Autonomous Vehicles Market Size to Reach USD 244.27 Billion in 2032

KOLKATA, India - Oct. 11, 2025 - PRLog -- Increasing development of Advanced Driver Assistance Systems (ADAS) is a major driver of revenue growth in the Autonomous Vehicles market. ADAS technologies, including adaptive cruise control, lane-keeping assistance, automatic emergency braking, and traffic sign recognition, are foundational to higher levels of vehicle autonomy. Automakers are increasingly incorporating AI-driven safety and automation features into their vehicles. For example, in April 2024, the U.S. National Highway Traffic Safety Administration (NHTSA) finalized a regulation requiring all passenger vehicles to be equipped with Automatic Emergency Braking (AEB) to reduce rear-end collisions and pedestrian accidents.

However, vulnerability to hacking, spoofing, and software glitches is significantly restraining the revenue growth of the autonomous vehicles market. As autonomous vehicles rely heavily on complex software systems, sensors, and constant data communication, they are increasingly exposed to cyber threats that can compromise vehicle safety and passenger security.

Segments Market Overview and Growth Insights:
Based on the component, the autonomous vehicles market is segmented into hardware and software.

The hardware segment accounted for the largest market share in 2024, driven by rising investments in Advanced Driver-Assistance Systems (ADAS), LiDAR, radar, and camera technologies that are critical for autonomous vehicles. The growing adoption of Level 3 and Level 4 autonomous driving has fueled demand for high-performance sensors, onboard processors, and communication modules. In May 2025, Innoviz Technologies announced the expansion of its partnership with Volkswagen Autonomous Mobility to accelerate the rollout of its InnovizTwo LiDAR sensors in the ID. Buzz AD, Volkswagen's Level 4 autonomous shuttle.

Regional Market Overview and Growth Insights:
The Asia Pacific market is projected to experience rapid revenue growth during the forecast period, driven by technological advancements, favorable government initiatives, and increasing demand for safer and more efficient transportation solutions. Countries like China, Japan, South Korea, and Singapore are leading this trend, making significant investments in autonomous driving R&D. In 2022, China's Apollo Go service alone completed over 1.4 million rides. Other major Chinese companies, including AutoX, WeRide, and Pony.ai, have also made significant progress.

Competitive Landscape and Key Competitors
List of major players included in the market report are: Zoox Inc. (Amazon), Waymo LLC (Alphabet Inc.), Baidu Apollo (Baidu), Uber Technologies Inc., Intel (Mobileye), Aurora Innovation, Inc., Motional, Pony.ai, WeRide AI, Sixt SE, May Mobility, and AutoX, Inc.

Major Strategic Developments By Leading Competitors
Uber: On May 01, 2025, Uber Technologies, Inc. and May Mobility, Inc., a leading autonomous vehicle (AV) technology firm, announced a multi-year strategic partnership.

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