Ultra Cruise & City-Street Autonomous Driving Market Size, By Autonomy Level, By Operational Design Domain, By Vehicle, By Sensor Technology, By End Use, Growth Forecast, 2026 – 2035

Ultra Cruise & City-Street Autonomous Driving Market Size

The global ultra cruise & city-street autonomous driving market was estimated at USD 31.48 billion in 2025. The market is expected to grow from USD 41.79 billion in 2026 to USD 169.65 billion in 2035, at a CAGR of 16.8%, according to latest report published by Global Market Insights Inc.

The deployment of sophisticated hands-free driving and city-street self-driving features is changing the architecture of vehicles, their software development, and mobility applications. Projects like Ultra Cruise represent an important step in the evolution of the use of traditional ADAS to a new level of autonomy where vehicles are allowed to travel on highways and in cities under the guidance of a human operator. This shift is pushing OEMs to abandon feature-based assistance in favor of adaptive, software defined driving systems.
 

In January 2025, NVIDIA announced new automotive AI computing architectures and simulation frameworks, to accelerate perception, planning and decision making in city-street autonomous driving and signified the increasing compute and AI density of Ultra Cruise-class systems.
 

The complexity of urban driving, such as high traffic congestion, unpredictability of pedestrian actions, and diverse infrastructures are putting strains on the advanced city-street autonomous capabilities. Features such as Ultra Cruise are built-in with multi-sensor fusion, real time monitoring and high-performance computation to control intersections, traffic lights, and lane merges successfully. Since vehicles drive under specific operational design domains (ODDs), this type of technologies is necessary to expand autonomous functionalities beyond highway scenarios by OEMs.
 

The development of scalable autonomy stacks is also accelerating with the heavy investment made by automakers and technology providers in consumer-friendly solutions. In contrast to robotaxi platforms, Ultra Cruise and others focus on guaranteeing reliability, driving engagement, and expanding autonomy in small steps via over-the-air updates. Rapid iterations, increasing system reliability, and lowering the cost of development in the long term are becoming possible by continuous software improvements and the integration of real-world data.
 

Innovations in strategic alliances throughout the automotive ecosystem are accelerating adoption. OEMs are cooperating with semiconductor firms, mapping providers, cloud infrastructure solutions providers, and software experts to combine sensing, computing, localization and decision-making technologies into production-ready systems. Such partnerships simplify integration of the systems, share the cost of development, and align them with ever-changing safety and cybersecurity requirements. There are further improvements in the commercial potential of city-street autonomous platforms through subscription-based features and software licensing models.
 

The post-pandemic shift toward digital engineering and distributed development has solidified the embrace of software-centric autonomy platforms. Connected environments and remote fleet tracking permits the OEMs to distribute and improve autonomous systems on city-streets in various regions at once. To enhance road safety and efficiency, regulatory organizations are favoring monitored autonomy to enhance the deployment of hands-free functions as a bridge to greater levels of automation.
 

North America and Europe are two of the most competitive markets to Ultra Cruise and city-street autonomy because of high ADAS penetration, up-market vehicle demand, and well-established safety behaviors. In such areas, the autonomy of streets of the city is directly connected to the monitoring of drivers, liability concerns, and software updates, which make such high-quality autonomy packages very sought-after. These capabilities are being used by the OEMs as a competitive differentiator and revenue-generating software feature.
 

Asia-Pacific is an emerging market that is growing fast and has been driven by urban density, rapid electrification, and government-supported smart mobility programs. Chinese, Japanese and South Korean car manufacturers are introducing city-street autonomous functions into the mass-market and luxury cars to tackle the problems of congestion and safety in megacities. The experience of AI, semiconductor manufacturing, and vehicle production in the region make it a prime location for cost-effective scaling and autonomous driving systems that compete on a global level.

Ultra Cruise & City-Street Autonomous Driving Market Trends

Ultra cruise & city-street autonomous driving market will undergo a strategic change as highway-only hands-free systems are being replaced by urban capable autonomy. The urban settings demand managing crossroads, traffic lights, pedestrians, cyclists and high-density mixed traffic. OEMs are also investing in new high-perception, localization and decision-making software to allow safe performance in the complex and real world urban driving environment.
 

In January 2026, Mercedes-Benz declared that they would launch the new advanced driver-assistance technology with the ability to operate autonomously, driven by the human, in urban streets and navigate intersections, traffic lights, and other urban routes indicating OEM movement beyond highway-only systems into urban capabilities.
 

Satellite Radio System Software A new generation of Ultra Cruise systems is being designed as software-defined vehicle architecture, as opposed to fixed hardware capabilities. OEMs are facilitating continuous performance enhancement by providing over-the-air updates so that new performance of autonomy can be unlocked even after the purchase. The trend supports monetization models that rely on subscriptions and prolong the commercial life of autonomous driving technologies besides cutting hardware replacement cycles.
 

The autonomous driving in City Street requires high reliability in various and unpredictable situations, which leads to the usage of multi-sensor fusion architectures. OEMs integrating cameras, radar, LiDAR and high-definition maps to form redundant perception systems. The benefit of this method is that it will enhance the accuracy of detection, system robustness, and safer operation during low visibility, unfavorable weather conditions, and urban traffic conditions.
 

Governmental authorities are putting more focus on controlled independence, driver surveillance systems, demarcation of roles, and safety nets. In the case of autonomous driving in a city street, compliance is associated with extensive validation, safety case reports and real-world performance reports. This is the direction that is informing deployment plans to stepwise autonomy as opposed to large-scale implementation of fully driverless systems.
 

OEMs are using big data simulation and real-world fleet data to hasten the creation of systems that can autonomously drive in the city street. Millions of driving situations can be checked efficiently with the help of virtual testing and constant enhancement by use is made possible through fleet learning. Such data-driven methodology minimized risk of development, decreased the time of iteration and enhanced system safety and reliability.
 

Ultra Cruise & City-Street Autonomous Driving Market Analysis

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Based on autonomy level, the market is divided into Level 2 ADAS, and Level 3 ADAS. The Level 2 ADAS segment dominated the ultra cruise & city-street autonomous driving market, accounting for around 65% in 2025 and is expected to grow at a CAGR of more than 16.5% through 2035.
 

• The Ultra Cruise & City-Street Autonomous Driving industry is largely dominated by Level 2 ADAS due to the balance it offers between advanced functionality and regulatory feasibility. Level 2 systems allow fully driverless or semi-autonomous operation with the supervision of the driver without the actual reclassification of the driver and hence they are easier to use by the OEMs in many different regions. Current laws, liability structures, and safety certification systems follow supervised autonomy, and their commercialization is quicker than the increased levels of autonomy.
   

• Additionally, Level 2 ADAS is in line with the existing technological preparedness and cost models. The sensor fusion, AI perception, and onboard compute is sufficiently developed to enable trustworthy city-street features like lane centering, adaptive cruise, and traffic management on a large scale. OEMs can be able to generate monetary profits through software upgrading and subscriptions and keep on optimizing the performance through over-the-air updates which strengthens Level 2 control.
   
• For example, in October 2025, General Motors stated it would roll out an eyes-off, hands-off driving system by 2028, which would combine Cruise simulation and AI models trained on millions of miles of data and move beyond Level-2 systems, indicating the company still invests in autonomous driving technology.
   
• The Level 3 ADAS segment is expected to witness a CAGR of over 17.4% during the forecast period, driven by increasing regulatory approvals for conditional automation, OEM launches of certified Level 3 systems in premium vehicles, and growing consumer demand for hands-off driving in controlled highway and traffic-jam scenarios. Advancements in sensor redundancy, AI-based perception, and driver fallback systems are further accelerating commercialization, particularly in Europe, Japan, and select U.S. states.
   

Based on operational design domain, the ultra cruise & city-street autonomous driving market is segmented into highway-only systems city-street capable systems, and comprehensive / door-to-door systems. The city-street capable systems segment dominates the market accounting for around 48% share in 2025, and the segment is expected to grow at a CAGR of over 17.8% from 2026-2035.
 

• The ultra cruise & city-street autonomous driving industry is dominated by the city-street capable systems segment due to their ability to address real-world driving conditions where most daily vehicle usage occurs. Urban environments involve frequent stops, intersections, pedestrians, cyclists, and mixed traffic, making city-street automation significantly more valuable than highway-only autonomy. Consumers increasingly prioritize features that reduce driving stress in congested city traffic, parking situations, and short-distance commuting, and driving higher adoption of city-capable systems.
   

• In addition, OEMs are focusing development efforts on scalable urban autonomy platforms that combine advanced ADAS, AI-based perception, and high-definition mapping. These systems offer broader use cases, stronger safety differentiation, and monetization potential through software upgrades and subscriptions. Regulatory bodies are also more receptive to supervised city-street automation, supporting faster deployment compared to higher-level autonomous solutions.
   

• For example, in January 2026, Mercedes-Benz announced it will launch an advanced driver-assistance system in the United States this year that lets vehicles navigate city streets, intersections, traffic lights, and turns under supervision, illustrating growing OEM focus on city-street autonomy beyond highway driving.
   

Based on Vehicle, the global market is divided into passenger cars and commercial vehicle. The passenger car segment held the major market share in 2025. 
 

• The passenger cars segment is the largest market segment in the ultra cruise & city-street autonomous driving market because passenger vehicles account for the highest global production volumes and are the primary focus of OEM innovation in advanced driver assistance and supervised autonomy. Automakers are prioritizing passenger cars, especially premium and upper-mid segments—as early adopters of city-street autonomous features to enhance comfort, safety, and brand differentiation. These vehicles are more likely to integrate high-performance sensors, AI compute platforms, and driver monitoring systems required for complex urban driving scenarios.
   
• In addition, consumer demand for convenience-driven mobility, daily urban commuting, and hands-free driving experiences is strongest in passenger cars. City-street autonomy directly addresses stop-and-go traffic, intersections, and parking use cases common to personal vehicles, making the value proposition clearer and accelerating adoption compared to commercial or fleet segments.
   
• For example, in January 2026, Waymo expanded its autonomous passenger service to include operations at San Francisco International Airport, enabling travelers to be picked up and dropped off by autonomous vehicles, highlighting how deployment of autonomous capabilities in passenger-oriented services continues to accelerate commercial acceptance of city-street automation.
   
• The commercial vehicle segment is expected to grow with a CAGR of more than 17.6% due to the rising demand for efficiency, safety, and cost optimization in logistics, freight, and urban mobility operations. Fleet operators are increasingly adopting city-street autonomous and advanced ADAS features to reduce driver fatigue, lower accident rates, and ensure predictable delivery timelines, especially in dense urban environments. Autonomous driving technologies also help address persistent driver shortages across trucking, last-mile delivery, and public transport sectors.
   

Based on sensor technology, the ultra cruise & city-street autonomous driving market is divided into camera-based systems, radar-based systems, lidar-enabled systems, and multi-sensor fusion systems. The multi-sensor fusion systems segment dominated the market.
 

• The multi-sensor fusion systems segment dominates the ultra cruise & city-street autonomous driving industry due to its ability to deliver robust, reliable, and redundant perception in complex urban driving environments. City-street autonomy requires accurate detection of pedestrians, cyclists, vehicles, traffic signals, and road boundaries under varying lighting, weather, and traffic conditions. By combining data from cameras, radar, LiDAR, ultrasonic sensors, and GPS, sensor fusion overcomes the limitations of any single sensor and improves situational awareness.
   
• Moreover, multi-sensor fusion enhances functional safety and system reliability, which are critical for supervised autonomous driving deployments. OEMs and regulators favor fusion-based architectures as they support fail-operational performance, advanced object classification, and smoother decision-making in edge-case scenarios. As Ultra Cruise and city-street systems expand beyond highways into dense urban settings, fusion-centric perception stacks have become the foundational technology, driving their dominance across vehicle platforms.
   
• The LiDAR-enabled systems segment is projected to grow at a CAGR of over 19.4%, driven by increasing adoption in advanced driver-assistance systems (ADAS) and autonomous vehicles. LiDAR provides high-resolution, accurate 3D mapping and object detection, enhancing safety and navigation. Rising demand for fully autonomous driving, urban mobility solutions, and robust sensing technologies is further accelerating market growth.
   

US dominated the ultra cruise & city-street autonomous driving market in North America with around 85% share and generated USD 9.2 billion in revenue in 2025.
 

• The U.S. market is experiencing robust growth due to rapid advances in ADAS and supervised autonomous technologies, supported by strong OEM investment and a mature software-defined vehicle ecosystem. Leading automakers are expanding hands-free driving from highways into urban streets, enabled by AI-driven perception, high-definition mapping, and over-the-air software upgrades that continuously enhance system performance.
   
• Additionally, favorable regulatory progress, large-scale real-world testing programs, and high consumer adoption of premium driver assistance features are accelerating market momentum. The U.S. benefits from well-developed digital infrastructure, strong Tier-1 supplier capabilities, and extensive data availability from connected vehicle fleets. These factors collectively position the country as a global innovation hub for city-street autonomous driving commercialization and validation.
   
• For instance, in January 2026, a U.S. House committee held hearings on legislation aimed at making it easier to deploy autonomous vehicles without human controls, signaling stronger policy support for self-driving technologies in the United States.
   
• Canada is projected to grow at a significant CAGR of 18.5% in the ultra cruise & city-street autonomous driving market due to its strong regulatory openness toward autonomous vehicle testing and deployment, combined with government-backed smart mobility and connected vehicle initiatives. Federal and provincial authorities actively support AV pilots, encouraging OEMs and technology providers to validate city-street autonomy under diverse real-world conditions.
   

The ultra cruise & city-street autonomous driving industry in Germany is expected to experience significant and promising growth from 2026 to 2035.
 

• Europe accounts for over 19% of the market in 2025 and is expected to grow at a CAGR of around 13.3% due to its strong regulatory leadership, early commercialization of Level-3 systems, and high penetration of premium vehicles equipped with advanced ADAS. The region benefits from harmonized UNECE regulations, particularly WP.29, which provide a clear legal framework for supervised autonomous driving deployment.
   
• Germany is a strong ultra cruise & city-street autonomous driving market leader due to its early regulatory clarity, advanced automotive engineering ecosystem, and leadership in Level-3 autonomy commercialization. Germany was the first country to legalize Level-3 automated driving on public roads, enabling OEMs to move from pilot testing to real-world deployment, particularly in highway and urban traffic scenarios.
   
• The presence of global OEMs such as Mercedes-Benz, BMW, Volkswagen, and Audi, alongside Tier-1 suppliers like Bosch, Continental, and ZF, accelerates innovation in city-street autonomy, sensor fusion, and AI software validation. Strong government-backed R&D funding, dense urban testing environments, and integration with smart infrastructure further reinforce Germany’s leadership in Ultra Cruise and city-street autonomous driving development.
   
• For instance, in March 2025, Mercedes‑Benz received nationwide approval in Germany to test special marker lights for conditionally automated driving vehicles, marking one of the first regulatory accommodations in Europe designed specifically for Level 3 autonomous operation signaling.
   
• The UK is emerging as a strong growth market for Ultra Cruise & City-Street Autonomous Driving due to its proactive regulatory framework, including the Automated and Electric Vehicles Act, which encourages testing and deployment of autonomous systems on public roads. Government-backed initiatives such as the Centre for Connected and Autonomous Vehicles (CCAV) promote innovation and investment in ADAS and city-street autonomy.
   

The ultra cruise & city-street autonomous driving market in China is expected to experience significant and promising growth from 2026-2035.
 

• Asia Pacific accounts for over 43% of the ultra cruise & city-street autonomous driving industry in 2025 and is expected to grow at a CAGR of around 42% between 2026 and 2035 owing to rapid adoption of electric vehicles, strong government support for autonomous mobility programs, and substantial investments in smart city infrastructure. China, Japan, and South Korea are leading the charge, with advanced urban traffic management systems, high-density road networks, and supportive regulatory frameworks enabling large-scale deployment of Level 2 and Level 3 autonomous systems.
   
• China is the market leader in the ultra cruise & city-street autonomous driving segment due to its aggressive investment in autonomous mobility, supportive government policies, and rapid adoption of electric vehicles integrated with advanced driver-assistance systems. National programs like the New Energy Vehicle (NEV) strategy and the Intelligent and Connected Vehicles (ICV) roadmap provide strong regulatory and financial support for both OEMs and technology startups, fostering large-scale testing and deployment of city-street autonomous driving technologies.
   
• Additionally, China’s dense urban traffic, advanced 5G infrastructure, and collaboration between domestic tech giants such as Baidu, XPeng, and NIO accelerate innovation in AI-based perception, multi-sensor fusion, and high-definition mapping. Pilot projects in cities like Beijing, Shanghai, and Shenzhen, combined with strategic partnerships between automakers and software providers, reinforce China’s leadership position in the global Ultra Cruise and city-street autonomous driving market.
   
• For instance, in October 2025, GM revealed plans to launch “eyes‑off” self‑driving capability and advanced conversational AI, highlighting next‑gen automation and AI integration in Cadillac models by 2028, reflecting deepening autonomy technology investment by a major OEM.
   
• India is emerging as a fast-growing market for Ultra Cruise & City-Street Autonomous Driving due to rapid adoption of connected vehicles, rising EV penetration, and government initiatives promoting smart mobility and autonomous vehicle testing. Growing urbanization, advanced sensor technology integration, and supportive regulatory frameworks are accelerating market expansion across the country.
   

The ultra cruise & city-street autonomous driving market in Brazil is expected to experience significant and promising growth from 2026 to 2035.
 

• Latin America holds around 3% of the market in 2025 and is growing steadily at a CAGR of around 11.3% between 2026 and 2035 due to increasing urbanization, rising demand for connected and electric vehicles, and investments in smart city and mobility infrastructure. Countries like Brazil and Mexico are promoting autonomous vehicle pilot programs, encouraging adoption and technology integration across the region.
   
• Brazil dominates the ultra cruise & city-street autonomous driving market in Latin America due to its strong automotive industry, rapid adoption of advanced driver-assistance systems (ADAS), and increasing focus on connected and electric vehicles. Major OEMs and Tier‑1 suppliers are investing in pilot programs and collaborations to test and deploy city-street autonomous technologies in urban areas, leveraging Brazil’s high vehicle density and growing smart infrastructure initiatives. The government is also supporting autonomous driving through regulatory frameworks, road safety initiatives, and incentives for innovation, positioning the country as a regional hub for AV deployment.
   
• Additionally, Brazil’s expanding urbanization and mobility challenges drive demand for automated solutions to reduce traffic congestion and improve road safety. Investments in sensor technologies, AI-driven software, and V2X communication systems enabling large-scale testing and integration of Ultra Cruise and city-street autonomous features. With strategic collaborations between local OEMs, technology providers, and international partners, Brazil is emerging as the leader in Latin America, shaping market trends and setting the stage for future growth across the region.
   
• For example, in October 2025, ZF began production of smart front cameras in Brazil, expanding local manufacturing of advanced ADAS components such as cameras with traffic sign recognition and lane‑keeping support reinforcing Brazil as a strategic hub for vehicle safety and autonomy technologies in Latin America.
   
• The ultra cruise & city-street autonomous driving market in Mexico is experiencing high growth due to increasing government support for smart mobility initiatives, rapid adoption of connected and electric vehicles, and collaborations between global OEMs and local technology providers. Urban congestion, rising road safety concerns, and investments in modern infrastructure are driving demand for city-street capable autonomous systems. Additionally, pilot programs for autonomous ride-hailing and logistics fleets are accelerating technology deployment, while Mexico’s strategic position in North American automotive manufacturing encourages OEMs to integrate advanced ADAS and Ultra Cruise features into locally produced vehicles, fostering regional market growth and setting the stage for broader adoption across Latin America.

The ultra cruise & city-street autonomous driving market in UAE is expected to experience significant and promising growth from 2026-2035.
 

• MEA holds around 1% of the market in 2025 and is growing steadily at a CAGR of around 17.1% between 2026 and 2035 driven by significant investments in smart city projects, urban mobility modernization, and autonomous public transportation initiatives. Countries such as the UAE and Saudi Arabia are implementing dedicated autonomous vehicle pilot programs, integrating AI-driven traffic management, and building infrastructure-ready roads to support city-street capable systems.
   
• The UAE dominates the Middle East & Africa ultra cruise & city-street autonomous driving market due to its aggressive investment in smart city initiatives, advanced mobility infrastructure, and autonomous vehicle pilot programs. The country’s leadership in innovation and technology adoption has led to collaborations between global OEMs, local technology providers, and government agencies to deploy city-street capable autonomous systems in urban environments. Dubai, in particular, has launched autonomous taxis, smart traffic management programs, and integrated AI-powered public transportation solutions, creating a robust ecosystem for advanced driving technologies.
   
• Additionally, the UAE government’s regulatory support, including clear AV testing guidelines and incentives for electric and connected vehicles, encourages rapid deployment of Ultra Cruise technology. Investments in V2X communication networks, high-definition mapping, and roadside sensor infrastructure further enhance vehicle autonomy and safety, solidifying the UAE as the regional market leader.
   
• Saudi Arabia is expected to grow at the fastest CAGR in the MEA ultra cruise & city-street autonomous driving market due to due to its ambitious NEOM smart city project, which emphasizes autonomous mobility, connected infrastructure, and sustainable transportation solutions. The government is heavily investing in AI-driven traffic management, city-street capable autonomous vehicles, and electric vehicle integration to modernize urban mobility.
   

Ultra Cruise & City-Street Autonomous Driving Market Share

• The top 7 companies in the ultra cruise & city-street autonomous driving industry are Tesla, General Motors (GM), Mercedes-Benz AG, BMW, NVIDIA Corporation, Toyota Motor, and Stellantis contributed around 54.2% of the market in 2025.
   

• Tesla focuses on expanding its Full Self-Driving (FSD) suite using vision-based AI and neural networks, prioritizing city and highway driving through over-the-air software updates. The company leverages its extensive fleet data for continuous learning, enhancing autonomous capabilities. Tesla emphasizes cost-effective hardware, integrated sensors, and driver engagement to gradually shift towards Level 4 autonomy, while actively developing Autopilot improvements and regulatory compliance strategies.
   

• GM pursues autonomy via its Cruise subsidiary, targeting urban, city-street autonomous mobility. Cruise leverages LiDAR, radar, and camera fusion for safe, scalable self-driving services. GM focuses on robotaxi deployments, software-driven ridesharing solutions, and regulatory partnerships. Its strategy combines incremental software upgrades, rigorous simulation testing, and hardware-standardized vehicles to accelerate commercial deployment while maintaining high safety and reliability standards.
   
• Mercedes-Benz emphasizes Level 3 and 4 autonomous driving with its Drive Pilot system, targeting highways and expanding into urban streets. The strategy integrates sensor fusion (LiDAR, radar, cameras) with AI-driven decision-making and connectivity features. Mercedes invests in software development, partnerships with tech providers, and in-house R&D to ensure luxury-level user experience, legal compliance, and safety, while gradually scaling autonomous capabilities across its premium vehicle portfolio.
   
• BMW adopts a collaborative approach, combining in-house R&D with partnerships (e.g., Mobileye) for city and highway autonomous driving. Its strategy emphasizes AI-based perception, driver-assistance integration, and cloud-connected updates. BMW focuses on incremental Level 2+ to Level 3 capabilities, safety validation, and enhancing user trust. Long-term goals include scalable autonomous fleets, software-defined vehicles, and integration of advanced driver assistance for premium and mass-market segments.
   
• NVIDIA’s strategy centers on providing AI computing platforms (DRIVE platform) for autonomous vehicles, enabling OEMs to develop city and highway autonomy. The company offers high-performance GPUs, software stacks, and simulation tools for perception, path planning, and sensor fusion. NVIDIA collaborates with automotive leaders to accelerate adoption of LiDAR, camera, and radar-based systems, focusing on scalable, safety-compliant AI frameworks and continuous real-time learning for urban mobility.
   
• Toyota leverages its Toyota Research Institute (TRI) to advance autonomous urban mobility, emphasizing safety-first and human-centric AI. Its strategy integrates LiDAR, radar, and camera technologies for city-street navigation and automated parking. Toyota prioritizes gradual deployment via Mobility Services Platform, partnerships, and regulatory engagement, aiming to combine autonomous tech with hybrid/electric platforms while ensuring reliability, safety, and consumer trust in real-world traffic conditions.
   
• Stellantis focuses on autonomous driving software and sensor integration through partnerships and its STLA AutoDrive platform. The strategy targets city streets and highway mobility, emphasizing LiDAR and camera fusion, AI-based perception, and fleet connectivity. Stellantis combines modular vehicle architecture with scalable software updates, aiming for commercial deployment of driverless ride-sharing and delivery services, while complying with evolving regulatory frameworks and enhancing energy-efficient autonomous solutions.
   

Ultra Cruise & City-Street Autonomous Driving Market Companies

Major players operating in the ultra cruise & city-street autonomous driving industry are:

• BMW

• Continental
• General Motors (GM)
• Mercedes-Benz Group
• Mobileye
• Nissan Motor
• NVIDIA
• Stellantis
• Toyota Motor
  
   
• The global Ultra Cruise and city-street autonomous driving market is witnessing rapid advancement through sensor fusion innovations, AI-powered perception systems, and cloud-based simulation platforms. OEMs are increasingly integrating LiDAR, radar, and camera arrays with AI-driven decision-making engines to enable robust city and highway autonomy. Continuous over-the-air software updates, fleet learning, and digital twins allow developers to test millions of virtual driving scenarios, including rare and high-risk edge cases, reducing dependency on physical road testing.
  
   
• Synthetic data generation and scenario simulation are being leveraged for perception training, object detection, and sensor fusion validation, accelerating functional safety compliance and improving reliability in complex urban environments. The use of real-time telematics, AI scenario orchestration, and high-performance computing frameworks ensures adaptive learning, enabling autonomous systems to handle unpredictable traffic, weather conditions, and dynamic city landscapes efficiently.
   

Ultra Cruise & City-Street Autonomous Driving Industry News

•  In January 2026, General Motors announced the expansion of Super Cruise availability to additional Chevrolet and GMC models, bringing hands-free highway driving to mainstream vehicle segments. The expansion also includes enhanced urban capabilities and improved driver monitoring systems.
   
• In December 2025, Mercedes-Benz received regulatory approval to expand Drive Pilot Level 3 system operation to speeds up to 95 km/h in Germany, extending the operational design domain beyond the initial 60 km/h limit. This enables hands-off, eyes-off operation across broader highway scenarios.
   
• In November 2025, XPeng launched its next-generation City NGP system, expanding coverage to over 200 Chinese cities. The system incorporates advanced AI models and enhanced sensor fusion for improved performance in complex urban environments.
   
• In October 2025, NVIDIA announced partnerships with multiple Chinese OEMs to deploy its DRIVE Thor computing platform, marking significant expansion in the Asia Pacific market. The platform supports centralized computing for Level 2+ through Level 4 autonomous driving.
   
• In September 2025, Mobileye began production of its Chauffeur Level 3 system for deployment across multiple OEM partners, expanding conditional automation beyond luxury segments. The system utilizes Mobileye’s latest EyeQ6 system-on-chip and enhanced sensor suite.
   
• In August 2025, Tesla released a major Full Self-Driving (Supervised) software update, incorporating improved urban navigation and enhanced object detection capabilities, demonstrating continued evolution of its camera-based autonomous driving approach.
   
• In July 2025, BMW announced deployment of hands-free highway driving across its vehicle lineup in Europe and North America, leveraging partnerships with Mobileye and Qualcomm for computing platforms. The system includes advanced driver monitoring and over-the-air update capabilities.
   
• In June 2025, Huawei expanded its autonomous driving partnerships with additional Chinese OEMs, bringing its ADS 2.0 system to new vehicle models, demonstrating growing acceptance of technology companies in automotive autonomous driving.
   
• In May 2025, Luminar Technologies announced production contracts with additional OEMs for its Iris LiDAR sensor, supporting multi-sensor fusion architectures. The company achieved cost targets enabling integration into mid-market vehicles.
   

The Ultra Cruise & City-Street Autonomous Driving market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Bn), shipment (units) from 2022 to 2035, for the following segments:

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Market, By Autonomy Level

• Level 2 ADAS
• Level 3 ADAS

Market, By Operational Design Domain

• Highway-Only Systems
• City-Street Capable Systems
• Comprehensive / Door-to-Door Systems

Market, By Sensor Technology

• Camera-Based Systems
• Radar-Based Systems
• LiDAR-Enabled Systems
• Multi-Sensor Fusion Systems

Market, By End Use

• Private / Personal Use
• Ride-Hailing & Shared Mobility
• Commercial Fleets

Market, By Vehicle

• Passenger vehicle
  • Sedan
  • Hatchback
  • SUV
• Commercial vehicle
  • LCV
  • MCV

The above information is provided for the following regions and countries:

• North America 
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Belgium
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Philippines
  • Indonesia
  • Singapore
• Latin America
  • Brazil
  • Mexico
  • Argentina

• MEA   
  • South Africa
  • Saudi Arabia
  • UAE