The global autonomous driving software market size is projected to grow from USD 1.8 billion in 2024 to USD 7.0 billion in 2035, at a CAGR of 13.3%.
The demand for driving software solutions is expected to increase as automakers and tech companies prepare to introduce self-driving cars. This is because OEMs and technology suppliers are investing more in ADAS/AD technologies. Additionally, there is an increasing demand for L2+ cars. The need for autonomous driving software in L2+ vehicles is anticipated to be driven by the quick development of AI and sensor technologies as well as growing consumer interest in ADAS for increased safety. Additionally, the transition to higher levels of autonomy is being accelerated by the move to software-first architecture and technology sharing between top OEMs and IT companies. As a result of these advancements, software for automobiles is being created for uses such interior sensing, chauffeuring, perception and planning, and supervision and monitoring.
Over the course of the projected period, the passenger car category is anticipated to hold the highest share.
The market for autonomous driving software is expected to be largest in the passenger car segment due to the growing desire for safer and more comfortable automobiles. The rising demand for luxury cars will further affect this. Industry analysts predict that by 2030, L2+ passenger cars will account for 14–18% of the present L2 vehicle market share. The market will also be driven by government regulations requiring safety measures in passenger cars. For instance, starting in 2022 and extending to current models in 2024, the EU broadened the scope of mandatory ADAS technology to include Automatic Emergency Braking (AEB) and Lane Keeping Assistance (LKA) in newer automobiles. This law requires the region’s automakers to offer the above specified ADAS technologies. In a similar vein, since 2019, South Korea has required AEB and LDW systems for all new passenger cars. Additionally, the Automated Vehicle Act 2024, passed by the UK government in May 2024, permits the commercialization of self-driving cars on British roads starting in 2026 and promotes the usage of automated vehicles.
Numerous automakers are looking at cutting-edge autonomous applications for their passenger cars, including Tesla, Mercedes-Benz, BMW, Audi, Hyundai, and Nissan. Businesses are collaborating and making significant investments in software for autonomous driving. For instance, in February 2024, OXA introduced Oxa Driver, its first commercial self-driving software, in Jacksonville, Florida, for use in passenger autonomous car shuttles. In a similar vein, Pony.ai was granted permission in February 2024 to conduct fully unmanned passenger testing of the Autonomous GAC Toyota Sienna in Beijing. This will enable the vehicle to demonstrate autonomous driving capabilities and be available for user hailing through the PonyPilot+ app in Guangzhou and Beijing simultaneously.
Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=247907500
Over the course of the forecast period, the electric propulsion sector is anticipated to hold the greatest share in the market for autonomous driving software.
Over the course of the forecast period, the electric propulsion sector is anticipated to hold the greatest share in the market for autonomous driving software. Because EVs have central processing and fewer mechanical systems, ADAS systems are easier to integrate. Numerous sensors, processors, and control systems will be installed in these cars to aid in navigation, obstacle detection, and communication with other cars and people. Vehicles can be programmed to follow preset routes and make judgments based on their environment thanks to this technology. Applications for autonomous EVs are numerous and include ride-sharing, delivery, transportation of commodities, and even military operations.
Automakers worldwide are turning their attention to electric vehicles (EVs) in response to consumer demand for an emission-free mode of transportation. Around the world, numerous nations are enacting safety and pollution rules. It is anticipated that this will lower emissions and increase road safety. Numerous international automakers, including Tesla, BMW, Mercedes-Benz, Hyundai, Audi, and Nissan, are eager to develop and produce electric-powered L2+, L3, and L4 vehicles. EV autonomous vehicle technology is being actively developed and invested in by a number of OEMs and providers of autonomous driving software. For instance, Mobileye (Israel) and Smart Europe GmbH (Germany) partnered in September 2023. A Navigation Smart Pilot (NSP) and improved driving assistance functions based on Mobileye SuperVision will be included in Smart’s upcoming special edition EV.
“By 2035, North America is anticipated to hold a sizable portion of the market for autonomous driving software.”
Because of the region’s increasing demand for autonomous vehicles, the North American market for autonomous driving software is anticipated to rise significantly over the course of the forecast period. L2+ vehicles are already available in the region from domestic OEMs including Ford, GM, and Tesla as well as European and Asian OEMs like Toyota (Japan), Nissan (Japan), Hyundai (South Korea), BMW (Germany), and Volkswagen (Germany). L3 autonomous vehicles are also offered in the area by a few top companies. For example, Mercedes-Benz sells the S-Class and EQS SUV L3 in the US and Canada. BMW also offers L3 autonomy for its 7 Series.
Increased government regulations requiring the use of advanced safety features in vehicles, along with customer awareness and acceptance of autonomous driving, are projected to fuel the need for autonomous driving software in L2+ vehicles in the region. The demand for autonomous driving software is expected to surge as Al, cloud computing, and machine learning become more prevalent. This need is anticipated to increase in the area as more suppliers, tech businesses, and automakers join together.
The need for autonomous car software will also be fueled by the region’s concentration of top automotive software companies, including NVIDIA, Qualcomm, Waymo LLC, and BlackBerry Limited. These businesses aid in the creation of cutting-edge software programs and systems for autonomous cars. For instance, Alphabet (US) said in July 2024 that it plans to invest USD 5 billion over the next few years in its autonomous vehicle company, Waymo. Waymo will be able to keep growing as a top provider of autonomous driving technology thanks to this funding. With high demand in California, where self-driving cars have been tested for years, the US is expected to be the region’s largest market. Canada will have a sizable market as well, given the rising demand for luxury cars and growing awareness of traffic safety.
Key Players
The major players in the autonomous driving software market include Mobileye (Israel), NVIDIA Corporation (US), Qualcomm Technologies, Inc. (US), Huawei Technologies Co, Ltd (China), and Aurora Innovation Inc. (US). These businesses have robust worldwide distribution networks and provide manufacturers with autonomous driving software. Additionally, businesses are actively working together and forming partnerships with OEMs and other technology providers. To increase its market reach and improve ADAS technology integration, Mobileye, for example, works with more than 50 manufacturers, including Ford Motor Company (US), Mahindra & Mahindra Ltd. (India), and ZEEKR (China).
Request Free Sample Report @ https://www.marketsandmarkets.com/requestsampleNew.asp?id=247907500
