Automotive Advanced Driver Assistance System (ADAS) Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, Germany, China, Japan, France - Size and Forecast 2024-2028

Automotive Advanced Driver Assistance System Market Size 2024-2028

The global automotive advanced driver assistance system market size is estimated to grow by USD 33.68 billion at a CAGR of 10.87% between 2023 and 2028.  The market is undergoing robust expansion due to multiple catalysts. Notably, the decline in sensor prices and technological innovations are fueling market growth. Moreover, the escalating demand for safer driving experiences, coupled with extended travel durations, significantly contributes to market expansion. Strict regulations mandating the integration of ADAS in vehicles further accentuate market growth, underscoring the global importance of road safety. Key technologies, such as LiDAR, radar, and camera sensors, are driving advancements in ADAS, ensuring continuous market progression.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

The application segment of the market focuses on enhancing road safety and advancing autonomous vehicle technology. Governments and regulatory bodies worldwide are crucial in establishing safety standards, while OEMs integrate ADAS features like adaptive cruise control (ACC) and blind-spot detection to improve vehicle safety. ADAS technologies also enable vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication, enhancing traffic management and situational awareness. The market is expanding rapidly, driven by stringent safety regulations, growing consumer demand, and technological advancements tailored to electric vehicles (EVs) and controllers. MEMS technology plays a crucial role in enhancing the performance and accuracy of Automotive Advanced Driver Assistance System (ADAS) by enabling precise sensor functions, which improve vehicle safety and automation. In regions like Europe, its adoption is particularly strong due to safety mandates and sustainability initiatives.

By Application

The market share growth by the passenger cars segment will be significant during the forecast period. The passenger cars segment is the largest adopter of these technologies, owing to the growing adoption of these technologies by automotive OEMs to increase the safety ratings of their vehicles and the need to differentiate their products due to the growing competition in the automotive industry.

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The passenger cars segment was valued at USD 29.70 billion in 2018. Developed regions such as North America and Europe have the highest adoption of these technologies in the passenger vehicle segment. These regions have strict security standards that encourage the adoption of these technologies. For example, in the United States, the National Highway Traffic Safety Administration (NHTSA) five-star safety rating program focuses on technologies such as AEBS, FCWS, LDWS, TPMS, and reverse video systems. Therefore, automotive OEMs launching new models in the US are increasingly adopting these technologies, fueling the growth of the passenger car segment of the global market.

Region Analysis

APAC is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Europe is another region leading in the market during the market forecast period. In this regional market, vehicular safety functions in countries such as Germany, France, Italy, Spain, and the UK. Europe is home to leading global manufacturers and major luxury brands such as BMW, AUDI AG (AUDI), and Daimler. This makes Europe one of the largest adopters of ADAS. Also, strict vehicle safety norms implemented by the European Commission, which mandated safety technologies in vehicles, will drive market growth in the region.

Market Dynamics

The market is driven by advancements in autonomous vehicles and stringent safety regulations imposed by governments and regulatory bodies. These technologies enhance road safety by reducing accidents through features like adaptive cruise control (ACC) and blind spot detection systems (BSD). Automakers, OEMs, and software companies collaborate to develop innovative solutions, while ride-sharing operators and e-hailing service providers integrate ADAS into their fleets. With the rising demand for Battery Electric Vehicles (BEVs), the European market is witnessing significant growth, aligned with the European Union's emission regulations and zero-emission objectives, emphasizing the importance of ADAS in future mobility solutions.

In the realm of automotive safety and technology, injuries are a critical concern addressed by advancements in luxury vehicles and night vision systems. As vehicle electrification progresses, processors and AI-oriented automotive technologies play crucial roles in enhancing vehicle capabilities, including self-driving vehicles. Companies like Seeing Machines and Analog Devices lead in developing sophisticated solutions such as infrared cameras, which bolster safety features and driver assistance systems. These innovations not only mitigate risks associated with injuries but also pave the way for safer, more efficient transportation solutions globally. As the automotive industry continues to evolve, the integration of advanced technologies promises to redefine the future of vehicle safety and performance.  Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

One of the key factors driving the market growth is the decline in sensor prices. The price of displays witnessed a significant reduction in the last decade, owing to wide adoption from the consumer electronics and automotive segments, which allowed automotive OEMs to reduce the overall price of infotainment systems used in vehicles, further gaining penetration in the market. Moreover, the growth of the automotive industry is a primary driver fueling the market growth.

The reduced prices are allowing vendors to develop cost-effective ADAS technologies for customers. This is becoming a crucial driver for the growing demand in the automotive industry. Moreover, reducing the prices of cameras, radars, and LiDAR sensors is becoming a crucial driver for making ADAS products affordable. These manufacturers are able to develop compact products for a wide range of customers. Hence, the decline in sensor prices is a crucial driver for the growth of the global automotive market during the market forecasting period.

Significant Market Trends and Analysis

Another key factor driving the market growth analysis is the integration of map contents in ADAS. The automotive ecosystem has been working continuously to improve the functionality of ADAS. For instance, TomTom International BV (TomTom International) developed the TomTom ADAS Map that provides relevant map data to ADAS systems as a new source of data. This is in addition to the traditional approach, where ADAS takes data from the onboard sensors. The additional data source in the form of map content allows ADAS to anticipate the road ahead and make decisions that are beyond the line-of-sight limitations of sensor technologies. Adopting map data will enhance the functionality of ADAS technologies such as ACC and TSR.

For instance, in January 2019, TomTom International announced a collaboration with DENSO Corp. (DENSO) to develop autonomous driving systems using its HD Map. Such developments in the generation of map content for ADAS are expected to gain crucial traction during the forecast period, which will improve the performance of automotive ADAS products. This will be a positive factor for the growth of the market in focus during the forecast period.

Major Market Challenge

High costs associated with service and maintenance are one of the key challenges hindering the market growth. Although automotive ADAS has been available for decades, its adoption is dependent on the maintenance and service costs as vehicles with ADAS are expensive to repair. The high repair cost impacts ADAS adoption in emerging countries, where customers are price sensitive. As emerging economies are frontrunners in new vehicle sales, there is an urgent need to reduce the service and maintenance cost of ADAS. Even customers in developed economies such as the US are worried about the high repair cost of ADAS.

For instance, in the US, the service and maintenance cost of radar sensors used in AEBS and ACC is above USD 900, while the repair cost of rear radar sensors for BSD and rear cross-traffic alert is about USD 2,000. This cost is significantly high for customers, which hinders the customer preference for adopting this tehnology. This is negatively impacting the growth of the global market.

Key Companies & Market Insights

Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, market growth and trends, market analysis and report, geographical expansion, and product or service launches, market growth and forecasting, to enhance their presence in the market.

AISIN Corp: The company offers advanced driver assistance system solutions such as an Automated parking system, Automated emergency brake system, and driver monitoring system.

The report also includes detailed analyses of the competitive landscape of the market and information about key companies, including: 

AISIN CORP., Aptiv Plc, Autoliv Inc., BorgWarner Inc., Continental AG, DENSO Corp., Gentex Corp., Harman International Industries Inc., HELLA GmbH and Co. KGaA, Hyundai Motor Co., Infineon Technologies AG, Intel Corp., Magna International Inc., NXP Semiconductors NV, Panasonic Holdings Corp., Renesas Electronics Corp., Robert Bosch GmbH, Valeo SA, Veoneer Inc., and ZF Friedrichshafen AG

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses, market growth analysis, market research and growth, of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Application Outlook 
  • Passenger cars
  • Commercial vehicles
• Technology Outlook 
  • AEBS
  • TPMS
  • PAS
  • LDWS and others
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The market is witnessing significant growth driven by the increasing adoption of electric vehicles (EVs) and autonomous vehicles (AVs) worldwide. Governments and regulatory bodies are implementing stringent road safety measures to reduce accidents, leading to a rising demand for safety features from automakers. Infrastructure development and robust communication networks are enabling innovations like V2V (Vehicle-to-Vehicle) communication, supported by OEMs (Original Equipment Manufacturers) and software companies. E-hailing service providers and ride-sharing operators are integrating advanced controllers and software to enhance the user experience. Moreover, the market is propelled by the growing demand for Battery Electric Vehicles (BEVs) and advancements in EV battery technology, aligning with emission regulations and zero-emission objectives set by the European Union. The European market is particularly thriving with the adoption of features like Adaptive Cruise Control (ACC) and Blind Spot Detection System (BSD), reflecting the industry's commitment to safety and innovation.

Also, reducing road traffic fatalities requires proactive measures and advanced safety technologies like anti-lock braking systems (ABS), electronic stability control, and collision avoidance systems. Crash test ratings play a crucial role in ensuring vehicle safety, alongside improvements in road infrastructure and standardized safety protocols, particularly in rural and less-developed areas. Major automotive manufacturers like General Motors integrate sophisticated technologies such as microcontroller units (MCUs), electronic control units (ECUs), and a variety of sensing systems including image, radar, radio, laser, and infrared sensors. These systems enhance vehicle safety and efficiency, facilitating features like road sign recognition, night vision, drowsiness monitoring, adaptive cruise control, and lane departure warning.

Premium vehicles increasingly incorporate advanced driver assistance systems (ADAS) for enhanced safety, while the rise of self-driving and plug-in hybrid electric vehicles (PHEVs) showcases advancements in vehicle automation and environmental sustainability. Attention and drowsiness detection systems, coupled with robust processors and control modules, underscore a shift towards safer, smarter transportation solutions globally.

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What are the Key Data Covered in this Automotive Advanced Driver Assistance System (ADAS) Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market  companies

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