and hardware products for the rapid development and deployment of automated driving features. AiMotive, a Ireland-based autonomous vehicle technology company working on level-agnostic automated driving solutions.

Major companies operating in the autonomous vehicle market are Volkswagen AG, Google LLC, Toyota Motor Corporation, Ford Motor Company, General Motors Company, Bayerische Motoren Werke AG, Honda Motor Co. Ltd., The Hyundai Motor Group, Tesla Inc., Nissan Motor Co. Ltd., Audi AG, Intel Corporation, AB Volvo, Groupe Renault, Denso Corporation, Mercedes-Benz Group AG, Uber Technologies Inc., NVIDIA Corporation, Baidu Inc., Waymo LLC, WeRide Corporation, Aurora Innovation Inc., Cruise LLC, AutoX Inc., Oxbotica Ltd.

North America was the largest region in the autonomous vehicle market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the autonomous vehicle market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the autonomous vehicle market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The autonomous vehicle market consists of revenues earned by entities by providing services such as autonomous vehicle platforms, and safety and security solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. The vi autonomous vehicle market also includes sales of fully autonomous and semi-autonomous vehicles. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

An autonomous vehicle, often called a driverless vehicle, is a vehicle that operates and executes essential tasks without requiring human intervention. These vehicles rely on a blend of hardware and software technologies that empower them to navigate without direct physical control or supervision from a human operator. They can function in various modes, including autonomous mode, in which the vehicle's autonomous technology handles the driving task, and testing mode, wherein the vehicle is fitted with autonomous technology for evaluation and validation purposes.

The main levels of automation in the autonomous vehicle are driver assistance, partial automation, conditional automation, high automation, and full automation. Driver assistance, also known as advanced driver-assistance systems (ADAS), refers to technologies used to make motor vehicle travel safer by automating, improving, or adapting some or all of the tasks involved in operating a vehicle, its components including hardware, software, service, and it used in transportation and logistics, civil, defense, other applications.

The main levels of automation in the autonomous vehicle are driver assistance, partial automation, conditional automation, high automation, and full automation. Driver assistance, also known as advanced driver-assistance systems (ADAS), refers to technologies used to make motor vehicle travel safer by automating, improving, or adapting some or all of the tasks involved in operating a vehicle, its components including hardware, software, service, and it used in transportation and logistics, civil, defense, other applications.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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