Advanced Driver Assistance System (ADAS) Market Size By Technology (Adaptive Cruise Control, Automatic High Beam Control, Autonomous Park Assist, Blind Spot Detection, Driver Monitoring, Forward Collision Warning, Front Lighting, AEB, Night Vision, Head Up Display, Lane Departure Warning, Park Assist, Surround View System, Traffic Sign Recognition, Tire Pressure Monitoring System), By Sensor (LiDAR, Infrared, Ultrasonic, RADAR, Image Sensor), By Vehicle (PCV, LCV, HCV), By Distribution Channel (OEM, Aftermarket), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, France, Italy, Spain, Russia, Poland, China, Japan, India, South Korea, Australia, Brazil, Mexico, Argentina, Saudi Arabia, UAE, South Africa), Growth Potential, Price Trends, Competitive Market Share & Forecast, 2017 – 2024
Published Date: March 2018 | 350 Pages | Report ID: GMI2461 Report Format: PDF
Advanced Driver Assistance System Market size was worth over USD 24.5 billion in 2016 and is estimated to exhibit approximately 13% CAGR from 2017 to 2024.
U.S. Advanced Driver Assistance System (ADAS) Market, By Sensor, 2016 & 2024, (Thousand Units)
Rising traffic safety concerns coupled with favourable regulatory norms regarding installation of these systems will primarily drive the industry growth. Various governments across the globe have mandated the installation of ADAS, ensuring road safety. For instance, in July 2010, Directive 2010/40/EU was implemented in Europe for deployment of these systems in vehicles across the region. High acceptance from the developing countries of Asia Pacific owing to the rising disposable income of people will further escalate the revenue generation. Rising demand from the compact cars, especially from China and Japan will also drive the advanced driver assistance system market share from 2017 to 2024.
High demand for luxury and premium vehicles across the globe will result in rising adoption of ADAS, thereby strengthening the product penetration. Shifting preference of OEMs towards image sensors will contribute significantly towards the ADAS market growth. It is attributed to their high pixel quality than the traditional automobile cameras, further enhancing the demand for various applications including blind spot detection, surround view, and park assist systems.
Excessive costs of these systems may act as a threat to the industry as the customers may showcase reluctance in purchasing them. Inter-sensor communication requires high bandwidth and solutions to avoid network overloads. This has resulted in rising incidences of software failure in the sensors, hampering advanced driver assistance systems market share over the next eight years. Lack of awareness among low and medium-end customers about the prominence and functionality of these systems is another factor negatively impacting the industry penetration till 2024.
The conventional automobile cameras use CCD technology that generates a distorted image on the display units. This is anticipated to result in shifting focus of the manufacturers towards implementation of CMOS image sensors. They generally involve noise correction, amplifiers, and digitized circuits that assist in generating clear rear-view images. Moreover, they operate efficiently under extreme temperature. These sensors have gained traction in the industry owing to their benefits. Regular innovations in the product will induce immense potential to the market size over the forecast timeframe.
Advanced Driver Assistance System (ADAS) Market, By Technology
Park assist systems is anticipated to dominate the advanced driver assistance system market, capturing over 16% volume share by the end of 2024. The high revenue generation is attributed to its low price that enables aftermarket adoption by medium and small car owners. Strong prevalence in the industry over the past years also contributes significantly to the industry growth. Rapidly falling prices of these systems will further support the segment’s dominance.
ADAS market from forward collision warning system is likely to grow significantly, witnessing a substantial CAGR from 2017 to 2024. Their high implementation in passenger and commercial vehicles across the globe will support the industry growth. Since 2015, EU has mandated the installation of lane departure warning and AEB systems in all the heavy trucks manufactured across the region. These regulations will provide high growth prospects to these segments over the coming years.
Advanced Driver Assistance System (ADAS) Market, By Sensors
Advanced driver assistance system market from image sensor captured highest revenue share of over 33% in 2016 and will continue its dominance till 2024. High deployment of these sensors for applications including blind spot detection, surround view systems, auto high beam, night vision, and lane departure warning systems will primarily drive the growth. High demand of these systems results in increased sales of image sensors. Cost effectiveness as compared to counterparts is another factor supporting the industry dominance till 2024.
Radar sensors are likely to grow considerably, witnessing over 14% CAGR over the next eight years owing to their high usage in adaptive cruise control. Moreover, these sensors are increasingly being used for automatic emergency braking systems, escalating the revenue generation. Rapidly falling prices of these sensors will further impact the market positively over the forecast timeframe.
Advanced Driver Assistance System (ADAS) Market, By Vehicle
PCV dominated the overall advanced driver assistance system market with over 65% volume share in 2016 and is expected to continue its dominance over the forecast timeframe. High demand for installation of these systems in passenger vehicles due to rising road safety concerns across the globe will primarily drive the product demand. Rising sales of premium & luxury vehicles that incorporate the latest electronic and safety systems will further support the segment’s dominance till 2024. Rising demand in compact cars is another factor accelerating the industry penetration.
ADAS market from HCVs are likely to grow rapidly, exhibiting over 14% CAGR owing to rising need of safety and speed regulation in these vehicles. Stringent government regulations in the developed regions such as Europe for mandatory installation of ADAS systems such as AEB and Lane departure warning systems will contribute significantly to the industry growth.
Advanced Driver Assistance System (ADAS) Market, By Distribution Channel
Advanced driver assistance system market from OEMs will acquire highest volume share over the coming years owing to substantial vehicle production across the globe. These systems are deployed in new vehicles during their production. Moreover, they are supplied to workshops and garages for their replacement. Rising safety concerns coupled with insurance and warranty offered are among the prominent factors driving the segment’s growth. Moreover, the procedure for maintaining safety standards is explicitly handled by OEMs. This leads to increased durability of the product, further supporting the industry dominance till 2024.
Aftermarket will exhibit around 15% CAGR from 2017 to 2024 owing to rising accident rates across the globe coupled with increasing damages due to these accidents. The segment’s growth depends on customer focus towards cost and quality of the product. Cost effectiveness as compared to the counterpart is another factor driving the market growth over the forecast timeline.
Advanced Driver Assistance System (ADAS) Market, By Region
North America will dominate the global advanced driver assistance system market, accounting for over 34% volume share by the end of 2024. The region has witnessed substantial increase in the testing procedures of these ADAS features. Moreover, it is the second largest vehicle producer across the globe. Relatively higher adoption of ADAS as compared to other regions coupled with presence of established industry participants will further support the regional dominance. Stringent regulations regarding driver safety will also impact the revenue generation evidently.
Europe is expected to grow rapidly, witnessing over 14% CAGR over the next eight years. Substantial growth can be primarily credited to the stringent regulatory norms regarding installation of safety features in the vehicles. European countries are increasingly supporting the installation of ADAS in vehicles. For instance, Euro NCAP, a conglomerate of seven regional governments and other motoring & consumer organizations are aggressively promoting the usage of these technologies. They are making various features compulsory for new vehicles produced, fostering the market growth across the region.
Asia Pacific will account for more than USD 16 billion over the forecast timeframe. High demand from the countries including China, South Korea, and Japan will majorly support the regional dominance. Rising need of improved traffic safety and reduction in energy consumption & emissions will further propel the industry growth. Enhanced living standards and strengthening economy of various countries across the region has resulted in substantial vehicle production, inducing immense potential to the market size till 2024.
Competitive Market Share
Bosch Group, Autoliv AB, Delphi automotive, Denso, Continental Ag, Harman International, and Magna International Inc., are among the prominent participants in the advanced driver assistance system market. Other notable players include Gentex Corporation, Mobileye N.V., Hyundai Mobis, Hella, Takata Corporation, TRW Automotive, and Renesas Electronics Corporation. Partnerships, business expansion and mergers & acquisitions are among key strategies adopted by the industry participants. For instance, in February 2018, Autoliv AB announced its new spin-off company, Veoneer, the supplier of autonomous driving solutions and ADAS. In June 2017, Autoliv partnered with Volvo to form a new venture, Zenuity to develop self-driving cars based on Nvidia’s Drive PX Al computing platform, and commercialize by 2021.
In October 2017, Delphi announced the acquisition of autonomous driving start up, NuTonomy for around USD 450 million to strengthen its foothold in the industry. New product development is another strategy implemented by the market players to enhance their visibility. For instance, in September 2017, Delphi launched its Next Generation ADAS Satellite system that enables up to 89% reduction in sensor size. Moreover, the system comprises of a combination of image and radar sensors for provision of wide field of view and enhanced cross sensing abilities.
The Advanced Driver Assistance System (ADAS) is a vehicle based intelligent safety system that could enhance road safety mitigation and avoidance of crash and post-crash phases. Rising vehicle safety concerns along with favourable regulatory landscape will positively influence the industry till 2024. However, excessive cost of these systems may hamper the ADAS market growth. Various associations across the globe are partnering with the industry players to promote the usage of these systems. For instance, in January 2018, Automotive Service Association (ASA) collaborated with Bosch to host a webinar for increasing awareness regarding benefits of ADAS.
Manufacturers are also partnering with each other for developing enhanced autonomous solutions for the vehicles. For instance, in August 2016, Delphi automotive and Mobileye extended their long-term partnership to develop a turnkey autonomous driving system. According to the partnership, Mobileye will provide its latest EyeQ technology and Delphi will integrate this technology into autonomous driving control package. These advancements will offer stable growth prospects to the advanced driver assistance systems market over the coming years.
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