The global autonomous vehicle (AV) market surpassed $41 billion in 2024 and is expected to reach nearly $115 billion by 2029 (Statista). Additionally, competition among key players, combined with the surge of AI and ML, has accelerated advancements in the autonomous vehicle market worldwide and shaped emerging autonomous vehicle trends that redefine the self-driving outlook.
So, let’s see what the most current autonomous vehicle trends are and why they explode!
An Overview of the Autonomous Vehicle Market
The Covid-19 pandemic had a significant impact on the global autonomous vehicle development industry. On the one hand, it disrupted supply chains and manufacturing processes and delayed testing and development efforts, slowing the industry’s progress. On the other hand, the pandemic highlighted the potential of self-driving vehicles in situations requiring minimal human interaction.
Despite these challenges, the autonomous vehicle market has remained ever-changing. The global autonomous vehicle market recorded nearly 17,000 units in 2022 and is projected to grow to 127,000 units by 2030 (Next Move Strategy Consulting).
Currently, North America leads the market, holding a revenue share of over 40.31% in 2023, while the Asia-Pacific region is the fastest-growing, with an expected compound annual growth rate (CAGR) of 35% from 2024 to 2033. Prominent industry leaders include BMW, Tesla, Toyota, Ford, Mercedes-Benz, General Motors, Volkswagen, Waymo, and Baidu.
Top Autonomous Vehicle Trends Businesses Can’t Afford to Miss
1. Highly Automated Driving
The Society of Automotive Engineers (SAE) has established six levels of driving automation, ranging from no automation (Level 0) to full automation (Level 5). However, at the moment, leading autonomous vehicle companies such as Tesla and Ford primarily offer Level 2+ autonomous driving, while Mercedes and BMW have reached Level 3. In 2023, Level 2 (L2) semi-autonomous vehicles held a revenue share of 40.29%, according to Precedence Research. Achieving full automation (Level 5), as defined by SAE, still seems like a distant milestone.
It’s not just autonomous vehicle manufacturers striving to produce vehicles with higher levels of automation; consumers also desire to experience more advanced driving capabilities (Levels 3, 4, and 5). These include enhanced transportation efficiency, real-time traffic updates to avoid congestion, and increased road safety.
To achieve Level 5 automation, data annotation services play a crucial role, as they train ML models to make accurate predictions during road navigation.
Learn more: The Role of Data Annotation in the Automotive Industry
- Trend in Action
Numerous companies plan to research and launch Level 4 autonomous driving (AD) vehicles to elevate user experiences. An example is the partnership between Toyota and NTT, which has committed $3.3 billion in funding by 2030 to advance artificial intelligence applications for autonomous driving.
According to McKinsey & Company, Level 3 and Level 4 systems designed for highway driving are expected to become more widely available in the private car segment by 2025 in Europe and North America.
2. Transition From Private Vehicles To Shared Mobility
The big issues of traffic congestion and air pollution have driven increased demand for sustainable public transportation systems that save time and reduce emissions. They have also promoted a large-scale investment drive in autonomous shared mobility solutions, such as robotaxis, robo-shuttles, car sharing, and car rentals, drawing in major companies like Waymo, Uber, and Zoox.
- Trend in Action
In early 2024, Waymo began testing its robotaxi service on highways in several U.S. states, while Tesla focused on developing autonomous robotaxis and upgrading its Full Self-driving (FSD) technology.
Waymo’s all-electric Jaguar I-PACE fleet aims to be on the streets of Miami by 2025, with plans to launch a public autonomous ride-hailing service by 2026 as part of a major transformation effort.
According to IDTechEx, the U.S. and China are leading the way in this sector and are expected to reach $174 billion in revenue by 2045, with a CAGR of 37% from 2025.
3. Autonomous Electric Vehicles
One of the notable autonomous vehicle trends in the next years is the shift towards autonomous electric vehicles (EVs). Following COP29, reducing emissions and diversifying energy sources are key commitments to addressing climate change. This is also one of the reasons why autonomous electric vehicles have become a major topic.
- Trend in Action
Waymo partnered with Chinese automaker Geely in 2021 to develop the all-electric Zeekr vehicle, featuring full autonomous driving capabilities.
Similarly, Tesla plans to upgrade the (FSD) capabilities of its autopilot electric vehicles. The latest version is forecasted to launch in the EU and China in early Q1 2025, showcasing Tesla’s ambition to dominate the global autonomous vehicle market.
Sony and Honda have also joined forces to release the Afeela EV in Japan and the U.S. by 2026. This vehicle will integrate AI to significantly improve its self-driving capabilities, marking another step forward in the evolution of autonomous EVs.
4. Personalized driving experiences
In the software development landscape, AI is delivering user-centric solutions to enhance driver comfort and convenience. By analyzing data, AI drives personalized entertainment services, from music playlists, podcasts, and radio, to targeted advertisements, optimized cabin temperatures, and customized route planning based on traffic conditions and individual schedules.
- Trend in Action
BMW has been adopting AI to personalize the in-car experience. Their iDrive system in the autonomous car learns driver habits and preferences, providing suggestions for navigation, entertainment, and comfort settings. BMW also designs personalized digital keys to share with family and friends.
Meanwhile, Mercedes-Benz offers a range of personalization options through its MBUX infotainment system in automated vehicles. This system uses AI to learn driver preferences and delivers personalized recommendations. It also includes features like voice control that can be tailored to individual voices and accents.
Challenges Facing the Autonomous Vehicle Market
Despite the many promising autonomous vehicle trends in vehicle automation, the autonomous vehicle market still faces several challenges in the upcoming years:
- Technological hurdles: The increasing complexity of traffic environments and harsh weather conditions have driven a growing need for sensor technology, AI, and ML advancements. Moreover, the substantial costs associated with researching and producing Level 4 and 5 autonomous vehicles pose significant challenges to achieving maximum self-driving capabilities as defined by SAE.
- Regulatory and legal frameworks: The lack of clear regulatory and legal frameworks for AV deployment poses a major obstacle. Governments and regulatory bodies are dealing with issues such as liability in case of accidents, data privacy, and cybersecurity.
Read more: What is Trustworthy AI?
- Public acceptance and trust: Autonomous vehicle accidents and concerns about data privacy have made the public cautious about self-driving technology. Additionally, the potential for job losses among truck and bus drivers has caused anxiety about the increasingly automated driving industry.
- Infrastructure development: The deployment of AVs may require investments in infrastructure, such as dedicated lanes, improved road markings, and communication networks.
FAQs about the Future of Self-driving Cars
1. What is an autonomous vehicle?
An autonomous vehicle, also known as a driverless car, is able to operate itself without significant human input. This means it can perform tasks like steering, accelerating, braking, and navigating without much human intervention.
2. What are the stages of autonomous driving?
Autonomous driving is categorized into six levels, from Level 0 (no automation) to Level 5 (full automation):
Level 0: No automation: The driver is completely in control.
Level 1: Driver-assistance: The vehicle assists the driver with one or more functions, such as adaptive cruise control and lane-keeping assist.
Level 2: Partial automation: The vehicle can perform some driving tasks, but the driver must always be ready to intervene.
Level 3: Conditional automation: The vehicle can drive itself in certain conditions, but the driver must be prepared to take control when requested.
Level 4: High automation: The vehicle can drive itself in most conditions, but human intervention may be required in some situations.
Level 5: Full automation: The vehicle can drive itself in all conditions and requires no human input.
3. When will self-driving cars be common?
The widespread adoption of self-driving cars in the future is still some time away. While promising advancements are being made in autonomous vehicle research, there are many challenges to overcome.
According to McKinsey & Company, they predict that 20% of passenger cars sold in 2030 will include advanced autonomous driving technologies and 57% by 2035.
4. When will level 5 autonomous cars be available?
As autonomous vehicle development is ongoing, it is difficult for us to predict exactly the availability of level 5 autonomous cars as well as the self-driving cars’ timeline. Currently, some driverless car companies offer level 2+ and level 3 autonomous cars, and some autonomous driving software companies are working on level 4 autonomous driving software. Hoping that level 5 autonomous cars will be available soon.
5. How many self-driving cars are there?
The number of autonomous vehicles on the road is growing, but there are no fully autonomous vehicles for sale at the moment.
Here are some of Statista’s updated autonomous vehicle statistics :
- In 2022, about 16,960 autonomous vehicles were running worldwide.
- In 2023, the number of self-driving cars rose to 21,150 units.
- In 2024, the number of autonomous vehicles is projected to reach 26,560 units.
- In 2030, it is expected that there will be 125,660 autonomous vehicles worldwide.
A road map for future Autonomous Vehicles Outlook
The market is evolving rapidly, and autonomous vehicle trends are part of this wave of change.
Looking ahead, the future of autonomous vehicle trends is towards safety, efficiency, sustainability, and personalization. However, whether leading autonomous vehicle companies can seize the opportunity to reshape the autonomous game largely depends on their strategic investment decisions.
There is no doubt that autonomous vehicle trends will continue to shift dynamically in the years ahead. Yet, businesses that make careful preparations will secure a competitive edge in the race. Data annotation services are certain to be a key element in the strategies of autonomous vehicle trends. Contact us now to see how we can make a difference.
