Advanced Driver Assistance System Market Size, Share & Trends Analysis Report By Solution Type (Adaptive Cruise Control, Blind Spot Detection, Park Assistance), By Component Type, By Vehicle Type, By Region, And Segment Forecasts, 2023 - 2030

Market Size & Trends

The global advanced driver assistance system market size was valued at USD 30.61 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 11.0% from 2023 to 2030. The growing demand for advanced driver assistance systems (ADAS) in compact passenger cars is projected to be a prime factor driving the market growth. Increasing government regulations for mandatory implementation of ADAS in vehicles are anticipated to further drive the demand. Growing disposable income, economic stability, and a rising preference for materialistic lifestyles are driving the sales of luxury vehicles worldwide.

Developed countries such as the U.S., Canada, Japan, Spain, South Korea, and Germany accounted for a majority share of luxury car owners. However, developing countries such as India and China are witnessing high growth in the sales of luxury cars in the last few years. Germany is the most lucrative luxury car market owing to the presence of major leading players such as BMW, Mercedes-Benz, Audi AG, and Volkswagen. It is also the largest exporter of luxury cars worldwide with the U.S. being one of the largest consumer markets for all types of luxury vehicles.

The rising demand for advanced systems such as road sign recognition systems, night vision systems, and drowsiness monitoring systems is expected to impact the overall market growth in the forthcoming years. The demand for traditional ADAS systems, including autonomous emergency braking systems and adaptive cruise control systems, is expected to grow exponentially due to increased government regulations to improve road safety and reduce road accidents. For instance, the European Union (EU) passed a bill that mandated the implementation of adaptive cruise control systems in all heavy commercial vehicles by 2020. Such mandates and regulations are projected to provide lucrative growth opportunities for the advanced driver assistance systems market over the forecast period.

Vehicle electrification is creating lucrative growth opportunities in the field of vehicle automation. Thus, most of the market leaders are investing heavily in autonomous vehicle technology. The integration of ADAS is one of the primary requirements for vehicle automation. The integration of different ADAS sensors such as Radar, LIDAR, and cameras is expected to help companies reach the near-to-accurate mark in vehicle automation.

Solution Type Insights

The adaptive cruise control (ACC) segment dominated the market in 2022 and accounted for the highest market share of 19.7%. The segment growth can be attributed to increased demand for safety features, technological advancements such as sensor and radar technology, and government regulations that mandate the inclusion of ACC systems in certain vehicles, such as commercial vehicles.

The blind spot detection system (BSD) segment is estimated to register the fastest CAGR of 13.4% over the forecast period.BSD systems use sensors to detect vehicles in a driver's blind spot, and they alert the driver with visual or audible warnings. This helps to prevent accidents caused by drivers changing lanes without checking their blind spots.In addition to the increasing demand for safety features, the BSD segment is also growing due to technological advancements. It has become more affordable and reliable in recent years.

Components Type Insights

Based on component type, the advanced driver assistance system market is segmented into sensor, processor, software, and others. The sensor segment accounted for the largest revenue share of 31.9% in 2022 is estimated to register the fastest CAGR of 12.3% over the forecast periodowing to the substantial importance of this component in vehicle automation. The functioning of ADAS is primarily dependent on sensors and their functional accuracy. LIDAR, RADAR, ultrasonic, camera, and other sensors work together to perform the desired assistance and safety function.

The processor segment is expected to expand at a significant CAGR over the forecast period. the growth is attributed to the increasing demand for more powerful and sophisticated ADAS features. ADAS systems require powerful processors to run the complex algorithms that are used to detect objects, track movement, and make decisions.More powerful processors can enable ADAS systems to perform more complex tasks, such as lane-keeping assistance and adaptive cruise control.

Vehicle Type Insights

The passenger car segment accounted for the largest revenue share of 73.4% in 2022 is estimated to register the fastest CAGR of 11.2% over the forecast period. The segment growth can be attributed to the increased demand for safety systems in developing markets due to growing consumer awareness, supporting legislation, and improving road safety standards. Based on vehicle type, the market can be segmented into passenger cars and commercial vehicles.

Several countries in the Asia Pacific, North America, and Europe have introduced regulations that mandate the integration of several types of ADAS in the passenger car segment. The European Union has defined Vision Zero, as an initiative to decrease road deaths to zero by the end of 2050. The regulatory body has targeted to decrease injuries and fatalities by 50% by the end of 2030. The initiative also mandates main safety features such as automatic emergency braking, lane departure warning, and attention and drowsiness detection in new passenger vehicles by 2022.

The commercial car segment is projected to expand at a significant CAGR over the forecast period. Among different commercial vehicles, the light commercial vehicles segment accounted for the largest market share in 2021. However, the European Union has directed automotive manufacturers to implement basic ADAS functions such as lane departure warning systems, adaptive cruise control systems, and autonomous emergency braking systems in all heavy commercial vehicles, which is expected to increase the demand for ADAS in heavy commercial vehicles over the forecast period.

Regional Insights

North America holds the highest market share of 32.9% in 2022. The growth of this region is driven by the technological advancement in the automotive industry and the presence of major players in the region. Furthermore, the higher adoption rate of new technology, along with improved economic conditions in the region. The rising fatality rate and increase in sales of high-end vehicles in countries such as Canada and the U.S. in this region is driving the market growth.

Asia Pacific region is anticipated to grow at the fastest CAGR of 12.3% over the forecast period. The growth of the Asia Pacific can be attributed to the increased usage of advanced electronics and the high production of automobiles in countries such as Japan, China, and South Korea. Government initiatives such as the implementation of emergency brake systems and adaptive cruise control systems to encourage OEMs to enter the market. Several European and American manufacturers such as Mercedes Benz, Volkswagen, and General Motors have shifted their production plants to these countries.

Key Companies & Market Share Insights

The prominent players are focusing on geographic expansions and new product launches to enhance their presence in the market and gain a competitive edge. These initiatives also assist in creating awareness regarding driver safety among end-users. The market players are also focusing on undertaking various strategic initiatives, mergers, and acquisitions, agreements and contracts, and partnerships to enhance their position in the market. For instance, in September 2021, Continental AG (Continental) and Beijing Horizon Robotics Technology R&D Co., Ltd. announced a Joint Venture (JV) contract. The JV focuses on providing software and hardware-integrated solutions for advanced driver assistance systems and autonomous driving.

Recent Developments

• In June 2023, Continental AG announced the development of low-cost ADAS (Advanced Driver Assistance Systems) for Indian cars and two-wheelers. The company aims to make vehicles in the Indian market safer and more affordable.

• In June 2023, Continental introduced a new high-performance computer (HPC) for cars. It integrates the cluster, infotainment, and advanced driver-assistance systems (ADAS) into a single unit.

• In January 2023, NXP Semiconductors, the U.S.-based automotive radar manufacturer, launched a new one-chip radar IC series for next-generation ADAS and automated driving systems. The SAF85xx series combines NXP's advanced radar detector and processing technologies into a single device, providing tier-one suppliers and original equipment manufacturers (OEMs) with greater flexibility. It also, addresses short to long-range radar applications that comply with progressively meticulous NCAP safety requirements.

• In November 2022,  Continental AG opened its largest ADAS, ABS, and component R&D facility in Bengaluru. The center has been making significant contributions to the development of software for radar-based driver assistance systems and single-channel ABS systems, which are commonly utilized in smaller-capacity motorcycles.

• In September 2022, TERAKI, a sensor processing manufacturer unveiled the latest radar detection software, which accurately identifies static and moving objects while using less computational power. The real-time traffic system is powered by ASIL-D compatible Infineon Technologies AG AURIX TC4x microcontrollers.

• In June 2022, Valeo and BMW signed an agreement to collaborate on the development of advanced driver assistance systems (ADAS) for BMW's forthcoming ‘Neue Klasse’ platform generation. Valeo plans to supply the ADAS domain controller, sensors, and parking and maneuvering software. The new platform is set to go live in 2025.

Advanced Driver Assistance System Market Report Scope

Global Advanced Driver Assistance System Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global advanced driver assistance system market based on solution type, component type, vehicle type, and region:

• Solution Type Outlook (Volume, Million Units; Revenue, Billion, 2018 - 2030)

  • Adaptive Cruise Control (ACC)

  • Blind Spot Detection System (BSD)

  • Park Assistance

  • Lane Departure Warning (LDWS) System

  • Tire Pressure Monitoring System (TPMS)

  • Autonomous Emergency Braking (AEB)

  • Adaptive Front Lights (AFL)

  • Others

• Component Type Outlook (Volume, Million Units; Revenue, Billion, 2018 - 2030)

  • Processor

  • Sensors

    • Radar

    • LiDAR

    • Ultrasonic

    • Others

  • Software

  • Others

• Vehicle Type Outlook (Volume, Million Units; Revenue, Billion, 2018 - 2030)

  • Passenger Car

  • Commercial Vehicle

    • Light Commercial Vehicle

    • Heavy Commercial Vehicle

• Regional Outlook (Volume, Million Units; Revenue, Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa

    • Saudi Arabia

    • South Africa

    • UAE