Global Advanced Driver Assistance Systems (ADAS) Market All Set to Flourish: Expected to Reach USD 69.4 Billion in 2027

Published | 22 April 2019

According to a study conducted recently by the strategic consulting and market research firm, BlueWeave Consulting, the global Advanced Driver Assistance Systems (ADAS) market was worth USD 25.1 billion in 2020 and is further projected to reach USD 69.4 billion by 2027, at a CAGR of16.4% during 2021-2027 (forecast period). The increasing demand for a safe, efficient, and convenient driving experience as well as the rising demand for luxury vehicles across the globe are the key factors driving the growth of the ADAS market. Additionally, theOriginal Equipment Manufacturers (OEMs) and government regulatory authorities are taking necessary steps to improve transportation by addressing major challenges like road accidents, traffic congestion, and the cost of transportation. As a result of the high scale of growth of the automotive industry, many sensor technologies are being used to make driving comfortable, luxurious, and safe.

Increasing Demand for Safety Concern Driving the ADAS Market Growth

Owing to engineering advancements and the growing need for safer technology, several features are offered by the OEMs, including Automated Emergency Braking (AEB) system, airbag system, lane departure warning system, and others. These features have greatly reduced road accidents worldwide. According to the US Department of Transportation, frontal airbags saved 50,457 lives between 1987 and 2017. As a result of the automotive industry’s explosive growth, many sensor technologies are being used to make driving more luxurious, efficient, and convenient.The growing demand for automated warning systems and collision mitigation technologies is likely to drive the advanced driver assistance system market size.

Government InitiativesAccelerating the Growth of ADAS Market

Government regulations that aim to minimize road accidents and loss of passenger lives, coupled with the growing need for Transportation Management Systems (TMS), especially across the logistic sectors are driving the demand of the automotive electronics market. Government initiatives, such as Make in India, along with factors such as prevailing low labor costs in emerging economies, have led to an increase in the production of Light Commercial Vehicles (LCVs) and passenger cars. For instance, the European Union has outlined Vision Zero, an initiative to mitigate road deaths to zero by 2050. The authority has targeted to reduce fatalities and injuries by 50% by 2030. Additionally, the National Safety Council and the National Transportation Safety Board held a roundtable discussion on July 24, 2017,on advanced driver assistance systems and how commercial fleets (heavy trucks) can increase acceptance of the life-saving ADAS technology. Such fruitful Government initiatives are playing a key role in driving the growth of the market.

Global Advanced Driver Assistance Systems (ADAS) Market: Vehicle Insights

The passenger car segment is expected to dominate the ADAS market over the forecast period 2021-2027. Rapid urbanization and increasing consumer spending on automobiles have enhanced product demand. Rising consumer awareness concerning road safety, along with governmental regulations are a few major growth factors supporting industry demand. Additionally, several countries in Europe, North America, and the Asia-Pacific have introduced regulations that mandate the incorporation of various types of ADAS in the passenger car segment.

Impact of COVID-19 On ADAS Market

The global ADAS market has shown a sudden decline in market demand due to the COVID-19 pandemic. In terms of business and operational parameters, the pandemic has wreaked havoc on several industry players. As soon as the World Health Organization (WHO) declared the novel coronavirus (COVID-19) as a pandemic, countries across the globe were compelled to implement nationwide lockdown to prevent the spread of coronavirus. This has severely impacted manufacturing besides disrupting the supply chains. Furthermore, due to the lack of sales of automobiles, demand for ADAS has declined across the world.

The COVID-19 pandemic has severely affected the global ADASmarket. The pandemic has hindered the growth of several industries, including the automotive industry which is an end-user of ADAS. Additionally, nationwide lockdowns had a negative impact on vehicle sales, supply chain, and logistics, thereby, stifling the growth of the global ADAS market.

Global ADAS Market: Regional Insights

Geographically, North America dominates the overall ADASmarket and is expected to dominate the market over the forecast period, followed by Europe. The U.S is the leading country in the North American region owing to extensive research and development facilities that have made significant investments in smart automotive production methods and process automation. Also, the Asia-Pacific is projected to exhibit the fastest growth owing to rising disposable income levels, increased vehicle production in developing countries like India and China, an increase in the number of luxury vehicles in countries, thus, driving the growth of the ADAS market.

Competitive Landscape

The presence of leading players in this market space greatly decreases the opportunities for new entrants to the market as it is difficult to match the high capital requirements. Some of the key players include Robert Bosch, ZF Friedrichshafen, Denso, Aptiv, Brentwood Industries Inc., Enexio, Intel, NVIDIA, Continental, Valeo, Hella, Magna, Samsung, Aisin Seiki Co. Ltd, Delphi Technologies, Harman International, NXP Semiconductor, Panasonic Corporation, Hyundai Mobis, and other prominent players. In order to improve their production capability, product portfolio, and provide competitive differentiation, companies are increasingly participating in acquisitions, alliances, and mergers.

For example, NVIDIA and Hyundai Motor Group announced in November 2020 that the automaker’s entire lineup of Hyundai, Kia, and Genesis models will be equipped with NVIDIA DRIVE in-vehicle infotainment (IVI) systems starting 2022. From entry-level to premium vehicles, these fleets will feature a rich, software-defined AI user experience that will be constantly updated. Recent advancements in Artificial Intelligence (AI) and accelerated computing have paved the way for next-generation cars and trucks to gain new functionality, capabilities, and improved safety features that can be incorporated after the vehicle has been purchased. Owing to the development of simplified software-defined computing architecture, future cars will always have the most up-to-date cockpit features.

Don’t miss the business opportunity of the global ADAS market. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of global ADAS market size, along with current trends and forecasts. The report promises to provide recent technology trends of the global ADAS market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

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