Autonomous and Connected: The Future Global Automotive Landscape

September 2024

Connected and autonomous vehicles are becoming more widespread, reflecting the automotive industry's digital and technological shift. This report sizes the autonomous vehicle market, specifying the countries and brands embracing driverless technologies. It also assesses consumer perceptions, expectations and attitudes regarding connected and autonomous technologies. Finally, the report examines the main industries poised to take advantage of the shift to connected and autonomous cars.

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Key findings

By 2040, 97% of new light vehicles sold will have some level of autonomy

By 2040, 97% of light vehicles sold globally are projected to have some form of vehicle autonomy – up from 57% in 2023. The SAE Level 2 segment is expected to dominate, but more sophisticated driverless technologies will ensue, thanks to improved AI capabilities, more liberal driverless regulations, and greater consumer acceptance of autonomous cars.

Mercedes is leading the shift to higher autonomy, with Chinese brands following suit

Mercedes became the first major automotive brand to commercialise SAE Level 3 vehicles, after launching its Drive Pilot system for EQS and S-Class models. However, several Chinese automotive brands, such as Li Auto and Nio, are following suit. This is expected to ramp up competition, as brands look to develop full self-driving technologies.

Safety and traffic features interest consumers but privacy remains a concern

Hazard warnings and traffic alerts are the most popular connected car features, reflecting consumer interest in improved vehicle safety. However, data privacy remains a concern, as evidenced by numerous cases of OEMs leaking data to third parties, such as insurance firms and data analytics companies, without customer consent.

Laws and regulatiaons needed for future autonomous and connected car use

While governments are gradually reforming road traffic laws, this is happening only slowly, due to the numerous legal and safety concerns arising from driverless technologies. In addition, laws surrounding data privacy and security coming from connected products also remain a contested issue, especially regarding how OEMs collect user data and ensure its integrity.

Connected and autonomous cars to have a wide-ranging industry impact

The connected and autonomous car industry will have far-reaching consequences that will impact the business models of various industries, including automotive, logistics and insurance. Keeping track of new driverless and connected technologies, and building strategic partnerships can help firms future-proof their business models.

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Why read this report?
Key findings
Autonomous and connected cars: what are they?
Autonomous and connected: three key facts in the digitising automotive industry
Deciphering the drivers of the autonomous and connected car industry
Shift to partial autonomy is occurring with SAE Level 2 dominating but Level 0 cars still lead
Major automotive markets show differing appetites for semi-autonomous cars
Among major brands, Toyota is leading the charge with ADAS-equipped vehicle sales
Mercedes is the first Western OEM to reach SAE L3
Case study: BYD cleared to test Level 3 cars in China with its DiLink driving system
By 2040, 96% of light vehicles sold will have some form of autonomy
Shift to fully autonomous remains challenging, but Chinese OEMs are ramping up efforts
Case study: Mercedes gets approval to test Level 4 vehicles in China
What are consumers’ expectations of connected and autonomous vehicles
Parking assistance is the most preferred ADAS feature
Consumers remain concerned about fully autonomous cars but improvements in AI may help
Connected cars: safety and traffic features are on top of consumer minds
One-time payment for connected car features is the most popular
One-time expense is preferred in top seven markets, with some differences
OEMs must ensure consumer privacy concerns with connected car data
Ride hailing: Robo-taxi services will boost profits amid lower operating costs
Case study: Didi to roll out self-driving vehicles in partnership with GAC
Logistics/deliveries: AVs will transform logistics and last-mile delivery with lower costs
Case study: serve robotics partners with Shake Shack for autonomous deliveries
Automotive: software-defined shift to help drive new business models and revenue streams
Case study: KIA launches subscription service for OTA updates
Insurance: driver habit-based insurance policies will redefine insurance premiums
Case study: Citroën introduces usage-based insurance for eC3 owners in India
Tech and software: semiconductor firms enabling connected and autonomous shift
Case study: MediaTek partners with Nvidia to deliver next-gen connected car technology
Industry shift to connectivity and autonomy will require new laws and regulations
Recommendations/opportunities for growth in the autonomous and connected car space
Autonomous and connected is the future but data sharing remains a key concern
Evolution of autonomous and connected cars
Questions we are asking
Vehicle autonomy falls across six levels

Mobility

All vehicles captured by Euromonitor's vehicle volume sales data, i.e. light vehicles -passenger cars and light commercial vehicles combined. Medium and heavy-duty trucks and buses are not covered.

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