Autonomous Vehicle Market Statistics, 2035
The global autonomous vehicle market size was valued at $60.3 billion in 2025, and is projected to reach $448.6 billion by 2035, growing at a CAGR of 22.2% from 2025 to 2035.
Autonomous vehicles operate with less driver interference or without driver interference. Self-driving vehicles process the data produced by their sensors to establish navigation routes and make real-time decisions, such as stopping, accelerating, decelerating, and evading obstacles. They enhance safety by implementing protective measures, warning drivers, and assuming full control of the vehicle when needed. In addition, self-driving cars autonomously identify and respond to other vehicles, cyclists, pedestrians, construction sites, road defects, accidents, and traffic congestion. These cars uphold safety protocols that human drivers might intentionally or inadvertently disregard. Market expansion is being propelled by various factors, including the development of interconnected infrastructure facilitated by technological advancements, a decrease in traffic congestion coupled with enhanced safety measures, and a rise in trend of investments and collaborations among companies operating in the autonomous vehicle sector. However, the high manufacturing cost of the hardware and cybersecurity issues have hampered the growth of the market.
Report Key Highlights:
- The report covers a detailed analysis on the autonomous vehicle used in industry.
- The autonomous vehicle market has been analyzed from the year 2025 till the year 2035.
- Latest developments have been mentioned in the research study.
- Top companies operating in the industry has been profiled in the research study.
- The research study includes different segments & regions across which the market has been analyzed
For instance, in July 2023, ZF commenced the production of its advanced driver assist system (ADAS) technology at its Monterrey, Nuevo Leon plant in Mexico. Similarly, another company, Luminar, has expanded its presence and is anticipated to commence operations in Mexico in 2023. Mexico is poised to emerge as a significant manufacturing hub for self-driving truck technology in the coming years. This growth is expected to lead to increased demand for both autonomous trucks and related technology.
In Addition, In 2022, total government budget allocations for research and development (GBARD) of the European Union amounted to USD 118.16 billion, which represented 0.74% of the Gross Domestic Product (GDP). This marked a 5.4% rise in comparison to 2021 when it was USD 117.79 billion. Moreover, there are ongoing tests of 5G technology, which have opened new possibilities for the implementation of self-driving vehicles in countries such as France. However, the high manufacturing cost of the hardware and cybersecurity issues have hampered the growth of the market. In addition, rise in investments in the growth of smart cities, coupled with R&D activities, are expected to propel market growth during the forecast period.
The global Autonomous Vehicles Market is segmented into levels of automation, components, applications, and regions. On the basis of level of automation, it is categorized into levels 3, 4, and 5. Based on the basis of component, it is bifurcated into hardware, software, and services. The application segment is divided into civil, robo taxi, ride hail, ride share, self-driving truck, and self-driving bus. Based on the basis of region, the market is analysed across North America, Europe, Asia-Pacific and LAMEA.
The leading players operating in the autonomous vehicles market are General Motors, Mercedes-Benz, Ford Motor Company, Volkswagen Group, Bayerische Motoren Werke AG, Renault Group SA, AB Volvo, Toyota Motor Corporation, Tesla, Inc., Hyundai Motor Company.
Growth of connected infrastructure due to advancement in technology
Technological advancements have resulted in the growth of connected infrastructure, which drives autonomous vehicle market share. Automation technologies are used in autonomous vehicles that enable them to stay connected, such as sensors, machine learning systems, processors, RADAR, LiDAR, cameras, and other hardware and software. Autonomous vehicle technology facilitates the seamless coordination of an autonomous driving system to retain complete control over the vehicle and perceive the external environment. Similar to humans, autonomous vehicles need the ability to analyze judgments, interpret sensory data, and make informed decisions to respond intelligently to external factors. Autonomous vehicle technology plays a pivotal role in enabling these capabilities.
Intelligent transportation systems are used that allow autonomous vehicles to plan and manage operations to optimize traffic flow. The focus on urban connectivity solutions drives the growth of autonomous vehicles as the deployment of LTE/5G small cells and public Wi-Fi end-to-end architectures is being implemented in both newly constructed and retrofitted modular street infrastructure assets.
Many of the federal state government have invested in the development of autonomous car infrastructure for instance in May 2023, USD 9.85 million federal grant was awarded to the University of Michigan by the U.S. Department of Transportation Federal Highway Administration to spur connected vehicle research. This project is considered part of infrastructure of the federal government. Moreover, the U.S. is set to channel $200 billion in funding toward international infrastructure initiatives through its approach, the Partnership for Global Infrastructure and Investment (PGII). The collective target for investments, which includes contributions from G7 nations and private entities, aims to reach a total of $600 billion by the end of 2025.
The emergence of connected and autonomous vehicles (CAVs) has the potential to decrease road accidents attributed to human errors. CAVs can simultaneously function as sensors, continuously monitoring real-time traffic conditions. This leads to improved traffic flow, reduced congestion, and more effective utilization of road infrastructure. Smart traffic management systems have advanced significantly, leveraging data analytics and AI. These systems forecast traffic trends and enhance the timing of traffic signals. This results in reduced wait times, lower fuel consumption, and decreased emissions.
Increase in investments and tie-ups of companies on autonomous vehicles
The increase in investments and tie-ups among the companies drives the growth of the market. For instance, in October 2022, Volkswagen Group partnered with Mobileye of Intel for an autonomous vehicle robotaxi service. It is an autonomous ride-hailing service with a focus on being launched by 2025. Moreover, in September 2023, V.A.S. and Boliden entered into a Memorandum of Understanding (MOU), outlining their joint commitment to collaborate on multiple projects. The initial project within this partnership involved the introduction of an autonomous transportation solution at Garpenberg, designed to facilitate the movement of rock fill from a quarry located on-site. The initial phase of this project is anticipated to involve the deployment of an autonomous transport system to transfer rock fill materials from a nearby quarry to the construction site. These investments have resulted in the autonomous vehicles market growth.
Companies have focused on the manufacturing of autonomous vehicles equipped with advanced driver assistance systems, such as the BMW 3 Series, which utilizes a combination of cameras, ultrasonic sensors, and radar sensors to gather information about their surroundings. Apart from its sensory capabilities, it incorporates a "stop-and-go" brake function, which proves particularly beneficial for commuters enduring prolonged periods of traffic congestion, relieving strain on the lower extremities of the driver has also incraesed the autonomous vehicles market value. Furthermore, the camera sensor is capable of detecting traffic signs, such as speed limits, and adjusting the speed of the vehicle to align with the indicated speed limit.
Cybersecurity issues related with the safety of the autonomous vehicle
Autonomous vehicles rely on sensors to assess their surroundings since they lack human drivers to operate them. These sensors encompass a range of technologies, including radar systems, light detection and ranging (lidar), GPS, sonar, visual sensors, ultrasonic sensors, and trunk latch sensors. The GPS system in autonomous vehicles, while essential for route analysis and navigation, are vulnerable to attacks that pose a threat. Attackers have the potential to exploit these vulnerabilities through two primary methods: spoofing and jamming.
Spoofing occurs when counterfeit signals deceive the GPS receiver, causing the vehicle to follow incorrect directions. On the other hand, jamming involves the simultaneous transmission of strong signals to disrupt the ability of the automotive vehicle to receive GPS signals. Jamming attacks are more conspicuous as they result in abrupt changes in direction of the vehicle. Moreover, LiDAR, being in an always-active state, are also vulnerable to attacks. It plays a crucial role in lane recognition, detecting car signals, identifying obstacles, and measuring the distances to objects on the road. An attacker could potentially exploit LiDAR by utilizing a transceiver to send deceptive signals that include false obstacles along the vehicle's intended path.
Key Developments in Autonomous Vehicle Industry
- In July 2023, Volkswagen Group of America, Inc. (VWGoA) is commencing its inaugural autonomous vehicle testing initiative in Austin, set to begin in July 2023. The program is expected to launch with a fleet of 10 all-electric ID. Buzz vehicles equipped with an autonomous driving (AD) technology system, jointly developed by the global Volkswagen Group in collaboration with the technology firm Mobileye.
- In August 2023, GTMC is expected to provide Pony.ai with a fleet of battery electric vehicles branded by Toyota. These vehicles are expected to feature sophisticated redundant systems of Toyota designed for Level 4 autonomous driving research and development. The autonomous driving technology of Pony.ai is expected to be seamlessly incorporated into these vehicles, and they are anticipated to be utilized on the PonyPilot + robotaxi network platform.
- In July 2023, Tesla announced an investment of USD 1 billion for the development of project Dojo that aims to manage extensive volumes of data, with a specific focus on video feeds originating from Tesla vehicles, a crucial element in the advancement of autonomous driving software of the company.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the autonomous vehicle market analysis from 2025 to 2035 to identify the prevailing autonomous vehicle market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global autonomous vehicle market trends, key players, market segments, application areas, and market growth strategies.
Autonomous Vehicle Market Report Highlights
| Aspects | Details |
 Market Size By 2035 | USD 448.6 billion |
 Growth Rate | CAGR of 22.2% |
 Forecast period | 2025 - 2035 |
 Report Pages | 250 |
 By Level of Automation |
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 By Application |
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 By Component |
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 By Region |
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 Key Market Players | Hyundai Motor Group, Tesla, Inc., Ford Motor Company, General Motors, Bayerische Motoren Werke AG (BMW AG), AB Volvo, Renault SA, Mercedes-Benz AG (Daimler AG), Toyota Motor Corporation, Volkswagen Group |
Analyst Review
An autonomous car is a vehicle that senses its environment and navigates without human input. Presently, there is an increase in demand for the autonomous vehicles from developed countries such as the U.S, Canada, and others. Companies in this industry adopt various techniques to provide customers with advanced and innovative product offerings.
Autonomous vehicles use less battery capacity & less consumption of gas, which reduces pollution. In addition, development in automotive sector, demand for luxury cars, and government regulation also contribute to the market growth. However, high cost and the burgeoning threat from hackers in driving operation impede the growth of the market. In future, rise in investment for smart cars, and favorable government regulations are expected to create lucrative opportunities for the key players operating in the autonomous vehicle market.
Among the analyzed geographical regions, North America is expected to account for the highest revenue in the global market throughout the forecast period (2019-2026) followed by Asia-Pacific, Europe, and LAMEA. However, Europe is expected to grow at a higher growth rate, predicting a lucrative market growth for autonomous vehicle.
General Motors, Daimler AG, Ford Motor Company, Volkswagen Group, BMW AG, Renault-Nissan-Mitsubishi Alliance, Volvo-Autoliv-Ericsson-Zenuity Alliance, Groupe SA, AB Volvo, Toyota Motor Corporation, and Tesla Inc. Other companies listed in accordance with auto suppliers are Robert Bosch GMBH, Aptiv, Continental AG, Denso Corporation. Also, by technology providers the list includes Waymo, NVDIA Corporation, Intel Corporation, Baidu, and Samsung. And based on autonomous vehicle as service provider, it includes Uber, Lyft, and Didi Chuxing. These are the key market players that occupy a significant revenue share in the autonomous vehicle market.
Robo Taxi are the upcoming trends of Autonomous Vehicle Market in the world
Level 3, Level 4, Level 5 is the leading application of Autonomous Vehicle Market
North America is the largest regional market for Autonomous Vehicle
The global Autonomous Vehicles Market is projected to be valued at $ 60,325.7 million in 2025, and is expected to reach $ 4,48,550.4 million by 2035, registering a CAGR of 22.22% from 2025 to 2035
Key players operating in the global autonomous vehicle market are General Motors, Mercedes-Benz AG, Ford Motor Company, Volkswagen Group, BMW AG, AB Volvo, Renault Group SA, Toyota Motor Corporation, Tesla, Inc., and Hyundai Motor Company, among others. The leading companies adopt strategies such as product launch, partnership, acquisition, expansion and collaboration to strengthen their market position.
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