Global Autonomous Driving Services Market
Autonomous Driving Services Market size was valued at USD 4.6 billion in 2024 and is projected to reach a valuation of USD 185.7 billion by the end of 2037, rising at a CAGR of 33% during the forecast period, i.e., 2025-2037. In 2025, the industry size of autonomous driving services is estimated at USD 6 billion.
The autonomous driving services market is anticipated to rise significantly due to advances in AI, sensor technologies, and connectivity solutions, which further drive innovation in this sector. Furthermore, the integration of Level 4 and Level 5 automation in ride-hailing and public transportation services is transforming urban mobility. In July 2024, Alphabet announced that it was planning to invest around USD 5 billion into Waymo, promoting the commercialization of its autonomous driving technologies. This investment underlines huge growth potential for this sector and draws special attention from improving road safety to easing congestion and increasing consumer convenience-propelled by driverless mobility solutions.
Governments are also supportive of the development and deployment of autonomous technologies through funding and strategic initiatives. For instance, the SMART program by USDOT, announced in August 2024, provides up to USD 15 million in grants to implement smart community technologies, including autonomous transportation solutions. These, together with private sector investments, are overcoming infrastructure challenges and ensuring seamless integration of autonomous services within modern transportation ecosystems.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
33% |
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Base Year Market Size (2024) |
USD 4.6 billion |
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Forecast Year Market Size (2037) |
USD 185.7 billion |
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Regional Scope |
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Service Type (Ride-Hailing, Public Transportation, Freight and Delivery)
Ride-hailing segment is projected to hold autonomous driving services market share of over 54% by the end of 2037. The factors contributing to the growth are basically urbanization and an increase in consumer preference for on-demand, driverless transportation. Furthermore, their growing adoption through increased use of ride-hailing applications, added to the increasing integration with other digital services, is a contributing factor. In September 2024, an autonomous micro-transit service launched in California accentuated convenience and ease of access due to autonomous driving technologies enabled for ride-hailing services as part of Contra Costa Transportation Authority. The move consolidates autonomous technology's gaining momentum in public road transport to catalyze urban mobility challenges.
Level of Automation (Partial Automation (L1 & L2), High Automation (L3), Full Automation (L4 & L5))
In autonomous driving services market, partial automation (L1 & L2) segment is expected to capture revenue share of around 73.9% by the end of 2037, due to extensive usage of ADAS systems. These systems provide far better features than their predecessors by adding lane-keeping or adaptive cruise control and bridging the step to higher classes of automation. In August 2024, Stellantis Ventures invested in the on-chip LiDAR technology of SteerLight-a pivotal technology to extend the capability of ADAS. This investment is another proof of the increasing interest in LiDAR technology as one of the critical enablers for advanced driver-assistance systems and autonomous driving.
Our in-depth analysis of the global autonomous driving services market includes the following segments:
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Service Type |
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Level of Automation |
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Vehicle Type |
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North America Market Analysis
North America in autonomous driving services market is anticipated to hold more than 40.8% revenue share by 2037. The development of new transportation services for mobility markets across the continent highlights its growing global leadership role in self-driving technology and sustainable mobility. Furthermore, significant investments in artificial intelligence and related infrastructure in the U.S. are expected to boost autonomous fleet applications.
The U.S. continues to dominate the autonomous driving services market in North America, fueled by innovation from tech giants and automakers. In October 2024, Elon Musk introduced the Tesla Robotaxi, a fully autonomous vehicle that anyone could call upon demand for transport. With strong government incentives for sustainable mobility and advances in 5G networking, the U.S. is moving rapidly toward the widespread deployment of self-driving fleets. In addition, private-public partnerships at the state-government level are accelerating the development of smart transportation infrastructure. These factors ensure that the U.S. remains a global leader in autonomous driving services.
Canada is growing as one of the important contributors in the autonomous driving services market in North America, enabled by a high level of innovation and public-private partnerships. The government of Canada announced some new funding in August 2024 to develop AI-enabled autonomous vehicle technologies. Projects like the Autonomous Vehicle Innovation Network are fostering R&D and pilot programs to enhance the integration of autonomous systems. Furthermore, partnerships with worldwide automakers also help Canada create infrastructure for linked and independent cars, which would provide a significant lead in this growing industry.
APEJ Market Statistics
APEJ autonomous driving services market is expected to register over 33.6% growth till 2037. In December 2023, Hyundai Motor India identified the growth of connected car technologies, owing to the fact that connected vehicle sales rose from 5% in 2019 to 30% in 2023, reflecting the greater preference for advanced connectivity among the consumers of the region. Large investments in AI and IoT infrastructure further drive the demand for autonomous mobility solutions during the projection period.
With the rapid drive of urbanization and smart technology adoption, India is emerging as one of the key players in the autonomous driving services market. Hyundai Motor India also announced that there was a significant increase in the adoption of connected cars, with over 500,000 units being sold till December 2023 since its inception four years ago. Initiatives under the government's smart city program are creating an ecosystem that is conducive to the integration of autonomous mobility solutions.
China leads the APEJ autonomous driving services market underpinned by significant investments in smart infrastructure and advanced technologies. In July 2022, China's SOEs announced that they invested over USD 1.49 trillion in more than 1,300 projects, focusing on AI, IoT, and 5G, further enhancing the deployment of autonomous vehicles and connected ecosystems. Furthermore, domestic companies like Baidu and Huawei are leading in developing autonomous driving platforms, which secures the continuous leading position of China in the autonomous driving services market.
The autonomous driving services market is highly dynamic in nature, with key players such as AB Volvo, Daimler Truck Holding AG, BYD Motors, Tata Motors Limited, and Hyundai Motor Company leading the charge. Major companies are putting more effort into competitive, advanced technologies while taking strategic partnerships and investing huge amounts in R&D to strengthen their autonomous driving services market position. This includes advanced sensor systems like lidar and radar and sophisticated software used for vehicle control.
In December 2024, Kodiak Robotics partnered with Kognic to improve the reliability and performance of its autonomous trucking AI pipelines. The data labeling platform created by Kognic, which manages time series data from multi sensor systems, is key to bettering Kodiak’s AI models. The goal is to make it easier to put together the AI annotation pipeline and bring Kodiak to build an efficient AI flywheel with a continuous improvement cycle. Such developments indicate that the autonomous driving services market will be driven towards safer and more reliable self driving solutions as the industry pursues the development of autonomous technologies through innovative partnerships.
Here are some leading companies in the autonomous driving services market:
Author Credits: Saima Khursheed
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