The global market for autonomous vehicles, estimated at 6.1 thousand units in the year 2020, is projected to reach a size of 110.1 Thousand Units by 2026, growing at a CAGR of 60.6% according to the report Autonomous Vehicles – Global Market Trajectory & Analytics by ResearchAndMarkets.
Transportation, one of the segments analyzed in the report, is projected to grow at a 60.2% CAGR to reach 149.4 Thousand Units by the end of the analysis period. After analysis of the business implications of the pandemic and its induced economic crisis, growth in the Defense segment is readjusted to a revised 63.7% CAGR for the next 7-year period.
This segment currently accounts for a 10.2% share of the global Autonomous Vehicles market. Autonomous vehicles (AVs) are anticipated to find increasing uptake in the military sector due to the unabated increase in global military spending over the short- to medium-term.
Rising automobile consumer focus on efficiency and connectivity is driving automakers to scale up technology adoption in line with these requirements and to stay competitive. The increasing development and adoption of new electric car models is expected to further drive gains for the automotive software market.
In addition, the market growth is poised to be augmented by trends such as digital dealerships and automation. Various companies are partnering with software developers for enhancing vehicle performance and improving safety and driving experience. These developments are anticipated to garner more traction in the coming years.
These collaborations are set to support encouraging activities associated with autonomous vehicles, emerging technologies, mobility and electrification while allowing players to ensure availability of sophisticated software solutions for upcoming vehicle models.
While current challenges have derailed and delayed innovations and developments scheduled for the year 2020, the future nevertheless remains more promising than the pre-pandemic outlook. Although the year 2020, which was earlier touted to be prime time for autonomous cars, unfortunately went down into history as the year of disruptions, missed targets, economic devastation, the pandemic paradoxically has also eliminated long-term obstacles for self-driving and advanced automotive technologies.
The autonomous vehicles market in the U.S. is estimated at 3.4 Thousand Units in the year 2021. The country currently accounts for a 40% share in the global market. China, the world’s second largest economy, is forecast to reach an estimated market size of 17.3 Thousand Units in the year 2026 trailing a CAGR of 74.4% through the analysis period.
Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 53.3% and 58% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 49.9% CAGR while Rest of European market (as defined in the study) will reach 26.1 Thousand Units by the end of the analysis period.