Morgan Stanley Predicts 28% of Global Car Sales to be Autonomous by 2030

Morgan Stanley has released a report predicting an imminent surge in the global autonomous vehicle market, with significant implications for the automotive industry. The report forecasts that by 2030, autonomous vehicles will constitute 28% of all car sales worldwide, driven by rapid advancements in artificial intelligence (AI).

According to the report, the market size for autonomous vehicles is expected to reach 2000 billion dollars by 2035, highlighting the transformative potential of AI in the automotive sector. The integration of AI technologies is anticipated to fuel the explosive growth of autonomous vehicles in the coming years.

China, with its extensive electric vehicle user base, is identified as a region with early advantages in this market. The report emphasizes that China's large market and substantial technological innovation, coupled with supportive policies, position it as a key player in the global autonomous vehicle landscape. This early advantage is expected to drive significant growth in the region's autonomous vehicle market.

In the United States, the autonomous vehicle sector is also advancing rapidly. Waymo, a subsidiary of Alphabet, has already launched its Robotaxi service in multiple cities, operating over 1500 vehicles and generating nearly 100 million dollars in annual revenue. Tesla, a major competitor, has also made significant strides, recently launching its Robotaxi service in Austin, Texas. Tesla's CEO has ambitious plans to expand this service to cover 50% of the U.S. population by the end of the year, with further expansions planned for other states.

However, the U.S. government may implement stricter regulations on autonomous vehicles. The National Highway Traffic Safety Administration (NHTSA) has called for enhanced oversight of the industry, which could impact the pace of growth and adoption.

Despite potential regulatory challenges, the outlook for the autonomous vehicle market remains highly optimistic. The report underscores the potential for AI to revolutionize the automotive industry, with significant growth expected in the coming years. China's early advantages and the rapid advancements in AI technology are poised to drive this transformative shift, positioning the region as a leader in the global autonomous vehicle market.