The autonomous vehicle market for the luxury segment will grow significantly in the next decade, and exponentially after that, according to a report.
The Markets And Markets report titled “Autonomous Vehicle Market for Luxury Segment by Body Type (Sedan/Hatchback & SUV), End User (Personal Mobility & Car Sharing), Fuel Type (BEV, Hybrid, ICE, & FCEV), Component (Radar, LiDAR, & Biometric Sensors) and Region – Global Forecast to 2030”, projects the global luxury autonomous vehicle market to reach 27,906 Units in 2025, and 126,774 Units by 2030.
“The market is principally driven by the need for a safe, productive, and efficient driving experience and growth of connected vehicle technology,” the report summary says.
The increasing demand for luxurious features in vehicles such as luxury interior, lounge, and visual and acoustic signals for greater safety would also drive the growth of the autonomous vehicle market for luxury segment.
Sedan/Hatchback segment to hold the largest share of the autonomous vehicle market for luxury segment, by body type
The increasing demand for luxury vehicles and ongoing testing of autonomous vehicles using sedan/hatchback cars will contribute to the growth of the autonomous vehicle market for luxury sedan/hatchback segment. Car sharing is expected to have a bigger market than personal mobility.
The sedan or hatchback cars would be preferred for car sharing as they have greater fuel efficiency than SUVs. Hatchback cars are relatively cheaper than other cars and have therefore witnessed the maximum demand in developing countries.
Battery Electric Vehicle (BEV) to acquire the largest market share in fuel type
BEV is estimated to hold the largest share of the autonomous vehicle market for luxury segment, by fuel type. Stringent emission norms, environment safety, vehicle electrification, and government regulations are expected to boost the market for BEV autonomous luxury vehicles.
The market for BEV autonomous luxury vehicle would also get a substantial boost with the development of a dependent and innovative battery technology.
North America: The largest market for the autonomous vehicle market for luxury segment
North America is estimated to account for the largest share, in terms of volume, of the autonomous vehicle market for luxury segment. The region comprises developed economies including the US and Canada.
“Developed economies have seen an increase in vehicle production volumes over the years, with OEMs catering not only to the domestic demand but overseas demand as well,” the report says.
“Sustainable government regulations, demand for luxury vehicles, rising purchasing power, and concerns about increasing number of road accidents are the key factors that will drive the autonomous vehicle market for luxury segment in the region.”
The report analyses all major OEMs and tier I suppliers in the autonomous vehicle market for luxury segment. Daimler (Germany), BMW (Germany), Tesla (US), and Audi (Germany) are some of the leading OEMs in the autonomous luxury vehicle market.
The report also discusses the tier 1 suppliers such as Robert Bosch (Germany), Continental (Germany), Denso (Japan), and Delphi (UK).
The autonomous vehicle market for luxury segment, in terms of volume, is projected to grow at a compound annual growth rate (CAGR) of 35.35% from 2025 to 2030.
“The rising concerns about vehicle safety and security have accentuated the need for the development of autonomous vehicles,” the report says.
“Factors such as an increase in disposable income, the rise in purchasing power and changing buyer preferences have fuelled the market for luxury and premium cars, which are in turn expected to drive the autonomous vehicle market for luxury segment.”
SUV is projected to be the fastest-growing segment of the autonomous vehicle market for luxury segment, by body type. Continuously increasing sales of luxury SUVs will drive the market growth of this segment. Also, the continuous increase in the preference for SUVs and off-road driving practices is expected to contribute to the growth of the autonomous SUV vehicle market for luxury segment.
The autonomous vehicle market for luxury segment has been segmented by fuel type into battery electric vehicle (BEV), hybrid (HEV and PHEV), internal combustion engine (ICE), and fuel cell electric vehicle (FCEV). BEV is estimated to be the fastest-growing segment of the autonomous vehicle market for luxury segment, by fuel type. Research and development for an innovative battery source, OEM initiatives, favourable government regulations and zero emission advantage would drive the growth of BEV autonomous luxury vehicles.
North America is projected to dominate the autonomous vehicle market for luxury segment, by volume, in 2025. The large customer base and high disposable income of end-users in the region have fuelled the demand for high-end vehicles, which has in turn resulted in increasing R&D innovations by local and international automotive OEMs. Sustainable government regulations, increasing demand for luxury vehicles, rising purchasing power and concerns of increasing number of road accidents are the key factors that will drive the autonomous vehicle market for luxury segment in this region.
The lack of infrastructure is the key restraint for the growth of autonomous luxury vehicles. The autonomous vehicle market for luxury segment requires basic infrastructure, such as well-organized roads, lane marking and availability of GPS, for effective functioning. The lack of infrastructure in developing countries could make it difficult to achieve a common platform for autonomous luxury vehicles.
BMW (Germany) is a leading manufacturer of luxury cars. The group comprises brands such as BMW (Germany), MINI (UK), and Rolls-Royce (UK). The company’s strategy has shifted from manufacturing premium automobiles to providing premium mobility and mobility services. Along with its partners, BMW is working on standards, platforms and a back end for the future of automated driving. BMW has collaborated with Intel (US) and Mobileye (Israel) to develop a new series of fully automated prototype vehicles. The company has developed products such as DriveNow, ReachNow, ParkNow and ChargeNow for mobility services that would be used for autonomous vehicle segments.