ADAS market worth $67.43 billion by 2025
The global advanced driver assistance system (ADAS) market is expected to reach $67.43 billion by 2025, growing at a CAGR of 19.0%, according to Grand View Research. In its new research report analyzing ADAS market size, share, and trends by solution, component, and vehicle, the research firm finds that increasing government initiatives for mandating driver assistance systems to lower road accidents are expected to proliferate market growth. Moreover, increasing adoption of these systems in small cars is anticipated to further boost the market demand.
A rising level of technological innovation as well as growing initiatives toward vehicle automation and self-driving cars have raised the demand for driver safety and assistance systems over the past decade. One example is that the European Union has mandated automotive manufacturers to fit ADAS systems such as lane departure warning systems (LDWS) and autonomous emergency braking systems (AEBS) in all heavy commercial vehicles weighing over 7,000 kg (14,432 lb).
ADAS technologies such as night vision, drowsiness monitoring, and road sign recognition systems are anticipated to grow considerably over the forecast period. Tire pressure monitoring systems also are expected to have significant penetration in the overall market due to their low prices and easy aftermarket availability. Moreover, adaptive cruise control significantly enhances driver safety and helps to avoid fatal road accidents. Thus, the demand for these systems is expected to witness high growth by 2025.
The sensor components segment accounted for the largest market share in 2016. The automotive industry is in the process of deploying self-driving vehicles on the road. Such types of autonomous vehicles require a combination of a large number of sensors such as cameras, radar, LiDAR, and ultrasonic sensors for performing different operations accurately. Thus, the demand for sensors is anticipated to increase significantly over the forecast period. Among various sensor types, Lidar sensors are anticipated to gain high traction by 2025 because of their crucial function in self-driving cars.
In 2016, passenger cars accounted for a greater than 72% share in the global ADAS market. However, the commercial vehicle segment is expected to witness the fastest growth over the forecast period because of government regulations for improving safety of heavy commercial vehicles.
Further findings from the report suggest:
- Global ADAS demand was $14.15 billion in 2016 and is anticipated to witness staggered growth over the next eight years.
- The autonomous emergency braking system segment is expected to grow at CAGR of 22.0% over the forecast period.
- The demand for ADAS processors is anticipated to grow at moderate rate over the forecast period.
- The Asia Pacific market is projected to witness substantial growth over the next decade because of various developments across major economies, particularly in the Chinese market. The regional market is expected to grow at a CAGR of 8.5% from 2017 to 2025.
Key players including Continental AG, Mobileye, Autoliv Inc., Magna International, and Hyundai Mobis dominated the global ADAS market while accounting for over 43% of the total volume in 2016. Advanced driver assistance systems are leading the way to autonomous vehicles. Technological innovation and disruptive pricing are key criteria to keep up with the fierce competition in the market. Thus, various players are introducing highly innovative products primarily focused on increasing the overall user safety and enhancing the driver's experience.
Browse details of the report at https://www.grandviewresearch.com/industry-analysis/advanced-driver-assistance-systems-adas-market.