Global Advanced Driver Assistance Systems (ADAS) Market All Set to Flourish: Expected to Reach Worth USD 54.2 Billion by 2027
Published | 01 January 2022
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 global ADAS market. Furthermore, government regulations that aim to minimize road accidents and loss of passenger lives, are favoring the market’s growth…
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 24.7 billion in 2020 and is further projected to reach USD 54.2 billion by 2027, at a CAGR of 12.0% during the forecast period (2021-2027). 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, the Original 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, which in turn is driving the market growth. The rapid growth of the automotive industry has led to the use of many sensors in order to make driving comfortable, luxurious, and safe, which also favors the growth of the global ADAS market.
Increasing Demand for Safety Concern Driving the ADAS Market Growth
With engineering advancements and the growing need for safer technology, OEMs offer a number of features, including Automated Emergency Braking (AEB), airbags, lane departure warning systems, 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. Moreover, the explosive growth of the automotive industry has led to many sensor technologies being implemented to make driving more luxurious, efficient, safe, and convenient. Thus, the growing demand for automated warning systems and collision mitigation technologies is expected to drive the market size for advanced driver assistance systems.
Favorable Government Initiatives Accelerating the Growth of the 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 for the automotive electronics market. Moreover, favorable government initiatives, 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 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.
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Global Advanced Driver Assistance Systems (ADAS) Market: Vehicle Insights
The passenger car segment is expected to dominate the ADAS market over the forecast period. Rapid urbanization and increasing consumer spending on automobiles have enhanced the demand for passenger cars across the globe. Thus, rising consumer awareness concerning road safety, combined with governmental regulations are a few major growth factors favoring the segment’s growth. In addition, several countries in Europe, North America, and Asia-Pacific have introduced regulations requiring the incorporation of various types of ADAS in the passenger car segment, which clearly explains the segment's growth.
Impact of COVID-19 On ADAS Market
In terms of business and operational parameters, the pandemic has wreaked havoc on several industry players, and the global ADAS market is no exception. The global ADAS market had to witness a sharp decline due to the sudden outbreak of the COVID-19 pandemic. As soon as the World Health Organization (WHO) declared the novel coronavirus as a pandemic, countries across the globe were compelled to implement a nationwide lockdown to prevent the spread of coronavirus. The lockdowns restrictions stifled the growth of the global ADAS market by negatively impacting vehicle sales, supply chains, and logistics. Furthermore, the demand for ADAS declined worldwide as a result of the decline in automobile sales which is an end-user of ADAS.
Global ADAS Market: Regional Insights
Geographically, North America dominates the overall ADAS market and is expected to dominate the market over the forecast period, followed by Europe. Due to its extensive research and development facilities, the United States is the leading country in the North American automotive sector due to its significant investments in smart automotive production methods and process automation. In addition, the Asia-Pacific is projected to grow at the fastest rate, owing to rising disposable income levels, increased vehicle production in developing countries such as India and China, as well as an increase in luxury vehicle sales, thus driving the ADAS market.
Global ADAS Market: Competitive Landscape
Some of the key players in the global ADAS market are 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, the market players are increasingly participating in acquisitions, alliances, and mergers. Additionally, 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.
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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