In the latest report published by Fortune Business Insights, the global autonomous car market was valued at USD 1.45 billion in 2020 and is expected to reach USD 11.03 billion by 2028, at a CAGR of 31.3% over the forecast period 2021–2028.
According to the report, “rapid improvement in sensor processing technologies, high definition mapping, adaptive algorithms, and the deployment of infrastructure-to-vehicle and vehicle-to-vehicle communication technologies are encouraging several companies to expand their production capabilities and taking vehicle automation to the next level.”
A growing desire to stay out of stores and shop online as a response to the COVID-19 pandemic will pressure companies to increase their capacity for delivering services and logistics. Autonomous vehicles provide an outlet to reduce costs while meeting this demand.
The Vexnova Take
We believe the current estimates are too low. The international race to become the leader in autonomous vehicles could induce government policies and subsidies that encourage faster and more significant developments in this space. We predict dramatic increases from 2025 to 2028 that would put the estimates closer to $15 Billion by 2028. Current trend forecasts account for current public safety concerns. According to a Pew Research Study, only 26% of Americans believe autonomous vehicles are good for society. We suspect these concerns will soften once autonomous vehicles become more common and higher demand will ensue.
These estimates do not consider the greater ecosystem, including demand for software, communications technology, infrastructure, and fee-based services. Total autonomous vehicle investments, including these supplementary products and services, are estimated to be $25 billion by 2028.