Autonomous Car Market Size worth $207 Billion by 2031 – TMR Analysis

If you don’t think Autonomous vehicles are going to have a major impact on society over the next ten years, think again. The latest estimates from Transparency Market Research (TMR) state a CAGR of 22.50% is to be expected between 2021 and 2031, equating to $207 billion. To put $207 billion in perspective, Apple will do roughly the same in iPhone sales this year and we all know what the iPhone accomplished in creating a massive ecosystem of peripheral products and services.

Key Findings from the TMR Autonomous Car Study:

The growing integration of advanced electronics components, including sensors and artificial intelligence based cameras in vehicles, is promoting vehicle manufacturers to invest in research & development of driverless vehicles.

With increased hype about vehicles such as Tesla, automotive giants including General Motors, Ford, and Nikola Corp. have joined to innovate in autonomous cars. Companies are increasing R&D in level 3 of autonomy in cars. This trend can be attributed to the increasing demand for cars with level 3 automation, owing to their incredible features, such as low cost and adaptive cruise control. Level 3 autonomous vehicles are capable of driving themselves in particular conditions, during which they will take control of all safety-critical systems.

Autonomous vehicles require developed infrastructure, including lane marking on roads, proper road infrastructure, and Internet connectivity. The lack of proper infrastructure across major countries is likely to pose a challenge for stakeholders in the autonomous car market.

The Vexnova Take

If infrastructure improves faster than expected then these projections could be low. Major players that are operating in the global autonomous car market are focusing on the expansion of their market share by engaging in collaborations, partnerships, and mergers & acquisitions. Similar to the impact of the iPhone, we believe the full ecosystem impact is still unknown. Innovations and developments to support autonomous vehicles are yet to be created or even conceived.

These additional products, software, and services will prompt higher demand for autonomous vehicles. Autonomous vehicle expansion will require changes to the workforce not only in technology and manufacturing but also in construction and infrastructure.

We believe the emergence of autonomous vehicles will have the same if not larger impact on social and economic factors than smartphones.