ADAS market set to reach $211.71 billion by 2034

The value of the global automotive ADAS (Advanced Driver Assistance System) market is expected to rise from US$64.04 billion in 2024 to US$ 211.71 billion by 2034. That estimated growth is expected to be driven by a steady Compound Annual Growth Rate (CAGR) of 12.7 per cent in ADAS market over the next decade.

Increasing demand for automotive ADAS in compact passenger cars is catalyzing market growth. According to a new report published by Future Market Insights Inc., in developed countries, ownership of luxury vehicles is rising on the back of surging disposable income. Moving forward, that particular trend said to be sweeping across developing economies like India and China as well. The thesis is that: as the luxury car segment sees a considerable rise within the global automotive market, sales of automotive ADAS will grow.

Auto manufacturers are increasingly investing in advanced systems like night vision systems, road sign recognition systems, and drowsiness monitoring systems, which are propelling the sales of automotive ADAS. As government regulations to enhance road safety and decrease road accidents increase, so do the sales of automotive ADAS systems like adaptive cruise control and autonomous emergency braking systems. For instance, in the historical period, the European Union (EU) necessitated the execution of adaptive cruise control systems in commercial vehicles. Regulations like these are expected to offer lucrative opportunities for the automotive ADAS market in the next decade.

“Vehicle electrification is projected to open up doors for the future growth of autonomous ADAS. Increasing investments in autonomous vehicle technology are promoting the integration of ADAS in vehicles. Key players in developed economies are turning their focus on developing economies as avenues for growth emerge in these countries,” said Nikhil Kaitwade, Associate Vice President at Future Market Insights, Inc.

EU and US markets growing at just under double-digit rates

The United States automotive ADAS market is projected to expand at a CAGR of 8.9 per cent through to 2034. However, the Canadian market is anticipated to grow faster and register a CAGR of 9.7 per cent during the same period.

In Europe, Germany, Spain, and France are expected to record CAGRs of 8.8, 8.5 and 8.4 per cent respectively between 2024 and 2034.

In the Asia Pacific region, Japan, China, and India are predicted to register CAGRs of 13.6, 13.5, and 13 per cent respectively through 2034.

The Autonomous Emergency Braking (AEB) segment within ADAS is projected to obtain a market share of 56.3 per cent in 2024. The ultrasonic sensors segment is anticipated to accumulate a share of 25.1 per cent in 2024.

Key tactics in the ADAS space

The automotive ADAS industry is significantly fragmented, with a considerable proportion of players competing for a greater market share. According to the Future Market Insights report, players are focusing on their dynamics and relationships with automakers and leveraging their expertise in automotive systems integration. Additionally, market participants are developing sophisticated ADAS technologies and are focusing on certain niches like specific vehicle types and specific ADAS features. Surging importance of ADAS systems in autonomous vehicles is expected to increase its sales.

Key developments include that Green Car commited to equip its entire fleet with ADAS by the end of 2022 and therefore should already be in place.

Meanwhile, Beijing Horizon Robotics Technology R&D Co., Ltd. and Continental AG (Continental) came into a Joint Venture (JV) contract in September 2021. The JV concentrates on offering hardware and software integrated solutions for autonomous driving and advanced driver assistance systems.

Aptiv PLC, in January 2022, announced a next-Gen ADAS for electric and autonomous vehicles, which is expected to cut cost of software-powered vehicles owing to Aptiv scalable architecture.

ZF introduced a 360° protection system for commercial automotive in January 2022. The system is projected to detect risks from rear and front side and safeguard the vehicle via dynamic control system. Currently, the firm mainly targets the United States market due to significant demand from commercial fleet operators.