Autonomous Vehicle Market Size, Share & Trends Analysis Report By Vehicle Type (Passenger Vehicle, Commercial Vehicle), By Level of Autonomy (Level 1, Level 2), By Application (Transportation, Defense), By Region, And Segment Forecasts
Published Date: May - 2025 | Publisher: MIR | No of Pages: 240 | Industry: technology | Format: Report available in PDF / Excel Format
View Details Buy Now 2999 Download Sample Ask for Discount Request CustomizationAutonomous Vehicle Market Size & Trends
The size of the global autonomous vehicle market was approximated at USD 68.09 billion in 2024 and is anticipated to expand at a CAGR of 19.9% during the period 2025-2035. The sector is propelled by the high demand for customer adoption of technology, road safety, connectivity, improvement in AI, and sensor technology. These technological threads advance vehicle reliability and safety as well as broaden the range of autonomous applications across sectors, ranging from transportation and logistics to delivery and ridesharing services. The cost-effectiveness introduced by these innovations makes autonomous solutions more attractive to businesses in search of creative and competitive-advantage solutions.
Sectors embracing autonomous transport show readiness to adopt new technology. When these sectors are witnessing the advantages of higher efficiency, lower costs, and greater safety brought by autonomous transport, it inspires further adoption and investment in autonomous vehicle technology in many industries. Hyundai Motor Group has introduced 'Pleos,' a new mobility software brand and platform that aims to develop software-defined vehicles (SDVs) and build an innovative in-vehicle app ecosystem. Revealed at the Pleos 25 developer conference in Seoul, Pleos combines vehicle OS, cloud infrastructure, autonomous driving, and fleet management to enrich connected mobility experiences. The Group also unveiled plans for Level 2+ autonomous driving by 2027 and launched the Next Urban Mobility Alliance (NUMA) to promote public-private collaboration for smart, cloud-based urban mobility solutions.
Report Coverage & Deliverables
PDF report & online dashboard will help you understandc
- Competitive benchmarking
- Historical data & forecasts
- Company revenue shares
- Regional opportunities
- Latest trends & dynamics
Vehicle Type Insights
The passenger vehicle market was at the forefront of the industry and captured 69% of global revenue in 2024. Consumers are increasingly interested in having more convenient, safer, and more efficient modes of transportation. Autonomous vehicles hold out the potential for hands-free and stress-free commutes, attracting people looking for a less stressful and productive commuting experience. Sustained innovation in autonomous vehicle technology, such as enhanced sensors, AI software, and connectivity, has made substantial progress in enabling autonomous passenger vehicles to become more viable and trustworthy. Such advancements build confidence in the safety and performance of such vehicles, which in turn stimulates consumer demand.
The commercial vehicle category is expected to exhibit the highest CAGR of 26.3% during the forecast period. Several sectors such as commercial transport, logistics, and delivery operations increasingly appreciate the advantage of autonomous technology to upgrade their businesses. Commercial fleets adopt autonomous solutions because they can reduce commercial logistics, rationalize supply chains, and cater to rising customers' expectations. A expanding industry of technology designers, makers, and investors are committed to bringing advanced autonomous systems for commercial application. Ongoing innovation and investment in the sector will see the development and deployment of ever-more advanced autonomous commercial vehicles.
Application Insights
The transport segment generated the highest market revenue share of 85.6% in 2024, and the growth is propelled because it has a huge potential for efficiency and innovation. By providing safer and more efficient transportation modes and disrupting traditional travel and logistics habits, autonomous technology has the ability to revolutionize the way people and goods are transported. Self-driving vehicles are being embraced by industries such as shipping, logistics, and ride-sharing to automate processes, reduce costs, and meet expanding consumer demands for reliable transport. The success of autonomous cars in the transportation industry is spurred by this sector's focus on improved logistics, enhanced safety, and cost reduction.
The defense sector is expected to grow substantially during the forecast period, as governments are ready to enhance the security of the country and minimize risks to humans in conflict zones. Defense forces are increasingly using autonomous vehicles for surveillance, reconnaissance, logistics, and combat support to maximize operational capabilities and minimize risks to human personnel. Technological advancements in artificial intelligence, robotics, and autonomous navigation are increasing the reliability and affordability of these vehicles, speeding their deployment in contemporary military operations. Increasing defense expenditures and strategic requirements for effective, unmanned systems are also driving market growth. Autonomous military vehicles will transform combat by conducting perilous missions, enhancing mission effectiveness, and reducing casualties.
Level of Autonomy Insights
The Level 1 segment ruled the market with the largest revenue share in 2024. Simple driver-assist features like adaptive cruise control or lane-keeping aid, referred to as Level 1 autonomy, dominate the market for autonomous due to their simplicity of use and widespread application in modern cars. These features provide basic safety and convenience without requiring drastic infrastructure changes or costing a fortune. In addition, the common availability of Level 1 autonomy as standard or optional features on various car models by manufacturers increases accessibility for buyers, further cementing its dominance in the market.
The Level 4 & 5 segment is anticipated to exhibit the highest CAGR during the forecast period. This segment in autonomous vehicles signifies higher levels of automation, allowing vehicles to drive without human input. The increasing demand for these levels is primarily because of technological improvements in sensors, artificial intelligence, and computing power that provide safety and more dependable autonomous driving capabilities. Additionally, consumers and industries are seeing the potential advantages, including greater safety, efficiency, and convenience, that drive the adoption of these higher-level autonomous vehicles.
Regional Insights
The global industry was dominated by North America autonomous vehicle market with a more than 37.1% share in the year 2024 because the massive infrastructure of North America, particularly in some areas such as Silicon Valley, California makes it a perfect place to test innovative technologies such as driverless vehicles. The advent and adoption of autonomous systems are highly facilitated by this already-established infrastructure and pro-innovation atmosphere. There is a large market for drones, autonomous cars, and other autonomous systems since the local population is typically accepting of new technologies. This demand and acceptance drive further innovation in the industry.
U.S. Autonomous Vehicle Market Trends
The U.S. autonomous vehicle market is changing at a very fast pace, fueled by robust investments from tech and automaker behemoths such as Tesla, Waymo, and GM's Cruise. Tesla will debut its robotaxi service in Austin by mid-2025 with autonomous Model Y vehicles. Large cities are increasingly testing AV programs, particularly for delivery and ride-hailing services. The regulatory environment is becoming more favorable with many states permitting commercial AV use. Consumer acceptance is increasing, particularly for Level 2 and 3 autonomous technologies. That momentum translates to significant market growth through the next five years.
Europe Autonomous Vehicle Market Trends
Europe autonomous car market is on the rise since major manufacturers such as Volkswagen and BMW are spending money on AI and connected automobile technology, pushing Europe to emerge as a significant player in the sector. Environmentally friendly means of transportation are fostered through supportive legislation and sustainability initiatives like the EU Green Deal. Self-driving taxis and shuttles are being tested extensively in Paris and Helsinki as a means of enhancing urban mobility and reducing pollution. Issues like cybersecurity and infrastructure are being tackled through ongoing investments in smart infrastructure and public campaigns. Generally, Europe's emphasis on sustainability and technology is fueling the rapid growth of the deployment of autonomous vehicles.
Asia Pacific Autonomous Vehicle Market Trends
Asia Pacific autonomous vehicle market will grow at the highest CAGR of 25.0% between 2025 and 2030. China, Japan, and South Korea have populated cities with traffic issues. Autonomous cars are perceived in these cities as a solution to alleviate traffic, enhance mobility, and lower transportation expenses. In addition, the emphasis on powered and connected cars in Asia Pacific is consistent with the autonomous vehicle trend. The autonomous vehicle market is growing due to the attention on green energy in the region that has created a demand for such technology.
Key Autonomous Vehicle Company Insights
The market is characterized by stiff competition, with very few global players commanding a large market share. The major focus is on developing innovative products and promoting cooperation among the major industry players. The firms have applied different methods to increase market penetration and strengthen their market position in the competitive sector. For example, Renault Group innovates with WeRide in May 2024 by establishing an electric and autonomous shuttles trial that will improve access to Roland-Garros stadium during games, and at the same time showcase maturity of new technology for autonomous public transport services.
Tesla, Inc. is an electric car and clean energy company famous for its cutting-edge electric cars, energy storage products, and solar solutions. Its principal products in autonomous driving are advanced driver-assistance systems driven by Tesla's Full Self-Driving (FSD) software, which allows for features like automated lane changes, traffic-aware cruise control, and city street navigation. Tesla's Model S and Model X cars are equipped with hardware that is intended to accommodate future autonomous driving upgrades. Tesla regularly updates its autonomous driving software through over-the-air updates to strive for full self-driving. Tesla also backs its cars with a worldwide Supercharger network for easy long-distance travel.
Amazon subsidiary Zoox focuses on creating fully autonomous, purpose-designed electric vehicles made specifically for use in ride-hailing services. Unlike modified vehicles, Zoox's cars are bi-directional, lack a steering wheel or manual controls, and are designed from the ground up for autonomy, aiming at Level 5 automation-no human intervention is ever needed. Their robotaxis use a sophisticated sensor suite including lidar, radar, and cameras, paired with powerful onboard computing to navigate complex urban environments safely. Zoox operates test fleets in cities like San Francisco, Las Vegas, and Seattle, and is one of the few companies permitted to test driverless vehicles without safety drivers in California. The firm makes use of high-level simulation in software validation and ongoing improvement and looks to recast urban transport as safe, efficient, and environmentally friendly self-driving transport.v
Key Autonomous Vehicle Companies
The following are the leading companies in the autonomous vehicle market. These companies collectively hold the largest market share and dictate industry trends.
- AUDI AG.
- Ford Motor Company
- Mercedes-Benz Group
- Nuro, Inc.
- Pony.ai
- Tesla
- Toyota Kirloskar Motor
- Volkswagen Group
- Waymo LLC
- Zoox, Inc.
Recent Developments
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In 2025, China introduced new regulations to support Level 3 (L3) autonomous driving for personal vehicles, establishing a clear legal framework that allows automakers such as XPeng, Li Auto, and Tesla to gear up for mass production of L3-equipped cars. This move signals the start of the large-scale global commercialization of L3 autonomous vehicles.
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In January 2025, Sony and Honda came together to launch an autonomous electric vehicle, named Afeela EV, in Japan and the U.S. by 2026. This vehicle comprises AI and technologies that improve the self-driving capability of EVs. This collaboration has made another milestone in the autonomous vehicle market.
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In October 2024, a partnership between Toyota Motor Corporation and NTT with an investment of 500 billion yen by 2030 to launch “Mobility AI Platform” integrated with high communication infrastructure, computing to connect people and vehicles, and advanced AI. The aim is to achieve zero traffic accidents, focus on Passenger Vehicle Defined Vehicles (SDVs) and data-driven driving technologies.
Autonomous Vehicle Market Report Scope
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Report Attribute |
Details |
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Market size value in 2025 |
USD 86.32 billion |
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Revenue forecast in 2030 |
USD 214.32 billion |
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Growth Rate |
CAGR of 19.9% from 2025 to 2035 |
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Base year for estimation |
2024 |
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Historical data |
2018 - 2023 |
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Forecast period |
2025 - 2035 |
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Quantitative units |
Revenue in USD million/billion and CAGR from 2025 to 2035 |
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Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
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Segments covered |
Vehicle type, application, level of autonomy, region |
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Regional scope |
North America; Europe; Asia Pacific; Latin America; MEA |
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Country scope |
U.S., Canada, Mexico, U.K., Germany, France, China, Japan, India, South Korea, Australia, Brazil, KSA, UAE, South Africa |
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Key companies profiled |
AUDI AG; Zoox, Inc.; Waymo LLC; Tesla; Toyota Kirloskar Motor; Ford Motor Company; Volkswagen Group; Pony.ai; Nuro, Inc.; Mercedes-Benz Group |
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Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
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Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
Global Autonomous Vehicle Market Report Segmentation
Vehicle Type Outlook (Revenue, USD Million, 2018 - 2035)
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Passenger Vehicle
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Commercial Vehicle
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Application Outlook (Revenue, USD Million, 2018 - 2035)
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Transportation
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Industrial
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Commercial
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Personal
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Defense
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Level of Autonomy Outlook (Revenue, USD Million, 2018 - 2035)
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Level 1
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Level 2
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Level 3
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Level 4 & 5
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Regional Outlook (Revenue, USD Million, 2018 - 2035)
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North America
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U.S.
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Canada
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Mexico
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Europe
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U.K.
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Germany
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France
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Asia Pacific
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China
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Japan
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India
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South Korea
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Australia
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Latin America
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Brazil
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Middle East and Africa (MEA)
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KSA
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UAE
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South Africa
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