Advanced Driver Assistance System (ADAS) Market Size By Technology (Adaptive Cruise Control, Automatic High Beam Control, Blind Spot Detection, Driver Monitoring, Forward Collision Warning, Front Lighting, Automatic Emergency Braking (AEB), Night Vision, Head-up Display (HUD), Lane Departure Warning, Park Assist, Surround View System, Traffic Sign Recognition, Tire Pressure Monitoring System (TPMS)), By Sensor (LiDAR, Infrared, Ultrasonic, RADAR, Image Sensor), By Vehicle (PCV, LCV, HCV), By Distribution Channel (OEM, Aftermarket) Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 – 2026

Industry Trends

Advanced Driver Assistance System Market size valued at USD 35 billion in 2019 and is estimated to grow at around 10% CAGR from 2020 to 2026. The global industry shipments will reach 35 million units by 2026.
 

Rising concern among the population towards road safety is one of the major factors propelling the market demand. This has led to several government introducing favorable regulations supporting the integration of safety systems in vehicles. The European Union has announced to install advanced safety systems in all new cars from the mid of 2022 to reduce the number of road fatalities. This new regulation has mandated the adoption of advanced driver distraction warning systems, tire pressure monitoring, and intelligent speed assistance, among others for all range of vehicles, adding an opportunity for the advanced driver assistance system market growth.
 

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Major players in the automotive industry are majorly inclined toward the integration of various safety electronics systems in vehicles to differentiate their market position and gain a high revenue among competitors. For example, BMW, Mercedes-Benz, and Audi have already announced the availability of ADAS systems in their vehicles such as Audi A8 and BMW 7/5 series, among others. Furthermore, stringent government regulations and increasing safety concerns among the population have propelled the adoption of ADAS in vehicle offerings.
 

COVID-19 outbreak has resulted in the shutdown of several automotive manufacturing plants worldwide. The decline in consumer disposable income and unavailability of electronics components & raw materials due to supply chain disruption have hindered the production capacity of major automotive manufacturers, restraining the market growth. However, the post-COVID-19 impact will boost the development of autonomous technologies, fueling the industry growth.
 

Developments in TPMS for commercial vehicles will drive the advanced driver assistance system market

The TPMS segment accounted for a market share of more than 5% in 2019 and is anticipated to cross a revenue of USD 3 billion by 2026. The growth is majorly attributed to its low-cost, increasing its aftermarket adoption among small and medium vehicle owners. TPMS aids to deliver real-time monitoring of temperature and pressure of vehicle tires, reducing the chances of accidents and influencing the market demand.
 

TPMS is experiencing a rise in adoption from commercial vehicles to meet the growing challenges in fleet management such as maintenance and fuel costs. These systems deliver improved safety in vehicles while determining the real-time status of tires. To cater to the high demand, companies are forming strategic agreements that aid in the initiation of their offerings for tire pressure monitoring.
 

Rising developments in RADAR technology to create market opportunities

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The RADAR segment held over 15% advanced driver assistance system market share in 2019. These sensors are capable of delivering low-cost frequency with a continuous or modulated wave, increasing market opportunities. RADAR sensors in ADAS are used for object detection, collision warning, and blind spot monitoring that help in taking preventive measures for braking and counter steering to avoid accidents.
 

Rising government regulations on bandwidth and frequency range will propel development activities for RADAR technology, boosting the market revenue. The European Telecommunications Standards Institute (ETSI) and the U.S. Federal Communications Commission (FCC) have restricted the use of 24GHz radar frequency in 5GHz bandwidth and will not be included in Ultraviolet Band (UVB) from 2022; therefore, several auto component manufacturers and OEMs are inclined toward the development of 77 GHz long-range radar sensors to deliver a high level of accuracy and resolution.
 

Innovation in ADAS technology for mid-range vehicles to propel the market size

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The PCV segment held around 65% share in the ADAS market in 2019 and will expand at a CAGR of over 10% through 2026 driven by rising demand for advanced safety systems and electrification in vehicles. According to the World Health Organization (WHO), around 1.35 million people die every year due to road accidents; therefore, governments have laid several regulations to integrate advanced safety features into vehicles to embrace road safety, creating high market opportunities.
 

Mid-range & economy vehicle manufacturers are also planning to integrate these advanced safety systems into their vehicles to deliver high safety and comfort features to gain high market traction. For example, in December 2019, Hyundai announced the integration of ADAS for parking assist into all its vehicles by 2025. Companies are also planning several strategic advancements to cater to high market demand.
 

Partnership strategies to create new growth opportunities for OEMs

The OEM segment dominated more than 90% advanced driver assistance system (ADAS) market revenue share in 2019 owing to rising preference of manufacturers to integrate safety systems into vehicles to improve their brand image in the industry. To improve their position among competitors, companies are forming strategic partnership agreements with component & technology providers. This will enhance the development of advanced safety systems in vehicles, fueling the market growth.
 

Increasing development for electric vehicles in China to accelerate the market expansion in APAC region

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Asia Pacific advanced driver assistance system market is predicted to witness a growth rate of around 15% during the forecast timeline impelled by increasing investments in the development of electric vehicles in China. According to IEA, China is expected to remain as the world leader in manufacturing electric vehicles, holding 57% share in 2030. Rising initiatives by the government, such as “Made in China 2025”, are propelling the manufacturing of battery & electric vehicles, This will further provide an opportunity for ADAS manufacturers to develop advanced safety systems and improve their market presence in the coming years.
 

Focus on new product launches to remain competitive in the market

Prominent players in the market include Bosch Group, Autoliv, Inc., Continental AG, Denso Corporation, Delphi Technologies, Hyundai Mobis, Panasonic Corporation, Texas Instruments, and Valeo SA.
 

Companies are continuously involved in research & development activities to innovate new products and gain high competitiveness in the industry. In January 2020, ZF Friedrichshafen AGannounced the development of an advanced driver assistance package, the “Level 2+” system coASSIST. Featured with advanced components, such as RADAR and camera sensors, the new ADAS system can provide traffic sign recognition, lane keeping assist, and adaptive cruise control functions.
 

The advanced driver assistance system (ADAS) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2026 for the following segments:
 

Market by Technology

• Adaptive Cruise Control
• Automatic High Beam Control
• Blind Spot Detection
• Driver Monitoring
• Forward Collision Warning
• Front Lighting
• Autonomous Emergency Braking (AEB)
• Night Vision
• Head-up Display (HUD)
• Lane Departure Warning
• Park Assist
• Surround View System
• Traffic Sign Recognition
• Tire Pressure Monitoring System (TPMS)

Market by Sensor

• LiDAR
• Infrared
• Ultrasonic
• RADAR
• Image sensor

Market by Vehicle Type

• PCV
• LCV
• HCV

Market by Distribution Channel

• OEM
• Aftermarket

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • France
  • Italy
  • Germany
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Thailand
  • Indonesia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa