Advanced Driver Assistance Systems Market Size, Share, Growth Analysis, By Component, By Vehicle Type (Passenger Cars, Light Commercial Vehicles ), By Electric Vehicle Type, By Region - Industry Forecast 2024-2031

Global advanced driver assistance systems market size was valued at USD 29.70 billion in 2022 and is poised to grow from USD 32.91 billion in 2023 to USD 74.75 billion by 2031, growing at a CAGR of 10.88% in the forecast period (2024-2031).

Sales of luxury vehicles are rising globally, driven by increasing disposable incomes, stable economies, and a growing preference for materialistic lifestyles. Developed nations like the United States, Canada, Japan, Spain, South Korea, and Germany have traditionally had a high concentration of luxury car owners. Recently, however, developing countries such as China and India have seen significant increases in luxury car sales. Germany, home to industry giants like BMW, Mercedes-Benz, Audi AG, and Volkswagen, boasts the most lucrative luxury car market. The United States, a major consumer of luxury vehicles, also stands as the world's largest exporter of these automobiles. Future market growth is expected to be influenced by the rising demand for advanced systems, including road sign recognition, night vision, and drowsiness monitoring systems. The implementation of stricter government regulations aimed at improving road safety and reducing accident rates is projected to drive the demand for traditional ADAS systems like autonomous emergency braking and adaptive cruise control. For example, the European Union recently mandated adaptive cruise control systems for all large commercial vehicles, which is anticipated to create significant growth opportunities for the ADAS market. Vehicle automation is experiencing notable growth due to the electrification of vehicles, prompting substantial investments in autonomous car technologies by major industry players. The integration of ADAS is crucial for vehicle automation, with sensors such as cameras, radar, and LIDAR playing a pivotal role in achieving near-accurate automation levels. The COVID-19 pandemic has disrupted major automakers, leading to production halts in affected areas and a decline in car demand and supply chain issues. Original equipment manufacturers have responded with temporary production stoppages. Additionally, the pandemic and global oil price drops have significantly reduced investments, particularly in the energy sector, and sharply decreased export growth. However, a sector recovery is anticipated in the near future.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Advanced Driver Assistance Systems market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Advanced Driver Assistance Systems Market Segmental Analysis

Global advanced driver assistance systems market is segmented based on Solution type, Component, Vehicle type, and region. Based on Component, the market is segmented into Processor, Hardware (Camera Units, Lidar, Radar Sensors, Ultrasonic Sensors, Ecus, Others) Sensors (Image sensor, Lidar sensor, Ultrasonic sensor, Infrared (IR) sensor, Radar sensor, and Laser), Software (Middleware, Application Software, Operating Systems), Others. Based on Autonomy, the market is segmented into L1, L2, L3, L4, and L5. Based on Electric Vehicle Type, the market is segmented into Battery Electric Vehicles, Fuel Cell Electric Vehicles, Hybrid Electric Vehicles, and Plug-in Hybrid Electric Vehicles. Based on Vehicle type, the market is segmented into Passenger cars, light commercial vehicles, buses, and trucks. Based on region, the market is segmented into North America, Europe, Asia Pacific, and Latin America.

Drivers of the Global Advanced Driver Assistance Systems Market

Safety features are a crucial requirement for car owners. Globally, governments have mandated the inclusion of technologies such as automatic emergency braking (AEB) and lane departure warning (LDW). These regulations have led to the development of several safety measures designed to assist drivers and reduce the number of collisions. For instance, driver monitoring systems keep an eye on the driver and issue alerts or warnings in the event of distraction or fatigue.

Restraints in the Global Advanced Driver Assistance Systems Market

For Advanced Driver Assistance Systems (ADAS) to operate effectively, they require fundamental infrastructure such as well-maintained roads, clear lane markings, and reliable GPS connectivity. V2V (Vehicle-to-Vehicle) and V2X (Vehicle-to-Everything) communications depend on robust connectivity infrastructure. Semi-autonomous and autonomous trucks need real-time information on lane changes, object detection, vehicle distances, traffic, and navigation services to function safely. However, poor network coverage on highways often leaves vehicles disconnected from cloud data and each other. In developing countries like Mexico, Brazil, and India, highway IT infrastructure lags behind that of industrialized nations. The necessary 3G and 4G-LTE communication networks are mostly confined to urban and semi-urban areas. Despite the presence of many logistics companies in semi-urban and rural regions, connectivity issues persist. For these countries to adopt ADAS technologies, government support is crucial. Consequently, the development of ADAS in these regions is significantly hindered by inadequate government regulations and insufficient IT communication infrastructure.

Market Trends of the Global Advanced Driver Assistance Systems Market

The market for ADAS (Advanced Driver Assistance Systems) has grown significantly due to increased consumer awareness of the safety and comfort these systems offer in passenger vehicles. Government regulations in developed countries, such as the United States, Japan, China, and Germany, mandating the installation of ADAS for passenger safety, further drive market expansion. For example, India plans to implement electronic stability control (ESC) and automated emergency braking (AEB) in vehicles by 2022-2023 to reduce accident risks. Additionally, the rise in urbanization, increasing per capita income, and improving living standards are boosting the adoption of these systems. Major automakers, including Volkswagen, Audi AG, and Mercedes-Benz, are contributing to the growth of ADAS by increasing the demand for luxury vehicles in developed markets.