Automotive Advanced Driver Assistance System (ADAS) Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, China, Japan, Germany, France - Size and Forecast 2023-2027

Automotive Advanced Driver Assistance System (ADAS) Market Forecast 2023-2027

The automotive advanced driver assistance system (ADAS) market size is estimated to grow by USD 25.67 billion at a CAGR of 9.3% between 2022 and 2027. The market is experiencing significant growth driven by several key factors. With sensor prices declining and technological advancements, the market is witnessing increased adoption. Additionally, the rising demand for safer driving experiences, coupled with longer travel times, further boosts the market. Stringent regulations mandating the integration of ADAS in vehicles also play a pivotal role in market expansion, emphasizing the importance of enhanced safety measures on roads worldwide. This maket analysis and report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Automotive Advanced Driver Assistance System (ADAS) Market During the Forecast Period?

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The market is experiencing rapid growth driven by a multitude of factors. Automakers and OEMs are integrating safety features like radar sensors, cameras, and controllers into vehicles to enhance safety and prevent accidents. Infrastructure improvements and communication networks, along with the rise of V2V technology, are further augmenting the adoption of ADAS. Semiconductors and software companies are playing a pivotal role in developing advanced solutions, catering to the evolving needs of ride-sharing operators, e-hailing service providers, and passengers. Additionally, stringent emission regulations and zero-emission objectives, particularly in regions like the European Union, are propelling the demand for ADAS technologies, including adaptive cruise control and blind spot detection systems, across passenger cars and Battery Electric Vehicles (BEVs).

Market Dynamics and Customer Landscape

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. Our researchers analyzed the data with 2022 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 forecast period.

Significant Market Trends

Another key factor driving the market growth 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.

Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

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. 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 27.66 billion in 2017 and continued to grow until 2021. 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.

Which are the Key Regions for the Automotive Advanced Driver Assistance System Market?

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Europe is estimated to contribute 38% 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. 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.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, 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 15 market players, including:

• 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

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

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.

The market is experiencing remarkable growth fueled by technological advancements and increasing emphasis on safety in the automotive industry. Key components such as V2X (Vehicle-to-Everything) communication, GPS, and high-definition cameras are revolutionizing vehicle connectivity and enhancing navigation capabilities. The integration of VANET (Vehicular Ad hoc Network) and Automotive Ethernet is facilitating seamless data exchange among vehicles, supported by established IEEE standards. Driver assistance features, enabled by ADAS sensors and processors, are driving the evolution of vehicle electrification and automation. Multi-camera systems, led by innovators like Horizon Robotics, are enhancing safety and performance, particularly in luxury vehicles. These advancements align with initiatives like Vision Zero, aimed at minimizing road deaths and achieving unparalleled safety standards.

The market is witnessing rapid growth propelled by the increasing adoption of electric vehicles (EVs) and the proliferation of charging stations worldwide. Camera units and ultrasonic sensors are integral components of ADAS, enhancing vehicle automation and safety features. Processors play a crucial role in processing data and enabling real-time decision-making within the vehicle. These advancements cater to various vehicle types, from sedans to SUVs, aiming to reduce injuries and fatalities on the roads. As the market continues to evolve, innovative features like EV batteries charging stations and advanced camera technology are shaping the future of automotive safety and driving experiences.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027.

• 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

Market Scope
Report Coverage	Details
Page number	182
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 9.3%
Market growth 2023-2027	USD 25,673.24 million
Market structure	Fragmented
YoY growth 2022-2023(%)	8.79
Regional analysis	Europe, North America, APAC, South America, and Middle East and Africa
Performing market contribution	Europe at 38%
Key countries	US, China, Japan, Germany, and France
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Aisin Corp., 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., ZF Friedrichshafen AG, and Aptiv Plc
Market dynamics	Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market vendors

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