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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