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Why is Autonomous Car Market Making Huge Advancements in Europe?

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The demand for enhanced safety on roads has been increasing at a rapid pace across the globe, including the European region. Since the number of accidents on roads in Europe is growing, the demand for safer mobility option is growing as well. Most of the accidents on roads are caused due to negligence on the part of the driver. Attributed to this, manufacturers in the automobile industry are focusing extensively on integrating advanced safety features in vehicles.




One of the major innovations that have occurred in the automotive industry is the development of autonomous vehicles. The European fully autonomous car market is predicted to reach to 4 million units by 2030, progressing at a 37.4% CAGR during the forecast period (2023–2030). A major reason for the growth of the market is the favorable laws that are already prevalent in the European region. Rules regarding product liability, cyber security, intellectual property, and corporate/M&A transactions are expected to lead to the growth of the domain in the years to come.


For example, the Directorate General of Traffic (DGT) in Spain is encouraging the operation of all self-driving vehicles, including those of level 5 autonomy, on the roads. The DGT collaborated with Mobileye in 2017 with the aim of preparing Spain’s regulatory policy and favorable infrastructure ecosystem for autonomous vehicles. Similarly, an amendment made to the German Road Traffic Act in June 2017 allows drivers to pass off driving to an autonomous car.


When vehicle autonomy is considered, these are two major types of autonomous vehicles, namely fully autonomous cars and semi-autonomous cars. Between these two, the adoption of semi-autonomous cars has been the highest in 2018. Other than that, it has been predicted that the adoption of fully autonomous cars will rise in the coming years after their introduction in 2023. Level 4 and level 5 are the two types of fully autonomous cars, and their adoption is majorly expected to increase for sharing services in Europe.


The demand for ICE-based autonomous vehicles has been the highest in Europe in the past. This being said, the demand for autonomous battery electric vehicles (BEV) is also expected to rise in the coming years, owing to the fact that the autonomous technology can be easily integrated in BEVs as compared to other types of cars. It is easier to achieve connectivity among electric components in BEVs as compared to other variants.


Geographically, Germany emerged as the major European autonomous car market in the past, because of the presence of key OEMs that are engaged in launching new models having advanced automation levels. Several OEMs such as Tesla Inc., BMW, and Volkswagen AG are introducing novel car models for public purchase purpose and for commercial purposes. These vehicles are integrated with ADAS features, which is making them an attractive option of people.


In conclusion, the demand for autonomous cars in Europe is growing due to favorable laws and need for enhancing safety on roads.

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