May 18, 2024

Advance Driver Assistance System Market is Estimated to Witness High Growth Owing to Increasing Demand for Automated Driving Features

Advance driver assistance systems (ADAS) are electronic systems installed in vehicles to aid the driver while driving and parking. Some of the major ADAS includes adaptive cruise control, lane departure warning, park assist, blind spot monitoring, and adaptive front lighting. The technology enables features like automated emergency braking and traffic jam assist, thereby enhancing safety and facilitating driving. The growing demand for advanced safety features, comfort, and convenience from premium and luxury vehicles is primarily driving the adoption of ADAS.

The Global ADAS market is estimated to be valued at US$ 33.99 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the Advance Driver Assistance System are Aptiv, Continental AG, Denso, Hyundai Mobis, Magna International, Robert Bosch, Valeo, Veoneer, ZF Friedrichshafen, and others. With the growing adoption of electric and autonomous vehicles, key players are focusing on developing innovative ADAS technologies to enhance safety, reliability and overall driving experience.

The key opportunities in the market include growing demand for semi-autonomous and autonomous vehicles from mobility service providers. Many automakers are also partnering with tech companies to integrate advanced technologies for developing self-driving vehicles. Additionally, growing integration of ADAS features in compact and mid-size vehicles is expected to drive the future growth.

Technological advancements such as artificial intelligence, 5G connectivity, and automotive operating systems are enabling applications of ADAS like adaptive cruise control, automated parking, and traffic jam assist in compact vehicles as well. This is expected to supplement the demand for ADAS solutions in the coming years.

Stringent safety regulations – Growing safety concerns and implementation of regulatory mandates requiring incorporation of basic ADAS features like AEB, lane departure warning are driving the demand.

Increasing demand for premium vehicles – Customers increasingly willing to spend more on luxury and convenience features advanced vehicles. This is propelling the need for advanced driver assistance features.

Demand from shared mobility sector – Growing adoption of shared mobility services is propelling the need for automating driving tasks and integrate advanced driver assistance solutions to reduce costs.

Current challenges in Advance Driver Assistance System Market
The Advance Driver Assistance System market is facing several challenges currently which can hamper its growth going ahead if not addressed properly. One of the major challenges is developing advanced software for ADAS that can help vehicles take better decisions in complex driving scenarios and read traffic conditions accurately. Software is the core of any ADAS system but developing sophisticated algorithms is technically challenging and time consuming.
Another challenge is building advanced sensors that can detect objects accurately in all weather and lighting conditions. Sensors like cameras and radars find it difficult to identify objects in heavy rain, fog or low light conditions reducing the effectiveness of ADAS features. High costs of these sensors is also a barrier for mass adoption of advanced driver assistance technologies. Ensuring safety and avoiding overreliance on ADAS systems by drivers is also a challenge that manufacturers need to address. Lack of infrastructure like proper road signage in many countries pose limitations. Strict regulations and standardisation across markets also impact the growth prospects.

SWOT Analysis
Strength: ADAS provides safety benefits by assisting drivers to avoid accidents. Its features like automatic emergency braking, adaptive cruise control make driving safer and more convenient.
Weakness: High development costs of advanced technologies like sensors, processors, and deep learning algorithms. Dependence on expensive hardware increase bill of materials.
Opportunity: Growth in autonomous driving brings more investment and focus on driver assistance technologies. Supportive regulations can accelerate adoption of ADAS systems across vehicle segments.
Threats: Cyber security threats from unauthorised access to vehicle control systems. Disputes among technology giants on setting uniform standards can delay mass deployment of ADAS.

Geographical regions of concentration
North America and Europe currently account for over 65% of the global ADAS market in terms of value owing to high vehicle production and presence of automotive technology leaders. Stringent safety norms and increasing demand for luxury vehicles have boosted installations of advanced driver assistance systems in these developed regions.

Fastest growing region
However, the Asia Pacific region is expected to witness the fastest growth during the forecast period driven by large automotive manufacturing hubs in China, Japan and South Korea. Increasing purchasing power, rising road accidents and implementation of safety features are driving the mass adoption of ADAS in India and other Asian economies. Proactive government initiatives are also promoting automated driving technologies across Southeast Asia and Australia.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it