Germany Autonomous Vehicle Market - In-depth Analysis of the Industry with Future Estimations | P&S Intelligence

Germany is the first nation in the world to ratify semi- and fully autonomous driving systems. The German government publicized its objectives to construct an autonomous driving infrastructure in December 2016. For this, an amendment was made to the German Road Traffic Act in June 2017,allowing a driver to transfer the driving control to an autonomous vehicle. Currently, level 1, 2, and 3 semi-autonomous vehicles, in which the steering and acceleration/deacceleration are controlled by the automobile itself, but the driver needs to be on board and stay alert, so that she/he can control the functions in emergency situations, are common on German roads.

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At present, key technology providers and original equipment manufacturers (OEMs)in Germany are working on level 4 and level 5 autonomous vehicles, and they have received the authorization to test driverless automobiles on public roads. Certain cities have even permitted OEMs to operate pilot fleets to examine the technology in isolated areas, by recreating the real traffic seen on public roads. Owing to these developments, the German autonomous vehicle market for level 4 and 5 automobiles will grow at a massive CAGR of 20.2% during 2023–2030. P&S Intelligence further projects that the market will reach $28.0 billion by 2030.


The country is rapidly switching to autonomous vehicles as the technology offers safe and efficient automobile operations, despite heavy road congestion. Traffic congestion often leads to road crashes, thereby leading to severe injuries and even death. These accidents are primarily caused due to human errors like inappropriate speed, unsafe distance from the automobile ahead, and failure to pay attention while driving. To avoid such situations, automakers are offering advanced driver assistance systems (ADAS) in their semi-autonomous vehicles and working toward the development of fully autonomous vehicles.

Encouraged by technological developments, German OEMs are installing autonomous features in internal combustion engine (ICE) vehicles, hybrid electric vehicles (HEVs), and battery electric vehicles (BEVs), to enhance their comfort level and boost their safety. Moreover, the demand for sophisticated and innovative technologies with fewer technological barriers for EVs will pace the shift toward autonomous vehicles in the future. Additionally, the rising government support, in the form of grants and incentives, for the adoption of BEVs and stringent emission norms will fuel the sales of electric autonomous vehicles in Germany.

In recent years, the German autonomous vehicle market has observed the mass production of semi-autonomous vehicles, and it is expected to witness a surge in the production of fully autonomous vehicles in the coming years. The production of such automobiles requires the development of advanced software and integration of a vast array of electronic components, along with complete component validation and verification, physically and virtually. Thus, to facilitate the production process and vehicle testing, leading automakers, such as BMW AG and Volkswagen AG, are partnering with technology developers, auto parts suppliers, and government agencies.

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For example, in 2018, BMW AG partnered with KPIT Technologies Limited and TTTech Computertechnik AG to develop a scalable platform (software) to stimulate autonomous driving and aid level 3,4, and 5 self-driving functionalities. In the same year, Volkswagen AG allied with Continental AG, Aquantia, Robert Bosch GmbH, and Nvidia Corporation to work on technical issues in order to design a fully autonomous vehicle. In addition, numerous automobile manufacturers are tying up with mobility as a service (MaaS) providers for testing and deploying robotaxis.

Thus, the shift toward EVs and improved safety features will amplify the adoption of autonomous vehicles in Germany in the foreseeable future.

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