Autonomous Cars Market Trends 2025: Tesla, Toyota, and Hyundai Lead with New Robotaxi Launches

Autonomous Cars Market Size, Share, Trends and Forecast Analysis

The autonomous cars market is projected to reach USD 6.034 trillion by 2034, expanding from USD 2,332 trillion in 2025, at an annual growth rate of 11.39% during the forecast period from 2025 to 2034.

The growing adoption of driverless vehicles by fleet operators coupled with technological advancements in the automotive sector is playing a vital role in shaping the industrial landscape. Moreover, the scarcity of drivers in developed nations along with numerous government initiatives related to mandating autonomous driving to enhance safety has boosted the market growth. The advancements in 5G technology as well as increasing focus on developing robotaxis is expected to create ample growth opportunities for the market players in the upcoming days.

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Introduction

The autonomous cars market is a prominent branch of the automotive industry. This industry deals in manufacturing and distribution of autonomous vehicles in different parts of the world. These vehicles comes with different level of autonomy including level 1, level 2, level 3 and level 4. It is powered by various types of fuel consisting of ICE, electric and hybrid. The end-users of these cars consist of personal users and shared mobility. This market is expected to rise significantly with the growth of the ADAS industry around the globe.

Highlights of the autonomous cars market

• North America generated highest revenue of the autonomous cars market.
• Europe is expected to expand with a considerable CAGR during the forecast period.
• By autonomy, the level 1 segment held the largest share of the market.
• By autonomy, the level 2 segment is expected to rise with the highest CAGR during the forecast period.
• By fuel, the ICE segment led the market.
• By fuel, the electric segment is expected to grow with the fastest CAGR during the forecast period.

Key Metrics and Overview

What are the Trends of the Autonomous Cars Market in 2025?

The major trends in this market consists of partnerships, technological advancements and popularity of ride-hailing services.

Partnerships

• Numerous automotive brands are partnering with fleet operators to deploy autonomous cars in their fleets to reduce dependency on manual drivers.

Technological Advancements

• The integration of advanced technologies such as AI and IoT in autonomous vehicles helps in enhancing safety.

Popularity of Ride-Hailing Services

• The ride-hailing services are gaining popularity in developed nations due to rapid urbanization and increasing traffic congestion.

Autonomy Insights

How did the Level 1 Segment Led the Autonomous Cars Market in 2025?

The level 1 segment dominated the market. The growing demand for affordable vehicles embedded with autonomous driving capabilities for helping drivers during tough situations has boosted the market expansion. Also, the integration of adaptive cruise control and driver assistance sensors in modern cars is expected to propel the growth of the autonomous cars market.

The level 2 segment is expected to grow with the highest CAGR during the forecast period. The rising popularity of level 2 autonomous vehicles in India and China has boosted the market growth. Additionally, the ability of these vehicles to perform steering operations and acceleration is expected to foster the growth of the autonomous cars market.

Fuel Insights

What Made the ICE to be the Most dominant Segment of the Autonomous Cars Market in 2025?

The ICE segment held the highest share of the market. The growing sales of petrol vehicles in several countries such as India, Germany, Canada and some others has boosted the market growth. Also, the rising popularity of ADAS-enabled SUVs in China and the U.S. is playing a vital role in shaping the industrial landscape. Moreover, the increasing demand for luxury vehicles from the HNIs is expected to propel the growth of the autonomous cars market.

The electric segment is expected to rise with the highest CAGR during the forecast period. The growing adoption of electric vehicles in several countries such as the U.S., China, Germany and some others has driven the market expansion. Additionally, numerous government initiatives aimed at developing the EV infrastructure coupled with technological advancements in EV powertrains is playing a vital role in shaping the industry in a positive direction. Moreover, partnerships among ADAS providers and EV companies to enhance autonomy in vehicles is expected to boost the growth of the autonomous cars market.

Geographical Insights

Why North America dominated the Autonomous Cars Market in 2025?

North America led the autonomous cars market. The growing demand for autonomous vehicles in the U.S. and Canada for reducing dependency on manual drivers has boosted the market expansion. Also, numerous government initiatives aimed at mandating ADAS in vehicles to enhance vehicular safety is playing a vital role in shaping the industrial landscape. Moreover, the presence of several market players such as Tesla, Rivian, General Motors and some others is expected to propel the growth of the autonomous cars market in this region.

• In July 2025, Tesla launched robotaxis in Arizona, U.S. These robotaxis are designed to enhance public commute without any manual driver.(Source: CNBC)

Europe is expected to grow with a considerable CAGR during the forecast period. The rising sales of driverless cars in numerous countries such as Germany, UK, France, Italy and some others has driven the market growth. Also, rapid adoption of advanced technologies in the automotive sector coupled with growing investment by automotive brands for opening up new manufacturing plants is playing a vital role in shaping the industrial landscape. Moreover, the presence of various market players such as Volkswagen, Mercedes-Benz, BMW and some others is expected to boost the growth of the autonomous cars market in this region.

• In July 2025, Volkswagen announced to launch ID.Buzz robotaxis in Europe. These robotaxis are designed to cater the consumer of this region.(Source: CBTnews)

Industry Leader Announcement

• In May 2024, Gilles Le Borgne, the CTO at Renault Group made an announcement stating that, " Renault Group is moving forward to implement its autonomous vehicle strategy. As a result, thanks to our experiments and our partners, the best in their fields, we will be in a position, well before the end of this decade, to propose a highly relevant range of autonomous, low-carbon miniBuses to meet the growing needs of the regions."

Competitive Landscape

The autonomous cars market is a rapidly developing industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Mercedes-Benz, Tesla, Toyota Motor, Baidu, BMW, Ford Motor, General Motors, Hyundai Motor, Volkswagen, Waymo and some others. These companies are constantly engaged in developing autonomous vehicles and adopting numerous strategies such as joint ventures, business expansions, partnerships, acquisitions, launches, collaborations and some others to maintain their dominance in this industry.

• In April 2025, Hyundai Motor launched NEXO. NEXO is an autonomous SUV designed for the consumers of South Korea.(Source: Hyundai)
• In April 2025, Toyota partnered with Waymo. This partnership is done for developing an autonomous driving platform. (Source: Toyota)

• According to the annual report of Mercedes Benz, around 43% of the company’s revenue was generated from the Europe region followed by others. (Source: Mercedes)

Recent Developments

• In May 2025, Uber Technologies, Inc. partnered with May Mobility, Inc. This partnership is done for deploying thousands of AVs in the U.S. (Source: Arlingtontx)
• In April 2025, Nissan announced to launch ProPILOT autonomous platform in 2027. This autonomous platform is based on AI technology that helps in enhancing safety in vehicles. (Source: Nissan)
• In February 2025, Lyft announced to launch a new range of self-driving cars in North Texas. This self-driving cars are deployed to reduce the dependency on drivers.(Source: Wfaa)

Autonomous Cars Market Key Players

• Baidu
• BMW
• Ford Motor
• General Motors
• Hyundai Motor
• Mercedes-Benz
• Waymo
• Tesla
• Toyota Motor
• Volkswagen

Autonomous Cars Market Segments

By Autonomy

• Level 1
• Level 2
• Level 3
• Level 4

By Fuel

• ICE
• Electric
• Hybrid

By End Use

• Personal
• Shared Mobility

By Region

• North America
• Latin America
• Western Europe
• Eastern Europe
• Asia Pacific
• The Middle East and Africa