United Kingdom Autonomous Vehicle Market Size, Share, and COVID-19 Impact Analysis, By Type (Fully Autonomous, Semi-Autonomous) and By Vehicle Type (Passenger Cars, Commercial Vehicles), By Application (Transportation, Defense, and Others), and United Kingdom Autonomous Vehicle Market Insights, Industry Trend, Forecasts to 2035.

United Kingdom Autonomous Vehicle Market Insights Forecasts to 2035

• The United Kingdom Autonomous Vehicle Market Size was estimated at USD 4,800.14 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 16.00% from 2025 to 2035
• The United Kingdom Autonomous Vehicle Market Size is Expected to Reach USD 24,560.04 Million by 2035

According to a research report published by Spherical Insights & Consulting, The United Kingdom Autonomous Vehicle Market Size is Anticipated to reach USD 24,560.04 Million by 2035, Growing at a CAGR of 16.00% from 2025 to 2035. Customers' strong need for tech adoption, such as artificial intelligence and sensor technologies for vehicle and occupant safety, is the main driver of the sector.

Market Overview

The United Kingdom autonomous vehicle market refers to the expanding and novel business, which is a portion of the automotive and transportation industry that focuses on the engineering, distribution of vehicles that can navigate and function without human assistance. Sometimes it is referred to as a self-driving or driverless car. These cars recognize their surroundings, make judgments, and manage their motion using a combination of sophisticated technologies and sensors. The perception, judgment, and general safety of autonomous systems are all the main characteristics of such vehicles. Better V2V and V2X technologies are also important because improved 5G network connectivity facilitates essential communication. Along with increasing the range of autonomous applications across industries, from ridesharing and delivery services to logistics and transportation, addressing the importance of autonomous vehicles. Further, government incentives or programs that highlight the autonomous vehicles benefits, such as the Automated Vehicles Act Implementation Programme launched in 2024, are needed to ensure the safe deployment of automated vehicles (AVs) on UK roads. It's responsible for carrying out the full policy, legislative, and operational programme to implement the Automated Vehicles Act 2024 by 2027.

Report Coverage

This research report categorizes the market for the United Kingdom autonomous vehicle market based on various segments and regions and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United Kingdom autonomous vehicle market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the United Kingdom autonomous vehicle market.

Driving Factors

The market for British autonomous vehicles is influenced by the government support for innovation, the growing demand for intelligent transportation solutions, to lower emissions, and substantial investment in R&D. Further, partnerships between tech companies and automakers with favourable regulations expand the market at a rapid pace. Moreover, recent developments in an array of sensor technologies, such as LiDAR and cameras, have greatly enhanced the automobile's capacity to communicate with its surroundings in a reliable manner. Additionally, continuous advancements in artificial intelligence, machine learning, sensor technologies, and connectivity play a pivotal role in enhancing the capabilities of autonomous vehicles and contribute to the growth of the market.

Restraining Factors

The market for autonomous vehicles in the UK can be restricted by the absence of precise and legal frameworks, periodic inception for safety requirements, obstacles for potential adverse weather circumstances, and complex metropolitan surroundings.

Market Segmentation

The United Kingdom autonomous vehicle market share is classified into type, vehicle type, and application.

• The fully autonomous segment held a significant share in 2024 and is expected to grow at a rapid pace over the forecast period.

The United Kingdom autonomous vehicle market is segmented by type into fully autonomous and semi-autonomous. Among these, the fully autonomous segment held a significant share in 2024 and is expected to grow at a rapid pace over the forecast period. This segment expansion contributed to market growth due to a revolutionary development that could transform both private and public transportation without the need for human interference. This segment's significance, such as its ability to increase mobility, lower traffic, and improve road safety, shows its importance. So, the UK government has also acknowledged the significance of this industry and started projects to securely include driverless cars into the current transportation system.

• The commercial vehicles segment held a significant share in 2024 and is anticipated to grow at a rapid pace during the forecast period.

The United Kingdom autonomous vehicle market is segmented by vehicle type into passenger cars, and commercial vehicles. Among these, the commercial vehicles segment held a significant share in 2024 and is anticipated to grow at a rapid pace during the forecast period. This is because of its growing need to lower emissions and the expansion of several industry verticals such as delivery services, logistics, and commercial transportation. Moreover, rising e-commerce and on-demand logistics services propel this segment growth.

• The transportation segment held the highest share in 2024 and is expected to grow at a significant CAGR over the forecast period.

The United Kingdom autonomous vehicle market is segmented by application into transportation, defense, and others. Among these, the transportation segment held the largest share in 2024 and is expected to grow at a significant CAGR over the forecast period. This is because expanding transportation industries such as logistics, shipping, and ridesharing are embracing autonomous vehicles to reduce costs, simplify operations, and meet the increasing demands of consumers for reliable transportation. Further, this growth is influenced by the potential for efficiency and innovation with technical support.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United Kingdom autonomous vehicle market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Oxbotica
• StreetDrone
• Aidrivers Ltd
• Wayve
• Cavonix
• SD Advanced Engineering
• Others

Recent Developments:

• In August 2024, Wayve and Uber announced their partnership on aiming to accelerate the future of autonomous driving. The collaboration integrated Wayve’s AI-powered self-driving technology into Uber’s mobility network, with Uber also making a strategic investment in Wayve.

• In May 2024, Wayve, a UK-based AI startup specializing in autonomous driving technology, secured $1.05 billion in funding in its latest investment round. The funding was led by SoftBank Group, with participation from Nvidia and Microsoft. Wayve planned to use the funds to advance its "Embodied AI" technology, which enabled self-driving vehicles to learn from and interact with real-world environments.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at United Kingdom, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United Kingdom autonomous vehicle market based on the below-mentioned segments

United Kingdom Autonomous Vehicle Market, By Type

• Fully Autonomous
• Semi-Autonomous

United Kingdom Autonomous Vehicle Market, By Vehicle Type

• Passenger Cars
• Commercial Vehicles

United Kingdom Autonomous Vehicle Market, By Application

• Transportation
• Defense
• Others