ADAS Market size worth over $60bn by 2026
Published Date: June 25, 2020 Authors: Preeti Wadhwani, Shubhangi Yadav
Advanced Driver Assistance Systems (ADAS) Market size is set to exceed USD 60 billion by 2026, according to a new research report by Global Market Insights, Inc.
Rising demand for safety features and increasing requirements for comfort while driving will escalate the ADAS market revenue. An advanced driver assistance system enables 3D vision for motion monitoring and object detection, enhancing safety applications in vehicles. The proliferation of connected devices and IoT technology to ensure driver safety is projected to increase the deployment of advanced driver assistance systems. Automotive IoT solutions help drivers in avoiding on-road collisions by generating an alert signal that allows them to take timely control of their vehicles.
Rising research & development in autonomous technology will further drive the ADAS market growth. Advanced driver assistance systems have significantly reduced the complexity of driving with features such as stability control, lane monitoring, and emergency braking, among others. Several market leaders are focusing on the development of self-driving cars or driverless cars that can sense their environment without human input. Advancements in LiDAR, high definition cameras, and ultrasonic sensing technology to maneuver the vehicle safely will add high growth opportunities.
The advanced driver assistance system requires sensors with high computing chipsets and large memory storages. The cost associated with these components is on the higher side, hindering market growth. Advanced driver assistance systems require basic infrastructures, such as GPS, internet connectivity, well-organized roads, and lane mapping, for effective functioning. Lack of infrastructure in developing nations, poor driver training, and cost consideration in vehicles are restraining the deployment of advanced driver assistance systems. The current global financial crisis due to ongoing COVID-19 pandemic will further restrain technological development, impacting market growth.
Increasing government initiatives for convenient parking will drive the demand for park assist technology
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The park assist segment held over 5% ADAS market share in 2019 and is projected to reach USD 4 billion by 2026. The growth is attributed to technological advancements in ultrasonic sensor technology. Parking assist systems can detect the object surrounding the vehicle using 360-degree cameras and advanced sensors, decreasing the chances of a collision. The proliferation of low-cost parking sensors and the easy installation of automotive vehicles will create high growth opportunities for the market.
Increasing R&D in CMOS image sensor technology will lay a significant impact on ADAS systems
The image sensors segment is anticipated to witness substantial growth during the forecast timeframe owing to its deployment in surround view systems, night vision, blind spot detection, and adaptive cruise control systems. Sensor manufacturers focus on continuous research & development activities to provide technically advanced sensors and gain high competitiveness in the sector.
Browse key industry insights spread across 300 pages with 357 market data tables and 28 figures & charts from the report, “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” in detail along with the table of contents:
Surging accident rates and increasing adoption of ADAS systems in existing vehicles to propel growth opportunities in the aftermarket channel
The aftermarket segment accounted for 5% revenue share in 2019 and is set to witness a growth rate of over 10% till 2026. Rising concern in developing nations on road safety is one of the major factors propelling segment growth. According to the Association of Safe International Road Travel (ASIRT), more than 38,000 people die every year in the U.S. due to roadway accidents. Rising accident rates and the requirement for replacement or repair of advanced automotive systems will drive market growth. This will further boost market opportunities for companies offering ADAS systems through the aftermarket channel. The aftermarket segment also delivers superior product quality along with low-cost and reliability as per customer needs.
The proliferating transportation industry to boost market demand
The Light Commercial Vehicle (LCV) segment in the ADAS market is expected to witness significant gains between 2020 and 2026 on account of rising transportation industry. An increase in safety awareness and demand for driver comfort are major factors driving the LCV segment. Major OEMs are investing significantly to offer enhanced safety features in this vehicle segment.
Road safety regulations by governments will significantly boost the European ADAS market growth
Europe dominated a market share of more than 30% in 2019 and will expand at 10% CAGR through 2026. Stringent safety regulations are expected to drive the demand for ADAS in Europe. The mandatory fitment of multiple advanced driver assistance technologies and several initiatives, such as Euro NCAP, that promote automotive safety in the region will fuel sector growth.
Despite slowdown in vehicle sales due to the ongoing COVID-19 pandemic, existing safety mandates are anticipated to boost the penetration of advanced driver assistance systems in upcoming vehicles. Major automotive manufacturers in the region, such as BMW, PSA Group, Jaguar Land Rover, and Daimler, are highly investing in advanced automotive technology, driving market growth.
Some of the major players operating in the ADAS market include Denso Corporation, Bosch Group, Continental AG, Delphi Technologies, NVIDIA Corporation, Valeo SA, and Hyundai Mobis. Market players are implementing several business strategies, such as mergers, acquisitions, and collaboration agreements, to gain a competitive edge. For example, in November 2019, ZF Group announced a strategic collaboration with Israel-based AI companies, Cognata and OptimalPlus, to enhance its ADAS offerings.