Advanced Driver Assistance Systems (ADAS) Market By System Type (Intelligent Park Assist (IPA), Lane Departure Warning (LDW), Road Sign Recognition (RSR), Tire Pressure Monitoring System (TPMS),Night Vision System (NVS) By Sensor Type (Image Sensors, Ultrasonic Sensors, LiDAR, Radar Sensors) - Growth, Future Prospects & Competitive Analysis, 2016 - 2028

About this report

The global advanced driver assistance systems (ADAS) market report explores the critical analysis of the advanced driver assistance systems (ADAS) industry using key parameters. The report consists of investment strategies, the need for investments in the advanced driver assistance systems (ADAS) industry, and the multiple benefits for investors. Importantly, this report sets out major changes in the global technical regulations for the advanced driver assistance systems (ADAS) industry and how economic and non-economic barriers are helping the market grow. Moreover, the report analyses the global, regional, and country-level historic and forecasted market size. The report also provides a comprehensive analysis of key investment propositions, demand and supply gap, competitors positioning, STAR analysis, SRC analysis, and Tornado analysis. Key technological developments and other analyses include Porter's five forces analysis, PESTEL analysis, value chain analysis, etc.

Key Highlights of the report

How are the major segments performing in the Advanced Driver Assistance Systems (ADAS) Market?

• The driver monitoring system (DMS) segment led the market in system type in 2021 and is expected to continue throughout the projection period. The driver monitoring system uses a range of sensors to detect changes in the driver's state and behavior. The system alerts the driver to take a break when it detects signs of fatigue, drowsiness, distraction, and other unsettling patterns. Similarly, automakers intend to integrate the vestibular-ocular reflex (VOR), a drowsiness detection system, with the prediction system in their vehicles.
• The radar sensor type segment accounted for the largest market share in 2021, owing to its use in various systems like adaptive cruise control systems, etc., reducing the number of accidents and improving safety awareness, resulting in robust market demand for radar sensors mainly in countries such as the United States, China, and major European countries. Industry players' growing R&D activities on ADAS sensors will likely strengthen the sensor type segment over the forecast period.
• The passenger car segment led the global market in vehicle type in 2021 and is expected to continue throughout the forecast period. Rising consumer/passenger awareness of road safety and the promotion of legislation are the key driving factors for expanding the passenger car segment. Expanding industrialization, urbanization, rapid demography growth, and high industry demand for passenger cars is expected to propel global market growth.
• The L5 level of autonomy segment dominated the market in 2021 due to the numerous players developing an AI-enabled full-stack L5 system for autonomous vehicles. Manufacturers prioritize offering L5 levels of autonomy as final products.
• In 2021, the battery electric vehicles (BEV) segment accounted for the largest global market share. The rapid and high uptake of autonomous driving technologies in BEVs contributes to the segment's explosive growth. For instance, Toyota Motor enhanced advanced park and drive capabilities in their brand-new 2023 bZ4X BEV in April 2022 with improved sensors, better detection, and an enhanced level of safety.

Which region dominated the advanced driver assistance systems (ADAS) market?

North America dominated the global advanced driver assistance systems (ADAS) market in 2021 and is expected to maintain its dominance throughout the projected period. The main growth factors for the region are the rising demand for high-quality safety features, the requirement for some important ADAS system installations in cars, like tire pressure tracking system applications, and organic growth in the automotive industry. The region has seen a significant increase in the testing procedures for these ADAS features. In addition, the region is the world's second-largest vehicle producer. The presence of established industry key players, combined with the higher adoption of ADAS compared to other regions, is expected to increase regional dominance. Stringent regulations regarding driver safety are further expected to drive the North American advanced driver assistance system (ADAS) market growth.

How is US Market Performing in the advanced driver assistance systems (ADAS) market?

The United States led the North American advanced driver assistance systems (ADAS) market and is expected to continue over the forecast period. The United States ADAS market has a tremendous opportunity due to the growing use of multifunctional sensors. These sensors function as intelligent systems and are increasingly utilized in autonomous and electric vehicles to provide mechanical stimulation systems and environmental data such as pressure, strain, light adjustment, etc. More than 60 million U.S. vehicles are equipped with ADAS technologies due to consumer and automobile demand for these features. Customers' requests for aftermarket systems to be integrated into their vehicles have also begun to be seen in some shops across the country.

What is the competitive environment of the advanced driver assistance systems (ADAS) market?

The global advanced driver assistance systems (ADAS) market is fiercely competitive and highly concentrated. ADAS market players are attempting to increase their market share through various business strategies such as partnerships, agreements, acquisitions, and mergers of various value chain players. Moreover, manufacturers release new products regularly to meet consumer demand, focusing on product quality and efficient service offerings. For instance, ZF launched a 360-degree safety system for light commercial vehicles in January 2022. The system will detect threats from the rear and front sides and defend the vehicle using a dynamic management system. The company now exclusively targets the U.S. market owing to the enormous demand from light commercial fleet owners. On the other hand, Continental AG (Continental) and Beijing Horizon Robotics Technology R&D Co. Ltd announced a contract for a joint venture in September 2021. The agreement provides hardware and software-integrated solutions for advanced driver assistance systems and autonomous vehicles.

Executive Summary

What are technical developments being developed in the global advanced driver assistance systems (ADAS) market?

Growing technological advancements are a major trend gaining traction in the global ADAS market. Major ADAS market players are developing new technologically advanced solutions to strengthen their position by incorporating next-generation technologies such as embedded vision, sensor fusion, software infrastructure, HMI, and AutoStart into their product offerings. For instance, ZF Friedrichshafen, a German-based company, introduced a high-performance Mid-Range Radar (MRR), the next-generation advancement in the ADAS technological market in September 2021, designed to meet safety ratings and facilitate semi-automated driving functions. The Mid-Range Radar has mechanisms that adjust the resolution and range to match the driving condition. Similarly, Omnivision Technologies Inc announced the development of automotive-grade image sensors in January 2021. The company plans to broaden its next-generation camera solutions for the Level 3 ADAS systems. This will improve vehicle safety by providing high-definition visual assessment capabilities. Such advancements will provide ADAS manufacturers with lucrative market growth opportunities. Further, Toyota Motor Corporation introduced the LS and Mirai in April 2021, which featured the company's most recent ADAS technology, Advanced Drive. Toyota's advanced Drive incorporates artificial intelligence (AI) and deep learning to anticipate different driving scenarios and support driver responses.

Which are the key investments by the advanced driver assistance systems (ADAS) market players?

Major industry players are investing heavily in R&D activities to meet the growing demand for improved vehicle safety features, increased comfort, and an efficient driving experience. The increasing investments in R&D activities to incorporate safety systems in HCVs are credited with market growth. Companies are emphasizing next-generation technologies that combine multiple solutions to enhance driver safety and lower the likelihood of collisions. Vehicle electrification is opening up lucrative opportunities for growth in the vehicle automation sector. As a result, most market leaders make significant investments in autonomous vehicle technology through partnerships or acquisitions. For instance, Magna International Inc, a Canadian manufacturer of advanced mobility technologies, purchased Veoneer Inc for USD 3.8 billion in June 2021. Magna's ADAS product lines and industry geographic position are expanded due to the acquisition, which provides access to new customer bases and regions, including Asia Pacific. In addition, the acquisition grants access to engineering and software expertise, like sensor perception and drive policy strategy software. Veoneer Inc is a developer and manufacturer of automotive safety technologies based in Sweden. On the other hand, Innoviz, a LiDAR ADAS startup, has received a total of USD 170 million in funding from various investors for self-driving cars. This funding will assist the company in improving the Harman ADAS systems used in autonomous vehicles.

Some major players in the advanced driver assistance systems (ADAS) market are Texas Instruments, Intel, ZF Friedrichshafen, Aptiv, Denso, Robert Bosch GmbH, Continental AG, Magna International, Veoneer, Hyundai Mobis, Valeo, NVIDIA, Microsemi Corporation, Nidec Corporation, Hella, Infineon Technologies AG, Hitachi Automotive, and Renesas Electronics Corporation.

What are the Major Driving Factors for the Advanced Driver Assistance Systems (ADAS) Market?

Rising awareness of passenger car comfort and safety, as well as government regulations implementing safety features, are expected to drive global market demand. Moreover, the increasing acceptance of self-driving or automated vehicles contributes to the market's rapid expansion. Rapid change is also occurring in the dynamics of the global automotive sector. Basic parts that are manufactured and designed with customer preferences are included in mid-priced cars. Another factor anticipated to fuel the growth of the automotive ADAS market is a consistent rise in demand for compact and mid-sized cars outfitted with advanced safety features.

What are the Major Risks for the Advanced Driver Assistance Systems (ADAS) Market?

High initial costs and equipment failures may limit market growth. Major players have invested significantly in researching and developing advanced driver assistance systems that employ advanced technologies and artificial intelligence. The higher initial costs associated with these high-end features in vehicles have subsequently raised vehicle starting prices, which may negatively affect market growth during the forecast period. The electronic components of the systems can also fail and provide inaccurate information. Moreover, the complex system handling and high risk of cyber security threats may endanger the vehicle and its passengers.

Which is the key system type in the advanced driver assistance systems (ADAS) market?

Driver monitoring system (DMS) is expected to be a key system type segment in the advanced driver assistance systems (ADAS) market throughout the forecast period. The segment's growth is primarily driven by a government initiative to reduce traffic accidents. Moreover, the growing luxury and premium car market is expected to drive the growth of driver monitoring systems (DMS) during the forecast period. The driver monitoring system detects changes in the driver's state and behavior using a variety of sensors. Implementing this advanced combination will detect the driver's behavior a few minutes before the driver becomes drowsy. For instance, in 2018, Eyesight, the edge computer vision solutions company, announced a partnership with Samsung Electronics to incorporate its cutting-edge AI-based computer vision driver tracking and monitoring software into Samsung's in-cabin camera software. The software can track the driver's gaze direction, head position, blink rate, pupil dilation, and eye openness to identify distraction and drowsiness.

How is the advanced driver assistance systems (ADAS) market performing in regions?

North America dominated the advanced driver assistance systems (ADAS) market in 2021, owing to high industry demand for electric vehicles (EVS) in regional countries such as the United States and Canada, which use the ADAS system for driver convenience and safety. The region's rising demand is primarily attributed to prominent automobile manufacturers such as Ford, General Motors, Tesla, Texas Instruments, Nvidia, and others. Besides, rapidly increasing urbanization and end-user awareness of these systems have aided regional market expansion. For instance, NVIDIA announced the manufacturing of NVIDIA Drive Orin, an automated vehicle computer, in March 2022. Orin will act as the central nervous system and Al brain for new energy vehicles, delivering improved Al features while ensuring safe and secure driver capabilities.

Furthermore, the Asia Pacific market is expected to have the highest revenue share in the global advanced driver assistance systems (ADAS) market during the forecast period due to increased automotive manufacturing, particularly in China and India, and growing ADAS penetration in major regional markets such as India, South Korea, Japan, and China. The government's initiatives, such as installing emergency brakes and adaptive cruise control systems, are designed to promote original equipment manufacturers to enter the regional market. Several American and European manufacturers, including Volkswagen, Mercedes-Benz, and General Motors, have recently relocated manufacturing facilities to Asia Pacific countries.

What is the regulatory landscape for the advanced driver assistance systems (ADAS) market?

Governments worldwide are launching various initiatives to improve road safety and encourage businesses to take steps to ensure vehicle safety. In some countries, strict government policy forces manufacturers to install ADAS systems in all vehicles to improve road safety. Governments and automotive regulatory bodies in developed nations such as the United States, Japan, Germany, the United Kingdom, and France are legalizing and implementing policy frameworks to mandate the assimilation of advanced vehicle driver assistance systems. For example, the European Union (EU) passed legislation mandating adaptive cruise control systems to be installed in all heavy commercial vehicles by 2020.

The New Car Assessment Program (NCAP), Insurance Institute of Highway Safety (IIHS), and International Centre for Automotive Technology (ICAT) are just a few of the organizations that require safety ratings from car manufacturers before they can sell their vehicles on the open market. As a result, all of the safety rules and regulations enacted by governments will likely boost the market growth. For instance, the National Highway Traffic Safety Administration (NHTSA) launched the AV-TEST initiative in June 2020 to provide U.S. citizens with direct and easy access to information about vehicle testing equipped with ADAS systems. This will increase the general public's understanding of safety precautions, on-road testing, and the guiding principles for testing.

What is the Market Size of Advanced Driver Assistance Systems (ADAS) regarding value?

The global advanced driver assistance systems (ADAS) market is anticipated to grow at a substantial CAGR of 11.7% in the upcoming years. The global advanced driver assistance systems (ADAS) industry is estimated to be worth USD 26.8 billion in 2021 and is expected to be worth USD 52.05 billion by 2028.

What are the major players planning for the future of the advanced driver assistance systems (ADAS) market?

Key companies in the advanced driver assistance systems market plan to collaborate to mass-adopt ADAS features with a new cost-effective 3-dimensional (3D) surround view system developed for entry- and mid-level vehicles. The new system assists automobile manufacturers in providing safer and more technologically advanced vehicles to a wider number of vehicle consumers, helping to create a society where vehicles are safe in the future. The brand-new 3D surround view system is a vehicle camera system that provides a 360-degree panoramic view to guide drivers when parking or conducting low-speed tasks. Many businesses intend to form alliances to gain a competitive advantage and expand their customer base.

For instance, Mercedes-Benz collaborated with Luminar Inc, one of the top LiDAR developers, in January 2022 to supply LiDAR sensors for its autonomous driving systems. This approach will have a favorable impact on the advancement of automated driving technology solutions. Similarly, Opsys-Tech, an Israeli manufacturing company of LIDAR sensor solutions for automated vehicle applications, signed an agreement in February 2022 to supply LiDAR systems to global automotive components supplier HASCO Hasenclever GmbH + Co KG in Ludenscheid, Germany, for use in automobile manufacturing as early as 2024 or 2025. This agreement also allows Opsys to enter the Asian automotive LIDAR sensor systems industry.

Segmentation of Global Advanced Driver Assistance Systems (ADAS) Market -

Global Advanced Driver Assistance Systems (ADAS) Market – By System Type

• Intelligent Park Assist (IPA)
• Lane Departure Warning (LDW)
• Road Sign Recognition (RSR)
• Tire Pressure Monitoring System (TPMS)
• Night Vision System (NVS)
• Automatic Emergency Braking (AEB)
• Adaptive Cruise Control (ACC)
• Adaptive Front Light (AFL)
• Blind Spot Detection (BSD)
• Cross Traffic Alert (CTA)
• Driver Monitoring System (DMS)
• Forward Collision Warning (FCW)
• Others

Global Advanced Driver Assistance Systems (ADAS) Market – By Sensor Type

• Image Sensors
• Ultrasonic Sensors
• LiDAR
• Radar Sensors
• Infrared (IR) Sensors
• Laser Sensors

Global Advanced Driver Assistance Systems (ADAS) Market – By Vehicle Type

• Passenger Car
• Light Commercial Vehicle
• Truck
• Bus

Global Advanced Driver Assistance Systems (ADAS) Market – By Level of Autonomy

• L1
• L2
• L3
• L4
• L5

Global Advanced Driver Assistance Systems (ADAS) Market – By Electric Vehicle

• Battery Electric Vehicles (BEV)
• Hybrid Electric Vehicles (HEV)
• Plug-in Hybrid Electric Vehicle (PHEV)
• Fuel Cell Electric Vehicle (FCEV)

Global Advanced Driver Assistance Systems (ADAS) Market – By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • UK.
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • South-east Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC Countries
  • South Africa
  • Rest of Middle East and Africa

Frequently asked questions about the global advanced driver assistance systems (ADAS) market