Autonomous Vehicle Market Report 2026

The autonomous vehicle market size has grown exponentially in recent years. It will grow from $80.49 billion in 2025 to $103.04 billion in 2026 at a compound annual growth rate (CAGR) of 28%. The growth in the historic period can be attributed to adas adoption, sensor cost reduction, automotive digitization, early autonomous pilot programs, demand for driver assistance.

The autonomous vehicle market size is expected to see exponential growth in the next few years. It will grow to $277.5 billion in 2030 at a compound annual growth rate (CAGR) of 28.1%. The growth in the forecast period can be attributed to ai algorithm advancements, electric autonomous vehicles growth, smart mobility policies, demand for logistics automation, connected vehicle infrastructure. Major trends in the forecast period include advancement of level 4 and level 5 vehicles, integration of advanced sensor suites, growth of autonomous logistics fleets, expansion of software-defined vehicles, focus on safety validation.

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 conventional counterparts. As governments worldwide intensify efforts to combat climate change and reduce greenhouse gas emissions, autonomous vehicles are expected to contribute by lowering energy consumption. The development of connected and autonomous vehicles is focused on minimizing fuel and energy use, and energy-efficient vehicles play a key role in driving the adoption of autonomous technologies. For instance, in January 2024, according to a report published by Kelley Blue Book, a US-based Cox Automotive company, in 2023, a record 1.2 million car buyers in the United States chose electric vehicles, accounting for 7.6% of the entire U.S. vehicle market, up from 5.9% in 2022. Therefore, the rising demand for energy-efficient vehicles is driving the growth of the autonomous vehicle market.

Major companies in the autonomous vehicle market are developing advanced solutions such as drive pilot systems to enhance safety, convenience, and enable hands-free driving under controlled conditions. The Drive Pilot system is a Level 3 autonomous driving technology that allows hands-free driving in specific conditions while continuously monitoring the vehicle’s surroundings. For instance, in April 2024, Mercedes-Benz Group AG, a Germany-based manufacturer of passenger cars and premium vans, launched its first Level 3 self-driving car in the United States. The drive pilot system allows vehicles to operate autonomously but requires the driver to take control if needed, distinguishing it from Level 2 systems like Tesla’s Autopilot, which require constant driver engagement.

In February 2025, General Motors (GM), a US-based automotive manufacturer, acquired full ownership of Cruise LLC for an undisclosed amount. This acquisition enables GM to accelerate the development and commercialization of autonomous vehicle (AV) technology, streamline decision-making, enhance capital efficiency, and strengthen its long-term strategy for deploying safe and scalable self-driving mobility solutions. Cruise LLC is a US-based autonomous vehicle company specializing in self-driving technology and robotaxi services.

Major companies operating in the autonomous vehicle market report include 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 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the autonomous vehicle market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the autonomous vehicle market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, 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).

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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