Global Advanced Driver Assistance System (ADAS) Market Size By System Type (Tire Pressure Monitoring System (TPMS), Drowsiness Monitor System, Intelligent Parking Assist System (IPAS), Adaptive Cruise Control System, Blind Spot Object Detection System, Lane Departure Warning System, Adaptive Front-lighting System, Others), Sensor Type (Image Sensor, Lidar Sensor, Ultrasonic Sensor, Infrared (IR) Sensor, Radar Sensor, Laser), Vehicle Type (Passenger Car, Light Commercial Vehicle, Buses & Trucks), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2030
Market Perspective
The global Advanced Driver Assistance System (ADAS) Market was worth around USD 33.12 billion in 2022 and is anticipated to grow to around USD 67.19 billion by 2030 at a CAGR of around 9.25% between 2023 and 2030.
Advanced driver assistance systems (ADAS) refer to a collection of technologies integrated into vehicles to assist drivers and enhance road safety. These systems encompass functionalities like adaptive cruise control, lane-keeping assistance, automatic emergency braking, and more. The ADAS market has experienced substantial growth, primarily driven by a few key factors. One of the main drivers is the increasing concern for road safety. ADAS technologies have the potential to significantly reduce accidents and save lives, prompting governments and consumers to prioritize their adoption. Governments worldwide have introduced regulatory mandates that require specific ADAS features in new vehicles, further boosting their integration. For instance, the European Union's Euro NCAP and the National Highway Traffic Safety Administration (NHTSA) in the United States have implemented such regulations.
Through the forecast period, the future of the ADAS market appears promising. Ongoing research and development efforts are expected to lead to cost reductions, making ADAS more affordable and accessible to a wider range of consumers. Innovations such as augmented reality displays, advanced driver monitoring systems, and enhanced connectivity will continue to shape the evolution of ADAS. Furthermore, as road safety remains a global concern, ADAS adoption is likely to increase worldwide, with significant growth potential in emerging markets.
Key Insights
- Based on system type, the adaptive cruise control system segment held the dominating position with the highest market value in 2022
- Based on sensor type, the radar sensor segment acquired the largest market share in 2022
- Based on vehicle type, the passenger car segment is expected to grow with the highest CAGR through the forecast period
- On the basis of region, North America accounted for the largest market share in 2022
Government Regulations Drive ADAS Adoption
Government regulations play a crucial role in driving the growth of the ADAS market by mandating safety features like automatic emergency braking and lane-keeping assistance. These regulations are implemented to enhance road safety by compelling automakers to integrate these features into their vehicles. As a result, ADAS features have evolved from being optional upgrades to becoming standard equipment in many new vehicles.
For instance, in the United States, the NHTSA introduced the New Car Assessment Program (NCAP), which includes safety performance requirements that incentivize vehicles equipped with ADAS technologies. Similarly, the Euro NCAP in Europe evaluates vehicle safety and rates cars based on their ADAS features. The effectiveness of these regulations lies in their dual focus on prioritizing road safety and driving consumer demand for vehicles equipped with ADAS features. As governments worldwide continue their efforts to reduce traffic accidents and fatalities, it is likely that more regulations mandating ADAS features will emerge, further solidifying their role as a key market driver.
High Implementation Costs Hinder Advanced Driver Assistance System (ADAS) Market Growth
Implementing ADAS technologies involves integrating advanced sensors, cameras, radar, LiDAR, and sophisticated software systems into vehicles. However, these components, along with the necessary testing and validation processes, can significantly increase the overall manufacturing cost of vehicles. This added cost of ADAS systems can be seen as a hurdle for consumers, especially in price-sensitive markets. The higher expense may deter the adoption of these life-saving technologies, particularly in lower-priced or budget-friendly vehicle segments. Automakers also face the challenge of balancing the benefits of ADAS features against their cost. While safety-conscious consumers may be willing to pay a premium for these systems, others may be discouraged by the added expense. This challenge is particularly prominent in emerging markets where price sensitivity is high. Efforts to make ADAS more affordable and demonstrate their long-term safety and convenience benefits will play a vital role in addressing the restraint posed by high implementation costs.
Recent Development
May 2023: Porsche partnered with former Tesla partner, Mobileye, to develop premium ADAS solutions. This collaboration aims to enhance the safety and convenience features in Porsche vehicles by integrating Mobileye's advanced sensor technologies and software systems.
Segmentation Analysis
Based on system type, the market is segmented into tire pressure monitoring system (TPMS), drowsiness monitor 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. In 2022, the adaptive cruise control system segment emerged as the market leader, securing the largest revenue share. This dominance is expected to persist through the assessment period, driven by the increasing demand for advanced driver assistance features that enhance driving comfort and safety. Adaptive cruise control's ability to automatically adjust vehicle speed based on traffic conditions continues to resonate with consumers, making it a pivotal component fueling the ADAS market's growth and continued success.
Based on sensor type, the market is categorized into image sensor, LiDAR sensor, ultrasonic sensor, infrared (IR) sensor, radar sensor, and laser. In 2022, the radar sensor segment generated the highest revenue compared to other segments, underscoring its critical role within ADAS systems. These radar sensors are instrumental in detecting and assessing the vehicle's surroundings, facilitating functions such as adaptive cruise control, collision avoidance, and blind-spot monitoring. This financial performance underscores the indispensable nature of radar sensors in advancing automotive safety and propelling the growth of the ADAS market.
Based on vehicle type, the market is divided into passenger car, light commercial vehicle, and buses & trucks. By 2030, the commercial vehicles segment is forecast to accrue a substantial valuation. This projection signifies the increasing integration of ADAS into various commercial vehicle types, enhancing safety and efficiency in sectors like logistics and transportation. As regulations and consumer expectations continue to prioritize safety and automation in commercial fleets, this segment is poised to experience significant growth and technological innovation in the coming years.
Safety Prioritization Drives North American Dominance
In 2022, North America emerged as the dominant player in the ADAS market with the highest valuation attributed to several factors. The region's stringent safety regulations, enforced by organizations like the NHTSA and IIHS, incentivize automakers to incorporate ADAS features in their vehicles to meet safety standards and earn favorable safety ratings. North American consumers are increasingly prioritizing safety features in their vehicle purchases, leading to a higher demand for vehicles equipped with ADAS technologies such as collision avoidance and adaptive cruise control. Furthermore, the region boasts a well-established infrastructure for automotive research and development, with significant investments in ADAS technology development and testing. Looking ahead, North America is expected to maintain its leadership position in the ADAS market. Ongoing safety concerns, evolving regulations, and technological advancements, along with collaborations between automakers and technology companies, will continue to drive the growth of the ADAS market in the region.
Asia-Pacific's Rapid Growth Fueled by Increasing Vehicle Sales
Asia-Pacific is experiencing remarkable growth in the ADAS market, with the highest projected CAGR over the review period. This surge in growth can be attributed to various key factors. Firstly, the expanding middle class in countries like China and India is driving increased vehicle ownership, resulting in a higher demand for vehicles equipped with advanced safety features. Additionally, the rapid urbanization of many Asia-Pacific cities has led to mounting traffic congestion and safety concerns, making ADAS features like adaptive cruise control and traffic jam assistance highly desirable. Moreover, some governments in the region have implemented incentives and regulations to encourage the adoption of ADAS technologies, motivating automakers to integrate these features into their vehicle offerings. As vehicle sales continue to rise and consumers prioritize safety and convenience, the ADAS market in Asia-Pacific is set to witness substantial growth. However, it is crucial to address unique regional challenges, including diverse driving conditions and regulatory variations, to fully capitalize on the market's potential.
Competitive Landscape
The global advanced driver assistance system (ADAS) market is consolidated with key players such as Continental AG, Delphi Technologies (Aptiv), Denso Corporation, Robert Bosch GmbH, Valeo S.A., Mobileye, ZF Friedrichshafen AG, Magna International Inc., Autoliv Inc., and Panasonic Corporation, among others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business presence globally and enhance their competitive position.
The global Advanced Driver Assistance System (ADAS) Market is segmented as follows:
By System Type
- Tire Pressure Monitoring System (TPMS)
- Drowsiness Monitor System
- Intelligent Parking Assist System (IPAS)
- Adaptive Cruise Control System
- Blind Spot Object Detection System
- Lane Departure Warning System
- Adaptive Front-lighting System
By Sensor Type
- Image Sensor
- Lidar Sensor
- Ultrasonic Sensor
- Infrared (IR) Sensor
- Radar Sensor
- Laser
By Vehicle Type
- Passenger Car
- Light Commercial Vehicle
- Buses, and Trucks
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Middle East & Africa
- GCC
- South Africa
- North America
- Rest of Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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Global Advanced Driver Assistance System
- September-2023
- 148
- Global
- automotive
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