Autonomous Cars Market Size

Autonomous Cars Market Size

Autonomous Cars Market size was valued at USD 1.55 trillion in 2022 and is anticipated to register a CAGR of 10.3% from 2023 to 2032, owing to an increased emphasis on vehicle safety and efficiency.

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Traffic fatalities and road accidents have witnessed a significant rise in recent years. According to the latest projections for traffic fatalities released by the National Highway Traffic Safety Administration, 42,795 people died in motor vehicle traffic crashes in 2022. Autonomous cars have the potential to significantly reduce road accidents caused by human errors and improve overall traffic efficiency, leading to increased demand from consumers, governments, and businesses. Moreover, increasing consumer awareness of autonomous vehicles' potential benefits, such as reduced stress during commutes and increased productivity, is driving interest in the autonomous cars market.

Companies offering ride-hailing and mobility services are keen on integrating autonomous vehicles into their fleets, reducing operational costs and increasing accessibility for users. Numerous companies have conducted pilot programs and extensive testing of autonomous vehicles, showcasing their potential and building public trust. For instance, Uber partnered with Aurora Innovation to launch an autonomous ride-hailing pilot program in Pittsburgh in 2022.

Likewise, in 2022, Lyft partnered with Motional, a joint venture between Aptiv and Hyundai, to launch an autonomous ride-hailing pilot program in Las Vegas. This, in line with the continuous development of artificial intelligence, sensor technology, and advanced computing systems, enabling the improvement of autonomous driving capabilities, and making self-driving cars more feasible and reliable, will propel autonomous cars market gains.

However, the increasing popularity of electric vehicles (EVs) has diverted attention and resources from autonomous vehicle development as companies focus on producing more EV models. Besides, the current technology required for autonomous driving, such as LiDAR sensors and advanced computing systems, can be expensive, making autonomous vehicles costly to produce and purchase, thus, impacting their adoption rate.