Global Collision Avoidance System Market Size, Share & Trends Analysis Report By Technology (Radar, Camera, Ultrasound, and LiDAR), By Application, By Regional Outlook and Forecast, 2024 - 2031

The Global Collision Avoidance System Market size is expected to reach $160.86 billion by 2031, rising at a market growth of 11.0% CAGR during the forecast period.

The Europe segment witnessed 35% revenue share in the market in 2023. This is driven by the region's strong automotive industry, stringent safety regulations, and increasing adoption of ADAS. The presence of major automotive manufacturers, coupled with government initiatives promoting vehicle safety and reduced road accidents, significantly contributed to market growth.

The growing adoption of Advanced Driver Assistance Systems (ADAS) in automobiles is a key driver for the market. Automakers are incorporating ADAS features such as automatic emergency braking (AEB), lane departure warning (LDW), adaptive cruise control, and blind-spot monitoring to enhance vehicle safety and reduce accident rates. Hence, Increasing ADAS in automobiles is driving the growth of the market.

Additionally, Government regulations worldwide are crucial in the adoption of these systems across the automotive and industrial sectors. Organizations such as the National Highway Traffic Safety Administration (NHTSA) in the U.S., the European New Car Assessment Programme (Euro NCAP), and the Bharat New Vehicle Safety Assessment Programme (BNVSAP) in India have introduced strict guidelines requiring vehicles to include certain safety features to receive high safety ratings. Thus, stringent government regulations and safety norms for these sectors are driving the market's growth.

However, The high upfront cost of these systems remains a significant barrier to widespread adoption. Advanced technologies such as LiDAR, radar sensors, high-resolution cameras, ultrasonic sensors, and artificial intelligence-based processing units drive up production costs, making these systems expensive for manufacturers and consumers. Thus, high initial costs and expensive integration of these systems in vehicles and equipment are hindering the market's growth.

Driving and Restraining Factors

Drivers

Increasing Adoption of Advanced Driver Assistance Systems (ADAS) in Automobiles

• Stringent Government Regulations and Safety Norms for Automotive and Industrial Sectors
• Expansion of the Automotive Industry and Rising Consumer Awareness of Vehicle Safety Features

Restraints

High Initial Cost and Expensive Integration of Collision Avoidance Systems in Vehicles and Equipment

• Concerns Over Cybersecurity Threats and Vulnerabilities in Connected and Autonomous Vehicles

Opportunities

Rising Incidences of Road Accidents and the Need for Improved Traffic Safety Solutions

• Rising Demand for Unmanned Aerial Vehicles (UAVs) and Autonomous Drones in Various Industries

Challenges

Limitations in System Accuracy and Reliability Under Adverse Weather and Environmental Conditions

• Resistance from Traditional Automotive and Industrial Sectors Due to Operational Changes

Technology Outlook

Based on technology, the market is characterized into radar, camera, ultrasound, and LiDAR. The LiDAR segment procured 6% revenue share in the market in 2023. The rising adoption of LiDAR technology in autonomous and semi-autonomous vehicles played a crucial role in this growth. LiDAR offers high-precision 3D mapping and object detection, making it a key component in advanced collision avoidance systems.

Application Outlook

On the basis of application, the market is classified into adaptive cruise control (ACC), blind spot detection (BSD), forward collision warning system (FCWS), lane departure warning system (LDWS), parking assistance, and others. The forward collision warning system (FCWS) segment recorded 24% revenue share in the market in 2023. Rising concerns over road safety and accident prevention drive this. FCWS technology is increasingly integrated into passenger and commercial vehicles to help drivers detect potential front-end collisions and react in time, reducing the risk of crashes.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded 32% revenue share in the market in 2023. This dominance was driven by the widespread adoption of advanced driver assistance systems (ADAS), stringent vehicle safety regulations, and the presence of key automotive manufacturers and technology providers. The United States and Canada played a crucial role in market expansion, with increasing investments in autonomous vehicle technology and smart transportation solutions further propelling growth.

The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.

Collision Avoidance System Market Coverage:

Report Attribute Details

Market size value in 2023 USD 70.50 Billion

Market size forecast in 2031 USD 160.86 Billion

Base Year 2023

Historical period 2020 to 2022

Forecast Period 2024 to 2031

Revenue Growth Rate CAGR of 11.0% from 2024 to 2031

Number of Pages

Tables

Report Coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives

Segments Covered Technology, Application, Region

Country Scope

North America (US, Canada, Mexico, and Rest of North America)

• Europe (Germany, UK, France, Russia, Spain, Italy, and Rest of Europe)
• Asia Pacific (Japan, China, India, South Korea, Australia, Malaysia, and Rest of Asia Pacific)
• LAMEA (Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA)

Companies Included Infineon Technologies AG, NXP Semiconductors N.V., Continental AG, DENSO CORPORATION, Aptiv PLC, Robert Bosch GmbH, Analog Devices, Inc., Murata Manufacturing Co., Ltd., Panasonic Holdings Corporation, and Alstom SA

Recent Strategies Deployed in the Market

• Jan-2025: Robert Bosch GmbH unveiled a Wrong Way Driver Warning with Sirius XM and advanced brake-by-wire technology. Emphasizing safety and efficiency, Bosch promotes AI’s role in aiding humans, not replacing them.
• Jul-2024: Continental AG unveiled its radar-based ARAS to India’s two-wheeler market, focusing on ABS-equipped motorcycles and scooters (125cc+). The 4D imaging radar enables rider-assist functions like blind-spot detection and adaptive cruise control.
• Jan-2024: Infineon Technologies AG and Aurora Labs unveiled AI-driven solutions enhancing automotive safety and reliability. Integrating Aurora Labs’ LOCI AI with Infineon’s AURIX TC4x MCUs, the technology enables real-time monitoring, predictive maintenance, and OTA protection for critical systems like steering and braking, ensuring compliance with WP29 and ASIL-D safety standards.
• Jan-2024: NXP Semiconductors N.V. unveiled the 28nm RFCMOS SAF86xx radar chip, enabling 360-degree sensing for L4 autonomous vehicles. Integrated with Hella’s 7th-gen radar, it enhances ADAS and OTA updates. Supporting ASIL-B safety, it extends detection beyond 300m, improving perception for autonomous driving with secure, high-speed data streaming in software-defined vehicle architectures.
• Dec-2023: Panasonic Holdings Corporation introduced a compact 6-in-1, 6DoF inertial sensor for automotive safety. Adhering to ISO26262 ASIL-D standards enhances ESC, ABS, ADAS, and V2X communication. With precise motion detection, it supports two-wheelers and autonomous vehicles, improving stability, control, and accident prevention in dynamic driving conditions.

List of Key Companies Profiled

• Infineon Technologies AG
• NXP Semiconductors N.V.
• Continental AG
• DENSO CORPORATION
• Aptiv PLC
• Robert Bosch GmbH
• Analog Devices, Inc.
• Murata Manufacturing Co., Ltd.
• Panasonic Holdings Corporation
• Alstom SA

Global Collision Avoidance System Market Report Segmentation

By Technology

• Radar
• Camera
• Ultrasound
• LiDAR

By Application

• Adaptive Cruise Control (ACC)
• Forward Collision Warning System (FCWS)
• Blind Spot Detection (BSD)
• Parking Assistance
• Lane Departure Warning System (LDWS)
• Other Application

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA