Self-Driving Cars and Trucks Market Size, Share, and Trends 2024 to 2033

Self-driving Cars and Trucks Market Volume and Growth

The global self-driving cars and trucks market volume was 152.70 thousand units in 2023, calculated at 224.21 thousand units in 2024 and is expected to reach around 7112.07 thousand units by 2033, expanding at a CAGR of 46.83% from 2024 to 2033.

Self-driving Cars and Trucks Market Key Takeaways

• North America dominated the market with the largest volume share of 45% in 2023.
• Europe is projected to expand at a rapid pace in the market during the forecast period.
• By application, the transportation segment has contributed more than 93% of volume share in 2023.
• By application, the defense segment is expected to witness significant growth in the market during the forecast period.

North America Self-driving Cars and Trucks Market Volume and Growth 2024 to 2033

The North America self-driving cars and trucks market volume was exhibited at 68.72 thousand units in 2023 and is projected to be worth around 3,235.99 thousand units by 2033, poised to grow at a CAGR of 46.99% from 2024 to 2033.

North America held the dominant share of the self-driving cars and trucks market in 2023. The region’s growth is driven by the presence of an established automotive industry coupled with strong research and development capabilities, rising acceptance of self-driving cars and trucks, rigorous emission standards, rising development of high-quality road networks, and a favorable ecosystem for emerging technologies. In addition, rising customer inclination for technology and innovation offers significant growth opportunities for autonomous vehicles. Customers value the safety, convenience, and efficiency offered by self-driving cars and trucks.

Several North American automobile and technology companies are engaged in autonomous vehicle research as well as production. The supportive government regulation makes the testing and deployment of autonomous vehicles on public roads easier. Rising investment in the automobile sector is expected to attract the self-driving cars and trucks market in the region. The robust growth in the delivery business led to a surge in the adoption of self-driving trucks for last-mile deliveries to enhance efficiency and reduce costs. The market has witnessed increasing adoption of self-driving vehicles in the U.S. owing to government amendments to traffic regulations that incorporate autonomous vehicles on public roads. Thus, this is expected to boost the market growth of self-driving cars and trucks in the region during the forecast period.

• The NHTSA, a traffic regulation institute in the United States., approved testing for self-driving vehicles in numerous states such as Washington, D.C., New York, California, Utah, Michigan, Florida, Nevada, Georgia, and others.
• In May 2024, Researchers at the University of Toronto Institute for Aerospace Studies (UTIAS) introduced a pair of high-tech tools that could improve the safety and reliability of autonomous vehicles by enhancing the reasoning ability of their robotic systems.

According to the National Safety Council, nonprofit and public service organizations promote health and safety in the United States.

Europe is projected to expand at a rapid pace in the self-driving cars and trucks market during the forecast period owing to the rapid growth of the automotive sector, increasing government initiatives to reduce pollution, rapid urbanization, rising demand for self-driving technology, supportive regulatory framework of government, and rigorous traffic standards. The rising innovation and adoption of self-driving cars and trucks are shaping the future of transportation and mobility in the region. Additionally, partnerships and collaborations among automakers and technology companies to incorporate self-driving technologies are anticipated to boost the growth of self-driving cars and trucks in the region.

• In February 2023, Darwin Innovation Group, a U.K.-based company specializing in ubiquitous connectivity and software development for autonomous vehicles, established a strategic collaboration with global IT services company Cognizant. The relationship aims to broaden the reach of the autonomous vehicle market by introducing new vehicle management tools and reliable vehicle connectivity, making use of both 5G and satellite communications.

Market Overview

Self-driving vehicles are cars, and trucks are driverless vehicles in which the human driver’s role is not involved in taking control and safely operating the vehicle. Self-driving vehicles are also commonly known as autonomous or driverless vehicles. The self-driving cars and trucks market uses cameras, sensors, radar, and artificial intelligence (AI) to travel between locations, and these technologies sense the conditions around them, such as traffic and pedestrians, and avoid road hazards as well as adjust their speed without human intervention. Several companies are engaged in developing and testing autonomous vehicles, such as BMW, Audi, Daimler AG, Ford, Toyota Motor Corporation, Google, Tesla, Volkswagen, Volvo, General Motors, and others.

Self-driving Cars and Trucks Market Growth Factors

• The primary cause of accidents is human error.  As the occurrence of road accidents increases at a concerning rate, there is an increasing demand for self-driving cars for road safety measures
• Several newer features and technologies introduced by the self-driving cars and trucks market every year make it an attractive avenue for consumers in developed economies.
• The growing amount of spending income at the population's disposal enables key players to enter the self-driving cars and trucks market confidently.

Self-driving Cars and Trucks Market Scope

Self-driving Cars and Trucks Market Dynamics

Driver

Rising innovation in automotive technology

The rapid innovation in automotive technology is expected to boost the self-driving cars and trucks market during the forecast period. The ongoing evolution of automotive technology is likely to deliver more safety benefits than earlier technologies. Self-driving cars and trucks can handle various tasks without a driver's involvement. Automated safety technologies in vehicles assist in saving lives and preventing injuries on roads.

New braking technologies are designed to warn about the risk of an impending crash and take other preventive actions to avoid a crash. Autonomous vehicles are manufactured with advanced equipment connected to smartphones. Automobile manufacturers are highly investing in improving self-driving capabilities, which include RADAR, LIDAR, GPS, sensors, cameras, and artificial intelligence to travel between locations without a human driver. Such factors positively impact the self-driving cars and trucks market during the forecast period.

• In October 2023, Pony.ai, a Chinese autonomous driving technology company, secured a USD 100 million investment from Neom Investment Fund, the investment arm of Neom, a Saudi Arabian future city project. Both parties will establish a joint venture to oversee the deployment of Pony.ai’s robotaxi fleet in Neom, where Pony.ai will also construct manufacturing and R&D facilities.

Restraint

High cost

The high cost associated with autonomous vehicles is anticipated to hamper the growth of the self-driving cars and trucks market. The high capital required, which includes the purchasing price and maintenance expenses, often discourages consumers and businesses from purchasing due to budget constraints. In addition, the lack of adequate infrastructure, particularly in low and middle-income countries, such as roads and traffic signals necessary to accommodate autonomous vehicles, may restrict the expansion of the market.

Opportunity

Rising focus on road safety

The rising focus on road safety is expected to boost the acceptance of the self-driving cars and trucks market in the coming years. Autonomous vehicles have the potential to transport goods and help people travel around the world. The AI technology behind autonomous vehicles tends to handle traffic situations. The government's rising restrictions to boost road safety are expected to increase the adoption of self-driving cars and trucks.

Vehicle sensors can detect various road features and obstacles, including curbs, pedestrians, lane markings, bicyclists, and other vehicles. Self-driving automation technologies help improve safety, are well-suited for interstate highways, and are expected to drive the growth of the self-driving cars and trucks market during the forecast period.

• In 2022, 5,837 large trucks were involved in a fatal crash, a 1.8% increase from 2021 and a 49% increase in the last ten years. The involvement rate per 100 million large-truck miles traveled is up 3% from 2021 and up 24% in the last ten years. Large trucks are defined as any medium or heavy truck, not including buses and motor homes, with a gross vehicle weight rating greater than 10,000 pounds. Both commercial and non-commercial vehicles are included. Large trucks accounted for 6 percent of all vehicles involved in fatal crashes and 10 percent of total vehicle miles traveled.
• In September 2023, Uber Freight partnered with Waabi, a global leader in generative AI and simulation for autonomous technology, to accelerate the safe deployment of AI-powered autonomous trucks at scale. This collaboration brings together Waabi’s core technology, the Waabi Driver, with Uber Freight’s vast logistics platform, marketplace technology, and expertise in autonomous trucking operations to deliver a turnkey driver-as-a-service solution. The national supply chain is plagued by challenges, including an estimated 35% of miles being driven empty and a looming shortage of truck drivers, expected to reach 160,000 by 2028.

Application Insights

The transportation segment accounted for the dominating share of the self-driving cars and trucks market in 2023. The growth of the segment is driven by the rising significant popularity of electric and hybrid vehicles which spur the demand for autonomous vehicles. The adoption of self-driving cars and trucks has the potential to boost transportation effectiveness by streamlining routes, improving road safety, reducing carbon footprints, and easing traffic. The use of autonomous vehicles has favorable effects on the environment and reduces overall fuel consumption.

Driverless vehicles can also make decisions to optimize their movements and reduce journey time due to the excellent algorithms and real-time data processing. The stringent government regulation on carbon emission and road safety increases the introduction of self-driving cars and trucks onto public roads. Self-driving technology ensures transportation networks work properly and safely. Autonomous vehicles can run constantly without a break, which attracts businesses to adopt these vehicles. Such factors drive the growth of the self-driving cars and trucks market during the forecast period.

The defense segment is expected to witness significant growth in the self-driving cars and trucks market during the forecast period. This growth can be attributed to the increasing deployment of self-driving vehicles in the defense sector. Several governments in the defense sector are amending transport regulations to create a gateway for driverless cars.

• In May 2024, Zeal Motor Inc., the manufacturer of the renowned FAT TRUCK, announced the launch of its new division, FAT TRUCK DEFENSE, dedicated to supporting the defense sector. This initiative marks a significant expansion of Zeal Motor's commitment to innovative mobility solutions in various demanding environments, including energy infrastructure, mining exploration, search and rescue operations, and military operations.
• In April 2024, DARPA’s Robotic Autonomy in Complex Environments with Resiliency (RACER) program successfully tested autonomous movement on a new, much larger fleet vehicle, a significant step in scaling up the adaptability and capability of the underlying RACER algorithms. The RACER Heavy Platform (RHP) vehicles are 12-ton, 20-foot-long, skid-steer tracked vehicles similar in size to forthcoming robotic and optionally manned combat/fighting vehicles.

Self-driving Cars and Trucks Market Companies

• Tata Elxsi
• Hyundai Motor Group
• Audi AG
• BMW AG
• Daimler AG
• Ford Motor Company
• General Motors Company
• Toyota Motor Corporation
• Uber Technologies, Inc.
• Volvo Car Corporation
• Audi AG
• BMW AG
• Mercedes-Benz Group AG
• Volkswagen AG
• Jaguar Land Rover Limited
• Groupe Renault
• Volvo Car Corporation
• Aptiv PLC
• Waymo LLC
• Tesla, Inc.
• Honda Motor Co., Ltd.
• Nissan Motor Co., Ltd.
• Mitsubishi Motors Corporation
• Beijing Idriveplus Technology Co., Ltd.
• SAIC Motor Corp.

Recent Developments

• In June 2024, Amazon.com's robotaxi unit Zoox announced it plans to start testing its autonomous vehicles in Austin, Texas, and Miami, a move that would mark its first trial sites outside the western United States. Zoox will deploy its test fleet of retrofitted Toyota Highlanders with human safety drivers in small areas near the business and entertainment districts of the two cities.
• In March 2023, Google LLC, a U.S.-based technology company, collaborated with Mercedes-Benz, a luxury vehicle company in Germany, to develop a customized navigation interface. This collaboration aims to use Google's AI and data functionalities to help Mercedes-Benz accelerate its sustainability efforts, advance autonomous driving, and improve the customer experience.
• In May 2024, Japan's Defense Ministry announced its plan to set up a technology research center this fall to develop applications for innovations such as artificial intelligence, aiming to encourage cooperation with the private sector like that seen in the U.S.
• In June 2024, Tesla unveiled a new tab that released a software upgrade for its in-car navigation system in China on Friday, introducing new features such as displaying lane markings on its maps that correspond to the actual lanes on the road.

Segments Covered in the Report

By Application

• Transportation
• Industrial
• Commercial
• Defense

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa