Global Autonomous Driving Software Market Overview 2024 and Outlook to 2030 with a Projected Market Size of $7 Billion and a CAGR of 13.3%

Porto, Portugal – September 5, 2024

Uber has entered into a strategic partnership with Wayve, a UK-based autonomous driving software provider, to integrate Wayve’s cutting-edge AI technology into its taxi fleet. This move signifies a substantial step towards Uber's ambition of building a network of autonomous, shared, and electric vehicles.

As part of the deal, Uber will also extend Wayve's Series C funding round by making a significant investment, reinforcing its commitment to the development of autonomous driving technologies. The exact terms of the investment have not been disclosed, but it builds on Wayve’s existing backers, including major players like SoftBank, NVIDIA, and Eclipse Ventures.

Wayve’s technology is unique for its "Embodied AI" system, which is mapless and hardware-agnostic, making it adaptable to any vehicle. Unlike traditional autonomous systems that rely on pre-mapped environments, Wayve’s AI learns from real-world driving scenarios, improving its capabilities the more it is used. This flexibility allows it to function across a wide range of vehicles, with applications ranging from personal cars to fleet management for logistics and delivery.

Alex Kendall, Wayve's Co-founder and CEO, expressed excitement about the collaboration: "By teaming up with Uber, we’re able to rapidly scale our AI’s fleet learning, ensuring our autonomous driving technology is safe and ready for global deployment. This partnership brings us closer to delivering autonomous driving at scale, in any type of vehicle, anywhere in the world."

Uber CEO Dara Khosrowshahi emphasized how this partnership aligns with Uber’s vision for the future of mobility: “Wayve’s advanced AI approach holds a lot of promise as we work towards a world where modern vehicles are shared, electric, and autonomous. We’re thrilled to have Wayve on board as we collaborate with automakers to bring these technologies to consumers sooner.”

The UK’s Department for Science, Innovation, and Technology also praised the partnership, calling it a "British start-up success story" and a testament to the UK’s leadership in AI-driven technology. The department highlighted how AI innovations like those from Wayve can drive economic growth while improving outcomes for people across the country.

This integration marks another milestone in Uber’s efforts to enhance its autonomous vehicle offerings, following recent collaborations with companies like Cruise and Waymo. The partnership with Wayve will begin with integrating the software into lower levels of autonomous driving capabilities, gradually ramping up to more advanced Level 4 self-driving features, where vehicles can operate without human input in certain conditions.

With regulations surrounding autonomous vehicles still developing, the timeline for a fully operational self-driving taxi network is unclear. However, both companies are optimistic that this partnership will help pave the way for faster deployment of autonomous vehicles on a global scale.

 

Policy Analysis

The autonomous driving software industry in Europe is shaped by a comprehensive and evolving regulatory framework that balances innovation with safety, environmental sustainability, and public trust. European policymakers have established a clear roadmap to promote the deployment of automated and autonomous vehicles, focusing on building a safe, efficient, and competitive ecosystem for future mobility solutions.

Key Regulations and Initiatives

General Safety Regulation (EU) 2019/2144: This regulation forms the backbone of Europe’s approach to autonomous vehicles. As of 2024, it mandates the inclusion of advanced driver assistance systems in all new vehicles, laying the groundwork for the approval of fully autonomous vehicles. This regulation is pivotal in standardizing safety features across vehicles, addressing driver assistance and partial automation.

Horizon Europe and CCAM: Europe has invested heavily in Cooperative, Connected, and Automated Mobility (CCAM) through its Horizon Europe framework, dedicating over €1 billion to research and development. These investments focus on advancing connected vehicle technology, with the aim of integrating autonomous driving systems into public transport, logistics, and consumer vehicles. CCAM is central to Europe’s broader strategy to digitalize the transport sector and enhance competitiveness while prioritizing safety.

Liability and Insurance: Europe has made progress in clarifying the liability and insurance frameworks for autonomous vehicles. Regulations such as the UN Regulation No. 157, which allows highly automated vehicles to operate at speeds up to 130 km/h, outline type-approval procedures and product liability responsibilities for manufacturers. In parallel, the European Union is working on defining liability rules for accidents involving autonomous vehicles, aiming to create a balanced framework for responsibility and accountability.

EU Data Act and Connectivity: Autonomous driving relies on seamless data exchange between vehicles and infrastructure. The EU’s regulatory focus includes addressing data sharing and cybersecurity through instruments like the EU Data Act. This legislation seeks to ensure that data generated by autonomous vehicles can be accessed by third-party services, thus fostering innovation while ensuring security and privacy protections.

National Efforts and Cross-Border Cooperation: Leading European automotive markets like Germany have already enacted laws, such as the Law on Autonomous Driving (2021), which allows autonomous vehicles to operate without a physical driver in designated areas. These national frameworks are integrated with broader EU regulations, ensuring a cohesive approach to scaling autonomous mobility across borders.

Challenges and Opportunities

The regulatory landscape in Europe, while advanced, faces challenges. Standardizing regulations across Member States remains complex, as each country has unique road and legal conditions. Public acceptance of autonomous vehicles is another hurdle, with trust and safety being critical concerns for widespread adoption. The EU’s focus on “Trustworthy AI” aims to address these issues by ensuring transparent and ethical deployment of autonomous systems.

Europe's policy framework for autonomous driving software platforms is forward-looking, positioning the region as a global leader in automated mobility. With continued investments in R&D, the expansion of regulatory frameworks, and collaboration between private and public sectors, Europe is well-equipped to lead the charge in the transition to autonomous mobility.

 

Market Overview

The European autonomous driving software market is poised for significant growth, driven by technological advancements, regulatory frameworks, and substantial investments from key players across the automotive industry. This growth is underscored by a compound annual growth rate (CAGR) of 13.3% projected from 2024 to 2035, indicating a robust expansion from an estimated $1.8 billion in 2024 to $7 billion by 2035.

Key Market Segments

Passenger Vehicles: This segment currently holds the largest market share, propelled by consumer demand for safety, convenience, and the ongoing urbanization that increases the need for efficient mobility solutions.

Commercial Vehicles: Anticipated to exhibit the highest growth rate over the forecast period, driven by governmental support for autonomous technology in logistics, transportation, and delivery services to enhance operational efficiencies and reduce costs.

Software Types: Perception and planning software dominates the market, essential for autonomous driving features such as adaptive cruise control and automated parking. The interior sensing software segment is expected to grow significantly, focusing on monitoring occupant health and integrating with vehicle systems for enhanced safety and user experience.

Regional Dynamics

Europe: The region is a frontrunner in the development and implementation of regulatory standards for autonomous driving. Various government incentives and a strong focus on safety have fostered an environment conducive to growth. European OEMs are increasingly collaborating with leading software providers to integrate advanced autonomous driving technologies.

North America and Asia Pacific: These regions also show substantial market activities, with North America leading in revenue share due to advanced urban mobility solutions and significant technological integrations. Asia Pacific is expected to register the highest CAGR, driven by rapid urbanization and economic growth in key markets like China and India.

Market Drivers and Trends

Regulatory Support and Safety Mandates: Europe has been proactive in setting regulations that promote the safe integration of autonomous vehicles on roads. Initiatives like the EU’s Vision Zero and the Road Safety Strategy play crucial roles in supporting the deployment of autonomous technologies.

Technological Advancements: Continuous improvements in AI and machine learning algorithms allow for better data interpretation and safer vehicle operations, boosting the market for autonomous driving software.

Partnerships and Collaborations: Major automotive companies are engaging in strategic partnerships with tech firms to accelerate the development and commercialization of autonomous driving solutions.

Challenges and Barriers

Despite the optimistic outlook, the market faces challenges such as high development costs, data privacy concerns, and the need for standardization across different regions and technologies. Additionally, the integration of complex systems presents substantial technical challenges that must be addressed to ensure reliability and safety in autonomous vehicles.

Leading Companies and Competitive Landscape

Prominent players in the European market include NVIDIA, Mobileye, and new entrants like Wayve, which recently secured significant funding to expand its autonomous driving solutions. These companies are at the forefront of developing sophisticated software platforms that are crucial for the advancement of autonomous vehicles.

 

Regulation Differences

The regulatory landscape for autonomous driving software platforms in Europe is evolving, but there are notable differences across countries and regions. These differences shape how autonomous vehicles (AVs) are deployed, tested, and commercialized, reflecting varying levels of regulatory maturity and technological readiness.

EU-Wide Regulations

The European Union has established a harmonized regulatory framework to support the development and integration of AV technologies across Member States. Key regulations include:

 

General Safety Regulation (EU) 2019/2144: Effective from July 2024, this regulation mandates the inclusion of advanced driver assistance systems (ADAS) in all new vehicles. It sets standards for automated vehicle systems, including technical requirements for safety features like lane-keeping assist, automatic emergency braking, and adaptive cruise control.

Regulation (EU) 2022/1426: This regulation, which came into force in 2022, focuses on the type-approval of fully automated vehicles. It outlines guidelines for different use cases, including robotaxis and hub-to-hub transportation. The regulation is critical for standardizing the approval process for autonomous vehicles across the EU.

Cybersecurity and Software Updates: UNECE Regulations 155 and 156, which apply across the EU, set the standards for vehicle cybersecurity and software update management. These are essential for ensuring the safety and integrity of autonomous driving systems as they increasingly rely on over-the-air update.

Country-Specific Regulations

Despite the EU's efforts to create a unified framework, individual countries have adopted their own additional regulations and policies, reflecting their unique legal environments and technological priorities.

Germany: A leader in autonomous vehicle testing, Germany passed the Law on Autonomous Driving in 2021, which allows fully automated vehicles to operate without a driver in specific, pre-approved areas. The law mandates real-time monitoring by a technical supervisor, ensuring operational safety. Germany's proactive stance is complemented by its strong automotive industry, where companies like VW and Daimler are heavily involved in AV development.

United Kingdom: The UK is setting up a comprehensive regulatory framework through the Automated Vehicles Bill, announced in 2023. This legislation clarifies the liability of users and manufacturers of autonomous vehicles, ensuring that drivers are not penalized for accidents caused by AV systems. The UK government aims to position itself as a leader in AV technologies by fostering a favorable legal environment for testing and deployment.

France: France has implemented early regulations that allow autonomous vehicles to be tested and deployed in specific use cases, such as fixed-route autonomous shuttles. The French government is also actively promoting AV testing in public transport and delivery services.

Key Regulatory Differences

Testing and Deployment: While the EU sets the overarching framework, testing permissions vary. Germany and the UK have more advanced regulations that permit autonomous vehicles to operate in specific areas, whereas other EU countries may have stricter limitations on AV testing.

Liability Framework: The UK is ahead of the curve in defining liability for AV-related incidents. Its upcoming Automated Vehicles Bill provides clear guidelines on when drivers are exempt from liability, unlike in Germany and France, where responsibility remains primarily with the vehicle owner.

Cybersecurity Standards: The EU-wide regulations on cybersecurity and software updates apply across Member States, but their implementation can vary. Germany and France have taken additional steps to ensure AV systems comply with these stringent standards, while other countries may have less developed cybersecurity frameworks.

Challenges and Opportunities

The regulatory differences across Europe create challenges for companies seeking to deploy AV technologies across borders. While the EU's efforts at harmonization are progressing, the pace of regulatory adaptation varies significantly, impacting how quickly autonomous driving solutions can be rolled out. However, the increasing alignment of regulations, coupled with strong governmental support, presents significant opportunities for growth in the AV sector.

 

 

Key Drivers

Regulatory Support and Safety Mandates: The European Union has implemented stringent safety and environmental regulations that drive the development of autonomous driving technologies. The General Safety Regulation (EU) 2019/2144, effective from 2024, mandates the integration of advanced driver assistance systems (ADAS) like automatic emergency braking and lane-keeping assist in all new vehicles. These regulations, combined with the growing approval of Level 3 and Level 4 autonomous vehicles, create a favorable environment for the industry.

Technological Advancements in AI and Sensor Fusion: Artificial intelligence (AI) and sensor fusion technologies are fundamental drivers in the development of autonomous driving platforms. Companies like NVIDIA, Mobileye, and Aurora Innovation are at the forefront, providing advanced perception and planning software that interprets complex driving environments. The integration of 5G technology further enhances real-time vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication, essential for the safe operation of autonomous vehicles.

 

Increased Demand for Sustainable and Efficient Transport Solutions: The shift toward sustainable mobility, driven by Europe's severe emission reduction targets and zero-emission goals, has spurred demand for autonomous electric vehicles (EVs). Autonomous driving platforms are being developed to support cleaner transportation options, including ride-hailing services, robotaxis, and logistics, aligning with the broader European strategy for decarbonization.

Collaborations and Investments in R&D: European automakers and technology companies are heavily investing in research and development (R&D) to advance autonomous driving capabilities. Collaborations between key players, such as Wayve's partnership with Uber and major automakers' investments in autonomous driving platforms, ensure that the industry continues to innovate and expand its capabilities.

Public and Private Investments in Infrastructure: The European Union and individual countries are investing in smart mobility infrastructure to support autonomous driving. The Cooperative, Connected, and Automated Mobility (CCAM) initiative, backed by Horizon Europe funding, is a major public-private partnership that supports the development of connected and automated vehicles. These investments are crucial for enabling safe and widespread deployment of autonomous vehicles across Europe.

 

 

 

 

Investment Opportunities

The autonomous driving software industry in Europe presents several lucrative investment opportunities driven by advancements in technology, regulatory support, and market demand. Key areas for potential investment include:

Growth in Level 3 and Level 4 Autonomous Driving: Europe has seen a surge in regulatory approvals for Level 3 autonomous driving systems, allowing vehicles to operate hands-free under certain conditions. Investments in companies developing "eyes-off" driving features are poised for significant returns as this market expands. With the UN's push to extend these capabilities to speeds of up to 130 km/h, opportunities exist in both consumer and commercial vehicle segments.

Sensor Fusion and AI Technologies: The evolution of sensor suites, particularly those that integrate LiDAR, radar, and cameras, is a key driver of autonomous vehicle (AV) development. Companies working on AI-driven perception systems and sensor fusion technologies, like NVIDIA and Mobileye, offer promising investment potential. These systems are essential for ensuring the safety and accuracy of autonomous driving software.

Automated Mobility and Infrastructure Development: The European Commission's €1 billion investment in Cooperative, Connected, and Automated Mobility (CCAM) through Horizon Europe is aimed at fostering innovation in automated mobility solutions. This funding supports the development of smart mobility infrastructure, such as vehicle-to-infrastructure (V2I) communication, which is crucial for the deployment of autonomous driving technologies. Investors can capitalize on the growing demand for smart infrastructure and the integration of autonomous systems in public transport and logistics.

Electric Autonomous Vehicles (EVs): The shift toward electric and autonomous vehicles aligns with Europe's stringent emission regulations. Investment opportunities abound in companies developing autonomous electric vehicle platforms and solutions for last-mile delivery, shuttles, and ride-hailing services.

Partnerships with Automotive OEMs: European automakers are actively seeking partnerships with technology firms to enhance their autonomous driving capabilities. Investments in software companies that collaborate with leading OEMs, such as Volkswagen, Daimler, and BMW, can provide access to a growing market for autonomous driving features in both personal and commercial vehicles.

Related Market Reports From QY Research

QY Research Releases Comprehensive Market Reports on the Autonomous Driving Software Platform Market, as shown in the links below. These reports provide an in-depth analysis of the current market landscape, key trends, and future growth opportunities.

Global Autonomous Driving Software Platform Market Insights, Forecast to 2030

https://www.qyresearch.com/reports/2864119/autonomous-driving-software-platform

 

Global Autonomous Driving Software Platform Market Research Report 2024

https://www.qyresearch.com/reports/2479648/autonomous-driving-software-platform

Autonomous Driving Software Platform - Global Market Share and Ranking, Overall Sales and Demand Forecast 2024-2030

https://www.qyresearch.com/reports/2215925/autonomous-driving-software-platform

 

Contact Information

QY Research Portugal

1. de Gonçalo Cristóvão 185 7º, 4049-012 Porto

+351 910983247

Kira Yue Qin

kira@qyresearch.com