Global Advanced Driving Assistance System (ADAS) Market Assessment, By Autonomy Stage [Level 1, Level 2, Level 3, Level 4, Level 5], By System Type [Passive, Active], By Sensor Type [LiDAR Sensor, Ultrasonic Sensor, Radar Sensor, Camera, Others], By Vehic

Global Advanced Driving Assistance System (ADAS) Market Assessment, By Autonomy Stage [Level 1, Level 2, Level 3, Level 4, Level 5], By System Type [Passive, Active], By Sensor Type [LiDAR Sensor, Ultrasonic Sensor, Radar Sensor, Camera, Others], By Vehicle Type [Electric, Internal Combustion Engines (ICE)], By Region, Opportunities and Forecast, 2016-2030F

Global Advanced Driving Assistance System (ADAS) Market size was valued at USD 31.75 billion in 2022 which is expected to reach USD 105.53 billion in 2030 with a CAGR of 16.20% for the forecast period between 2023 and 2030. The global advanced driving assistance system (ADAS) market refers to the market for advanced technologies that help drivers operate their vehicles more safely and efficiently. ADAS technologies include features like collision avoidance systems, adaptive cruise control, lane departure warning, blind spot detection, and parking assistance, among others.

The market for ADAS is undergoing significant expansion and is expected to continue in the coming years as well. Market growth is driven by factors like increased demand for safety features in vehicles, advancements in sensor and imaging technologies, and government regulations aimed at improving road safety. Additionally, the development and large-scale production of autonomous vehicles and electric is further propelling the demand for ADAS. Owing to this, market players are actively expanding their manufacturing facilities and increasing their presence across different geographies. For example, in 2022, Magna announced a new Slovakia Facility, aimed at supporting the expanding automatic driver assistance and electrification market. The manufacturing facility will manufacture some of the company's most advanced Level 2 ADAS systems, as well as electric car technology.

The Increased Production of Technologically Advanced Vehicles

As technology becomes an integral part of our daily lives, consumers are increasingly seeking vehicles that offer advanced features and capabilities. They desire enhanced safety systems, connectivity options, and convenience features, which have become an expectation in modern vehicles. This demand from consumers has motivated automakers to increase the production of technologically advanced vehicles and cutting-edge technologies in their vehicle models. Moreover, with the rise of electric vehicles, autonomous driving, and the Internet of Things (IoT), automakers are investing heavily in new technologies and features that improve the safety, comfort, and convenience of vehicles. For instance, in 2023, global automaker giant Tata Motors announced the launch of new models Nexon, Harrier, and Safari. These vehicle models will come with 10 new ADAS features that would enable the vehicle to detect its surroundings and make autonomous decisions to increase passengers' safety.

Further, as ADAS technology becomes a crucial component of these advanced vehicles, the demand for ADAS systems is expected to grow significantly in the coming years. The integration of ADAS technology can enhance the driving experience by providing features such as lane departure warnings, adaptive cruise control, and automatic emergency braking, among others. Furthermore, the increasing consumer preference for safety features is driving the adoption of ADAS technology and thereby market growth globally.

Increasing Emphasis on Vehicle Safety

One of the primary market drivers for the Global Advanced Driving Assistance System (ADAS) market is the increasing focus on vehicle safety. Governments and regulatory bodies worldwide are prioritizing road safety and encouraging the adoption of advanced safety features in vehicles. ADAS technologies, including collision avoidance systems, lane-keeping assist, automatic emergency braking, and others, are crucial for improving vehicle safety and reducing accidents. As per the study report by The Highway Loss Data Institute and Insurance Institute for Highway Safety released in 2022, the incorporation of automatic emergency braking systems has drastically reduced front-to-rear crashes by almost 50%. Likewise, backing crashes were down by a staggering 78% with the help of a rear automatic braking system. Thus, this emphasis on safety is driving the demand for ADAS systems as automakers and consumers seek ways to enhance vehicle safety and mitigate risks on the road.

Growth in Adoption of ADAS Due to Regulations

The adoption of Advanced Driving Assistance System (ADAS) technology is increasing due to government regulations that mandate the use of certain safety features in vehicles. For example, the European Union's General Safety Regulation mandates that all new vehicles produced from 2022 must have a range of ADAS features, including advanced emergency braking, lane-keeping assistance, and driver fatigue monitoring. Similarly, the National Highway Traffic Safety Administration (NHTSA) in the United States has issued guidelines for the development and deployment of ADAS technology. These regulations are driving the adoption of ADAS technology, as automakers are required to include these features in their vehicles to comply with the regulations. Furthermore, the regulations are raising consumer awareness about the importance of vehicle safety, which is leading to increased demand for ADAS-equipped vehicles.

Level 2 Autonomy to Dominate

Level 2 autonomy represents a significant advancement in the ADAS market and has the potential to dominate the industry. Level 2 systems offer more advanced features like automated steering, acceleration, and braking, allowing the vehicle to handle certain driving tasks under specific conditions. It also offers significant benefits in terms of safety and convenience while maintaining a relatively lower level of complexity and cost. Thus, with the objective to dominate the ADAS market, companies are investing in Level 2 autonomy as it provides a more comprehensive autonomous driving experience compared coupled with market acceptance for Level 2 systems.

Moreover, Level 2 autonomy serves as a steppingstone towards higher autonomy levels, such as Level 3 and beyond. By developing robust Level 2 systems, companies can accumulate valuable expertise and experience that will be crucial for future advancements. Additionally, by keeping the driver engaged and responsible for the driving task, Level 2 autonomy mitigates concerns related to liability and safety. Full automation (Level 4 and Level 5) would require the vehicle to handle all driving tasks without any human intervention, raising questions about legal liability and potential risks. Level 2 strikes a balance by allowing drivers to enjoy advanced assistance while ensuring they remain in control. Hence, owing to these reasons, Level 2 ADAS systems are in high demand as compared to other levels.

The Lidar Category is Fastest Growing

Lidar utilizes laser beams to create high-resolution 3D maps of the surrounding environment, providing accurate depth perception and object detection. This technology is vital for autonomous vehicles to navigate and perceive their surroundings effectively, especially in complex and dynamic driving scenarios. The expanding demand for Lidar is driven by the increasing adoption of autonomous driving and the need for advanced perception capabilities in ADAS systems. Lidar offers several advantages, such as improved object detection, accurate distance measurement, and enhanced safety features, which make it a preferred choice for automakers and technology companies developing autonomous vehicles. Furthermore, advancements in Lidar technology have led to reduced costs and improved performance, making it more accessible to a broader range of market players.

Impact of COVID-19

The COVID-19 pandemic has had a significant impact on the global Advanced Driving Assistance System (ADAS) market. ADAS technology has been gaining momentum in the automotive industry in recent years, with features such as lane departure warnings, adaptive cruise control, and automatic emergency braking becoming increasingly common in new vehicles. However, the pandemic has led to disruptions in the supply chain, leading to shortages of critical components such as sensors and microcontrollers. This has resulted in production delays and increased costs for automakers, which have in turn affected the adoption of ADAS technology.

Additionally, the pandemic has led to a significant shift in consumer behavior, with more peopl e opting for personal transportation over public transportation. For instance, in 2020 the company Continental AG declared a halt in manufacturing due to low demand and supply chain disruption. More than 40% of production activity was halted. But with the post covid relaxation company is expected to grow at a higher rate and percentage.

Impact of the Russia-Ukraine War

The conflict between Russia and Ukraine has the potential to impact the global advanced driving assistance System market. As Russia is a major supplier of critical components such as microcontrollers and sensors that are used in the manufacturing of ADAS systems, any disruption in the supply chain can lead to production delays and increased costs for automakers. The conflict can also lead to a decrease in demand for vehicles in the affected regions, which can have a ripple effect on the global automotive market, including ADAS technology. Additionally, if the conflict escalates and leads to economic sanctions, it can further disrupt the supply chain and impact the growth of the ADAS market.

Key Player Landscape and Outlook

The global ADAS marketplace is extremely competitive and remains highly concentrated in the current day. Market participants in the ADAS market are attempting to increase their market share through various business methods such as collaborations, agreements, acquisitions, and mergers of various players across the value chain. Additionally, manufacturers are giving close attention to item quality as well as efficient service giving, and they are constantly developing new products to meet client demand. Companies operating in the ADAS market are actively engaged in research and development (R&D) to drive innovation, enhance existing technologies, and develop new solutions. For instance,

In June 2022, DENSO Corporation revealed that it is working on ADAS R&D by making use of video game development technologies to create learning data used for AI teaching, develop technologies for parking assist systems, and other such purposes.

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