ADAS testing market is expected to hit $202.7 billion by 2033

The global advanced driver assistance system (ADAS) testing equipment market is projected to attain a valuation of US$56.4 billion in 2023 and is expected to accumulate over $202.7 billion by 2033, trailing a compound annual growth rate (CAGR) of 13.6 per cent from 2023 to 2033.

With those global figures, Future Market Insights data suggests the United States advanced driver assistance system (ADAS) testing equipment industry will expand with a CAGR of 12.8 per cent during the forecast period.

The demand for advanced driver assistance system (ADAS) testing equipment in China is anticipated to increase at 13.3 per cent CAGR from 2023 to 2033.

Meanwhile, the United Kingdom is expected to secure an impressive CAGR of 10.2 per cent throughout the forecast period.

Notably, India set a target to incorporate autonomous emergency braking (AEB) and electronic stability control (ESC) in cars between 2022 and 2023 to mitigate the risk of accidents.

By product type, the hardware segment is projected to secure a CAGR of 14.4 per cent in the forthcoming years.

According to Future Markets Insight, the integration of ADAS in passenger cars, driven by the growing awareness of safety and comfort, has fuelled market growth. Government mandates in countries like the US, Japan, China, and Germany, emphasizing the implementation of ADAS for passenger safety, have further propelled market expansion.

The ADAS industry is fuelled by growing safety awareness and the rising incidence of accidents. There is a high demand for advanced systems like emergency braking, night vision, and road sign recognition, driven by technological advancements in vehicles. Additionally, the increasing acceptance of autonomous or self-driving vehicles is a significant driver for market growth.

At the same time, vehicle electrification is presenting significant growth prospects in the field of vehicle automation, prompting market leaders to make substantial investments in autonomous vehicle technology. Since the integration of ADAS is a fundamental prerequisite for vehicle automation, vehicle makers are increasing incorporating various ADAS sensors such as Radar, LIDAR, and cameras to achieve increasingly precise levels of vehicle automation.