|
Forecast
Period
|
2025-2029
|
|
Market
Size (2023)
|
USD
17.02 Billion
|
|
CAGR
(2024-2029)
|
9.13%
|
|
Fastest Growing Segment
|
Passenger
Car
|
|
Largest Market
|
United States
|
|
Market
Size (2029)
|
USD
28.76 Billion
|
Market Overview
North America Semi & Fully Autonomous Vehicle
Market has valued at USD 17.02 Billion in 2023 and is anticipated to project
robust growth in the forecast period with a CAGR of 9.13%. The North American
market for semi-autonomous and fully autonomous vehicles is poised for
significant growth. Rapid advancements in technology, such as artificial
intelligence and machine learning, combined with increasing consumer trust in
autonomous technology, are major factors driving this growth. With the rise of
electric vehicles and the push for sustainable transportation, the demand for
autonomous vehicles is expected to soar in the coming years.
North America, known for its advanced
infrastructure and high levels of technology adoption, is on the forefront of
this revolution in the automotive industry. The region boasts a robust network
of charging stations and smart cities that support the integration of
autonomous vehicles. Additionally, the presence of major technology hubs and
automotive manufacturers further accelerates the development and deployment of
autonomous vehicles in the region. Stringent governmental regulations aimed
at improving road safety contribute to the growth of the autonomous vehicle
market. Policies and standards are being developed to ensure the safe operation
of autonomous vehicles on public roads. These regulations not only protect the
public but also encourage companies to invest heavily in the research and
development of autonomous vehicles, leading to continuous innovation and
improvement in technology. Despite the challenges posed by the need for
comprehensive legal frameworks and cyber-security concerns, the future of the
autonomous vehicle market in North America looks promising. As technology
matures and public acceptance grows, autonomous vehicles have the potential to
transform transportation, making it more efficient, sustainable, and safer for
everyone on the road.
Key Market Drivers
Technological Advancements
Technological innovation is at the forefront of
driving the North American Semi & Fully Autonomous Vehicle Market.
Companies in the region, including established automakers, startups, and
technology giants, are heavily investing in research and development to advance
autonomous technology. Key components such as sensors, artificial intelligence
algorithms, and connectivity solutions are continuously evolving. These
advancements are paving the way for vehicles to achieve higher levels of
autonomy, enabling safer and more reliable autonomous driving experiences. For Instance, In 2022, Daimler Truck, in partnership with its subsidiary Torc Robotics, is at the forefront of developing SAE Level 4 (L4) autonomous trucks with critical redundant safety systems. The companies are testing a fleet of autonomous trucks on public roads in the U.S. and are now collaborating with leading U.S. logistics companies to further develop real-world applications for autonomous trucking. Daimler Truck is committed to commercializing autonomous trucking technology, and addressing the growing demand for freight transport. Further, Daimler Truck North America has also successfully developed the first scalable autonomous truck platform with critical safety systems, based on the Freightliner Cascadia. The autonomous-ready Cascadia has been designed and developed with a second set of critical systems, such as steering and braking, to meet Daimler Truck's uncompromising safety standards.
Safety Improvements
Safety is a paramount driver for the adoption of
autonomous vehicles in North America. With a significant portion of road
accidents attributed to human error, autonomous technology holds the promise of
reducing accidents and saving lives. Waymo is an autonomous driving technology provider, with a strong focus on safety, provided some key statistic related to traffic injuries and fatalities by highlighting the importance of automated driving system, around 1.19 million people die worldwide due to vehicle crashes each year, 42,514 deaths were recorded in the U.S. in 2022 and around 50 Million injuries worldwide due to vehicle crashes each year. Autonomous vehicles are equipped with a
range of sensors, cameras, Lidar, radar, and advanced software that provide
real-time situational awareness. This enables them to make split-second
decisions and respond to changing road conditions, thereby reducing the
likelihood of accidents caused by factors like distracted driving or impaired
judgment.
Consumer Demand for Enhanced Mobility Options
Changing consumer preferences and urbanization
trends are driving the demand for enhanced mobility options. North American
consumers are increasingly seeking vehicles equipped with advanced
driver-assistance systems (ADAS) that offer improved safety and convenience.
Additionally, the emergence of ride-sharing platforms and autonomous
ride-hailing services is reshaping how people access transportation. These
services provide consumers with flexible, cost-effective, and convenient
mobility solutions, further fueling the adoption of autonomous vehicles.
Regulatory Initiatives and Frameworks
Governments and regulatory bodies in North America
are actively engaged in shaping the future of autonomous mobility. They are
working on establishing comprehensive regulatory frameworks that address
safety, liability, data protection, cybersecurity, and ethical considerations.
Federal agencies in the United States, such as the National Highway Traffic
Safety Administration (NHTSA), are collaborating with industry stakeholders to
create a consistent and supportive regulatory environment. States and provinces
are also developing their own guidelines and initiatives to facilitate testing
and deployment of autonomous vehicles.The study analyzed the speeding behavior of drivers in San Francisco and Phoenix, and found that speeding is a significant safety issue, with drivers exceeding the speed limit up to 47% of the time, including instances of extreme speeding where vehicles went over 25 mph above the posted limit. The findings highlight the importance of measures like Vision Zero initiatives and self-driving technology in promoting safer streets by following speed limits and detecting speeding vehicles. In 2020, speeding was a contributing factor in 11,258 deaths and 308,013 injuries, accounting for nearly one-third of all traffic fatalities and 13% of injuries in the U.S., according to the NHTSA.
Economic Benefits
The economic advantages of autonomous technology
are driving its adoption in North America. Autonomous vehicles have the
potential to optimize transportation logistics, reduce fuel consumption, and
increase overall efficiency in sectors like freight and goods delivery.
Additionally, the growth of autonomous mobility services can create new
economic opportunities and jobs in areas such as vehicle maintenance, data
analysis, and customer support. These economic benefits are motivating
businesses and governments to invest in autonomous technology.
Environmental Consciousness
Environmental sustainability is another driver of
the North America Semi & Fully Autonomous Vehicle Market. The region has a
growing commitment to reducing greenhouse gas emissions and addressing climate
change. Autonomous electric vehicles (EVs) are seen as a promising solution to
reduce emissions and improve air quality. By combining autonomous technology
with electric propulsion, these vehicles can optimize energy consumption and
reduce the carbon footprint of transportation. As a result, the adoption of
autonomous EVs aligns with North America's goals of achieving a more
sustainable and environmentally friendly transportation system.
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Key Market Challenges
Technological Complexity and Reliability
Developing and deploying the advanced technology
required for semi and fully autonomous vehicles is a complex challenge. These
vehicles rely on an array of sensors, cameras, radar, Lidar, and
high-definition maps to perceive their surroundings and make real-time
decisions. Ensuring the reliability and safety of these systems, especially in
diverse weather conditions, is a top priority. Achieving redundancy and fail-safe
mechanisms to prevent accidents or malfunctions is an ongoing challenge.
Moreover, ensuring the compatibility of autonomous systems with evolving road
infrastructure and communication technologies is crucial.
Regulatory Frameworks and Harmonization
The North American market comprises multiple
countries and states, each with its own set of regulations and standards for
autonomous vehicles. Achieving regulatory harmonization and alignment across
borders is a complex challenge. While the United States has made efforts to
create federal guidelines for autonomous vehicles, differences in state-level
regulations and interpretations persist. Coordinating and harmonizing these
regulations, particularly in areas related to safety, liability, and certification,
is essential for enabling the seamless deployment of autonomous vehicles across
North America.
Safety Concerns and Liability
Safety concerns surrounding autonomous vehicles are
multifaceted. While these vehicles have the potential to reduce accidents
caused by human error, they also introduce new safety challenges. Determining
liability in the event of accidents or malfunctions involving autonomous
vehicles is complex and requires legal frameworks that assign responsibility
appropriately. Establishing a clear path for insurance, accident investigation,
and resolution of liability disputes is essential to build public and regulatory
trust in autonomous technology. Ensuring the safety of passengers, pedestrians,
and other road users is paramount.
Infrastructure Readiness
Autonomous vehicles depend on robust
infrastructure, including high-definition maps, vehicle-to-infrastructure (V2I)
communication networks, and intelligent transportation systems (ITS). Ensuring
that North American roads and cities are equipped with the necessary
infrastructure to support autonomous vehicles is a significant challenge. This
includes the development of accurate and up-to-date mapping databases,
deployment of V2I communication technology, and the creation of dedicated
autonomous vehicle lanes and zones. Addressing infrastructure disparities
between urban and rural areas is essential for ensuring the equitable
deployment of autonomous technology.
Public Acceptance and Trust
Gaining public acceptance and trust in autonomous
vehicles remains an ongoing challenge in North America. Many individuals have
reservations about relinquishing control to self-driving vehicles and may be
concerned about the safety and reliability of the technology. Addressing these
concerns requires extensive public education and awareness campaigns, as well
as transparency in the development and testing of autonomous systems.
Demonstrating the safety and benefits of autonomous vehicles through rigorous
testing, validation, and real-world deployments is crucial for building trust
among consumers and stakeholders.
Economic and Societal Implications
The widespread adoption of autonomous vehicles has
economic and societal implications that need to be carefully considered. The
potential for job displacement in industries such as transportation and
logistics is a concern. Additionally, the affordability of autonomous
technology and the accessibility of autonomous vehicles to all segments of
society need to be addressed. Ensuring that autonomous technology contributes
to societal benefits, such as reduced traffic congestion, improved mobility for
the elderly and disabled, and enhanced road safety, is an ongoing challenge.
Key Market Trends
Advancements in Artificial Intelligence and Machine
Learning
Technological advancements in artificial
intelligence (AI) and machine learning are at the forefront of the North
American autonomous vehicle market. These technologies are essential for
enabling vehicles to perceive their surroundings, make real-time decisions, and
navigate complex environments. Machine learning algorithms allow autonomous
vehicles to improve their performance over time by learning from data and
adapting to changing conditions. North American companies and research
institutions are leading the way in developing cutting-edge AI solutions that
enhance the capabilities and safety of autonomous vehicles.
Growth of Ride-Sharing and Mobility as a Service
(MaaS)
The growth of ride-sharing platforms and the
concept of Mobility as a Service (MaaS) are reshaping how people access
transportation in North America. Autonomous vehicles are poised to play a
pivotal role in these evolving mobility ecosystems. Major ride-sharing
companies are investing heavily in autonomous technology to reduce operational
costs and offer more affordable rides. The integration of autonomous vehicles
into MaaS platforms is expected to provide consumers with convenient, on-demand
transportation options and contribute to reduced traffic congestion in urban
areas.
Electric and Autonomous Vehicle Synergy
The synergy between electric vehicles (EVs) and
autonomous technology is a noteworthy trend in the North American market. Many
autonomous vehicle prototypes and test fleets are electric or hybrid, as
electric propulsion offers environmental benefits, lower operating costs, and
simplified vehicle architectures that align well with autonomous systems. The
integration of autonomous technology into EVs is seen as a path toward
sustainable and efficient transportation solutions. This trend is driving
investments in electric and autonomous vehicle development in the region.
Public-Private Collaborations and Research
Initiatives
Collaborations between public and private sectors
are becoming increasingly common in North America. Governments, research
institutions, and industry stakeholders are partnering to accelerate the
development and deployment of autonomous technology. Research initiatives,
testbeds, and pilot projects are being conducted to explore the potential
benefits of autonomous vehicles in various applications, including public
transportation, goods delivery, and last-mile logistics. These collaborations
aim to address technical, regulatory, and societal challenges associated with
autonomous mobility.
Consumer Education and User Experience
As autonomous vehicles become more prevalent, there
is a growing emphasis on consumer education and enhancing the user experience.
Companies are investing in user-friendly interfaces, human-machine interaction
systems, and educational campaigns to inform consumers about the capabilities
and limitations of autonomous technology. Real-world deployments and pilot
programs are allowing consumers to experience autonomous rides firsthand,
helping to build trust and acceptance. Ensuring that autonomous vehicles provide
a comfortable and seamless user experience is essential for their widespread
adoption.
Segmental Insights
Automation Level Insights
The North American market for semi and fully
autonomous vehicles is experiencing remarkable growth. This growth is primarily
driven by significant technological advancements and the increasing acceptance
of consumers towards autonomous driving. Semi-autonomous vehicles, equipped with advanced
features such as adaptive cruise control, lane keep assist, and self-parking
capabilities, have gained substantial market share. These features not only
enhance the driving experience but also contribute to improved road safety and
increased convenience for drivers. In the North American semi and fully autonomous vehicle market, Level 2 (L2) automation is currently the leading automation level. Level 2 automation, which involves partial automation with combined automated functions like steering and acceleration but requires driver supervision, is more accessible and affordable for consumers. Many mainstream automotive manufacturers, such as Tesla, General Motors, and Ford, offer Level 2 automation features in their vehicles, making it a common choice among consumers. Regulatory bodies have set guidelines that support the deployment of Level 2 automation, ensuring safety and reliability. The existing infrastructure and legal frameworks in North America are more accommodating to Level 2 vehicles compared to higher levels of automation, which require more advanced systems and regulatory adjustments. As consumers become more familiar with and confident in using semi-autonomous features, the demand for Level 2 automation continues to grow, reinforcing its leading position in the market. Level 2 automation is the leading level in the North American semi and fully autonomous vehicle market, driven by consumer accessibility, regulatory support, and technological maturity. As the autonomous vehicle technology continues to
evolve and mature, it is expected to revolutionize the transportation industry
and transform the way people commute. With continuous advancements in AI,
sensor technology, and connectivity, autonomous vehicles have the potential to
create a safer, more efficient, and sustainable future of transportation.
Vehicle Type Insights
In the North American market for semi and fully autonomous vehicles, passenger cars are the leading category. This dominance is driven by several key factors and trends. The rising consumer interest in advanced driver-assistance systems (ADAS) and full autonomy is a significant driver. Features like adaptive cruise control, lane-keeping assistance, and self-parking are becoming standard in new passenger car models, appealing to tech-savvy consumers who prioritize safety and convenience. The rapid advancements in sensor technology, artificial intelligence, and machine learning are more readily integrated into passenger cars. These technologies are crucial for developing and enhancing autonomous driving capabilities, making passenger cars the primary platform for innovation. Government regulations and policies supporting the development and testing of autonomous vehicles primarily target passenger cars. Initiatives aimed at improving road safety and reducing traffic accidents are driving the adoption of autonomous technologies in this segment. Major automotive manufacturers and tech companies are heavily investing in the passenger car segment to develop and refine autonomous driving technologies. Collaborations between automakers and technology firms are accelerating the progress and commercialization of autonomous passenger cars. The gradual consumer acceptance and trust in autonomous technology are more evident in the passenger car market. Pilot programs and ride-sharing services utilizing autonomous passenger vehicles are contributing to increased consumer confidence and market growth. Passenger cars lead the North American semi and fully autonomous vehicle market, driven by consumer demand, technological advancements, regulatory support, and strategic collaborations. This trend is expected to continue as innovation and adoption of autonomous technologies progress.
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Regional Insights
In North America, the United States is the dominant region in the semi and fully autonomous vehicle market, playing a crucial role in advancing these technologies. Investments in artificial intelligence, machine learning, and sensor technology are rapidly increasing, spearheaded by tech giants and leading automotive companies. This surge is driven by substantial venture capital and robust regulatory support, facilitating extensive testing and deployment of autonomous vehicles across the country. Semi-autonomous vehicles currently hold a significant market share due to their proven reliability and consumer acceptance. Features such as adaptive cruise control and lane-keeping assist are widely adopted, making these vehicles a popular choice. However, fully autonomous vehicles are on the brink of exponential growth. Continued advancements in technology and growing public trust in autonomous systems are expected to propel this market segment forward. The U.S. regulatory environment is particularly conducive to the development and deployment of autonomous vehicles, further solidifying its leadership in this field. As consumer confidence in these pioneering systems increases, the adoption of both semi and fully autonomous vehicles is set to rise, positioning the United States as a pivotal region in the North America autonomous vehicle market. The increasing concerns over road safety
have further fueled the demand for autonomous vehicles in North America. With
their advanced sensing capabilities and ability to react faster than human
drivers, autonomous vehicles have the potential to significantly reduce
accidents and fatalities on the roads. In addition to safety, the growing demand for
premium vehicles has also contributed to the growth of the regional market.
Consumers are increasingly seeking the luxury and convenience offered by
autonomous vehicles, which provide a seamless and comfortable driving
experience.
Recent Developments
- In 2024, the completion of a joint venture between Accelera by Cummins, Daimler Truck, and PACCAR to form Amplify Cell Technologies, was announced, the company focused on localizing battery cell production and the battery supply chain in the United States. The new company, Amplify, will soon begin construction of a 21-gigawatt hour factory in Mississippi. Kel Kearns has been named as the CEO, and the venture aims to produce differentiated lithium-iron-phosphate (LFP) battery cells for commercial vehicle customers in North America.
- In 2023, Aurora's recieved $820 million public and private funding, which will provide the company the runway to commercialize its self-driving technology by 2024 and well into 2025. The company has hit every milestone it has set, including the significant "Feature Complete" benchmark, and is now charging toward its "Aurora Driver Ready" milestone by the end of 2023. The company has also secured market-leading pilot customers, including FedEx, Uber Freight, Werner, Schneider, and Hirschbach, who can help test and incorporate autonomous trucks into their businesses.
- In 2024, Daimler Truck is developing an autonomous, battery-electric Freightliner eCascadia technology demonstrator that combines zero-emission and autonomous driving technologies. The truck is based on the production eCascadia and is equipped with Torc's autonomous driving software and the latest Level 4 sensor and compute technology, with the goal of offering customers a choice of the right vehicles for their specific business and transportation needs. This project is a step towards introducing autonomous trucks in the U.S. by 2027, and Daimler Truck is exploring the potential of emerging technologies to benefit its customers.
Key Market Players
- Uber Technologies Inc.
- Daimler Truck AG
- Waymo LLC
- Toyota Motor Corporation
- Nissan Motor Corporation
- AB Volvo
- General Motors Company
- Volkswagen AG
- Tesla Inc.
- BMW AG
|
By Automation Level
|
By Vehicle Type
|
By Component
|
By Country
|
|
|
- Passenger Car
- Commercial Vehicle
|
- Embedded System
- Camera
- others
|
- Canada
- United States
- Mexico
|
Report Scope:
In this report, the North America Semi & Fully
Autonomous Vehicle Market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
- Semi & Fully Autonomous Vehicle Market, By Automation Level:
o L0
o L1
o L2
o L3
o L4
o L5
- Semi & Fully Autonomous Vehicle Market, By Vehicle Type:
o Passenger Car
o Commercial Vehicle
- Semi & Fully Autonomous Vehicle Market, By Component:
o Embedded System
o Camera
o others
- Semi & Fully Autonomous Vehicle Market, By
Country:
o Canada
o United States
o Mexico
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the North
America Semi & Fully Autonomous Vehicle Market.
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North America Semi & Fully Autonomous Vehicle
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North America Semi & Fully Autonomous Vehicle
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