Carmakers could technically deliver Level 3 today, but legal and financial hurdles stand in the way of deployment.
Jun. 27, 2025 –
Level 2+ autonomous driving technologies are gaining traction, and the first Level 3 systems have entered the market, albeit at a slower pace than anticipated. At the recent Mobility Tech Forum, IDTechEx technology analyst Shihao Fu mapped the progress of Level 2, Level 2+, and Level 3 technologies, region by region, and described a future where it will be possible to read, watch a film, or simply enjoy the scenery while driving to your destination.
According to IDTechEx, global adoption of Level 2+ and Level 3 functionalities is expected to exceed 50% by 2035. Revenues from Level 2+ and Level 3 alone would surpass $4 billion in Europe by 2042, contributing to a total ADAS feature market of more than $16 billion.
The main difference between Level 2 and Level 2+ systems is that Level 2 requires drivers to keep their hands on the wheel and eyes on the road. With Level 2+, drivers can take their hands off the wheel but must always keep their eyes on the road and be ready to take full control if necessary. When vehicles operate at Level 2 or 2+, drivers are in control of their vehicles and are responsible at all times.
The transition from Level 2 to Level 3 is more complex in terms of where the responsibility—and thus the liability—lies.
“The distinction between Level 2 and Level 3 systems is becoming a bit blurred,” Fu said. “Some OEMs define their systems as Level 2+, 2.5, even 2.9. Essentially, these advanced Level 2 features are getting close to Level 3 in terms of capability, but the main difference is whether manufacturers are willing to take on the liability of Level 3.”
Level 3 has been a real challenge for the automotive industry because “eyes off” means the driver cannot be held responsible if the car makes a mistake, Fu said. Responsibility is therefore transferred to the OEM.
Back in 2017, Audi attempted to pioneer the Level 3 market with the L3-ready A8, but regulatory uncertainty quickly stalled the carmaker’s ambitions and delayed the introduction of true Level 3 autonomy, Fu said. In 2021, a clearer regulatory framework emerged under the United Nations Economic Commission for Europe guidelines, affecting Europe and some global markets. Adopters have proceeded with caution, however, with only Germany and Japan actively deploying a limited number of certified vehicles. Germany currently leads the way, with Mercedes-Benz and BMW models, and Mercedes-Benz received certification in Nevada and California in 2023...