Advanced Driver Assistance System Industry Overview
The global advanced driver assistance system market size is projected to reach USD 58.7 billion by 2030, registering a CAGR of 18.2% from 2022 to 2030, as per the study conducted by Grand View Research, Inc. The growing government initiatives toward deploying driver assistance systems to mitigate road accidents are anticipated to contribute to the market growth. The surge in the adoption of advanced driver assistance system (ADAS) in small cars is anticipated to further boost the growth of the market over the forecast period.
Increasing levels of technological innovation and surge in the initiatives undertaken toward self-driving cars and vehicle automation have elevated the demand for driver safety and assistance systems over the past decade. For instance, the European Union has mandated automotive manufacturers to fit ADAS systems, including Autonomous Emergency Braking Systems (AEBS) and Lane Departure Warning Systems (LDWS), in all heavy commercial vehicles that weigh over 7,000 kilograms.
The demand for ADAS technologies such as road sign recognition systems, drowsiness monitoring systems, and night vision systems is expected to increase considerably over the forecast period. Tire pressure monitoring systems are also projected to have substantial penetration in the overall market due to their easy aftermarket availability and low prices. Adaptive cruise control offers better driver safety and aids in avoiding fatal road accidents. All these factors are expected to propel market growth by 2030.
The sensor segment accounted for the largest market share of more than 30% in 2021. The automotive industry is witnessing an increase in self-driving vehicles on road. These vehicles demand a blend of a large number of sensors such as Lidar, cameras, ultrasonic sensors, and radar for accomplishing different operations accurately. Thus, the demand for sensors is projected to increase significantly over the forecast period. Among the various sensor types, Lidar sensors are expected to gain high traction by 2030 owing to their crucial function in self-driving cars.
The key players operating in the ADAS market include AISIN SEIKI Co., Ltd.; Autoliv Inc.; Continental AG; Denso Corporation; Garmin Ltd.; and HARMAN International. These players emphasize adopting various strategies, including business expansions, mergers and acquisitions, and product expansions. These strategies assist the companies in expanding their business and product portfolio. For instance, in February 2020, Continental AG established a new production plant for advanced driver assistance systems in Texas, U.S. The company invested USD 109 million.
Advanced Driver Assistance System Market Segmentation
Grand View Research has segmented the global advanced driver assistance system market based on solution type, component type, vehicle type, and region:
Based on the Solution Type, the market is segmented into Adaptive Cruise Control, Blind Spot Detection System, Park Assistance, Lane Departure Warning System, Tire Pressure Monitoring System, Autonomous Emergency Braking, Adaptive Front Lights, and Others.
- The tire pressure monitoring system segment dominated the market in 2021 and accounted for the highest market share of 19.8%. The segment growth can be attributed to the low price of these systems, which permits aftermarket adoption by small and medium car owners.
- The autonomous emergency braking segment of the advanced driver assistance systems (ADAS) market is expected to expand at a significant CAGR of 21.0% over the forecast period. Government regulations for the mandatory fixture of these systems in cars manufactured in the U.S. and Europe are anticipated to contribute to the growth of this segment. The AEB is designed and developed to slow down and stop the vehicle before it hits an object.
Based on the Component Type, the market is segmented into Processor, Sensors, Software, and Others.
- The Lidar sensors segment is anticipated to gain high traction owing to the substantial importance of this component in vehicle automation. The sensors segment accounted for more than 33% of the revenue share in 2021. Based on component type, the market is segmented into sensor, processor, software, and others.
- The software segment is expected to expand at a CAGR of 19.0% over the forecast period. ADAS software gathers and authenticates data from all sensors to detect the vehicle’s complete surroundings and take instant actions for the driver’s safety. These actions can be based on an analysis of traffic participants, traffic density, and foreseen traffic scenarios.
Based on the Vehicle Type, the market is segmented into Passenger Car, and Commercial Vehicle.
- The passenger car segment dominated the market in 2021 and accounted for the highest revenue share of more than 74%. The segment growth can be attributed to the increased demand for safety systems in developing markets due to growing consumer awareness, supporting legislation, and improving road safety standards. Based on vehicle type, the market can be segmented into passenger cars and commercial vehicles.
- The Asia Pacific, North America, and Europe have introduced regulations that mandate the integration of several types of ADAS in the passenger car segment. The European Union has defined Vision Zero, an initiative to decrease road deaths to zero by the end of 2050. The regulatory body has targeted to decrease injuries and fatalities by 50% by the end of 2030.
Key Companies Market Share Insights
The prominent players that dominated the advanced driver assistance systems market in 2021 include Continental AG; Autoliv Inc.; Magna international; Denso Corporation; and Mobileye N.V. These players are focusing on geographic expansions and new product launches to enhance their presence in the market and gain a competitive edge. These initiatives also assist in creating awareness regarding driver safety among end-users. The market players are also focusing on undertaking various strategic initiatives, mergers, and acquisitions, agreements and contracts, and partnerships to enhance their position in the market.
For instance, in September 2021, Continental AG (Continental) and Beijing Horizon Robotics Technology RD Co., Ltd. announced a Joint Venture (JV) contract. The JV focuses on providing software and hardware integrated solutions for advanced driver assistance systems and autonomous driving. In January 2018, Infineon Technologies AG announced its partnership with Baidu for its Apollo Program of self-driving vehicle development. This alliance benefited Infineon in gaining a higher market share in ADAS as well as self-driving cars markets. Some of the prominent players operating in the global advanced driver assistance system market are:
- Denso Corporation
- Continental AG
- Infineon Technologies AG
- Magna International
- Autoliv Inc.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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