The growing trend of autonomous driving technology, promising market for self-driving car renting services and increased investments in autonomous driving technology startups are expected to boost the HD maps market to reach $ 6.9 billion by 2030.
According to new research report - HD Map for Autonomous Vehicles Market by solution, LOA, usage, vehicle type, services and region – global forecast to 2030, by MarketsandMarkets, the market is estimated to be $ 1.4 billion in 2021 and is projected to grow at a CAGR of 31.7% during the forecast period.
In addition, increasing R&D activities related to HD maps by leading HD map suppliers and several startups will further fuel the growth of HD Maps for the Autonomous Vehicle Market. However, high investment costs and slow adoption rates in developing countries are considered the major restraints for this market.
Some of the key players in the HD Maps for Autonomous Vehicles Market include TomTom, HERE Technologies, Waymo, NVIDIA, Baidu, Dynamic Map Platform, NavInfo, and Zenrin. According to the research firm, these players have long-term supply contracts with leading automotive manufacturers and autonomous vehicle technology developers. In addition, these companies have adopted the strategies of new product developments, acquisitions, agreements, collaborations, expansions, joint ventures, partnerships, and supply contracts to gain traction in the HD map for the autonomous vehicle market.
Adoption in the passenger mobility segment
Personal mobility is estimated to be the largest segment of the HD map for the autonomous vehicle market by usage type due to the higher volume of semi-autonomous vehicle sales. Most semi-autonomous vehicles are used for personal transportation.
MarketsandMarkets states that OEMs such as Honda, Nissan, General Motors, and Mercedes-Benz promote the use of HD map and use it to develop its Level-2 and Level-3 semi-autonomous vehicles.
The commercial mobility segment is projected to be the fastest-growing because of the high demand for ridesharing services, predominant usage of autonomous vehicles for ridesharing and robo-taxi services, and growing partnership between ride-sharing companies and HD map providers.
The transportation of goods by autonomous vehicles helps minimise the cost of delivery. E-commerce companies primarily drive the delivery of goods by autonomous vehicles. According to companies like Continental, 80% of all business-to-consumer deliveries will be done by driverless cars in the future. OEMs, autonomous vehicle technology providers, and logistics/transportation companies such as Pony.ai, FedX, and Ford are involved in testing autonomous last delivery vehicles worldwide. For example, in June 2021, Ford and Hermes, a consumer delivery company in the UK, started testing autonomous vehicles for delivery. HD mapping companies can focus on developing HD maps and other related solutions for the commercial mobility segment as it can provide high growth opportunities, especially for new entrants, observes the research firm.
Largest and the fastest
According to MarketsandMarkets, the HD map market for Level-2 and Leven-3 semi-autonomous vehicles is estimated to be the largest market, and the market for Level 4 and Leven-5 autonomous vehicles is expected to be the fastest-growing market during the forecast period.
The semi-autonomous vehicle segment dominates because of the demand for features such as Co-operative Adaptive Cruise Control, Highway Autopilot, Auto Lane Change, and Hands-free Auto Parking. Other factors include stringent laws concerning autonomous driving and more semi-autonomous vehicles on the road than autonomous vehicles during the forecast period. Rapid advancements and the decreasing cost of ADAS components and solutions are expected to spur the growth of the HD map market for semi-autonomous vehicles. For example, ZF unveiled its coASSIST Level-2+ driving system in 2020 with a price range of $ 1,000. Such affordable ADAS solutions would increase the penetration of major ADAS features in a standard ADAS package, the report states. In addition, ZF offers copilot, a scalable ADAS solution for Level-2+ to Level-4 driving systems, which was co-developed with NVIDIA. These affordable ADAS solutions would significantly boost ADAS adoption and the demand for HD maps for semi-autonomous vehicles.
The continuous improvement in HD map technology is also a significant factor boosting the growth of the market. In addition, increasing investments for the development and testing of Level-4 and Level-5 technologies will drive the HD map market for autonomous vehicles, adds the report.
Asia Oceania to grow faster
According to MarketsandMarkets, the Asia Oceania region is projected to be the fastest-growing HD map market for autonomous vehicles during the forecast period. Asia Oceania region comprises countries such as China, Japan, India, and South Korea. The factors that could contribute to the region's growth are the presence of leading HD map providers such as AutoNavi, NavInfo, and Momenta and the changing regulations concerned with autonomous driving.
MapmyIndia is the leading HD mapping solution provider for the Indian market, which serves top companies such as BMW, Ford, Hyundai, etc. The growing technological advancements and economic activities in China have increased the demand for semi-autonomous vehicles. The partnerships of the top HD mapping companies in this region, such as NavInfo and Momenta, with leading companies like HERE, Ambarella, and Analog Devices, can also boost the growth of the HD map market in Asia Oceania, the research firm noticed.
Courtesy: MarketsandMarkets. NB: Photo is representational; courtesy: TomTom.