Global Advanced Driver Assistance Systems Market - 2024 - 2031

Report Overview

Global Advanced Driver Assistance Systems Market reached US$ 44.96 billion in 2023 and is expected to reach US$ 165.68 billion by 2031, growing with a CAGR of 17.71% during the forecast period 2024-2031.

Assessment indicates that the market growth will be primarily driven by the increasing demand for advanced driver assistance systems (ADAS) in compact passenger automobiles. The demand is expected to be further fueled by the intensifying government rules mandating the installation of Advanced Driver Assistance Systems (ADAS) in automobiles. Increased disposable income, economic stability and a growing inclination towards materialistic lifestyles are fueling the global sales of luxury automobiles.

The Advanced Driver Assistance System has several essential elements like sensors, cameras, radars and software that enable the system to operate with accuracy. Automatic emergency braking, park assist, adaptive cruise control and lane warning departure system are among the several features encompassed by the Advanced Driver Assistance System (ADAS). The automobile sector has been substantially advanced by the integration of Artificial Intelligence (AI).

The French company Navya, which specializes in Level 4 autonomous mobility technology for the transportation of people and goods, has declared its intentions to extend the geographical reach of its autonomous electric shuttles to Middle East, Japan, US and Scotland in 2022. These advancements are anticipated to yield favourable outcomes for the market.

Market Dynamics

Growing Focus on Road Safety and Advanced Technologies

Rising road accidents result in high levels of traffic congestion and unintended fatalities. Extensive surveys and analyses conducted by traffic authorities in different nations have consistently shown that the primary cause of accidents is the negligence and mistakes made by drivers. Research conducted by the United Nations reveals that over 1.3 million individuals succumb to fatal traffic accidents annually on a global scale.

Furthermore, governments are making substantial financial investments in the implementation of advanced safety measures and endorsing the usage of autonomous vehicles. In addition, automotive manufacturers must comply with regulations and acquire safety ratings from established organizations including the New Car Assessment Program (NCAP), the Insurance Institute of Highway Safety (IIHS) and the International Centre for Automotive Technology (ICAT) in order to obtain vehicle authorization.

Commencing in 2019-2020, Tire Pressure Monitoring Systems (TMPS) have been mandated in several European countries, US and South Korea. Concurrently, Japan and China are currently implementing the requirement for this Advanced Driver Assistance Systems (ADAS) capability. Furthermore, in 2021, the Chinese government and the Ministry of Industry and Information Technology (MIIT) China introduced a legislation specifically addressing autonomous vehicles and emerging technologies.

Alongside government assistance, the changing preferences of customers are also contributing to the market's expansion. For example, in the braking system of the car, drum brakes were widely used, initially. The introduction of advanced disc brakes led to the development of Anti-lock Braking Systems (ABS), which have now become the standard practice. Therefore, the market is being driven by the backing of governments and the rapid adoption by consumers.

Challenges And Risks Hindering The Growth Of Automotive ADAS

In response to the strong demand for intelligent driver assistance systems in the automotive industry, manufacturers are enhancing their firm infrastructure by making substantial investments in ADAS technology to fulfill technological requirements. Among other features, the automobile advanced driver aid system includes adaptive cruise control, automated emergency braking and park assist.

The implementation of these very advanced technological systems presents numerous technical obstacle and complexities. The operation of all these systems relies on radars, sensors, cameras, cartography and certain software applications. Not all sensors function consistently and accurately. For example, the sensors may erroneously identify a car in the adjacent lane as an approaching vehicle and activate the Anti-Equilibrium Brakes (AEB) system while driving. Hence, overly depending on these technologies may introduce a deliberate risk of malfunctions and failures.

Moreover, the malfunction of electronic components in the ADAS result in the presentation of inaccurate information. The significant vulnerabilities posed by cyber security threats and the intricate nature of managing the system might result in vehicular accidents. Any failures or intentional flaws in the Advanced Driver Assistance System (ADAS) can pose a significant risk and threaten the lives of users.

Hence, the major stakeholders have made substantial investments in the research and development of driver assistance systems that are equipped with cutting-edge technology and artificial intelligence. Premium features in autos result in extra expenses and ultimately cause an increase in the starting price of vehicles, which could limit the growth of this market throughout the projected period.

Market Segment Analysis

The global advanced driver assistance systems market is segmented based on type, offering, vehicle and region.

The Passenger Cars Segment Dominated The Market

The popularity of passenger cars among drivers has significantly increased in recent years, mostly attributed to their attractive design, small size and cost-effectiveness. In several industrialized nations, passenger vehicles are the predominant means of mobility. The evolution of consumer tastes globally, driven by changing lifestyles, greater spending power, rising disposable incomes, growing brand recognition and improving economy, is generating significant sales of passenger cars.

The surge in demand for electric vehicles also led to notable expansion of the market. Electric vehicle sales in India experienced a twofold increase during the first quarter of 2023 in comparison to the corresponding period in 2022. Increasing demand for SUVs generates lucrative prospects for market participants and serves as a significant catalyst for the expansion of the worldwide passenger automobile industry. By 2023, SUVs accounted for 41% of total passenger vehicle (PV) sales, up from 18% in 2016.

Governments worldwide are prioritizing the development of many legislative policies and regulations to oversee users. Proposed are regulations that would require and promote the installation of ADAS components in vehicles to reduce the increasing number of road accidents in several countries. The Indian government has previously enforced a mandate for Motor Vehicle Safety Systems (ABS) on motorcycles, with the primary objective of enhancing vehicle safety.

Market Geographical Share

Asia Pacific Is Estimated To Account For The Largest Share

Propelled by swift urbanization, economic affluence and a growing population, the demand for urban and commercial mobility in Asian countries has escalated. Industrialized nations such as China, India and Japan are major contributors to the greatest car markets globally. Based on data from the International Trade Administration, China is the leading global market for automobiles in terms of yearly sales and manufacturing output. It is projected that domestic production would reach 35 million vehicles by 2025.

Governments in Asia-Pacific nations are promoting the use of battery electric cars (BEVs), plug-in hybrid electric vehicles (PHEVs) and, in certain countries, more fuel-efficient automobiles as means to reduce emissions from the transportation industry. As per the IBEF, India has the potential to emerge as a frontrunner in shared mobility by 2030, hence creating prospective avenues for electric and autonomous vehicles.

The Automotive Mission Plan 2026, scrappage policy and production-linked incentive schemes implemented by different governments are anticipated to result in Asia-Pacific capturing the largest market share. Enacting legislation to encourage the use of such safety technologies as Advanced Driver Assistance Systems (ADAS) and airbags in automobiles could potentially have a beneficial effect on the industry.

In June 2023, the Ministry of Industry and Information Technology of China unveiled its strategy to facilitate the commercial advancement of Level 3 and above autonomous driving technology in the country. The agency's primary objectives include developing partnerships with other firms, establishing infrastructure for cellular vehicle-to-everything technologies and conducting Level 3 pilot projects.

Market Competitive Landscape

The major global players in the market include Robert Bosch GmbH, Continental AG, ZF Friedrichshafen AG, DENSO CORPORATION, Aptiv PLC, Valeo SA, Magna International Inc., Aisin Seiki Co. Ltd, Autoliv Inc., GENTEX CORPORATION, Harman International, Hyundai Mobis, NXP Semiconductor, Mobileye, Panasonic Corporation, Renesas Electronics Corporation.

Russia-Ukraine War Impact Analysis

The protracted Russian-Ukrainian conflict has resulted in significant interruptions to the global supply chain, particularly in the automobile sector, including the market for Advanced Driver Assistance Systems (ADAS). Insufficient availability of essential components for Advanced Driver Assistance Systems (ADAS), such as semiconductors and sensors, has arisen due to the conflict. Furthermore, the conflict has led to increased costs for raw materials and complicated coordination of logistics, therefore worsening the challenges in producing and distributing ADAS technologies.

Furthermore, the geopolitical instability has led several firms to reassess their operations in the affected regions. The prevailing conditions have led to interruptions in the automotive manufacturing schedule and a slowdown in the adoption of Advanced Driver Assistance Systems (ADAS), particularly in Europe, which was already a substantial market for these technologies. The lingering uncertainties surrounding the conflict continue to exert effect on investment decisions and market growth prospects for ADAS technology.

AI Impact Analysis

Artificial Intelligence and machine learning have greatly transformed the Advanced Driver Assistance System (ADAS) by harnessing the capabilities of deep learning paradigms. Advanced Driver Assistance Systems (ADAS) extensively depend on deep learning techniques to evaluate and understand vast quantities of data acquired from a diverse array of sensors. Examples of these sensors include cameras, LiDAR (Light Detection and Ranging), radar and ultrasonic sensors.

The data obtained in real time from the immediate surroundings of the vehicle includes visual representations, audio recordings and measurements from sensors. Machine learning significantly enhances the capabilities of automated driving assistance systems (ADAS) by enabling them to acquire knowledge from data, adjust to new circumstances and make informed judgments.

The following is how machine learning improves ADAS capabilities:

Predictive Analytics: Machine learning systems predict future risks and hazards by analyzing historical data. Automated Driver Assistance Systems (ADAS) can actively assist the driver and minimize accidents by anticipating possible hazards.

Adaptive Control: Machine Learning allows Advanced Driver Assistance Systems (ADAS) to adjust their configurations based on the driver's behavior, traffic conditions and environmental factors. The increased adaptability allows for a more personalized driving experience and enhances the efficiency of the system.

Decision Making: Machine learning algorithms enable Advanced Driver Assistance Systems (ADAS) to rapidly assess complex data and make decisions by considering several factors such as traffic density, weather and road conditions.

The automotive industry is undergoing transformation due to the inseparable interaction between machine learning and advanced driver aid technologies. Artificial intelligence (ML)-powered Advanced Driver Assistance Systems (ADAS) enhance driving safety and convenience by providing vehicles with enhanced perception, decision-making abilities and adaptive control.

Notwithstanding the existing challenges, the persistent endeavor for innovation and collaboration among scientists, enterprises and policymakers will undoubtedly get us closer to a future where roads are autonomous and devoid of accidents. In order to fully realize the transformative capabilities of ML-driven ADAS in the automotive sector, it is imperative that we prioritize safety, ethics and regulatory frameworks during the implementation of this technology.

By Type

Adaptive Cruise Control

Adaptive Light Control

Blind Spot Detection

Collision Avoidance Systems

Driver Drowsiness Detection

E-Call Telematics

Lane Departure Warning Systems

Night Vision

Parking Assistance

Tire Pressure Monitoring

Others

By Offering

Hardware

Camera Unit

Radar Sensor

Ultrasonic Sensor

LiDAR

ECU

Others

Software

Middleware

Application Software

Operating System

By Vehicle

Passenger Cars

Light Commercial Vehicles

Buses and Trucks

Electric Vehicle

BEV

FCEV

HEV

PHEV

Others

By Region

North America

US

Canada

Mexico

Europe

Germany

UK

France

Italy

Spain

Rest of Europe

South America

Brazil

Argentina

Rest of South America

Asia-Pacific

China

India

Japan

Australia

Rest of Asia-Pacific

Middle East and Africa

Key Developments

In June 2023, Continental AG declared its intention to create affordable ADAS (Advanced Driver Assistance Systems) specifically designed for Indian automobiles and motorcycles. The company's objective is to enhance the safety and affordability of automobiles in the Indian market.

In June 2023, Continental unveiled a novel high-performance computer (HPC) specifically designed for automobiles. The system consolidates the cluster, infotainment and technical driver-assistance systems (ADAS) into a unified entity.

A new one-chip radar integrated circuit (IC) series for next-generation Advanced Driver Assistance Systems (ADAS) and automated driving systems was introduced by NXP Semiconductors, a US-based automotive radar manufacturer, in January 2023. By integrating NXP's cutting-edge radar detector and processing technologies into a single chip, the SAF85xx series offers tier-one suppliers and original equipment manufacturers (OEMs) enhanced flexibility.

In December 2023, ECARX Holdings Inc., a worldwide provider of mobility technologies, formed a partnership with Black Sesame Technologies and BlackBerry Limited to implement the Skyland Advanced Driver Assistance Systems (ADAS) platform in Lynk & Co's highest-end SUV, the Lynk & Co 08. It entails the incorporation of BlackBerry QNX Neutrino Real-Time Operating System (RTOS) and the Huashan II A1000 ADAS computer chip from Black Sesame Technologies into the ECARX Skyland Pro.

In December 2023, Magna, a prominent multinational mobility technology firm, expanded its automated driving capabilities by becoming a participant in NorthStar - Telia Sweden and Ericsson's 5G innovation initiative for industrial firms. Telia and Ericsson entered into an agreement to construct a specialized, exclusive 5G network at Magna's test track in Vargarda, Sweden.

Why Purchase the Report?

To visualize the global advanced driver assistance systems market segmentation based on type, offering, vehicle and region, as well as understand key commercial assets and players.

Identify commercial opportunities by analyzing trends and co-development.

Excel data sheet with numerous data points of the advanced driver assistance systems market with all segments.

PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.

Product mapping available as Excel consisting of key products of all the major players.

The global advanced driver assistance systems market report would provide approximately 77 tables, 66 figures and 221 pages.

Target Audience 2024

Manufacturers/ Buyers

Industry Investors/Investment Bankers

Research Professionals

Emerging Companies