The global ADAS market was valued at USD 23.3 Billion in 2022 and is projected to reach USD 57.9 Billion by 2030, registering a CAGR of 12.06% for the forecast period 2023-2030.
Market Definition
The market for Advanced Driver Assistance Systems (ADAS) is driven by the increasing demand for vehicle safety, convenience, and automation. ADAS technologies provide a wide range of features and functions that assist drivers in various aspects of vehicle operation, including adaptive cruise control, lane departure warning, automated emergency braking, and parking assistance, among others. The market is distinguished by the integration of sensors, cameras, radar, LiDAR, and other technologies, which allow vehicles to sense their surroundings and make real-time decisions to improve safety and driving experience. As autonomous driving technology continues to advance, the ADAS market is expected to progress, providing even more sophisticated and comprehensive solutions for enhancing road safety and reducing accidents.
For instance, according to the European Commission, the new Vehicle General Safety Regulation mandates the implementation of advanced driver assistance systems to improve road safety. These measures are expected to save 25,000 lives and avoid 140,000 serious injuries by 2038.
Market Size:
- 2022: USD 23.3 billion
- 2030: USD 57.9 billion
- CAGR (2023-2030): 12.06%
ADAS Market Dynamics
Drivers : The government’s initiative and the rising technology to drive the market for ADAS
The Advanced Driver Assistance Systems (ADAS) market is experiencing significant growth due to a combination of factors. Government regulations that mandate improved safety features in vehicles, along with increasing safety standards, are driving automakers to adopt ADAS technologies. These regulations create a strong incentive for both manufacturers and consumers to embrace ADAS in order to enhance road safety. ADAS features such as adaptive cruise control, automatic emergency braking, and parking assistance systems not only enhance safety but also provide added convenience, which is highly appealing to car buyers. Moreover, the rapid evolution of technology, including advancements in sensor technology, artificial intelligence, and machine learning, is empowering the development of more sophisticated and accurate ADAS solutions. These technological advancements enable vehicles to perceive and respond to their surroundings with greater precision, ultimately amplifying the overall effectiveness of ADAS systems.
For instance, in April 2023, Mitsubishi Electric Corporation announced development of new technology for detection of serious conditions like loss of consciousness, pulse ratings, changes in blood pressure, and others experienced by consumers while driving automobiles.
Recent Developments
In October 2023, Koito manufacturing co.ltd and Denso corporation announced their collaboration for development of system that will improve vehicles object recognition rate by the coordination of vehicle image sensors and image sensors aiming for the improving driving experience at night.
In September 2023, AAA to provide roadside services through Apple’s roadside assistance via satellite on the iphone 15 lineup.
Restraint : High costs associated with implementation to restrain the market
There are a few factors that are hindering the growth of the Advanced Driver Assistance Systems (ADAS) market. The main issue is the cost associated with implementing ADAS technologies in vehicles. The integration of advanced sensors, cameras, and computing systems increases the overall price of vehicles, which can discourage price-sensitive consumers. Additionally, retrofitting older vehicles with ADAS can also be expensive, further limiting the expansion of the market. As ADAS systems are becoming more connected and software-dependent, cybersecurity is becoming a significant constraint. These systems are susceptible to cybersecurity threats, posing a risk to vehicle safety and user privacy. This may undermine consumer trust in these technologies and may restrain the market growth.
Challenges : Complex integration of ADAS features with vehicles to give challenges for the market
The market for Advanced Driver Assistance Systems (ADAS) faces several significant challenges that hinder its progress. One of the most notable challenges is the complexity involved in integrating ADAS features into vehicles. This process requires the seamless integration of several components, such as sensors, cameras, radar, LiDAR, and computing systems, without compromising the vehicle's design or adding excessive weight. This complexity can lead to increased manufacturing costs and technical difficulties for automakers. Regulatory and liability concerns are of utmost importance in the automotive industry. The rapid advancements in ADAS technologies can create regulatory challenges as governments and agencies struggle to keep up with the latest developments. Liability issues also arise when accidents or system malfunctions occur, making it difficult to assign responsibility between the driver and the ADAS system. It is vital to resolve these legal and regulatory challenges to ensure the safe and responsible deployment of ADAS technologies.
Opportunities : Advancement in ADAS technology offering new opportunities to grow
The ADAS market is full of opportunities, driven by changing consumer preferences, technological advancements, and emerging trends in the automotive sector. Among the most promising opportunities is the pursuit of autonomous driving. As the industry moves closer to self-driving vehicles, the demand for advanced sensors, machine learning algorithms, and connectivity solutions embedded in ADAS will increase significantly. These systems will play a crucial role in gradually transitioning to fully autonomous cars, unlocking new horizons for innovation and growth. In addition, the emerging markets offer a huge potential for the adoption of Advanced Driver Assistance Systems (ADAS). These regions have a rising middle class with more disposable income and a growing interest in safety and convenience features. As a consequence, there is an increasing demand for vehicles equipped with ADAS technologies, making these markets an appealing opportunity for market expansion.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 23.3 billion |
| Market Forecast in 2030 | USD 57.9 billion |
| Compound Annual Growth Rate (CAGR) | 12.06 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Solution, By Component, By Propulsion, By Vehicle Type, By Electric Vehicle Type, By Sales Channel, & By Region |
| By Solution |
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| By Component |
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| By Propulsion |
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| By Vehicle Type |
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| By Electric Vehicle Type |
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| By Sales Channel |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the ADAS Market
The ADAS market is segmented by solution, by component, by propulsion, by vehicle type, by electric vehicle type, by sales channel, & by region.
By Component
The sensor segment expected to hold major share during the forecasted period
Based on the component segment the market for ADAS (advanced driver assistance systems) is classified into processor, sensor, software and others. The sensor segment is further sub-categorized into radar, ultrasonic, lidar, and others. The sensor segment is expected to hold the major share during the forecasted period. The lidar sensor emits laser pulses for measurement of distance and creates 3D maps. This feature of the lidar sensor helps with high precision and object detection for the vehicles and guides it to avoid collisions. With these features and advancement in sensor technologies which are the essential part for these ADAS are contributing to the segment’s growth.
By Vehicle Type
The ADAS market based on the segment vehicle type is classified into commercial vehicle and passenger cars. With the growing consumer awareness for safety features like the automatic emergency braking, lane departure warning, and others to drive the market’s growth. The passenger cars segment is expected to hold the major share in the market for ADAS. The growing adoption of the passenger cars in various regions due to the emission standards set by various governments of various countries benefiting the passenger cars overall sales. Investments in the ADAS market have increased due to a growing emphasis on robo-taxis in the passenger car sector. With the rising popularity of passenger cars like SUVs, sedans, and many more resulting in the growth of the segment.
Regional Analysis
North America dominated the market in 2022:
Region wise the market for ADAS sector is analyzed across North America, Europe, Asia-Pacific, Latin America, Middle East & Africa. The increasing demand for the road safety and the governments across countries imposing regulations for implementations of ADAS systems to drive the market for the ADAS. The North America region dominated in 2022 with the adoption and development in the technology along with improved economic conditions to contribute to the region’s growth. The Asia-Pacific region is expected to have a significant growth during the forecasted period. Countries in the Asia Pacific region, including China, India, and South Korea, have experienced a rising demand for the electric vehicle industry which is rising the demand for the ADAS systems. The region also benefited due to strong base with the availability of raw materials and the presence of key players with rapid technological improvements.
List of the prominent players in the ADAS Market
- Bosch GmbH
- Continental AG
- Aptiv
- Lear Corporation
- Denso Corporation
- Texas Instruments Incorporated
- Renesas Electronics Corporation
- HELLA GmbH & Co. KG.
- Visteon Corporation
- ST Microelectronics
- Infineon Technologies AG
- Mitsubishi Electric Corporation
- Panasonic Corporation
Segmentation Analysis of the ADAS Market
By Solution
- Adaptive Cruise Control
- Blind Spot Detection System
- Park Assistance
- Lane Departure Warning System
- Tire Pressure Monitoring System
- Autonomous Emergency Braking
- Adaptive Front Lights
- Others
- Processor
- Sensor
- Radar
- Ultrasonic
- LiDAR
- Software
- Others
- Diesel
- Electric Vehicle
- Petrol
- Commercial vehicle
- Passenger Cars
- Battery Electric Vehicle
- Fuel Cell Electric Vehicle
- Hybrid Electric Vehicle
- Plug-In Hybrid Vehicle
- OEM
- Outsourcing
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the ADAS Market:
The COVID-19 pandemic had a significant impact on the ADAS market in multiple ways. Firstly, it disrupted global supply chains, leading to production delays and shortages of essential components, which temporarily hindered market growth. Further it reduced consumer demand due to economic uncertainty and lockdowns also affected sales of vehicles.
The pandemic has had both negative and positive effects on the ADAS market. However, it also resulted in some positive changes. Many governments increased investments in the ADAS research and development. Post covid-19 as the economy and the sales of vehicles rebounded has led to an increase in demand for the ADAS systems. In addition, the increased investment in R&D from the government developed new and sophisticated ADAS systems to drive the market.
