Global Advanced Driver Assistance Systems (ADAS) Market All Set to Flourish: Expected to Reach USD 69.4 Billion in 2027
According to a study conducted recently by the strategic consulting and market research firm, BlueWeave Consulting, the global Advanced Driver Assistance Systems (ADAS) market was worth USD 25.1 billion in 2020 and is further projected to reach USD 69.4 billion by 2027, at a CAGR of16.4% during 2021–2027 (forecast period). The increasing demand for a safe, efficient, and convenient driving experience as well as the rising demand for luxury vehicles across the globe are the key factors driving the growth of the ADAS market. Additionally, theOriginal Equipment Manufacturers (OEMs) and government regulatory authorities are taking necessary steps to improve transportation by addressing major challenges like road accidents, traffic congestion, and the cost of transportation. As a result of the high scale of growth of the automotive industry, many sensor technologies are being used to make driving comfortable, luxurious, and safe.
Advanced driver assistance system (ADAS) is a set of electronic systems used in vehicles to deliver an intelligent and comfortable driving experience. These electronic systems are used in vehicles that use advanced technologies to assist the driver. ADASmay includes several active safety features. The terms “ADAS” and “active safety” are often used interchangeably.ADAS perceives the environment around the vehicle using sensors such as radar and cameras in the vehicles. Based on its perception, it either provides information to the driver or takes automatic action based on what it perceives.
Government InitiativesAccelerating the Growth of ADAS Market
Government regulations that aim to minimize road accidents and loss of passenger lives, coupled with the growing need for Transportation Management Systems (TMS), especially across the logistic sectors are driving the demand of the automotive electronics market. Government initiatives, such as Make in India, along with factors such as prevailing low labor costs in emerging economies, have led to an increase in the production of Light Commercial Vehicles (LCVs) and passenger cars. For instance, the European Union has outlined Vision Zero, an initiative to mitigate road deaths to zero by 2050. The authority has targeted to reduce fatalities and injuries by 50% by 2030. Additionally, the National Safety Council and the National Transportation Safety Board held a roundtable discussion on July 24, 2017,on advanced driver assistance systems and how commercial fleets (heavy trucks) can increase acceptance of the life-saving ADAS technology. Such fruitful Government initiatives are playing a key role in driving the growth of the market.
Global Advanced Driver Assistance Systems (ADAS) Market: Vehicle Insights
The passenger car segment is expected to dominate the ADAS market over the forecast period 2021–2027. Rapid urbanization and increasing consumer spending on automobiles have enhanced product demand. Rising consumer awareness concerning road safety, along with governmental regulations are a few major growth factors supporting industry demand. Additionally, several countries in Europe, North America, and the Asia-Pacific have introduced regulations that mandate the incorporation of various types of ADAS in the passenger car segment.
Global ADAS Market: Regional Insights
Geographically, North America dominates the overall ADASmarket and is expected to dominate the market over the forecast period, followed by Europe. The U.S is the leading country in the North American region owing to extensive research and development facilities that have made significant investments in smart automotive production methods and process automation. Also, the Asia-Pacific is projected to exhibit the fastest growth owing to rising disposable income levels, increased vehicle production in developing countries like India and China, an increase in the number of luxury vehicles in countries, thus, driving the growth of the ADAS market.
The presence of leading players in this market space greatly decreases the opportunities for new entrants to the market as it is difficult to match the high capital requirements. Some of the key players include Robert Bosch, ZF Friedrichshafen, Denso, Aptiv, Brentwood Industries Inc., Enexio, Intel, NVIDIA, Continental, Valeo, Hella, Magna, Samsung, Aisin Seiki Co. Ltd, Delphi Technologies, Harman International, NXP Semiconductor, Panasonic Corporation, Hyundai Mobis, and other prominent players. In order to improve their production capability, product portfolio, and provide competitive differentiation, companies are increasingly participating in acquisitions, alliances, and mergers.