Global Advance Driver Assistance Systems Market Expected to Reach $143,051 Million by 2025


quote Europe is expected to lead the global ADAS market throughout the forecast period, followed by North America. System type segment led the overall advance driver assistance system market in component type segment. Furthermore, LAMEA is expected to register the highest CAGR quote

Akshay Jadhav & Sonia Mutreja
Lead Analyst, Semiconductors & Transportation at Allied Market Research

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According to a recent report published by Allied Market Research, titled,"Advance Driver Assistance Systems (ADAS) Market by Component Type: Global Opportunity Analysis and Industry Forecast, 2017 - 2025,"the global ADAS Market was valued at $25,116 million in 2016, and is projected to reach at $143,051 million by 2025, growing at a CAGR of 21.2% from 2017 to 2025.

ADAS applications are majorly adopted in the European region; thus, this region contributes to maximum revenue in the global market, followed by North America, Asia-Pacific, and LAMEA.

The ADAS market growth is driven by the forthcoming need for comfort, growth in government regulations related to safety, and high focus on consumer safety. However, pricing pressure, inflation, and complexity & difficulty in testing systems hamper the market growth.

In 2016, the system type dominated the component type segment, in terms of revenue. Furthermore, based on system type, adaptive front-lighting system led the global market, followed by lane departure warning system in 2016. However, tire pressure monitoring system segment is expected to witness the highest CAGR throughout the forecast period. Similarly, RADAR sensors led the overall market in 2016, in terms of revenue, followed by image sensor in sensor type segment.

Surge in safety concerns among people

The demand for advanced driver assistance systems (ADAS) in vehicles has increased at a significant pace over the recent years, and is expected to maintain this trend during the ADAS market forecast period. This is attributed to growth in safety concerns, as the number of road accidents is a constant rise, especially in developing countries. The adoption of advanced driver assistance systems applications, such as adaptive cruise control, blind spot detection system, lane departure warning system, and night vision are leading to reduction in number of accidents. It has been projected that the number of road accidents would increase in developing countries, thereby leading to ADAS market growth in terms of revenue.

Stringent safety rules and regulations

Government initiatives play a vital role in fueling the demand for advanced driver assistance systems applications. Various governments have implemented stringent laws to reduce the number of accidents. According to the New Car Assessment Programs (NCAPs) policy, vehicles need to have safety ratings to encourage significant safety improvements in new car designs. Increased focus of the government on road safety is expected to fuel the advanced driver assistance systems market in the future.

Technological advancements in multifunctional system

The multifunctional feature of sensors such as RADAR, LiDAR, ultrasonic, and more is expected to drive the advanced driver assistance systems market. The applications of advanced driver assistance systems are expected to increase considerably by 2020, owing to the rapid growth of the manufacturing sector.

Complexity and high manufacturing cost

The complexity in testing systems and heavy cost of installing advanced driver assistance systems hamper the market growth. Advancements in technology in the near future are expected to reduce the complexity and cost incurred. The use of ultrasonic sensors is expected to reduce the cost of new technologies, which in turn is expected to propel the market.

Technological advancements in advanced driver assistance systems

Cars are being equipped with a plethora of features to increase their sales and provide comfort to consumers. Technological improvements in electronic components, such as computers, smartphones, wireless communication & cloud systems, and others improve safety of consumers. The dynamic advancements in technology, such as intelligent driving that enables cars to autonomously park themselves, stay in lanes without driver assistance, and brake at the sign of danger, have increased their sales. Moreover, the integration of various electronic equipment is expected to provide ample opportunities to ADAS industry

Advent of multifunctional systems

In the present scenario, single sensor can perform various functions. For instance, multifunctional cameras feature multiple core functions that enable intelligent driving. These cameras are cheaper, efficient, and easier to integrate as compared to infrared and radar systems. Moreover, multifunctional camera sensors are used in lane departure warning systems and light control. This feature is expected to reduce the cost of vehicles. Thus, the development of multifunctional systems is expected to provide significant opportunities to the advanced driver assistance system providers in the near future.

Key Findings of the Advance Driver Assistance Systems (ADAS) Market:

  • The system type segment generated the highest revenue in the global ADAS market in 2016.
  • In 2016, adaptive front-lighting system generated the highest revenue among the system type segment in global ADAS Market size.
  • LAMEA is anticipated to exhibit the highest CAGR during the forecast period.
  • , Europe accounted for the highest ADAS market share, followed by North America, Asia-Pacific, and LAMEA.In 2016

The key players profiled in the ADAS market are Magna International Inc., Autoliv Inc., Continental AG, Robert Bosch GmbH, Valeo, Denso Corporation, NXP Semiconductor, Panasonic Corporation, Renesas Electronics Corporation, and Texas Instruments.

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