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 PS 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.

The rising preference for autonomous vehicles in Germany can also be credited to the surging need for efficient and safe driving options. As road congestion is escalating at a considerable rate and causing numerous road accidents, which result in grave injuries and fatalities, the requirement for autonomous systems has significantly increased in the country. Since road accidents are mostly caused due to human errors, such as inappropriate speed, failure to pay attention while driving, and unsafe distance from the automobile moving ahead, automakers are increasingly offering advanced driver assistance systems (ADAS)-equipped semi-autonomous vehicles.

Thus, the rising government support and growing focus on vehicle safety are supplementing the development and production of autonomous vehicles in Germany.