Passenger Vehicle ADAS Market Size - By System, By Sensor, By Vehicle, By Distribution Channel, Growth Forecast, 2025 – 2034

Passenger Vehicle ADAS Market Size

The global passenger vehicle ADAS market size was valued at USD 28.6 billion in 2024 and is estimated to register a CAGR of 17.7% between 2025 and 2034. The rising awareness among consumers about the ADAS systems is leading to the growing demand for ADAS systems in passenger vehicles.
 

In a recent survey conducted by HERE Technologies, a technology and location data platform, concerning road safety issues in India shared that 91% of the respondents said ADAS has now become a basic feature in a car. Meanwhile, 82% agreed to purchase their next vehicle with ADAS systems as they accept that it helps enhance both driver and passenger safety while driving.
 

This indicates that consumers have now gotten a better understanding of the risks that come with driving on roads and how adoption of ADAS can help in minimizing road accidents. Integration of advanced driver assistance systems such as automatic emergency braking (AEB), lane-keeping assist (LKA), and adaptive cruise control (ACC), greatly helps in reducing human errors, which are one of the major reasons for accidents globally. An increase in the focus on personal and public safety thus is contributing to a higher demand for vehicles with these advanced safety features.
 

The development of semi-autonomous and autonomous vehicles is greatly dependent on the use of advanced driver assistance systems (ADAS). The global market for autonomous vehicles is projected to grow from USD 2 trillion in 2023 to USD 6.1 trillion by 2032, indicating a growth of 13.5%. While automobile manufacturers and technology companies are actively investing in developing the Level 4 and Level 5 autonomy, there is rapid implementation of ADAS systems to enable gradual shifts which brings the need for these technologies in passenger automobiles.
 

Passenger Vehicle ADAS Market Trends

• Vehicle-to-Everything (V2X) communication is observing a significant growth in this market. With this system, vehicles can exchange data with infrastructure including traffic lights, road signs, and other vehicles. This helps in providing enhanced safety and efficiency. The V2X market in 2024 was valued at USD 4.1 billion and is expected to grow at a rate of 25.1% to reach USD 37.4 by 2034.
• The exchange of real-time data in the V2X system enables ADAS systems to take proactive measures to mitigate or reduce hazardous risks orders, for example, approaching traffic signals or congested intersections. The growing development of smart cities and connected infrastructure is expected to significantly boost aid the V2X integration in ADAS.
   
• With growing advancements in the ADAS systems, there is a rising focus on driver monitoring systems that ensure that the driver is a feasible state to safely drive the vehicle. Driver monitoring systems (DMS) uses cameras and infrared sensors to track the driver’s attention, alertness, and fatigue levels. If the system detects distractions or drowsiness, it can issue alerts or take corrective action. This trend is vital for improving safety, particularly in semi-autonomous vehicles where the driver must still be actively involved.
   
• ADAS features were earlier provided only in high-end luxury vehicles. However, these features are now ADAS expected to gain prominence in mid and budget friendly vehicles. The deployment of sensor technologies is more economical than before; thus, features such as automatic emergency braking, lane keeping assist, and even blind spot monitoring systems are becoming available in a wider array of vehicles. This democratization of ADAS functionality will spur adoption in mass market vehicles and make them a standard feature across most segments.
   
• Maruti Suzuki Fronx equipped with ADAS system was spotted in India in August 2024, hinting its potential launch in the Indian market in coming few months. This model, manufactured in India is available in the Japanese but not in the Indian automobile market. The company recently had expressed their plans to launching the Fronx model, equipped with ADAS in India.
   

Passenger Vehicle ADAS Market Analysis

Based on system, the passenger vehicle ADAS market is segmented into adaptive cruise control, blind spot detection, lane departure warning system, automatic emergency braking (AEM), forward collision warning, night vision system, driver monitoring, tire pressure monitoring system, head-up display, park assist system, and others. In 2024, the Lane departure warning system segment held a market share of over 15% and was valued at around USD 4 billion. 
 

• Lane departure warning system technology accounts for a major share in the ADAS system segment as it helps in improving vehicle safety by preventing lane departure, which is a major cause of accidents. In cases where a driver strays out of their lane, LKA either issues a warning or automatically steers the vehicle back into position, thus reducing the accident chances.
   
• Many governing organizations, such as the Euro NCAP or NHTSA, are recognizing and appreciating vehicles with advanced safety features such as lane departure warning system. As a result, more automakers are focusing on the implementation of lane-keeping assist features in their vehicles to comply with safety regulations and enhance crash test results, resulting in increased usage and demand.
   
• Lane departure warning system provides convenience and comfort to drivers by helping reduce the mental burden that comes while driving long distances or when cruising at high speeds. Many drivers find steering smoothly within their lane on monotonous roads, like on a highway, to be tiring work. Lane departure warning system reduces this load by automatically positioning the steering wheel to maintain lane position, which then enables the driver to focus on remaining alert. This growing reliance on driving convenience is one of the key factors that drive the popularity of lane departure warning system.
   
• The approval of Ford’s BlueCruise hands-free driving tech for use in 115 European countries as announed in July 2024, was a major achievement for the company. With this approval of The European Commission, Ford users can now use their vehicles in blue zones, with the hands-free cruising feature over long distances. This makes it possible to drive on many different roads, from Sweden to Italy, without needing the driver to engage with the steering wheel. BlueCruise is a Level 2 'hands-off, eyes-on' driver assistance system which means it does the steering, acceleration, braking, along with lane changes and monitoring the road markings, as well as the traffic conditions, and the driver still has to keep an eye on the road.
   

Based on sensor, the passenger vehicle ADAS market is segmented as radar, lidar, image sensor, and others. The image sensor segment dominated in 2024 with a market share of 37%
 

• Image sensors, especially high-resolution cameras, provide detailed visual data that other sensors like radar or ultrasound can't offer. This visual data enables ADAS systems to accurately detect road signs, pedestrians, vehicles, and other hazards. With advancements in high-definition image sensors, these cameras are now capable of functioning in a variety of lighting and weather conditions, making them essential for improving the precision and reliability of ADAS systems.
   
• ADAS image sensors can be used for several functions within the system, such as lane change warning, collision prevention, traffic light recognition, and others. These sensors help in the visualization of the environment around the vehicle resulting in greater systems that ensure safety and assist the driver in driving.
   
• Pioneer India in August 2024 launched the new series of AI-dash cameras which are custom made for Indian roads and come with a range of additional features. The entire range has features where the AI assists the operator to help with ADAS in higher models. These models give alerts such as lane warning, forward collision alert, and stop-and-go alerts.
   
• Image sensors are often used with LiDAR and radar sensors for a clearer and enhanced view of the surrounding environment. When these sensors are integrated, they provide a more enhanced automatic emergency braking (AEB) system, better adaptive cruise control, and improved blind-spot monitoring. Thus, image sensor fusion has now become a necessity, and as a result, image sensors are now fundamental components of ADAS platforms.
   

Based on vehicle, the passenger vehicle ADAS market is segmented as sedan, SUV, hatchback. The SUV segment led the market in 2024
 

• Sales of SUVs at global levels have been steadily increasing over the past few years. This rising demand is majorly being observed in North America, China, and Europe. International Energy Agency expressed that in 2023, SUVs accounted for 48% of total car sales globally. This rise in SUV sales is leading to a growing demand for ADAS
   
• Upper mid-range and high-end SUVs are increasingly equipped with advanced ADAS features such as lane-keeping assist, adaptive cruise control, and automatic emergency braking. As SUVs are considered premium models, car manufacturers are increasingly using the latest technologies that increase the adoption of ADAS features in this class of vehicles.
   
• With the growing regulatory push for the adoption of advanced safety technologies, SUVs are being equipped with advanced ADAS features. The size and design of SUVs also make them appropriate for the integration complex systems, such as driver monitoring systems and automated parking assistance, which further leads to the adoption of ADAS technologies in this segment
   

Based on distribution channel, the passenger vehicle ADAS market is divided into OEM and aftermarket. The OEM segment held a major market share in this segment in 2024.
 

• OEMs design and install ADAS features, which includes lane-keeping assist, adaptive cruise control, and automatic emergency braking, and others, which is a part of the vehicle manufacturing process. This integration ensures that these systems are customized and suitable for individual vehicle models, thus making OEMs significant players in this market
   
• ADAS features that come in-built in vehicles are preferred by consumers over aftermarket solutions as this integration provides users with reliability and manufacturer warranty. OEMs have dominant control in the distribution channel since they provide these technologies as standard or optional add-ons for new vehicles.
   
• OEMs also benefit in terms of pricing as placing bulk orders allow them to purchase ADAS technologies in large numbers at a reduced cost. By working directly with component suppliers, OEMs can easily negotiate for better pricing and thus provide cost benefits to consumers while maintaining profitability
   

North America dominated the global passenger vehicle ADAS market with a major share of over 35% and U.S. led the market in the region and was valued at USD 7.6 billion in 2024.
 

• American drivers are putting more emphasis on safety and ease of operation during vehicle purchase which is increasing the need for ADAS features such as lane keeping assist, automatic emergency braking, and adaptive cruise control. The preference for highly developed automotives safety technologies is now making it possible for automobile manufacturers to provide ADAS as a standard feature or option to many vehicles.
   
• Rivian in January 2025 announced their plan to implement an advanced driver assistance system for hands-free driving in 2025, with an “eyes-off” system which will be launched in 2026. This statement shows the company’s technological developments in autonomous driving. The company aims to deploy map guided hands-free ADAS for highway driving, helping drivers take their hands off the wheel on mapped highways.
   
• The U.S. holds a major share in terms of advancement and implementation of autonomous and semi-autonomous vehicles. Tesla leads the in self-driving car features segment, as the company has introduced various autopilot features into its vehicles. This shift towards self-driving cars has led to a greater development of ADAS systems.
   
• The highly developed infrastructure of the country contributes to the adoption of ADAS technologies due to the availability of 5G, smart cities, and V2X communications. These technologies led to improved information and communication flow between vehicles and their environments, necessary for ADAS systems functionality.
   
• Many American companies such as Ford, General Motors, and Tesla are actively adopting modern ADAS features in their vehicles. Many American technology firms including Mobileye and NVIDIA are contributing to the development of and AI, ML, and self-driving technologies. The collaboration between established automakers and new technology businesses has accelerated the growth and implementation of ADAS in the U.S.
   

The growth forecast for the passenger vehicle ADAS market in Germany from 2025 to 2034 is highly encouraging.
 

• Germany is home to of some of the largest automobile manufacturers in the world which includes Volkswagen, BMW, Mercedes-Benz, and Audi. These companies lead the ADAS expansion and have invested huge resources into advanced driver-assistance systems for their cars.
   
• Germany also has a long-standing history of ensuring vehicle safety and technological advancement. The nation is at the forefront of developing automotive technologies and the automobile manufacturers in the country not only try to comply with the rules and regulations but also put a lot of emphasis on safety. This focus on safety features is driving the adoption of ADAS in cars manufactured in Germany
   
• Germany also has some of the strict safety and ecological rules and guidelines in the world. Organizations like the Euro New Car Assessment Program (Euro NCAP) and German Federal Motor Transport Authority (KBA) usually have strong rules for automakers to make sure the vehicles are equipped with modern driver-assistance technologies to enhance the safety and performance of the vehicle. These regulations greatly assist the demand for ADAS systems in the region, cementing Germany's leading position in the market.
   

China is expected to show remarkable and promising development in the passenger vehicle ADAS market from 2025-2034.
 

• China leads the automotive market in the world, with its massive volume of vehicle production and sales. The growing demand for both passenger vehicles and advanced safety features is driving the adoption of ADAS technologies and with growing sales this number is expected to grow further
   
• In China, Chery's iCar brand introduced a stylish and rugged electric SUV in January 2024, named the iCar 03. The iCar incorporates renowned tech giant DJI’s intelligent driving system, ADAS Level 2. This advanced driving system relies entirely on vision while employing the use of seven cameras, eliminating the need for Lidar and high precision mapped drivable areas. The iCar 03 is designed for young drivers, offering an edgy and square appearance with the needed additional strength for off-roading.
   
• There is an increase in awareness about the usefulness of advanced driver-assistance systems (ADAS) among citizens of China. An increase in income levels coupled with a growing concern for safety features is resulting an increased demand for vehicles that have technologies like lane keeping assistance, automatic emergency braking, and adaptive cruise control. Increased demand for ADAS technology is forcing automobile manufacturers to incorporate more features within the systems.
   
• The Chinese government is making significant investments towards the research and development of autonomous vehicles and other self-driving car technologies. The country has become a major player in the global advancement of self-driving vehicles, headed by companies such as XPeng, Baidu, and NIO. Autonomous vehicles by design heavily depend on ADAS for safety and navigation which means China’s concentration on AV development is furthering the use of ADAS, which in turn improves the country's market status.
   

The passenger vehicle ADAS market in Mexico is expected to experience significant and promising growth from 2025 to 2034.
 

• With its competitive wages and robust manufacturing capabilities, Mexico offers an affordable option for producing ADAS. This enhances the cost efficiency of component manufacturing in this region, making the components more affordable and accessible. The result is that many companies are now cutting their costs while providing sophisticated solutions in the country.
   
• The adoption of novel technologies which includes radar, cameras, and LiDAR devices in vehicles is becoming a significant practice at Mexican automotive plants. As automakers develop and improve their strategies to include more complex ADAS features, Mexico is expected to remain an important production base for these systems.
   

Passenger Vehicle ADAS Market Share

Top 7 companies leading the passenger vehicle ADAS industry in 2024 Bosch, Continental, Valeo, Mobileye, Denso Corporation, ZF Friedrichshafen, and Autoliv. Together, they held over 35% market share.
 

• Bosch holds a significant share of the passenger vehicle ADAS market as it provides various technologies including software, sensors and control units used in ADAS. Bosch has also invested in the development of technologies such as radar sensors, cameras, and braking systems contributing to its market share and presence
   
• Continental holds a considerable share in the market of ADAS due to its vast technological capabilities and continuous improvements in vehicle safety. The company has developed various advanced driver assist system technologies that include object detection and environment mapping sensors such as radar, cameras and LiDAR used in ADAS applications.
   
• Valeo holds a considerable share in ADAS for passenger vehicles due to its advanced technologies and innovations in the automotive industry. The company has a wide portfolio of ADAS solutions. Through strategic partnerships with car manufacturers, Valeo deals with the necessary focus on autonomous driving and smart mobility solutions to remain dominant in this market.
   
• Mobileye has a strong position in the ADAS market due to its computer vision and AI powered technologies. Its strength and mastery in functions such as image processing, sensor fusion, and machine learning support ADAS functions such as collision avoidance, pedestrian detection, and traffic sign recognition.
   
• Denso Corporation is known for its advanced sensor technologies and established position in the automotive industry. Through collaborations with top OEMs and focus on safety, comfort, and fuel economy through advanced technologies, Denso has captured a significant share in this market.
   

Passenger Vehicle ADAS Market Companies

Major players operating in the passenger vehicle ADAS industry include:

• Aisin
• Ambarella
• Aptiv
• Autoliv
• Bosch
• Continental
• Denso
• Mobileye
• Valeo


• Bosch, Continental, Valeo, Denso, and Mobileye are some of the major players in the passenger vehicle ADAS market. These companies hold a significant share of the market, due to their investment and research and development of technologically advanced systems. They also continuously invest significant resources for developing sensors, software, and AI, thus helping them stay ahead of competition and thus gain good market share.
   
• Many players in the industry are allocating a major part of their budget towards technological development in autonomous behavior, AI, and sensor fusion to remain competitive in the ADAS market.
• Increasing preference of ADAS is leading to a greater attention towards cost efficiency, especially for the mass market. Manufacturers are making efforts to lower the price of sensors and other components integrated in ADAS without compromising quality, allowing more mid-tier and low-end vehicles to be equipped with ADAS enabled features.
   

Passenger Vehicle ADAS Industry News

• Kia launched their new sub-compact SUV, Kia Syros, in India in December 2024. The car is equipped with advanced features such as Level 2 ADAS providing features such as adaptive cruise control, lane assist keeping, and others.
   
• The 2024 Honda Amaze, in December 2024, became the first Indian compact sedan in India to be equipped with ADAS. This car is also the most affordable model to be integrated with this system, with prices being between USD 9,156 to USD 11,445. The car is equipped with features such as lane-keeping assistance, autonomous emergency braking, and adaptive cruise control.
   
• Valeo in December 2024 announced their plans to expand their operations in India in to meet the growing ADAS system demand in the country. The company is heavily investing in research and development, and manufacturing activities to meet the needs of passenger vehicles and the two and three-wheeler segment.
   
• In October 2024, TATA Motors shared its plans to make ADAS available in all their passenger vehicle brands. The company at present is offering Level 2 ADAS functionalities in their model such as Safari, Harrier, and Curvv. The company aims to make these technologies more affordable and available in different models to enhance passenger safety and improve driving experience.
   

The passenger vehicle ADAS market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) from 2021 to 2034, for the following segments:

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Market, By System

• Adaptive cruise control
• Blind spot detection
• Lane departure warning system
• Automatic emergency braking (AEM)
• Forward collision warning
• Night vision system
• Driver monitoring
• Tire pressure monitoring system
• Head-up display
• Park assist system
• Others

Market, By Sensor

• Radar
• Lidar
• Camera
• Others

Market, By Vehicle

• Sedan
• SUV
• Hatchback

Market, By Distribution Channel

• OEM
• Aftermarket

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia