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ADAS Subscription Market - By Subscription Model, By Vehicles, By ADAS Features, By Autonomy Level, By Propulsion, By End Use Growth Forecast 2026 – 2035
Report ID: GMI15564
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Published Date: February 2026
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Report Format: PDF
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Authors: Preeti Wadhwani, Satyam Jaiswal
Premium Report Details
Base Year: 2025
Companies covered: 25
Tables & Figures: 385
Countries covered: 29
Pages: 265
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ADAS Subscription Market
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ADAS Subscription Market Size
Global ADAS subscription market was estimated at USD 1.3 billion in 2025. The market is expected to grow from USD 1.6 billion in 2026 to USD 7.5 billion in 2035, at a CAGR of 19.1% according to latest report published by Global Market Insights Inc.
The ADAS subscription model marks a shift from hardware-based sales to software-driven recurring revenue. This aligns with the industry's move toward software-defined vehicles (SDVs), where safety and autonomous features are updated and monetized via over-the-air (OTA) updates and subscriptions.
The ADAS subscription market marks a key shift in the automotive industry's move toward software-driven revenue models. It includes active payments for advanced driver assistance features beyond regulatory requirements, covering monthly subscriptions, annual contracts, and pay-per-use models for passenger and commercial vehicles.
Automakers are swiftly embracing software-defined architectures, pouring significant investments into centralized computing platforms that offer feature-on-demand capabilities. The United Nations Economic Commission for Europe reports that the rollout of UN Regulation 155, focusing on cybersecurity, and UN Regulation 156, centered on software updates, has established uniform frameworks for over-the-air (OTA) updates among member states. This move lays the groundwork for subscription-based Advanced Driver-Assistance Systems (ADAS) features.
Government safety mandates are accelerating the adoption of ADAS features in new vehicles. The NHTSA has proposed mandatory AEB systems for all light vehicles, while the EC's GSR requires advanced emergency braking, lane-keeping assistance, and intelligent speed assistance in all new vehicles starting 2024. These regulations are driving ADAS adoption and enabling subscription-based feature upgrades.
Electric vehicles (EVs) exhibit higher adoption rates of Advanced Driver Assistance Systems (ADAS) subscriptions compared to internal combustion engine vehicles. According to the International Energy Agency (IEA), EVs' centralized electrical architecture and superior computing power enabled software integration. With EVs projected to account for over 30% of global vehicle sales by 2030, the market for premium ADAS subscriptions is poised for significant growth.
For instance, in March 2025, General Motors (GM) expanded its Super Cruise subscription to Cadillac and Chevrolet EV models. Priced at $25 per month, it leverages centralized vehicle computing platforms for OTA feature delivery.
By 2025, North America is projected to account for 35% of the global market value, driven by high vehicle connectivity, robust telematics infrastructure, and consumer adoption of subscription services. Safety initiatives have also accelerated ADAS hardware integration, expanding the subscription-capable vehicle base.
21% Market Share
Collective Market Share is 53%
ADAS Subscription Market Trends
The ADAS subscription market is undergoing transformation due to five key trends, impacting automotive value chains, revenue models, and consumer interactions with vehicle technology. These trends stem from regulatory mandates, technological advancements, business model innovations, and changing consumer preferences.
The automotive industry is transitioning to centralized, software-defined platforms, enabling over-the-air updates and ADAS subscription models. UNECE's UN Regulation 156 establishes global standards for software updates and vehicle cybersecurity, providing regulatory clarity for OEMs adopting these architectures.
Traditional vehicle architecture used 70-100 distributed ECUs, making feature updates complex and prone to compatibility issues. The software-defined vehicle architecture replaces these with 3-5 high-performance domain controllers, simplifying updates and enabling continuous feature enhancements throughout the vehicle lifecycle.
Centralized computing platforms allow OEMs to pre-install ADAS sensors and process hardware during manufacturing, enabling feature upgrades via software subscriptions. According to Institute of Electrical and Electronics Engineers (IEEE) standards, hardware costs for cameras, radar, and ultrasonic sensors have dropped 35–40% over the past five years, making universal hardware installation feasible even in mid-market vehicles.
Government safety regulations worldwide are establishing comprehensive ADAS feature requirements that mandate hardware installation across all new vehicle segments. These regulations create a universal baseline of ADAS-capable vehicles, providing OEMs with a vast addressable market for subscription-based feature enhancements beyond regulatory minimums.
The global electric vehicle (EV) market shows higher adoption rates of Advanced Driver-Assistance Systems (ADAS) subscriptions compared to internal combustion engine vehicles. This growth is fueled by EV buyer demographics, architectural benefits, and strategic OEM initiatives.
For instance, in January 2025, Tesla rolled out its Full Self-Driving (FSD) subscription across North America, allowing EV owners to access features such as Navigate on Autopilot, automated lane changes, and traffic-aware cruise control for a monthly fee of $199.
ADAS Subscription Market Analysis
Based on subscription model, ADAS subscription market is segmented into monthly subscription, annual subscription, and pay-per-use/on-demand. These models cater to diverse customer preferences and usage patterns while enhancing OEM revenue across market segments. The monthly subscription segment dominates the market with 55% share in 2025, and the segment is expected to grow at a CAGR of 18.9% from 2026 to 2035.
The Monthly Subscription Model dominates the market, offering flexibility with fees ranging from $10-30 for basic packages to over $200 for premium autonomous driving features.
Based on vehicles, ADAS subscription market is divided into passenger cars and commercial vehicles with distinct adoption drivers, use cases, and value propositions characterizing each segment. The passenger cars segment dominates with 80% market share in 2025 and is growing at the rate of 18.8% CAGR.
Based on propulsion, the ADAS subscription market is segmented into internal combustion engines (ICE), electric / battery electric vehicles (BEV), hybrid electric vehicles (HEV), and plug-in hybrid electric vehicles (PHEV). The internal combustion engines (ICE) segment dominates with 62% market share in 2025 with 18.3% CAGR during 2026 to 2035.
Despite the automotive industry's shift toward electrification, ICE vehicles are expected to dominate most of the forecast period due to their large installed base and continued production in developing markets.
Based on end use, the ADAS subscription market is divided between individual/retail consumers, fleet operators, mobility-as-a-service (MaaS) providers, leasing companies, and others. Individual/retail consumers dominate with 47% market share in 2025, and with a CAGR of 18.3% during forecast period.
US dominated North America ADAS subscription market generating revenue of USD 374 million in 2025 with CAGR of 18% during the forecasted timeframe from 2026 to 2035.
North America dominated the ADAS subscription market accounting for USD 462.6 million in 2025 and is anticipated to show growth of 18.1% CAGR over the forecast period.
The ADAS subscription market in China is expected to experience significant and promising growth with a CAGR of 21.2% from 2026 to 2035.
Asia Pacific ADAS subscription market is anticipated to grow at a CAGR of 21.9% during the analysis timeframe.
Germany dominates the Europe ADAS subscription market, showcasing strong growth potential, with a CAGR of 17.6% from 2026 to 2035.
Europe ADAS subscription market accounted for USD 401.8 million in 2025 and is anticipated to show growth of 17.2% CAGR over the forecast period.
Brazil leads the Latin American ADAS subscription Market, exhibiting remarkable growth of 20.4% during the forecast period of 2026 to 2035.
UAE to experience substantial growth in the Middle East and Africa ADAS subscription market in 2025.
ADAS Subscription Market Share
The top 7 companies in the ADAS subscription industry are Tesla, General Motors, Ford Motor, Mercedes-Benz, BMW, Volkswagen, and Hyundai Motor contributed around 59% of the market in 2025.
ADAS Subscription Market Companies
Major players operating in ADAS subscription industry are:
ADAS Subscription Market News
The ADAS subscription market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Bn) from 2022 to 2035, for the following segments:
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Market, By Subscription Model
Market, By Vehicles
Market, By ADAS Features
Market, By Autonomy Level
Market, By Propulsion
Market, By End Use
The above information is provided for the following regions and countries: