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, 2022 - 2030

Report Overview

The global advanced driver assistance system market size was valued at USD 12.9 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 18.2% from 2022 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. The market witnessed negative growth during the first half of 2020 due to the growing spread of COVID-19. Due to the global lockdowns, various assembly units and manufacturing units witnessed a temporary closure. Lower automotive sales hampered the adoption of ADAS for the coming quarters in 2021, thereby hampering the market growth. However, by 2022, the ADAS market is anticipated to witness significant growth owing to driver safety assistance mandates laid by various countries across the globe.

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.

Advanced Driver Assistance System Market Trends

The rising awareness towards the safety and comfort of passenger cars with the integration of advanced diver assistance system (ADAS) has driven the market's growth. The increasing government mandates regarding implementing the ADAS in the vehicles for safety of the passenger in the developed nations such as the U.S., Japan, China, and Germany is further propelling the market growth. For instance, India is focused on making autonomous emergency braking (AEB) and electronic stability control (ESC)in cars by 2022-2023 to avoid chances of accidents.

Furthermore, rapid urbanization, improving living standards, and rising per-capita fuel the adoption of cars. Hence, increasing the incorporation of these systems. Moreover, the rising demand for luxury cars in developed nations due to major players such as Volkswagen, Audi AG, and Mercedes Benz is further driving the growth of the advanced driver assistance system.

Growing safety awareness and increasing the frequency of accidents drive the ADAS industry. The demand for advanced systems such as emergency braking systems, night vision systems, and road sign recognition systems, coupled with the technological advancement in the vehicle. Moreover, the rising acceptance of the autonomous vehicle or self-driving vehicle is further driving the market growth.

Solution Type Insights

The tire pressure monitoring system segment dominated the market in 2021 and accounted for the highest market share of 19.8%. The segment growth can be attributed to the low price of these systems, which permits aftermarket adoption by small and medium car owners. Based on solution type, the market is segmented into adaptive cruise control, park assistance, blind-spot detection system, lane departure monitoring system, Autonomous Emergency Braking (AEB), tire pressure monitoring system, and adaptive front lights, and others.

The autonomous emergency braking segment of the advanced driver assistance systems (ADAS) market is expected to expand at a significant CAGR of 21.0% over the forecast period. Government regulations for the mandatory fixture of these systems in cars manufactured in the U.S. and Europe are anticipated to contribute to the growth of this segment. The AEB is designed and developed to slow down and stop the vehicle before it hits an object.

Components Type Insights

The Lidar sensors segment is anticipated to gain high traction owing to the substantial importance of this component in vehicle automation. The sensors segment accounted for more than 33% of the revenue share in 2021. Based on component type, the market is segmented into sensor, processor, software, and others. 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 software segment is expected to expand at a CAGR of 19.0% over the forecast period. ADAS software gathers and authenticates data from all sensors to detect the vehicle’s complete surroundings and take instant actions for the driver’s safety. These actions can be based on an analysis of traffic participants, traffic density, and foreseen traffic scenarios.

Vehicle Type Insights

The passenger car segment dominated the market in 2021 and accounted for the highest revenue share of more than 74%. 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, 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 CAGR of 17.3% 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 37.1% in 2021. 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 a CAGR of 19% 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 that dominated the advanced driver assistance systems market in 2021 include Continental AG; Autoliv Inc.; Magna international; Denso Corporation; and Mobileye N.V. These 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. In January 2018, Infineon Technologies AG announced its partnership with Baidu for its Apollo Program of self-driving vehicle development. This alliance benefited Infineon in gaining a higher market share in ADAS as well as self-driving cars markets. Some of the prominent players operating in the global advanced driver assistance system market are:

• Denso Corporation

• Continental AG

• Infineon Technologies AG

• Magna International

• Autoliv Inc.    

Advanced Driver Assistance System Market Report Scope

Global Advanced Driver Assistance System Market 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 report based on solution type, component type, vehicle type, and region:

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

  • Adaptive Cruise Control

  • Blind Spot Detection System

  • Park Assistance

  • Lane Departure Warning System

  • Tire Pressure Monitoring System

  • Autonomous Emergency Braking

  • Adaptive Front Lights

  • Others

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

  • Processor

  • Sensors

    • Radar

    • Ultrasonic

    • LiDAR

    • 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

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa