The global autonomous vehicle market revenue is expected to grow at a compound average growth rate (CAGR) of 39.6% over the next 10 years — resulting in a $126.8 billion market by 2027, according to Infoholic Research.
“The increasing investments from the automakers, the rising consumer demands, and technology advancements in the automotive industry have led to the increased demand for driverless vehicles,” stated the research firm in a press release on its newly released market report.
“In the current market scenario, self-driving is not just limited to cars but is also gaining popularity among public transport and trucks," said Infoholic Research. Thus, most of the enterprise sectors including retail, manufacturing, transportation, and logistics will prefer autonomous vehicles for delivery purposes in the future.”
The report segments the market and analyzes it by product type, autonomous vehicles type, and operating regions.
In terms of product type, software is expected to hold the major market share, followed by the hardware and services segments.
“The software segment is mainly driven by the fully autonomous vehicles when compared to semi-autonomous vehicles,” Infoholic stated. And while hardware providers have “new business opportunities due to different types of components that will be used in autonomous vehicles,” hardware market share is expected to drop in the coming years as "the adoption rate of autonomous vehicles increases."
Segmentation by region shows that North America is the leading arena in the autonomous vehicle market. Infoholic called it “an attractive destination for key stakeholders due to the availability of high-end infrastructure, rising investments from automakers, and government initiatives."
Also key will be the Asia Pacific region. China, India, and Japan are expected to lead that market for the next 6 to 8 years. The researchers pointed out that in India, “government bodies, too, are supporting electric vehicles. This is one of the major drivers for the growth of the autonomous vehicles market." However, Infoholic said the lack of adequate infrastructure may slow down the market in developing countries.
“The trending technology-- Artificial Intelligence (AI)-- will play a significant role in the autonomous vehicles era and the count of startups offering such services is expected to increase in [the] coming years,” noted Bhavya H., senior research analyst at Infoholic. “Partnerships and M&A strategies among the value chain players; security, services, suppliers, [and] software and hardware providers will ensure success for them.”