Advanced Driver-Assistance System (ADAS) Market - Forecasts from 2024 to 2029

Advanced Driver-Assistance System (ADAS) Market - Forecasts from 2024 to 2029

The advanced driver-assistance system (ADAS) market is expected to grow at a compound annual growth rate of 17.57% over the forecast period to reach a market size of US$86.14 billion in 2029, from US$27.741 billion in 2022.

The advanced driver-assistance systems market is an electric technology that assists the driver with driving functions. ADAS uses sensors, cameras, and radars to detect signals, pedestrians, and any other obstacle, even in the blind spots of the vehicles. This allows us to prevent accidents and save human lives.

This ADAS increases vehicle and road safety. The key factors contributing to the advanced driver-assistance system market are the growing number of accidents and mandatory regulations by the government.

Furthermore, the growing OEM market and increased R&D on automotive automation are both significant contributors to the market. The market is expected to rise along with rising demand for electric and automotive vehicles. Due to strict regulations, North America and Europe hold a significant share of the market. However, with the growing population and rising disposable income, the demand for ADAS has grown in the APAC region.

Market Drivers:

Demand for accident prevention-

With the number of global road accidents increasing, some countries have made it a mandatory measure for driver safety. According to the World Health Organization (WHO), approximately 1.3 million people die each year due to road traffic crashes. Furthermore, around 20-50 million more people suffer non-fatal injuries. Around 90% of these accidents happen in low-and middle-income countries.

The prime factors in road accidents are human errors like speeding, not using helmets, seat bleats, child restraints, blind spots, and unsafe vehicles. In addition, unsafe road infrastructure and inadequate laws and regulations are some of the structural reasons for accidents. However, the use of ADAS can prevent most accidents with, systems like blind-spot detection, automatic emergency braking, pedestrian detection, and lane departure warning, amongst others.
Increasing use of electric vehicles-

With the rising concern for the environment and climate change, the demand for electric vehicles and eco-friendly vehicles has increased significantly. This increase in demand is expected to positively impact the advanced driver-assistance systems market. Many nations, especially in the region of Europe and North America, are systematically imposing a ban on the use of fossil-fueled cars. For instance, Britain has set a target to become net-zero emissions by the year 2050.

Furthermore, the European Union has imposed a ban on new petrol and diesel cars from the year 2035. In Norway, electric cars account for 60% of the monthly car sales. The country has set a target of 2025 to stop sales of fossil fuel-powered cars. In the United States of America, the state of California proposes to ban new gasoline-powered passenger cars and trucks from 2035. Moreover, the world’s most populous country, China, has a rising demand for electric vehicles.

Market Restraint:

Cost and technological complexity as restraints-

The integration of ADAS systems substantially increases the cost of vehicles, rendering them less accessible to price-sensitive consumers. This expense is particularly pronounced for advanced systems, such as those reliant on LiDAR technology.

The amalgamation of diverse sensors, software, and algorithms necessitates sophisticated engineering skills to achieve seamless integration. This intricacy often results in prolonged development periods and elevated development expenditures.

The Advanced Driver-Assistance System (ADAS) market by technology is segmented into Radar, LiDAR, Camera, and Ultrasonic technologies:

The segmentation of the Advanced Driver-Assistance System (ADAS) market by technology includes Radar, LiDAR, Camera, and Ultrasonic technologies. Radar technology encompasses features such as adaptive cruise control, blind spot detection, and collision avoidance systems.

LiDAR technology offers functionalities for Autonomous Driving Systems, lane departure warning, and parking assistance systems. Camera technology provides capabilities for lane departure warning, traffic sign recognition, pedestrian detection, and automatic emergency braking.

Ultrasonic technology involves park assist systems, blind spot detection, and object proximity sensors.

North America is anticipated to hold a significant share Advanced Driver-Assistance System (ADAS) market:

North America is expected to retain a substantial portion of the Advanced Driver-Assistance System (ADAS) market. North American consumers typically embrace new technologies early, especially those related to safety and convenience.

Compared to other areas, North America boasts a relatively advanced infrastructure with superior connectivity, capable of accommodating various ADAS functionalities.

Market Developments:

March 2023- Launch Tech UK unveiled its latest passenger car advanced driver assistance systems (ADAS) calibration equipment, ADAS PRO+ and ADAS Mobile. Innovations in vehicle connectivity ushered in safety enhancements and driver assistance features for motorists. With ongoing advancements in this technology, which were increasingly becoming standard in vehicles, the demand for calibration equipment had been steadily increasing.
March 2023- BYD forged a partnership with NVIDIA to develop mainstream software-defined vehicles based on NVIDIA DRIVE. The collaboration entailed extending BYD's utilization of the NVIDIA DRIVE Orin™ centralized compute platform to a wider range of its NEVs. This enhanced partnership saw BYD expanding its adoption of DRIVE Orin across multiple models within its next-generation Dynasty and Ocean series of vehicles.

Market Segmentation:

By Type
Automatic emergency braking
Parking Assistance
Blind Spot Detection
Traffic sign recognition
Collision Warning
Lane departure warning
By Technology
Radar
LiDAR
camera
Ultrasonic
By Vehicle Type
Passenger Cars
Commercial Vehicles
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
UK
Spain
Others
Middle East and Africa
Saudi Arabia
Israel
Others
Asia Pacific
China
Japan
India
South Korea
Others