Semi-Autonomous Vehicle Market: Current Analysis and Forecast (2023-2030)

A semi-autonomous vehicle is a kind of vehicle that combines elements of conventional manual control and autonomous driving. In a semi-self-reliant vehicle, the driver remains responsible for controlling the vehicle; however, the vehicle also provides assistance with certain tasks, which include steering, acceleration, and braking, using various sensors and actuators.

The semi-autonomous vehicle market is expected to grow at a steady rate of around 39.94%, owing to the growing demand for safety features in vehicles. The burgeoning requirement for passenger protection and security has emerged as a pivotal aspect propelling the development of semi-autonomous vehicles. As difficulty regarding street safety continues growing amidst the surge in distracted, drowsy, and reckless riding incidents, customers are looking for cutting-edge solutions that may mitigate those dangers. For instance, in June 2022, According to the World Health Organization (WHO), there were approximately 1.35 million fatalities globally due to road traffic accidents in 2022. Of these, around 94% (1.25 million) were attributed to human error, such as speed, alcohol, distracted driving, reckless driving, and unbelted occupants. Semi-autonomous automobiles seamlessly integrate sophisticated technologies along with LiDAR, radar, and computer vision to automatically take care of tasks like steering, braking, and acceleration under specific circumstances, thereby reducing the probability of accidents stemming from human oversight. Furthermore, these cars are designed to proactively warn drivers of impending threats and encourage vigilant behavior through intuitive interfaces. Consequently, the progressively escalating demand for improved safety features in the automotive sector has fostered enormous boom potentialities for the semi-autonomous vehicles market.

Based on the automation level, the market is divided into level 1, level 2, and level 3. Among these, the level 3 segment is predicted to generate the highest revenue in the forecast period due to its advanced driver assistance features like lane departure warnings, adaptive cruise control, and collision detection. These features are designed and equipped to improve the overall safety of the occupants and other road users. Moreover, Lane Departure Warning systems help alert drivers if they unintentionally drift out of their lane, reducing the risk of collision caused by driver distraction or drowsiness. For instance, Driver fatigue or drowsiness contributed to an estimated 30,000 deaths worldwide in 2022.

Based on components, the market is segmented into cameras, LiDAR, radar, and others. The cameras segment is currently dominating the market in terms of revenue generation and is expected to dominate in the forecast period. This is due to the fact that cameras are able to provide high-resolution images and accurate object detection, making them an essential component of semi-autonomous vehicles. Moreover, semi-autonomous vehicles heavily rely on a bunch of sensors and cameras that process the data and make wise decisions about the environment around them. Additionally, with respect to time and economies of scale, the price of cameras decreases year-by-year making them affordable to semi-autonomous vehicles. Thus, the adoption becomes more widespread, further solidifying their position in the market.

Based on propulsion type, the market is bifurcated into ICE and electric. The electric segment is currently the leading and is expected to dominate the segment in the forecast period due to the changing government regulations to strict emission standards to reduce carbon footprint and promote sustainable transportation. Moreover, despite the fact that the initial cost of EVs is higher than ICE vehicles, they've lower operational costs due to low fuel prices and lower maintenance requirements. As battery technology continues to improve, the cost gain of EVs is likely to grow, further boosting their popularity. EVs typically have faster acceleration and better handling than ICE vehicles due to their instant torque. This makes them best for semi-autonomous applications wherein quick response times are essential.

Based on ADAS features, the market is divided into lane assist, crash warning system, adaptive cruise control, smart park, and others. The adaptive cruise control segment holds the most significant market share and is expected to show the same fashion in the forecast period. Adaptive cruise control is a feature that allows vehicles to keep a consistent speed and distance from the vehicle in advance, without requiring manual intervention. This feature uses radar, lidar, or cameras to detect the speed and distance of surrounding vehicles, and adjusts the speed of the host vehicle consequently. Adaptive cruise control has gained enormous popularity in recent years due to its capability to reduce traffic congestion and enhance protection on the roads. Moreover, implementing adaptive cruise control can reduce fuel consumption and lower insurance premiums, providing tangible economic benefits to users.

For a better understanding of the market adoption of the shipbuilding industry, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, Mexico, and the Rest of North America), Europe (Germany, U.K., France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Rest of Asia-Pacific), Rest of World. North American region has dominated the market in the historic year due to the early adoption and strong automotive industry. Moreover, the persistent government financial and regulatory support has geared up the growth of the semi-autonomous vehicle in the region. However, the Asia Pacific is projected to be the fastest-growing region in the forecast period due to a number of reasons, such as rapid urbanization as more and more people are migrating from rural to urban areas, the demand for personal mobility has increased, and efficient transportation solutions have increased exponentially in the Asia Pacific region. Semi-autonomous vehicles offer a viable solution to this problem, as they can ease traffic congestion and reduce travel time. Furthermore, governments in the Asia Pacific region are actively promoting the adoption of autonomous and semi-autonomous vehicles via policy reforms and funding initiatives. For instance, in August 2023, China released its first national draft guideline on the use of self-driving vehicles for public transportation. That month, authorities in Wuhan, Hubei province, and Yongchuan district, Chongqing, granted Baidu the first permits issued in China to charge fares for fully driverless ride-hailing services in designated areas.

Some of the major players operating in the market include: BMW AG, Audi AG, Daimler AG, Ford Motor Company, General Motors, Volkswagen, Mahindra & Mahindra Ltd., BYD Company Ltd., Tesla, Inc., and Hyundai Motor Company.