Autonomous vehicles will shape the future of logistics and mobility and are expected to drive the automotive industry in the coming years, experts say.
Industry executives and experts said the increasing popularity of semi-autonomous vehicles is driving market growth despite some concerns over cybersecurity and safety regulations.
While regulators are discussing rules and regulations for autonomous vehicles, manufacturers, autonomous technology developers, and system integrators worldwide are evaluating the commercial viability of autonomous vehicles for transportation and logistics. “They are also evaluating the deployment of fully autonomous transportation vehicles. These factors are supporting the growth of the segment,” according to the experts.
Steven Pickering, general manager, BuyParts24, said there is a strong appetite for autonomous vehicles and the ambition is in line with the digital-first mobility goals of the future economy. “Dubai has been among the foremost cities to outline its Dubai Autonomous Transportation Strategy, which aims to transform 25 per cent of the total transportation in Dubai to autonomous mode by 2030,” Pickering told Khaleej Times recently.
The global autonomous vehicles market is expected to accelerate at a compounded annual growth rate (CAGR) of 38.45 per cent to $319.41 billion between 2022 and 2027, according to Global Autonomous Vehicles Market 2023-27 report released by Technavio recently.
Another industry report estimates that the global autonomous vehicle market will climb to $327.19 billion by 2030. The annual shipment of autonomous vehicles will grow to 12.21 million units in 2030 with a 24.9 per cent CAGR during the 2020-30. “While technology offers huge enhancements to safety, efficiency and an improved urban environment, it is still in its early days and largely connected to regulations in specific countries,” Pickering said.
He said there is a collaborative effort from manufacturers and technology specialists to move from hardware to software and shape the future market of autonomous vehicles. “As the market evolves, the region’s auto parts sector will be amongst the foremost to adopt and serve this growing market,” he said.
Evolution of auto parts industry
Rajesh Ram Mohan, general manager, Ghassan Aboud Auto Spare Parts, said autonomous vehicles are going to be a significant part of the future automotive industry. “The technologies required are now being rapidly scaled, and the regulations surrounding autonomous vehicles are also starting to be set. With this in mind, the auto parts industry is evolving to meet both the hardware and software requirements of this emerging category,” Mohan told Khaleej Times.
He said new relationships among the manufacturers, technology specialists, and industry regulators are being forged along the way to adopt the new developments in the industry.
“This will ultimately influence the structure of global supply chains in the automotive sector. As a market leader in the automotive value chain, this is a segment Ghassan Aboud Group is well-positioned to serve,” he said. “We lead a strong portfolio of automotive brands across more than 100 countries and aim to be among the foremost to disrupt and introduce innovative auto parts and make the future of mobility a reality in the region,” he said.
Auto parts market outlook
Mohan said that the global auto parts market, which includes all components from batteries, and brake pads to roof systems, is rapidly evolving, driven by technological advancement across the automotive industry.
Referring to latest industry reports, he said the global market is growing steadily and is expected to reach $2.5 trillion by the end of 2026, growing at a CAGR of 2.8 per cent during 2022-26. “We see similar trends within the region, particularly the UAE, where the auto parts sector is expected to grow at a CAGR of 7.5 per cent over 2021-25, driven by the growing demand and higher spending per vehicle,” he said.
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