Autonomous or Driverless Cars Market Report 2025 (Global Edition)

Global Autonomous or Driverless Cars Market Report 2025 Market Size Split by Technology Types (Radar Sensors, LiDAR (Light Detection and Ranging), Ultrasonic Sensors, Cameras, GPS Systems, AI and Mach...

Autonomous or Driverless Cars Market Report Description

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Autonomous or Driverless Cars Market Insights Video

Competitive Landscape of the Driverless Cars Market

The competitive landscape of the driverless cars market is characterized by collaboration among automotive manufacturers, technology companies, and startups. Key players include Tesla, Waymo, Uber, and Ford, all investing heavily in research and development to enhance autonomous capabilities. Partnerships between traditional automakers and tech firms, like General Motors and Cruise, are increasingly common. The market is also witnessing the emergence of innovative startups focusing on specific technologies such as AI, sensor systems, and software solutions, intensifying competition and driving technological advancements.

In Dec 2023, Mercedes-Benz announced that the company received approval from regulators in California and Nevada to utilize turquoise-colored exterior marker lights on vehicles equipped with its Drive Pilot SAE Level 3 automated driving feature. The lights, integrated into test vehicles, are designed to alert other road users that a vehicle is operating in autonomous mode. (Source: https://www.automotivedive.com/news/mercedes-benz-drive-pilot-torquise-colored-lights-autonomous-driving/703245/) In April 2024, DiDi announced that the company is developing its self-driving taxis and plans to roll them out in 2025 on its ride-hailing service. DiDi also introduced two pieces of hardware focused on autonomous driving. The company was first co-developed with Chinese technology firm Benewake and is called DiDi Beiyao Beta LiDAR. (Source: https://asia.nikkei.com/Spotlight/Electric-cars-in-China/China-s-Didi-GAC-to-roll-out-self-driving-EV-robotaxis#:~:text=Andi%20expects%20to%20begin%20mass,in%20a%20press%20release%20Sunday.) In Jan 2022, Volvo introduced the autonomous driving feature Ride Pilot to its customers in California. Ride Pilot will be accessible as an add-on subscription on the company’s upcoming fully electric models. The autonomous driving software company Zeneact with the help of Volvo Cars’ team of developers along with developers of Luminar has developed this software. The set-up consists of sensors, including Luminar’s cutting-edge Iris LiDAR sensor, which works with the developed software. (Source: https://www.media.volvocars.com/global/en-gb/media/pressreleases/292917/volvo-cars-unsupervised-autonomous-driving-feature-ride-pilot-to-debut-in-california)

Top Companies Market Share in Autonomous or Driverless Cars Industry: (In no particular order of Rank)

• General Motors (US)
• Ford (US)
• Daimler (Germany)
• Volkswagen (Germany)
• Toyota (Japan)
• Waymo (US)
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Regional Analysis of the Driverless Cars Market

Which Region Dominates the Driverless Cars Market in 2024?

According to Cognitive Market Research, North America is anticipated to dominate the driverless cars market in 2024, driven by significant technological advancements and substantial investments in autonomous vehicle development. The presence of leading automotive manufacturers and tech companies, such as Tesla, Waymo, and Ford, bolsters innovation in the region. Furthermore, supportive government policies and regulations encourage the deployment of autonomous vehicles, enhancing infrastructure to accommodate this technology. Consumer acceptance is also increasing due to heightened awareness of the safety and efficiency benefits associated with driverless cars. With a robust ecosystem that fosters collaboration between various stakeholders, North America is positioned to maintain its leadership in the rapidly evolving driverless cars market.

Which Region is Expanding at the Fastest CAGR?

The Asia-Pacific region is experiencing the fastest compound annual growth rate (CAGR) in the driverless cars market. This expansion is fueled by rapid urbanization, increasing population density, and a growing demand for advanced transportation solutions. Countries such as China and Japan are at the forefront, investing heavily in autonomous vehicle technology and infrastructure development. Government initiatives promoting electric vehicles and smart city projects further accelerate market growth in this region. Additionally, a rising middle class with increasing disposable income drives consumer interest in innovative mobility solutions. With strong investments in research and development, the Asia-Pacific region is well-positioned to emerge as a leader in the driverless cars market, reflecting its dynamic economic landscape.

The current report Scope analyzes Autonomous or Driverless Cars Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Netherlands, Switzerland, Belgium)
• Asia-Pacific (China, Japan, Korea, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest of APAC)
• South America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East and Africa (Saudi Arabia, Turkey, Nigeria, UAE, Egypt, South Africa, GCC Countries, Rest of MEA)

The above graph is for illustrative purposes only.

North America Autonomous or Driverless Cars

According to Cognitive Market Research, the global Driverless Cars market size was estimated at USD 1954.2 Million, out of which North America held the major market share of more than 40% of the global revenue with a market size of USD 781.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 41.4% from 2024 to 2031.

• According to Cognitive Market Research, the US had a major share in the Driverless Cars market with a market size of USD 616.75 million in 2024 and is projected to grow at a CAGR of 41.2% during the forecast period. The US benefits from substantial investments in autonomous technology and a favorable regulatory environment that encourages innovation.
• The Canada Driverless Cars market had a market share of USD 93.80 million in 2024 and is projected to grow at a CAGR of 42.2% during the forecast period. Canada's strong focus on sustainability and electric vehicle adoption drives the growth of the driverless cars market.
• The Mexico Driverless Cars market is projected to witness growth at a CAGR of 41.9% during the forecast period, with a market size of USD 71.13 million in 2024.

Europe Autonomous or Driverless Cars

According to Cognitive Market Research, the global Driverless Cars market size was estimated at USD 1954.2 Million, out of which Europe held the market share of more than 30% of the global revenue with a market size of USD 586.26 million in 2024 and will grow at a compound annual growth rate (CAGR) of 440.4% from 2024 to 2031.

• The United Kingdom Driverless Cars market had a market share of USD 98.49 million in 2024 and is projected to grow at a CAGR of 441.2% during the forecast period. The UK is advancing in driverless technology due to government support and a commitment to developing smart transportation solutions.
• The France Driverless Cars market is projected to witness growth at a CAGR of 40.9% during the forecast period, with a market size of USD 53.94 million in 2024.
• According to Cognitive Market Research, the German Driverless Cars market size was valued at USD 116.08 million in 2024 and is projected to grow at a CAGR of 41.9% during the forecast period. Germany's automotive industry is rapidly evolving with investments in autonomous vehicle technology and a robust manufacturing infrastructure.
• The Italy Driverless Cars market is projected to witness growth at a CAGR of 41.1% during the forecast period, with a market size of USD 50.42 million in 2024.
• The Russia Driverless Cars market is projected to witness growth at a CAGR of 40.7% during the forecast period, with a market size of USD 90.87 million in 2024.
• The Spain Driverless Cars market is projected to witness growth at a CAGR of 40.8% during the forecast period with a market size of USD 48.07 million in 2024
• The Luxembourg Driverless Cars market is projected to witness growth at a CAGR of 41.8% during the forecast period, with a market size of USD 18.17 million in 2024.
• The Portugal Driverless Cars market is projected to witness growth at a CAGR of 41.5% during the forecast period, with a market size of USD 12.31 million in 2024.
• The Greece Driverless Cars market is projected to witness growth at a CAGR of 440.7% during the forecast period, with a market size of USD 7.04 million in 2024.
• The Rest of Europe's Driverless Cars market is projected to witness growth at a CAGR of 40.4% during the forecast period, with a market size of USD 90.87 million in 2024.

Asia Pacific Autonomous or Driverless Cars

According to Cognitive Market Research, the global Driverless Cars market size was estimated at USD 1954.2 Million, out of which Asia Pacific held the market share of around 23% of the global revenue with a market size of USD 449.47 million in 2024 and will grow at a compound annual growth rate (CAGR) of 443.9% from 2024 to 2031.

• According to Cognitive Market Research, the China Driverless Cars market size was valued at USD 202.26 million in 2024 and is projected to grow at a CAGR of 44.7% during the forecast period. China's rapid urbanization and government initiatives to develop smart cities are significant growth factors for the driverless cars market.
• The Japan Driverless Cars market is projected to witness growth at a CAGR of 43.7% during the forecast period, with a market size of USD 62.03 million in 2024.
• The India Driverless Cars market had a market share of USD 53.94 million in 2024 and is projected to grow at a CAGR of 47.0% during the forecast period. India's growing urban population and demand for efficient transportation solutions are propelling the adoption of autonomous vehicles.
• The South Korean Driverless Cars market is projected to witness growth at a CAGR of 44.3% during the forecast period, with a market size of USD 44.95 million in 2024.
• The Australian Driverless Cars market is projected to witness growth at a CAGR of 44.9% during the forecast period, with a market size of USD 23.37 million in 2024.
• The South East Asia Driverless Cars market is projected to witness growth at a CAGR of 444.9% during the forecast period, with a market size of USD 31.01 million in 2024.
• The Rest of Asia Pacific Driverless Cars market is projected to witness growth at a CAGR of 45.0% during the forecast period, with a market size of USD 31.91 million in 2024.

South America Autonomous or Driverless Cars

According to Cognitive Market Research, the global Driverless Cars market size was estimated at USD 1954.2 Million, out of which the Latin America held the market share of around 5% of the global revenue with a market size of USD 97.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 42.6% from 2024 to 2031.

• According to Cognitive Market Research, the Brazil Driverless Cars market size was valued at USD 41.82 million in 2024 and is projected to grow at a CAGR of 43.2% during the forecast period. Brazil's increasing interest in innovative mobility solutions and urban congestion issues drive the development of the driverless cars market.
• Argentina's Driverless Cars market had a market share of USD 16.42 million in 2024 and is projected to grow at a CAGR of 442.2% during the forecast period. Argentina's focus on improving urban transportation systems and reducing traffic congestion supports the growth of autonomous vehicles.
• Colombia Driverless Cars market is projected to witness growth at a CAGR of 441.1% during the forecast period, with a market size of USD 8.70 million in 2024.
• Peru Driverless Cars market is projected to witness growth at a CAGR of 441.5% during the forecast period, with a market size of USD 8.01 million in 2024.
• Chile Driverless Cars market is projected to witness growth at a CAGR of 42.9% during the forecast period, with a market size of USD 7.04 million in 2024.
• The Rest of Latin America's Driverless Cars market is projected to witness growth at a CAGR of 440.4% during the forecast period, with a market size of USD 15.73 million in 2024.

Middle East and Africa Autonomous or Driverless Cars

According to Cognitive Market Research, the global Driverless Cars market size was estimated at USD 1954.2 Million, out of which the Middle East and Africa held the major market share of around 2% of the global revenue with a market size of USD 39.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 42.9% from 2024 to 2031..

• The GCC Countries Driverless Cars market is projected to witness growth at a CAGR of 43.7% during the forecast period, with a market size of USD 16.73 million in 2024. The Gulf Cooperation Council (GCC) region is expanding in driverless cars due to significant investments in infrastructure and smart city projects.
• The Egypt Driverless Cars market is projected to witness growth at a CAGR of 43.2% during the forecast period, with a market size of USD 4.10 million in 2024.
• The South Africa Driverless Cars market is projected to witness growth at a CAGR of 43.9% during the forecast period, with a market size of USD 6.18 million in 2024. South Africa's growing interest in sustainable transportation options and infrastructure development is fostering growth in the driverless cars market..
• The Turkey Driverless Cars market is projected to witness growth at a CAGR of 441.1% during the forecast period, with a market size of USD 3.36 million in 2024.
• The Nigeria Driverless Cars market is projected to witness growth at a CAGR of 440.7% during the forecast period, with a market size of USD 4.10 million in 2024.
• The Rest of the MEA Driverless Cars market is projected to witness growth at a CAGR of 41.9% during the forecast period, with a market size of USD 4.61 million in 2024.

Autonomous or Driverless Cars Market Analysis

Driverless Cars Market Application Segment Analysis

According to Cognitive Market Research, The transportation and logistics segment represents the largest application in the driverless cars market. This segment encompasses the use of autonomous vehicles for freight and goods delivery, which enhances efficiency and reduces operational costs. With the rise of e-commerce, the demand for fast and reliable delivery solutions has surged, prompting companies to adopt autonomous technology. Driverless trucks and delivery vans optimize routes, minimize delays, and reduce labor costs associated with traditional logistics. Furthermore, the integration of autonomous vehicles into supply chains ensures timely deliveries, thereby improving customer satisfaction. As major logistics companies invest in automation, this segment is poised for sustained growth, reinforcing its significance within the broader driverless cars market.

The ride-hailing services segment is the fastest-growing application within the driverless cars market, driven by shifting consumer preferences and advancements in technology. With the increasing popularity of ride-hailing platforms like Uber and Lyft, integrating autonomous vehicles offers a compelling solution to enhance service efficiency and reduce operational costs. Consumers are increasingly seeking convenient, on-demand transportation options, which driverless vehicles can effectively provide. The potential for reduced fares, combined with improved safety and comfort, makes this segment highly attractive to both service providers and users. As investments in autonomous technology continue to accelerate, the ride-hailing services segment is expected to experience remarkable growth, reflecting the evolving landscape of urban mobility and transportation preferences.

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Driverless Cars Market Technology Types Segment Analysis

According to Cognitive Market Research, The driverless cars market comprises several technology types, including radar sensors, LiDAR, ultrasonic sensors, cameras, GPS systems, and AI and machine learning systems. Among these segments, AI and machine learning systems stand out as the largest segment, driving significant advancements in vehicle autonomy. These technologies enable vehicles to process vast amounts of data from various sensors, facilitating real-time decision-making and enhancing overall safety. The integration of AI allows for continuous learning, whereby vehicles improve their performance over time through exposure to diverse driving conditions. As the backbone of autonomous systems, AI and machine learning are indispensable in refining vehicle navigation and perception capabilities, ultimately shaping the future of driverless transportation.

The fastest-growing segment within the driverless cars market is LiDAR (Light Detection and Ranging) technology. LiDAR offers high-resolution 3D mapping and accurate distance measurement, which are crucial for the safe navigation of autonomous vehicles. This technology excels in providing detailed environmental data, enabling vehicles to identify obstacles and understand their surroundings in real-time. As manufacturers recognize the importance of precise perception systems for enhancing safety and reliability, investments in LiDAR technology are increasing. This growth is further fueled by the rising demand for advanced autonomous features in both passenger and commercial vehicles. The ability of LiDAR to operate effectively in various lighting and weather conditions solidifies its position as a key player in the ongoing evolution of driverless technology.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Autonomous or Driverless Cars Level of Autonomy Segment Analysis

Driverless Cars Market Level of Autonomy Segment Analysis

According to Cognitive Market Research, The driverless cars market is segmented by levels of autonomy, ranging from Level 1 to Level 5. Level 1, which includes driver assistance technologies, is characterized by features such as adaptive cruise control and lane-keeping assistance. Level 2, known as partial automation, enables the vehicle to control both steering and acceleration but requires human supervision. Level 3 represents conditional automation, where the vehicle can handle certain driving tasks but expects the driver to take control when prompted. Level 4 offers high automation, allowing vehicles to operate independently in specific environments without human intervention. The largest segment, Level 2, is popular due to its widespread availability in modern vehicles, appealing to consumers seeking enhanced safety without relinquishing full control.

The fastest-growing segment is Level 4 automation, driven by advancements in technology and increasing consumer demand for fully autonomous driving experiences. As manufacturers continue to develop sophisticated AI and sensor systems, the capability of vehicles to navigate complex environments autonomously becomes more viable. This level of autonomy is particularly appealing for applications in public transport and logistics, where efficiency and reliability are paramount. With governments actively investing in the necessary infrastructure to support high-automation vehicles, the market is set to expand significantly. The combination of consumer interest and technological advancements positions Level 4 automation as a dynamic segment poised for remarkable growth in the coming years.

• Level 1: Driver Assistance
• Level 2: Partial Automation
• Level 3: Conditional Automation
• Level 4: High Automation
• Level 5: Full Automation

Autonomous or Driverless Cars Vehicle Technology Type Segment Analysis

Driverless Cars Market Vehicle Technology Type Segment Analysis

According to Cognitive Market Research, The passenger vehicles segment dominates the driverless cars market, reflecting the increasing consumer preference for personal mobility solutions. As urbanization accelerates, individuals seek efficient and convenient transportation options that enhance their daily commuting experience. Passenger vehicles equipped with autonomous technology offer a seamless blend of comfort, safety, and innovation, making them appealing to a broad audience. Major automotive manufacturers are investing heavily in developing advanced driver-assistance systems (ADAS) and fully autonomous capabilities, further propelling this segment. The growing trend of car-sharing services and ride-hailing platforms also contributes to the expansion of passenger vehicles in the driverless market. As consumers become more aware of the benefits of autonomous technology, the demand for passenger vehicles is expected to continue thriving, cementing its position as the largest segment.

The electric vehicles (EVs) segment is poised to experience the fastest growth within the driverless cars market, driven by a confluence of environmental awareness and technological advancements. Increasing concerns about climate change and air quality are pushing consumers and governments alike to embrace cleaner transportation options. Autonomous electric vehicles combine the advantages of zero emissions with cutting-edge technology, appealing to eco-conscious consumers. With many governments implementing incentives for EV adoption, the market landscape is becoming increasingly favorable for electric driverless cars. Major automakers are rapidly developing models that integrate both autonomous and electric technologies, creating a compelling value proposition. As infrastructure for charging and maintenance improves, the EV segment is set to capture significant market share, reflecting a shift towards sustainable mobility solutions.

• Passenger Vehicles
• Commercial Vehicles
• Light Commercial Vehicles (LCVs)
• Heavy Commercial Vehicles (HCVs)
• Electric Vehicles (EVs)
• Hybrid Vehicles

Autonomous or Driverless Cars Component Segment Analysis

Driverless Cars Market Component Segment Analysis

According to Cognitive Market Research, The hardware segment represents the largest component in the driverless cars market, encompassing various essential technologies that enable autonomous functionality. Key components include sensors, cameras, and control systems that facilitate real-time data processing and decision-making. Radar and LiDAR systems play a pivotal role in detecting obstacles and navigating environments, while onboard computing systems are critical for processing vast amounts of information from various sources. The continuous advancements in hardware technology are driving improvements in accuracy and reliability, enhancing the overall safety of autonomous vehicles. With automakers and technology companies investing significantly in research and development, the hardware segment is well-positioned for sustained growth, reflecting the increasing complexity and capabilities of driverless systems.

The software segment is emerging as the fastest-growing component in the driverless cars market, driven by innovations in artificial intelligence and machine learning. Software solutions enable vehicles to analyze data from multiple sensors, improving their ability to navigate complex environments and make informed decisions. This segment includes algorithms for perception, path planning, and control, which are crucial for ensuring the safe operation of autonomous vehicles. As technology evolves, the demand for advanced software solutions that enhance vehicle performance and safety increases. Furthermore, the integration of cloud computing and data analytics into software development allows for continuous improvement and real-time updates, accelerating the growth of this segment. The increasing focus on smart transportation solutions positions software as a vital driver of the autonomous vehicle market's evolution.

• Hardware
• Software
• Services

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Sumedha Gosavi

Research Associate at Cognitive Market Research

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