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

Automotive ADAS Sensors Market Forecast 2023-2027

The Automotive ADAS Sensors Market size is estimated to grow by  USD 49.15 billion between 2022 and 2027 accelerating at a CAGR of 23.33%.

Active and passive safety systems in vehicles prevent accidents and reduce passenger injuries. Anti-lock braking systems (ABS) are effective in preventing skidding and reducing the risk of accidents by 20%. Governments, including India, mandate the use of ABS. Vehicle safety solutions are increasingly being incorporated in entry-level and luxury vehicles due to technological advances, competition, safety agency advocacy, governmental mandates, and consumer awareness. APAC is witnessing increased incorporation of safety components such as airbags, ABS, and EPS in entry-level vehicles. Developed markets are adopting technologies like park assist and cruise control in mass-segment vehicles. China launched C-NCAP and ZF TRW opened a technical center in APAC to meet the growing demand for safety systems. The market is expected to grow due to the adoption of such technologies.

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

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The market is witnessing robust growth driven by various factors such as increasing government regulations emphasizing road safety, rising disposable income, and the need for economic stability. Developed countries, particularly those excelling as exporters of luxury cars, are investing heavily in road sign recognition systems, night vision systems, and drowsiness monitoring systems to enhance vehicle safety. The demand for traditional ADAS systems and emerging technologies like autonomous emergency braking systems and adaptive cruise control systems is also on the rise. Moreover, advancements in machine learning and artificial intelligence are fueling innovations in automotive electronics, making vehicles safer and more efficient. As the automotive industry moves towards automation and electrification, the market is poised for significant expansion, driven by a continuous focus on enhancing safety and reducing road accidents.

Market Dynamics

This market research report extensively covers market segmentation by Product (radar sensor, image sensor, ultrasonic sensor, infrared sensor, and lidar sensor), Application (passenger vehicle and commercial vehicle), and Geography (Europe, North America, APAC, South America, and Middle East and Africa). It market growth analysis report  also includes an in-depth analysis of drivers, trends, and challenges. Our researchers analyzed the data with 2022 as the base year and the key drivers, market trends and analysis , and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The market is experiencing significant growth attributed to various factors. With an increasing focus on vehicle electrification and the integration of advanced safety features like blind spot detection systems (BSD) and automatic emergency braking, the automotive industry is witnessing a transformation towards enhanced safety standards. Moreover, the rising instances of road accidents have prompted regulatory authorities to mandate the adoption of safety-critical functionalities, leading to a surge in the sales of automotive ADAS. Technological advancements, including ultrasonic sensors and multifunctional sensors, are reshaping the landscape, while the emergence of autonomous driving-as-a-service and Robo-taxis is revolutionizing the transportation sector. In this competitive market, companies are leveraging software and hardware innovations to gain a competitive edge and meet the demands of commercial vehicles, passenger vehicles, and premium vehicle segments. Collaborative efforts between automotive component manufacturers, electronic and software companies, and innovators like Momenta are driving the development of cutting-edge fusion sensor technology, paving the way for safer and more efficient transportation solutions.

Key Market Driver

The market is experiencing significant growth due to the increasing integration of ADAS systems in passenger vehicles. Governments and automakers are pushing for advanced safety features to reduce car accidents and ensure safety-critical functionality. Machine learning and artificial intelligence technologies are at the forefront of these advancements, with autonomous vehicles becoming a reality. Ultrasonic and radar sensors are commonly used in ADAS systems for level 1 and level 2 automation. However, technological advancements are driving the market towards level 3 and level 4 automation, which will require more sophisticated sensors such as LiDAR, high-definition cameras, and fusion sensor technology. Regulatory authorities are also playing a crucial role in setting standards for these autonomous vehicles.

Competitive markets are witnessing acquisitions and proactive measures to address workforce shortages and road safety concerns. Autonomous driving-as-a-service is also gaining popularity, with premium vehicles incorporating multifunctional sensors, transceivers, and adaptive front lights for enhanced safety features. Memory protection units are essential in automotive electronics to ensure data security and reliability. Cross-traffic alert and adaptive front lights are some of the safety features that are becoming increasingly common in passenger vehicles. Overall, the market for ADAS sensors is expected to continue growing as technological advancements and regulatory requirements drive the adoption of these safety-critical components in passenger vehicles.

Significant Market Trends

Previously, expensive CCD technology was used in cameras leading to image distortion and slow analog-to-digital conversion. However, OEMs have now shifted their focus to CMOS image sensors in camera modules. These sensors comprise noise-correction technologies, charge-to-voltage conversion technologies, digitized circuits, and amplifiers, and generate clear images in low visibility conditions. CMOS sensors are used in various safety-related functionalities in automobiles, such as lane assist systems, BSD systems, forward collision systems, and pedestrian detection and protection systems. Cypress Semiconductor, in collaboration with Melexis, developed Melexis MLX75006 CIF format and MLX75007 Panoramic VGA, which are specifically designed for applications. The increasing demand for CMOS image sensors is due to the growing focus of automakers on vehicle safety, which is expected to drive market growth and trends.

Major Market Challenge

The high expenses related to purchasing and maintaining technologies have restricted their use in luxury vehicles. For example, advanced cruise control systems like ACC cost over USD 1,500 making them unaffordable for mass-segment vehicles. The manufacturing, sourcing, and marketing of sensors and their components contribute to their high costs. Night vision zero cameras with uncooled microbolometer sensors provide high-resolution images but are expensive, and limited government support limits their adoption. The high costs associated with  sensors may hamper the growth of the r market.

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Market Segmentation 

The ADAS Market is witnessing robust growth driven by various factors. The demand for compact passenger cars is on the rise, while luxury car exporters are expanding their offerings to cater to diverse consumer segments. Concerns over road safety have led to increased adoption of automotive ADAS, including features like adaptive front lights, cross traffic alerts, and high-definition cameras. Additionally, advancements in Vehicular Ad hoc Network (VANET) technology and GPS connectivity are enhancing vehicle capabilities, supported by 3G and 4G-LTE communication networks and robust IT infrastructure. Amidst government regulations and economic stability, the market is witnessing a surge in luxury vehicle purchases particularly in developed countries. With a focus on reducing road accidents, automotive manufacturers are integrating innovative technologies such as road sign recognition systems, night vision systems, and drowsiness monitoring systems. This concerted effort aims to improve road safety and foster a more secure driving environment for consumers.

By Product Analysis

The market share growth by the radar systems segment will be significant during the forecast period. The application of radar sensors in the space is primarily within the autonomy domain. The radar sensor segment holds the highest market share among all other types available in the market today. A few technologies where radar sensors are used are - Advanced emergency braking systems (AEBS), Collision avoidance systems (CAS),  Adaptive cruise control (ACC), Pedestrian protection systems (PPS), Lane departure warning systems (LDWS), etc.Get a glance at the market contribution of various segments View Sample PDF 

 

The radar sensor segment showed a gradual increase in market share from USD 5.25 billion in 2017 and continued to grow by 2021. The industry is gradually shifting toward autonomous vehicles with the development of ADAS technologies. Organizations across the globe are considering mandating AEBS (Advanced Emergency Braking Systems) as they provide increased safety. Studies performed in many countries have shown that AEBS reduces the number of rear-end collisions significantly. With the increasing focus on vehicle electrification and automation, the market's valuation is expected to grow significantly. The US Department of Transportation has mandated that all 2022 model-year vehicles should provide AEBS as a standard feature. This will drive the market during the forecast period.

 

By Application Analysis

Governments worldwide prioritize road safety, driving the growth of ADAS sensors markets in passenger vehicles. ADAS systems, incorporating machine learning and artificial intelligence, enhance autonomous vehicles' safety-critical functionality. Technological advancements include memory protection units, multifunctional sensors, and fusion sensor technology. Autonomous driving-as-a-service and premium vehicles fuel market competition. Regulatory authorities mandate safety standards, driving acquisitions and partnerships among automakers and automotive electronics companies. Ultrasonic sensors, LiDAR, high-definition cameras, adaptive front lights, cross traffic alert, and transceivers are essential components. Proactive measures, such as machine learning and AI, mitigate road mishaps. However, workforce shortage in the automotive industry poses a challenge. Key players include Bosch, Continental AG, and Magna International.

Geographical Analysis

Europe is estimated to contribute 32% 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 a significant market for technologies due to the presence of global automobile manufacturers and luxury vehicle brands like BMW, Audi, and Mercedes-Benz. The market encompasses radar and camera sensors used in passenger cars and commercial vehicles. In developed countries, government regulations, economic stability, and disposable income drive the demand for advanced safety features, including night vision systems and drowsiness monitoring systems. Traditional ADAS systems, such as automatic emergency braking, lane departure warning, and adaptive cruise control, are increasingly common in compact passenger cars and luxury vehicles. Strategic initiatives by automobile manufacturers to enhance vehicle electrification and automation further fuel market growth. Valuation of this market is influenced by factors like competitive edge, purchase decisions, speed, and cases of road accidents. Key technologies include sensors, processors, software, and traditional systems like radar and cameras. The market spans passenger cars, commercial vehicles, and light commercial vehicles, with a focus on Vision Zero and safety enhancements.

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Who are the Major Automotive Sensors Market Market Players?

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. One of the major players in the market include:

Teledyne Technologies - The company offers sensors where its thermal cameras see through a wide variety of conditions, including darkness, sunlight, glare from vehicle headlights, and shadows, almost 24 hours a day. Through its Instrumentation business segment, the company offers test and measurement, monitoring and control instrumentation, and power and communications connectivity devices for marine, environmental, electronics, and other applications.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:

• Aptiv
• Asahi Kasei Corp.
• Autoliv Inc.
• Continental AG
• Denso Corp.
• Gentex Corp.
• HELLA GmbH and Co. KG
• Henkel AG and Co. KGaA
• Infineon Technologies AG
• LeddarTech Inc.
• Magna International Inc.
• OMNIVISION Technologies Inc.
• ON Semiconductor Corp.
• Robert Bosch GmbH
• Samsung Electronics Co. Ltd.
• Siemens AG
• Sony Group Corp.
• STMicroelectronics NV
• Texas Instruments Inc.

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. Furthermore, it is also quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The market is pivotal for the automotive industry, particularly in the wake of evolving technology and safety standards. Automotive manufacturing plants worldwide depend on a robust global supply chain for crucial raw materials. As a key component in advanced driver assistance systems (ADAS) and the growing trend of vehicle automation, electronic sensors, including position sensors, play a vital role. With the rise of connected cars, fuel efficiency standards, and international safety measures, the demand for innovative automobile sensors intensifies.

Ongoing technology developments, especially in electrification and autonomous driving, drive the integration of self-driving systems, enhancing safety and turning maneuvers. Government initiatives focus on implementing safer automotive systems, particularly concerning vulnerable road users and reducing side-impact collisions. Stringent safety requirements and regulations aim to lower injury and death rates, promoting the use of safety sensors with advanced security features. Addressing concerns about vehicle pollution and fuel efficiency, regulatory bodies set guidelines that impact fleet-level requirements and influence vehicle sales, including the growing market for electric vehicles (EVs). The intersection of ADAS, traffic congestion, and road safety forms crucial entry barriers and shapes the regulatory environment for the Automotive Sensors market, defining its trajectory in the evolving landscape of the industry.

Segment Overview

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

• Product Outlook
  • Radar sensor
  • Image sensor
  • Ultrasonic sensor
  • Infrared sensor
  • LiDAR sensor
• Application Outlook
  • Passenger vehicle
  • Commercial vehicle
• Region Outlook
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • North America
    • The U.S.
    • Canada
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Brazil
    • Argentina
    • Chile

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 23.33%
Market growth 2023-2027	USD 49.15 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	22.39
Regional analysis	Europe, North America, APAC, South America, and Middle East and Africa
Performing market contribution	Europe at 32%
Key countries	US, Japan, China, Germany, and France
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Aptiv, Asahi Kasei Corp., Autoliv Inc., Continental AG, Denso Corp., Gentex Corp., HELLA GmbH and Co. KG, Henkel AG and Co. KGaA, Infineon Technologies AG, LeddarTech Inc., Magna International Inc., OMNIVISION Technologies Inc., ON Semiconductor Corp., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Siemens AG, Sony Group Corp., STMicroelectronics NV, Teledyne Technologies Inc., and Texas Instruments Inc.
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, Market condition analysis for 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 and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting  between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East, and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about vendors
• Detailed analysis of customer landscape covering Diver of price sensitivity, Adoption of the lifecycle, and key purchase criteria
• Vendor landscape comparing criticality of inputs and factors of differentiation
• Exclusive Matrix on vendor position and classification
• Comprehensive analysis of factors that will challenge the growth of market vendors

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