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Driver Monitoring System (DMS) Hardware Market Size - By Hardware, By Vehicle, By Monitoring, By Vehicle Autonomy Level, By Sales Channel, Growth Forecast, 2025 - 2034
Report ID: GMI15044
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Published Date: October 2025
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Report Format: PDF
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Authors: Preeti Wadhwani, Satyam Jaiswal
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Base Year: 2024
Companies covered: 25
Tables & Figures: 160
Countries covered: 24
Pages: 220
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Driver Monitoring System (DMS) Hardware Market
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Driver Monitoring System Hardware Market Size
The global driver monitoring system (DMS) hardware market size was valued at USD 1.55 billion in 2024. The market is expected to grow from USD 1.64 billion in 2025 to USD 3.11 billion in 2034 at a CAGR of 7.4%, according to latest report published by Global Market Insights Inc.
Governments around world are introducing more stringent vehicle safety regulations, requiring installation of driver monitoring systems in new vehicles. Regulatory frameworks including Euro NCAP, U.S. NHTSA guidelines, and China’s GB standards mandate put into in-cabin monitoring to detect fatigue, distraction and inattention. This has driven vehicle manufacturers to equip vehicles with DMS hardware across their entire fleets. Regulatory compliance is necessary to ensure continued access to market, mitigate risks of liability and to accelerate adoption of safety improvements and features, all of which make regulatory pressure one of the key growth enablers for DMS hardware market.
The global trend toward advanced driver assistance systems (ADAS) and semi-automated vehicles is increasing the demand for more advanced driver monitoring technologies. As vehicles move toward Level 2–4 automated vehicle experience, continuous in-cabin monitoring will be necessary to ensure driver attention and safety. DMS hardware, such as cameras, infrared sensors and ECUs are critical for these systems to operate as intended. For this reason, the proliferation of ADAS capabilities in passenger vehicles and commercial vehicles is considered a key growth driver for the DMS hardware market, driving global OEM demand.
Road accidents from driver fatigue and distraction are a key issue worldwide. Increased awareness from consumers, fleet operations, and regulators has created considerable demand for safety enhancing technology, specifically concerning driver monitoring system (DMS) hardware that can monitor drowsiness, attention, or mobile phone use. The public safety campaigns and insurance discounts highlighting the benefits of monitoring driver behavior, has led to rise in adoption of DMS hardware, driving market expansion across passenger, commercial, and fleet vehicles.
The rapid advancements of imaging devices, infrared sensors and processing units have greatly improved the accuracy, reliability, and affordability of DMS hardware. By reducing the size of manufacturing components, enhancing low-light performance, and allowing artificial intelligence for real-time monitoring, manufacturers can seamlessly incorporate DMS hardware into vehicles without affecting cabin design or aesthetics. The continued mass production and improvement of logistics have aided in the cost reduction of DMS hardware to expand this to different segments and types of vehicles.
North America and Europe have led innovation in the DMS hardware sector, spurred on by heavy safety regulations, increased adoption of ADAS technology, established R&D ecosystems, and high levels of EV penetration. For instance, various OEM and Tier-1 suppliers are ramping up their R&D centers in Europe and the United States to develop next generation driver monitoring solutions, underpinned by the development of fatigue and distraction detection systems that are powered by AI. Such investments illustrate the regions' intentions to increase safety on the road and actively allow vehicles to operate on a semi or fully autonomous basis.
The Asia Pacific Region is rapidly developing based on the acceleration of automotive industrialization, the growth of vehicle parc and the localization of the manufacturing of test equipment. India is seeing strong demand for affordable and scalable test solutions. Local competitors are also increasingly partnering with foreign competitors to meet the needs of the global and commercial vehicle segments.
16% market share
Collective market share in 2024 is 47%
Driver Monitoring System Hardware Market Trends
The rise in electric vehicle (EV) and hybrid vehicle adoption is triggering strong demand for integrated in-cabin safety systems. The increase in electrification of vehicles is encouraging OEM in the marketplace to focus on driver and occupant monitoring for safety purposes as well as regulatory compliance, using hardware for DMS with more advanced vehicle electronics systems. Since 2022, automotive manufacturers have increased the active usage of DMS systems into EVs and hybrids. Next-generation cameras and infrared sensors in concert with electronic control units (ECUs) are creating modular and more cost-effective options for DMS systems that are standardized to multiple platforms as electric vehicle proliferation continues.
The growth of Advanced Driver Assistance Systems (ADAS) and autonomous driving systems are creating increased adoption patterns for DMS hardware. The increased acceptance of radar, lidar and camera-based safety systems is adding additional demands for real-time monitoring on the drivers. OEMs are integrating hardware-in-the-loop (HiL) and software-in-the-loop (SiL) testing methods to enhance efficiency and accuracy in DMS development, ensuring reliable detection of driver fatigue and distraction.
The onset of digitalization and AI-aided monitoring is leading to new solutions for occupant safety in motor vehicles. Advances in cloud analytics, AI-supported behavior prediction, and real-time data processing are facilitating smarter and more reactive DMS technologies. Since 2021, OEMs and Tier 1 suppliers have increased the convergence of predictive monitoring and adaptive alerting systems into vehicle design. By 2026, AI-supported driver and occupant analytics purposed for in-cabin safety and monitoring, which is projected to see broad acceptance and commoditization.
The aftermarket and fleet monitoring solutions are becoming more prevalent. Portable and connected DMS modules, compatible with fleet management and commercial vehicle safety programs, are being increasingly adopted. These have been adopted by independent garages, fleet operators, and programs backed by insurance companies to monitor driver attention and mitigate risk. Hybrid models that combine OEM-fitted DMS hardware with aftermarket DMS hardware are expected to dominate the service and fleet monitoring segment by 2026.
Driver Monitoring System Hardware Market Analysis
Based on hardware, the driver monitoring system hardware market is divided into cameras, infrared sensors, electronic control units (ECUs), processors and other supporting hardware. The cameras segment dominated the driver monitoring system (DMS) hardware market, accounting for around 39% in 2024 and is expected to grow at a CAGR of over 8% through 2034.
Based on vehicle, the driver monitoring system (DMS) hardware market is segmented by passenger cars and commercial vehicles. The passenger cars segment dominates the market with 73% share in 2024, and the segment is expected to grow at a CAGR of 8% from 2025 to 2034.
Based on monitoring, the market is segmented into driver-facing monitoring, occupant monitoring and combined (driver + occupant) monitoring. The driver-facing monitoring segment is expected to dominate the DMS hardware market with a revenue of USD 880 million in 2024, due to its comprehensive testing needs across emissions, fuel efficiency, and engine performance.
Based on vehicle autonomy level, the market is segmented into Level 1, Level 2, Level 3, Level 4 and Level 5. The Level 1 segment is expected to dominate the driver monitoring system hardware market with a share of 36%, due to its widespread combination in mass-market passenger vehicles, regulatory mandates for attention monitoring, and OEM efforts to enhance safety and user experience in semi-automated driving environments.
The US driver monitoring system hardware market has a market share of 91% and reached USD 480.2 million in 2024.
North America dominated the driver monitoring system (DMS) hardware market with a market share of 34.2% in 2024.
Europe DMS hardware market accounted for a share of 29.3% and generated revenue of USD 454.5 million in 2024 and is anticipated to show lucrative growth over the forecast period.
Germany dominates the driver monitoring system hardware market, showcasing strong growth potential, with a CAGR of 4.8%.
The Asia Pacific driver monitoring system hardware market is anticipated to grow at the highest CAGR of 10.1% with a revenue of USD 391.5 million during the analysis timeframe.
China driver monitoring system hardware market is estimated to grow with a CAGR of 10.6%, in the Asia Pacific driver monitoring system (DMS) hardware products.
Latin America driver monitoring system (DMS) hardware market accounted for USD 110.6 million in 2024 and is anticipated to show lucrative growth over the forecast period.
Brazil DMS hardware market is estimated to grow with a CAGR of 3.3% and reach USD 39.7 million in 2034.
The Middle East and Africa monitoring system (DMS) hardware market accounted for USD 63.7 million in 2024 and is anticipated to show lucrative growth over the forecast period.
UAE market is expected to experience substantial growth in the Middle East and Africa driver monitoring system (DMS) hardware market in 2024, with a CAGR of 2.4%.
Driver Monitoring System Hardware Market Share
Driver Monitoring System Hardware Market Companies
Major players operating in the driver monitoring system (DMS) Hardware industry are:
Driver Monitoring System Hardware Industry News
The driver monitoring system (DMS) hardware market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and shipments (units) from 2021 to 2034, for the following segments:
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Market, By Hardware
Market, By Vehicle
Market, By Monitoring
Market, By Vehicle autonomy level
Market, By Sales channel
The above information is provided for the following regions and countries: