Advanced Driver Assistant System (ADAS) Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Advanced Driver Assistant System (ADAS) Category Overview

The advanced driver assistant system category is expected to grow at a CAGR of 18.2% from 2023 to 2030. The Asia Pacific region accounts for the largest category share. Factors such as the increasing awareness for road safety, concerns with regard to safety mandate from the government, effective R&D for ADAS element design, and advanced development in technology are driving the growth of the category.

One of the key trends is the increasing use of emerging 5G technology with the integration of the Internet of Things (IoT) to implant the product in budgeted car segments. Government mandating Electronic Stability Control (ESC) to be installed on each vehicle, which is the initial requirement for developing ADAS, there is an increased probability to have the product installed in every segment.

Intelligent ADAS systems are growing due to the development of IoT, a technology that uses AI and ML to implant smart features like intelligent forecasting, servicing beforehand, more efficient troubleshooting, and getting vehicle-related information. Companies are focused on the development of such technologies on all segments of cars to adhere to government regulations regarding health and road safety. Major development in 5G has helped in improving connectivity between sensor modules, cameras, and radars to deliver real-time information efficiently to cloud-based platforms. Ericsson is one of the key players providing connected vehicle cloud service.

Artificial Intelligence plays a vital role in computing functional requirements for ADAS systems by integrating surround cameras, sensors, and LiDAR to collect and process data for the product. With continuous advancements in technology, players like Nvidia and Qualcomm are heavily investing in this category. In 2021, Qualcomm came forward to collaborate with their snapdragon ride system on a chip for BMW platforms. In 2022, Israel-based company, Hailo made its collaboration with Renesas, a player in the semiconductor category to deliver an energy-efficient, reliable solution to provide an ADAS system to OEM in order to target cars in the budgeted segment due to its cost-efficient feature.

LiDAR, a laser-based measuring technology is used to create a system known as Adaptive Cruise Control (ACC), to maintain healthy distance from objects on road uses. Being the most important component of ACC, which is developed through ADAS, creates a surge in demand for the product. The market for LiDAR lies at USD 1.4 billion in 2023. The U.S.-based company, Faro Technologies is the largest player in the LiDAR segment. The top players supplying LiDAR systems are GMR Infrastructure Ltd., DENSO Corp., Phoenix LiDAR Systems, and FARO Technologies Inc.

Rising safety measures and health awareness post covid-19 pandemic have gained the market cap of the category by about 20-25%. It has caused an increase in demand for its core components such as the mono vision camera and image processor. Image processor constitutes the major cost component of about 52%. Semiconductors that act as raw material for OEM's have seen a surge in the import cost in the U.S. at about 8% after recovery. Shortages of semiconductors due to a disrupted supply chain have drastically affected the cost of raw materials used in the product. To retain the flow, the industry has ordered a surplus of 10 to 20% semiconductors to meet requirements in the future.

With several local and foreign businesses participating in the industry, the Advanced Driving Assistance Systems competitive environment is highly fragmented. To achieve a competitive edge, category participants are putting their attention on product innovation, enhancing their product lines, and establishing alliances and partnerships. To strengthen their market position and broaden their customer base, they are rapidly expanding the services being offered through technological advancements. Some of the major players operating are using a variety of strategies, including product differentiation, product launches, and partnerships. 

Advanced Driver Assistant System Procurement Intelligence Report Scope