Advanced Driver Assistance Systems Market

ADAS market report, 2032

The global advanced driver assistance systems market size was valued at $40.4 billion in 2022, and is projected to reach $133.7 billion by 2032, growing at a CAGR of 13% from 2023 to 2032.

Report Key Highlighters:

• The advanced driver assistance systems market studies more than 15 countries. The research includes a segment analysis of each country in terms of value ($ million) for the projected period 2022-2032.
• The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global markets and to assist stakeholders in making educated decisions to achieve their most ambitious growth objectives.
• Over 3,700 product literature, annual reports, industry statements, and other comparable materials from major industry participants were reviewed to gain a better understanding of the market.
• The advanced driver assistance systems market includes several players such as Autoliv Inc., Continental AG, DENSO Corporation, Magna International Inc., ROBERT BOSCH GMBH, Valeo, NXP Semiconductors, Panasonic Corporation, Renesas Electronics Corporation, and Texas Instruments. Key strategies such as partnership, acquisition, product launch, contract, product development, expansion, and other strategies of the players operating in the market are tracked and monitored.

The advanced driver assistance systems (ADAS) refers to a class of electronic parts used in cars that offer the driver a smarter driving experience. These systems include distinctive sensors like laser, infrared, radar, image, ultrasonic, LiDAR, and image sensors. Deployment of ADAS in vehicles to enhance comfort and ensure safety on road is anticipated to be one of the major trends being witnessed in the automotive industry. The rise in the need for safer driving conditions increases the demand for an assistive driving system among the customers, which in turn propels the growth of the ADAS market. The advanced driver assistance system provides various advantages such as reduction in loss of property & life, decrease in the rate of accidents, and others. ADAS consists of safety functions that are designed to improve pedestrian and passenger safety by minimizing both motor vehicle accidents and severity. Advanced driver assistance systems warn the driver of potential danger and help the driver to remain in control to prevent accidents and reduce severity if possible.

Factors such as high demand for safety features and increased demand for comfort while driving foster the growth of the advance driver assistance systems market. In addition, stringent safety rules and regulations are anticipated to propel the growth of the market. However, high initial cost and complex structure and lower efficiency in bad weather conditions hinder the growth of the advance driver assistance system market. Furthermore, technological advancements in the advanced driver assistance systems and production of multifunctional systems are anticipated to provide a remarkable growth opportunity for the players operating in the market.

The global advanced driver assistance systems (ADAS) market is segmented on the basis of system type, sensor type, vehicle type, and region. By vehicle type, ADAS market is categorized as passenger car, light commercial vehicle, buses, and trucks. Based on system type, the ADAS market is divided into tire pressure monitoring system (TPMS), drowsiness monitoring system, intelligent parking assist system (IPAS), adaptive cruise control system, blind spot object detection system, lane departure warning system, adaptive front lighting system, and others.By sensor type, the market is fragmented into image sensor, LiDAR sensor, ultrasonic sensor, infrared (IR) sensor, radar sensor, and laser.By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA 

The global key players profiled in the advanced driver assistance systems market report are Autoliv Inc., Continental AG, DENSO Corporation, Magna International Inc., ROBERT BOSCH GMBH, Valeo, NXP Semiconductors, Panasonic Corporation, Renesas Electronics Corporation, and Texas Instruments, which hold a major ADAS market share.

The Asia-Pacific advanced driving assistance system market is anticipated to grow at a significant rate during the forecast period, due to supportive macroeconomic factors such as increase in income, increase in purchasing power, and changing lifestyle due rapid urbanization and rise in awareness about active safety systems. Advanced driver assistance systems is expected to be in high demand in the near future in countries like China, Japan, and India.

The automobile industry in the Asia-Pacific area has grown recently. The region is among the most lucrative for investment and has significantly boosted the world's auto sales. By establishing their corporate headquarters or manufacturing plants in countries like China, Japan, and India, which are the area's automotive centres, the major automobile firms have focused on expanding in the region. Due to the robust economic climate and ongoing rise in household disposable income, it is projected that the market for luxury vehicles will increase throughout the region. emerging nations like China and India, Japan, Australia, and others. For instance, in August 2021, Toyota and Lexus launched a new assistance service to its drivers in the moments following a collision. Collision Assistance is a just-in-time support service that provides guided instructions to help drivers navigate a post-collision repair process. Numerous manufacturers have ventured into the region due to the flexibility of establishing manufacturing facilities.

High demand for safety features

Because there are more and more car accidents happening all around the world, people are realizing how important it is to have safety technologies in cars. These technologies include things like airbags that pop out in case of a crash, systems that help the car stay on the road and avoid crashes. Moreover, road traffic injuries leading to death are higher among teenagers. These factors are leading to the growing demand for safety features in vehicles. Automobile companies are developing and introducing safety features to meet the needs of the customers. Thus, high demand for safety features drives the growth of the advanced driver assistance system market.

Increased demand for comfort while driving

Consumers are inclined toward comfort while driving due to the increase in purchasing power. Application of advanced driver assistance system, such as adaptive cruise control and parking aid systems, have been introduced to provide comfort to drivers. However, the driver can overrule the system at any time. Other systems such as intelligent parking systems, adaptive cruise control system, night vision system, and others which support the driver for lateral control of the vehicle are in continuous development phase.Additionally, as consumers' spending power has improved, there has been a noticeable increase in the desire for ADAS system. This factor fuels the ADAS market growth during the forecast period.

Stringent safety rules and regulations

Countries have implemented laws and regulations for vehicles to install safety systems such as lane departure warning systems and tire pressure monitoring systems in their vehicles within a stipulated period. For instance, starting in April 2015, the Indian government will require all new commercial vehicle models to include high-tech brake systems. This is done by amending the motor vehicle statute. Several countries now have laws requiring the usage of technologies including car airbags, passenger seat belts, lane departure warning systems, driver monitoring systems, drowsiness monitoring systems, kid safety systems, pedestrian safety systems, and others.

Automakers must also obtain safety ratings from groups like the Insurance Institute of Highway Safety (IIHS), New Car Assessment Programme (NCAP), and International Centre for Automotive Technology (ICAT) in order to obtain the sales licence for automobiles on the market. Thus, all these safety rules and regulations made by the government are anticipated for the growth of advanced driver assistance systems market in the coming years.

High initial cost and complex structure

The high cost associated with installing applications in vehicles is expected to reduce the growth of the advanced driver assistance systems market as this factor increases the cost of the car. Factors such as the higher cost involved in the installation of ADAS is leading to the higher cost of cars. The prospect of providing premium features in vehicles incurs additional expenses to consumers in the form of hardware, applications, and telecom service charges, which eventually hamper the growth of the ADAS market.

Moreover, the serviceability of the vehicle is difficult, and requires skilled workers due to several electronic components and sensors. Complex structure of systems reduces the shelf life of vehicles. Thus, high initial cost and complex structure is expected to have a significant impact on the growth of the advanced driver assistance systems market.

Lower efficiency in bad weather conditions

Environmental changes act as a restraint for advanced driver assistance systems. This is because sensor or camera associated with ADAS face difficulty in tracking moving objects during bad weather conditions. The applications of advanced driver assistance system do not work effectively in harsh weather conditions. Vision-based systems especially have poor outcomes in bad weather and low light conditions. Moreover, other environmental factors such as lightning & thunderstorm, and heavy rain also affect the market growth. Hence, low efficiency in bad weather conditions hamper the adoption of advanced driver assistance systems across the globe.

Technological advancements in advanced driver assistance system

Companies are installing a wider range of features and technologies in their vehicles to provide comfort to consumers and to increase sales. In addition, technological advancement in electronic components, such as sensors and smartphones which are supported with wireless communication & cloud systems provides better surrounding information and improves the safety of the consumers. The dynamic advancements in technology such as intelligent parking assist system that help cars to park smoothly without the involvement of a guide to give directions, night vision system which is useful in area where no or less light is there, lane departure system, and brakes at the sign of danger, have increased the sales of automobile industry.The ADAS market forecast indicates a significant growth, attributed to technological advancements and the rising need for improved vehicle safety.

Moreover, the integration of various electronic equipment is expected to be introduced in the near future. Thus, technological advancements in advanced driver assistance systems are anticipated to provide a remarkable growth opportunity for the key players operating in the ADAS market.

Recent Developments:

• In March 2023, Valeo SA received contract from American robotaxi company for third-generation SCALA 3 LiDAR system. Valeo SCALA 1 and 2 made conditional autonomous driving in traffic jams a reality. SCALA 3 dramatically increases the domain of operation.
• In December 2022, Magna International Inc. acquired Veoneer Active Safety business from investment firm SSW Partners for $1,530 million. Veoneer Active Safety systems provide early warnings to alert drivers to prevent accidents by using features such as autonomous emergency braking, forward collision warning, and blind spot detection..
• In April 2021, Denso Corporation developed advanced driver assistance technology featured for New Lexus LS, & Toyota Mirai. Advanced driver assistance technologies are essential to help drivers safely operate vehicles in driving scenarios.
• In February 2020, Continental AG expanded its structure & started production of radar sensors being built in New Braunfels, Texas. The purpose of the new building is to expand its capacity for the production of radar sensors.

The outbreak of COVID-19 resulted in declined economic consumer spending on non-essential items, including new vehicles, declined as people prioritized essential expenses. As a result, the overall demand for vehicles, including those equipped with ADAS, was negatively affected. However, post-pandemic, Governments around the world implemented various economic stimulus packages to revive industries, including the automotive sector. Some of these packages included incentives for the adoption of green and advanced technologies, which could have a positive impact on the ADAS market.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the advanced driver assistance systems market analysis from 2022 to 2032 to identify the prevailing advanced driver assistance systems market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the advanced driver assistance systems market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global advanced driver assistance systems market trends, key players, market segments, application areas, and market growth strategies.

 Advanced Driver Assistance Systems Market Report Highlights