The global market for high-definition (HD) maps in passenger vehicles is poised for significant growth, projected to surge from approximately 0.7 million units in 2023 to 5.3 million units by 2030. Key factors driving this expansion include the increasing adoption of Level 2+ and higher autonomous driving (AD) applications, which require the integration of HD maps for precise vehicle localization. Enhanced data collection capabilities, improved mapping detail and accuracy, near real-time updates, and live maps leveraging connected vehicle data all contribute to the operational efficiency of HD maps. However, a notable challenge remains the lack of standardization and interoperability among HD mapping systems and data formats, which can hinder seamless data integration and increase the costs associated with data collection.
To learn more, please see: Growth Opportunities in Passenger Vehicle High-definition Maps, 2024-2030, Global ADAS and Autonomous Driving Outlook and Growth Opportunities, 2024, or contact sathyanarayanak@frost.com for information on a private briefing.
North American vs. European Markets
The commercialization of Level 2+ and higher autonomous vehicles, supported by regulatory frameworks, is a primary growth driver for HD map services in North America and Europe. In these regions, the rising demand for enhanced safety and convenience features, coupled with the readiness of original equipment manufacturers (OEMs) to provide Level 2+ and Level 3 vehicles, will drive significant market growth at a combined CAGR of 32.5% from 2023 to 2030.
North America is projected to achieve a 27.1% CAGR from 2023 to 2030. In 2023, North America had 89% more vehicles equipped with Level 2+ and higher autonomy compared to Europe, a figure expected to be 51% higher by 2030. This higher adoption rate is largely due to favorable regulatory environments in over 20 U.S. states and select Canadian provinces that permit Level 3 autonomous vehicle deployments. Major OEMs like Mercedes-Benz and BMW have already introduced Level 3 vehicles embedded with HD maps for accurate positioning and safe navigation, featuring cloud connectivity for real-time updates. Additionally, OEMs such as Ford, Nissan, GM, and Toyota are offering Level 2+ assisted driving features, further driving demand for HD map solutions.
The European HD map market is expected to grow at a robust 56.3% CAGR from 2023 to 2030. In 2023, the deployment of Level 3 vehicles was limited to a few countries like Germany and France, resulting in fewer HD map-equipped vehicles. However, from 2024 onwards, the region is anticipated to experience a higher growth rate due to a strong push by OEMs to integrate Level 2+ features. For instance, Ford’s introduction of BlueCruise technology in the UK, Germany, and Spain has opened the market for Level 2+ hands-off assisted driving. As more OEMs follow suit, the deployment of Level 2+ vehicles will pave the way for broader Level 3 autonomy adoption, driving up the demand for HD mapping solutions.
Pricing and Business Model Trends
The pricing strategies for HD maps will vary widely depending on OEMs, geographies, and stakeholders. Collaborative partnerships between OEMs and mapping providers, where vehicles collect data, often result in discounted pricing for HD maps. Business models will also differ based on use cases, with HD map providers offering flexible features, pricing, and deployment methods to maintain a competitive edge in key regional markets.
Key competitors in the HD map market include Mobileye, HERE, TomTom, Dynamic Map Platform, Google, and Nvidia. Significant industry moves include Luminar Technologies’ acquisition of Civil Maps in 2023 and Nvidia’s acquisition of DeepMap in 2021. Market participants compete on technology, performance, reliability, partnerships, and scalability.
Our Perspective
Higher adoption rates of Level 2+ and Level 3 autonomous vehicles in North America and Europe will drive increased demand for HD mapping solutions, essential for precise vehicle positioning and localization. HD map providers should enhance the accuracy, geographic coverage, and resolution of maps to meet the stringent requirements of automated driving applications. Collaboration between OEMs and HD map providers is crucial for seamless integration and updates via cloud connectivity.
To ensure reliability and accuracy, standardized HD map quality, regulations, and protocols are necessary. Regional governments should work with automakers and map providers to develop guidelines for collecting, updating, and sharing HD map data. Additionally, HD map providers and OEMs should explore data monetization opportunities with external stakeholders like insurance providers, logistics companies, and urban planners. This could include data-driven risk assessments, real-time traffic and road condition mapping, and post-accident analysis for insurance purposes.
While most HD map providers plan to expand their coverage primarily in North America and Europe, they should also consider partnerships in other potential markets such as China, India, and Southeast Asia. This strategy will help overcome entry barriers and leverage growth opportunities in these regions. Collaboration among government bodies, automakers, and value chain partners is essential to address the challenges of autonomous driving and establish flexible market entry rules to foster widespread adoption of autonomous vehicles and HD maps.
With inputs from Amrita Shetty, Senior Manager, Communications & Content – Mobility
