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Autonomous Vehicle Market Size - By Level of Autonomy, By Vehicle, By Fuel, By Application, By Sensor, Growth Forecast, 2026 - 2035
Report ID: GMI8218
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Published Date: December 2025
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Report Format: PDF
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Authors: Preeti Wadhwani, Satyam Jaiswal
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Base Year: 2024
Companies covered: 30
Tables & Figures: 150
Countries covered: 24
Pages: 230
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Autonomous Vehicle Market
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Autonomous Vehicle Market Size
The global autonomous vehicle market size was valued at USD 2.3 trillion in 2025. The market is expected to grow from USD 2.6 trillion in 2026 to USD 8.4 trillion in 2035 at a CAGR of 13.9%, according to latest report published by Global Market Insights Inc.
The global rise in road accidents and fatalities is motivating the development of autonomous vehicles (AVs). Autonomous vehicles provide the latest technology including advanced sensors, artificial intelligence and instantaneous decision-making to reduce human error and increase traffic safety. Governments and consumers are putting greater importance on safe mobility, driving increased adoption and innovation within the AV industry.
Advanced technologies including artificial intelligence, machine learning, LiDAR/radar/computer vision now allow for vehicles to understand, interpret, and act in complex traffic situations. These technological advances are driving the availability of AVs and making AVs safer, more dependable, more efficient and less expensive to operate on a global scale for commercial, passenger and shared mobility.
Many nations are enacting policies to back AV development with favorable conditions including subsidies; pilot programs; and regulatory frameworks that are conducive to research and development (R&D), automobile testing, and infrastructure upgrades. In addition to these supportive measures, the regulatory frameworks regarding safety guidelines will reduce barriers to entry and accelerate the adoption of self-driving technology.
The rise of Mobility-as-a-Service (MaaS) and ride-hailing platforms are creating significant demand for AV fleets. Because of their efficiency, scalability, and ability to operate 24/7, AVs are extremely attractive to companies operating in the ride-sharing industry. They can significantly reduce labor costs, optimize fleet utilization and enable companies to rapidly scale up their urban mobility options.
11% market share
Collective market share in 2024 is Collective market share in 2025 is 26%
Autonomous Vehicle Market Trends
Autonomous vehicles increasingly use artificial intelligence (AI) to make real-time decisions regarding navigation, obstacle avoidance and traffic management. The AI software utilizes machine learning models to analyze the vast amounts of data collected from vehicle sensors; thus, improving both safety and operational performance enabling autonomous vehicles to recognize and respond to changing external conditions, and utilize information from experience to create predictive models.
Vehicle-to-everything (V2X) technologies enable vehicles and infrastructure, such as traffic lights, and V2E vehicles, V2I, and V2V to work together to eliminate accidents, improve traffic management, and increase situational awareness. The expansion of V2X, along with improvements in smart traffic management systems, allows for the safe integration of autonomous fleets into busy urban areas.
The automotive and technology companies are moving towards developing fully autonomous vehicles (Level 4 and Level 5). These vehicles require no human assistance and can operate independently in all conditions, except in areas that the vehicle has determined are unsafe.
As the need for electric vehicle (EV) technology continues to rise, the pace of development has accelerated. Electric vehicles will offer a sustainable, lower-cost, and low-maintenance solution that supports the use of autonomous systems, for ride-hailing and delivery services. EVs reduce operational costs and emissions and help to drive increased scalability in alignment with environmental regulations and the goals of urban sustainability.
Autonomous Vehicle Market Analysis
Based on level of autonomy, the autonomous vehicle market is divided into level 1, level 2, level 3, level 4 and level 5. The level 1 segment dominated the market, accounting for 46% in 2025 and is expected to grow at a CAGR of over 13% through 2026 to 2035.
Based on vehicle, the autonomous vehicle market is segmented into passenger cars and commercial vehicles. Passenger cars segment dominates the market with 81% share in 2025, and the segment is expected to grow at a CAGR of 12.6% from 2026 to 2035.
Based on fuel, the autonomous vehicle market is segmented into ICE, electric and hybrid. The ICE segment dominates the market with 63% share in 2025, and the segment is expected to grow at a CAGR of 12.2% from 2026 to 2035.
Based on application, the autonomous vehicle market is segmented into personal transportation, public transportation, goods transportation, industrial applications and others. The personal transportation segment is expected to dominate the market with a share of 42% in 2025, driven by high reach, accessibility, and extensive capabilities.
The US autonomous vehicle market reached USD 410.2 billion in 2025, growing from USD 363.1 billion in 2024.
North America dominated the autonomous vehicle market with a market size of USD 486.8 billion in 2025.
Europe autonomous vehicle market accounted for a share of 16.1% and generated revenue of USD 376.4 billion in 2025.
Germany dominates the autonomous vehicle market, showcasing strong growth potential, with a CAGR of 13.4% from 2026 to 2035.
The Asia Pacific autonomous vehicle market is anticipated to grow at CAGR of 13.3% from 2026 to 2035 and generated revenue of USD 1.3 billion in 2025.
China autonomous vehicle market is estimated to grow with a CAGR of 13.7% from 2026 to 2035.
Latin America autonomous vehicle market shows lucrative growth over the forecast period.
Brazil autonomous vehicle market is estimated to grow with a CAGR of 10.3% from 2026 to 2035 and reach USD 80.6 billion by the end of 2035.
The Middle East and Africa autonomous vehicle market accounted for USD 62.5 billion in 2025 and is anticipated to show lucrative growth over the forecast period.
UAE market is expected to experience substantial growth in the Middle East and Africa transportation management system market, with a CAGR of 9.3% from 2026 to 2035.
Autonomous Vehicle Market Share
Autonomous Vehicle Market Companies
Major players operating in the autonomous vehicle industry are:
Autonomous Vehicle Industry News
The autonomous vehicle market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and shipments (units) from 2022 to 2035, for the following segments:
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Market, By Level of Autonomy
Market, By Vehicle
Market, By Fuel
Market, By Application
Market, By Sensor
The above information is provided for the following regions and countries: