Germany is the first nation in the world to authorize semi- and fully autonomous driving features. In December 2016, the federal government announced its support for the development of autonomous driving infrastructure in the nation. In January 2017, the country amended the Road Traffic Act to allow drivers to transfer the control of vehicles to fully automated driving systems and permit these vehicles to be used on public roads. This amendment has allowed the public usage of level 3 autonomous features. Similarly, in February 2021, the government adopted a draft bill to allow level 4 features-enabled automobiles on public roads.
Additionally, the government is also offering grants, subsidies, and other financial benefits to producers and customers of semi- and fully autonomous vehicles. Owing to the surging government support, the German autonomous vehicles market will accelerate at a CAGR of 20.2% during 2023–2030. According to P&S Intelligence, the market is expected to reach $28.0 billion by 2030. The financial support and favorable policies are encouraging major original equipment manufacturers (OEMs) and technology providers to work on level 4 and level 5 autonomous vehicles.
At present, the German autonomous vehicles market offers semi- and fully autonomous passenger cars, buses, and trucks for personal usage, ride-hailing services, transit services, and logistics applications. The semi-autonomous vehicles are equipped with level 1, level 2, and level 3 autonomous features, whereas fully autonomous vehicles are integrated with level 4 and level 5 solutions. In the coming years, fully autonomous vehicles will be adopted in the country at the highest rate, due to the soaring adoption of level 4 and level 5 autonomous features for personal and sharing service usages.
Thus, the rising government support and growing focus on vehicle safety are supplementing the development and production of autonomous vehicles in Germany.
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