Autonomous mobility services and connected vehicle services are on track to become lucrative industries within the next decade, according to a recent study. The report, titled “Future Automotive Technologies 2024-2034: Applications, Megatrends, Forecasts,” conducted by research firm IDTechEx, indicates that the global automotive technology sector, which includes autonomous driving, electrification, connectivity, in-cabin monitoring, and software-defined tools, is projected to be valued at a staggering $1.6 trillion by 2034.
The study highlights the megatrends of autonomous driving technologies and vehicle electrification as major drivers in reshaping the automotive industry. Additionally, the rise of connected and software-defined vehicles is gaining momentum, presenting opportunities for new revenue streams. The market for various sensors and related services driven by safety applications from in-cabin monitoring is also expected to grow significantly.
IDTechEx estimates that by 2034, the autonomous and connected vehicle services market, along with the components required for electrification and automation, will see a tenfold increase in value compared to 2023, reaching over $1.6 trillion. The report further predicts that revenue generated by future automotive technology services will experience a compound annual growth rate (CAGR) of 44.4% between 2023 and 2033.
Although autonomous mobility services and connected vehicle services are still in their early stages, the report suggests they have the potential to become billion-dollar industries within the next ten years. The concept of connected vehicles has already become a reality, with original equipment manufacturers (OEMs) introducing revenue models based on a feature-as-a-service plan. This trend is expected to evolve and become more comprehensive in the coming years, according to Dr. James Jeffs, a senior technology analyst at IDTechEx.
The report also emphasizes the growth opportunities presented by autonomous driving. The automotive perception sensors market, which includes technologies like adaptive cruise control, automatic emergency braking, and lane keep assist, already boasts a market size of over $10 billion. The emergence of Society of Automotive Engineers level three technologies is expected to drive a 10-year CAGR of 13.6% in this hardware market. Furthermore, autonomous driving promises a safe and affordable form of mobility through robo-taxis that are equipped with advanced sensor systems.
While the industry still needs to build public trust and navigate regulatory challenges, the report forecasts significant growth in autonomous mobility-as-a-service over the next decade. This growth is anticipated to expand to hundreds of cities worldwide, generating trillions of dollars in revenue.