Advanced Driver Assistance Systems Market Size, Share & Trends Analysis Report By Solution (Adaptive Cruise Control, Blind Spot Detection), By Component, By Vehicle, And Segment Forecasts, 2018 - 2025

Industry Insights

The global Advanced Driver Assistance Systems (ADAS) market size was estimated at USD 14.15 billion in 2016. Increasing demand for these systems in compact cars is anticipated to be a key factor driving market growth. Additionally, increasing government regulations for mandatory implementation of ADAS in vehicles is anticipated to grow the demand for these systems over the forecast period.

The rising demand for advanced systems such as drowsiness monitoring, night vision, and road sign recognition system is expected to impact the overall industry over the next seven years. The demand for traditional ADAS systems such as adaptive cruise control, autonomous emergency braking system is anticipated to grow exponentially owing to increased government regulations to reduce road accidents and improve road safety. For instance, the European Union has passed a bill that mandates the implementation of adaptive cruise control systems in heavy commercial vehicles by 2020, which is further projected to spurs the industry demand for these systems in European countries.

The market has high growth potential, however, the lack of awareness of these system among most of the vehicle owners decelerates the market growth. Additionally, high cost of these systems ultimately increases the overall cost of cars and is considered to reduce the preference of car owners to adopt such systems.

Solution Type Insights

The report has been segmented based on type of ADAS solutions into adaptive cruise control, blind spot detection, park assistance, lane departure monitoring system, tire pressure monitoring system, autonomous emergency braking, and adaptive front lights. Among all these solution types, TPMS captured the highest market share in 2016, owing to its low price which enables aftermarket adoption by small and medium car owners. Moreover, the adaptive cruise control market is expected to grow at a significant CAGR of 19.0% over the forecast period, owing to government regulation for mandatory fitment in cars manufactured in the U.S. and Europe.

The high cost of installation, lack of awareness among low and medium-end customers regarding the importance and functionality of these systems in improving driver safety has hindered the ADAS industry growth over the past few years. In order to cope up with this issue, automotive manufacturers are marketing these systems on large scale. Moreover, governments across various regions are also offering subsidies to automotive manufacturers for implementing safety systems in cars.

Component Insights

Based on component type, the market has been segmented into processor, sensors, software, and others. The working of ADAS is primarily dependent on sensors and their functional accuracy, various sensors such as RADAR, LIDAR, camera, ultrasonic and other sensors work together in order to perform desired safety and assistance function. Among different sensor types, Lidar sensors are expected to gain high traction owing to its crucial importance in automation of vehicles.

The demand for ADAS processors is expected to witness high growth over the next eight years. The growth can be attributed to the complex algorithms of the ADAS functionality, companies such as Intel Corporation are working on the ECU consolidation in order to lower the number of ECU used for each function separately. Further, it is expected that upon consolidating the ECUs, the total cost of the ECUs that are used in a vehicle could reduce up to 20% depending upon the number of stages involved in the consolidation.

Vehicle Type Insights

Based on types of vehicles, the market has been classified into passenger cars and commercial vehicles. ADAS is implemented majorly in high-end luxury cars owing to the high price of these system, thus there is significantly less adoption within the commercial vehicle sector.

Among different commercial vehicles, the light commercial vehicles captured the largest share in 2016. However, the European Union has directed automotive manufacturers to implement basic ADAS functions such as lane departure warning system, adaptive cruise control, and autonomous emergency breaking in all heavy commercial vehicles by 2020, which is expected to rise the demand for ADAS in heavy commercial vehicles over the forecast period.

Regional Insights

North America dominated the global ADAS market with over 34% share in 2016. The regional growth is mainly driven by the presence of major players, technological advancement, better infrastructure facilities for manufacturing, enhanced economic condition, and higher adoption rate of new technologies in the region.

Rise in demand for advanced driver safety systems in the emerging economies such as India, owing to high rate of road accidents and increasing sales of high-end vehicles in the region. Asia Pacific is projected to exhibit fastest growth over the forecast period with a CAGR 20.5% from 2017 to 2025. European region, however is expected to witness a slight fall in share, owing to market saturation with most of the existing ADAS functionalities.

ADAS Market Share Insights

The ADAS industry is highly competitive and fairly concentrated, with top five companies accounting for over 43% market share in 2016. Key players including Continental AG, Autoliv Inc., Magna international, Mobileye N.V, and Hyundai Mobis dominated the global ADAS market. Innovative technology and low prices are expected to be a key parameter for being competitive, with frequent mergers and acquisitions being undertaken as an attempt to diversify the product portfolio and gain market share.

Report Scope

Segments Covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global ADAS market report on the basis of solution, component, vehicle and region:

• Solution Type Outlook (Revenue & Volume, 2014 - 2025)

  • 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 (Revenue & Volume, 2014 - 2025)

  • Processor

  • Sensors

    • Radar

    • Ultrasonic

    • LiDAR

    • Others

  • Software

  • Others

• Interior Design Outlook (Revenue & Volume, 2014 - 2025)

  • Passenger car

  • Commercial vehicle

    • Light commercial vehicle

    • Heavy commercial vehicle

• Regional Outlook (Revenue & Volume, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • United Kingdom

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa