Exponential Growth in ADAS Market

  • Road Sign Recognition segment is estimated to be the fastest growing market during the forecast period.
  • Hybrid Electric Vehicle (HEV) to acquire the largest share of ADAS market, by electric vehicle type.
  • The Asia Pacific region will be the largest market for the ADAS market.

The ADAS Market (advanced driver assistance system) is estimated to be $30 billion in 2019 and is projected to reach $134.9 billion by 2027, at a CAGR of 20.7%.

Stringent regulations pertaining to vehicle safety across the globe, increasing demand for a safe, efficient, & convenient driving experience, and rising sales of luxury vehicles are the key factors driving the growth of the ADAS market. On the other hand, the lack of infrastructure in developing countries can hinder the growth of the market.

Advanced Driver Assistance Systems are electronic systems that aid a vehicle driver while driving. When designed with a safe human-machine interface, they are intended to increase car safety and more generally road safety.

For effective functioning, advanced driver assistance systems require basic infrastructures such as well-organized roads, lane marking, and availability of GPS. For highways, information such as a lane change, object detection, distance between vehicles, traffic, and services such as navigation and connectivity are very important for vehicles equipped with ADAS.

In developing countries like China, Brazil, and India, the development of IT infrastructure on highways is slow as compared to developed economies. Therefore, the lack of information technology communication infrastructure and lag in government norms are the major restraints for the growth of the ADAS market in developing regions.

The software segment is estimated to be the fastest-growing segment of the ADAS market, by offering. The main purpose of the software is to communicate autonomously with other devices. The increase in software content in the advanced applications of the vehicle is expected to drive the software segment of the ADAS market.

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The Asia Pacific market is expected to witness the fastest growth, followed by RoW and North America. Increase in luxury vehicle sales and safety concern among consumers would positively impact on this market in the Asia Pacific. Safety regulations are present in a few Asia Pacific countries such as Japan and South Korea, and demand in these countries is anticipated to be on a rise for the next 5 years. Countries such as China, South Korea, and Japan are estimated to come up with the vehicle and road safety regulations regarding the installation of ADAS in vehicles due to the growing population as well as vehicle demand.

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Major players profiled in the report are:

  • Robert Bosch (Germany)
  • Continental (Germany)
  • Intel (US)
  • Aptiv (UK)
  • Magna (Canada)
  • ZF Friedrichshafen (Germany)

Passenger cars are expected to be the largest market, followed by light commercial vehicles. Owing to the growing demand for safer and more comfortable vehicles. The increasing demand for luxury vehicles is another key driving factor. Governments in developed and developing nations are planning to mandate the ADAS system on PCs. For instance, the European Union has extended the scope of mandating ADAS system as AEB and LDW systems in PCs. This mandate will be assessed by the Commission in the framework of the report foreseen in Article 17 of the General Safety Regulation. Developed countries such as South Korea have mandated the AEB and LDW systems for all new passenger vehicles from January 2019.

The road sign recognition uses image sensors to recognize the traffic signs such as, “turn ahead,” “speed limit zones,’’ and “no-overtaking,” on the road. The technology was adopted by many automobile manufacturers, such as Volvo, Audi, BMW, Mercedes-Benz, Opel, and Volkswagen. The European road sign recognition market is estimated to be the fastest-growing market, by value, due to the increase in road infrastructure development activities in the region.

Opportunities:

  1. The advent of Autonomous Vehicles
  2. Rising Demand for Electric Vehicles

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HEV is estimated to hold the largest share of the ADAS market, by electric vehicle. Stringent emission norms, environment safety, vehicle electrification, and government regulations are expected to boost the market for ADAS in HEV segment. ADAS is installed in HEVs for increasing passenger safety and also mitigate imminent accidents. Hence, an increase in demand for safer, efficient, and convenient driving experience will propel the demand for ADAS.

Hyundai Ioniq and Toyota Prius are the top-selling hybrid cars. Hyundai Ioniq is fitted with ADAS features such as adaptive cruise control, automatic emergency braking, and lane departure warning. Toyota Prius is equipped with ADAS as a pedestrian detection system, adaptive front light, collision avoidance system, adaptive cruise control, intelligent park assists, and lane departure warning.

For effective functioning, advanced driver assistance systems require basic infrastructures such as well-organized roads, lane marking, and availability of GPS.

Recent Developments:

  • In May 2019, Mitsubishi Electric Corporation and HERE Technologies have successfully piloted a system which enables vehicles to automatically warn about upcoming road hazards with lane-level precision. This technology was successfully tested in the US.
  • In April 2018, Robert Bosch developed a highway assist system to help drivers keep their vehicle in the lane in order to mitigate an accident. The new Bosch highway assist system is installed on the 2018 Maserati Ghibli, Levante, and Quattroporte.
  • In April 2018, Continental developed new concepts designed to warn drivers about an imminent risk of aquaplaning. Aquaplaning assistance concepts utilize surround-view camera images and signals from tire-mounted sensors (eTIS) for advanced tire information.
  • In January 2018, ZF Friedrichshafen expanded its manufacturing and engineering footprint in Poland to produce products including an advanced camera for driver-assist systems. The 10,000-square-meter manufacturing facility will be fully operational by the end of 2019. The expansion would add more than 300 jobs.
  • In January 2018, Continental opened Center for Deep Machine Learning in Budapest, Romania. The company’s advanced driver assistance systems business unit is using machine learning and neural networks for developing high-performance driver assistance system.

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Aaron Smith

I work at Markets And Markets as a Sr. Research Analyst. MarketsandMarkets is the world’s No. 2 firm in terms of annually published premium market research reports. Serving 1700 global fortune enterprises with more than 1200 premium studies in a year, M&M is catering to a multitude of clients across 8 different industrial verticals. We specialize in consulting assignments and business research across high growth markets, cutting edge technologies and newer applications. Our 850 fulltime analyst and SMEs at MarketsandMarkets are tracking global high growth markets following the "Growth Engagement Model – GEM". The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write "Attack, avoid and defend" strategies, identify sources of incremental revenues for both the company and its competitors.


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