Advanced Driver Assistance Systems (ADAS) Market Size, Share & COVID-19 Impact Analysis, By System Type (Adaptive Cruise Control, Blind Spot Detection, Park Assist, Lane Departure Warning System, Autonomous Emergency Braking, Forward Collision Warning, Tire Pressure Monitoring, Head-Up Display, Intelligent Headlights, Forward Collision Warning, E-Call System), By Component Type (LiDAR, Radar, Camera, Sensors), By Vehicle Type (Passenger Car, Light Commercial Vehicle, and Heavy Commercial Vehicle), and Regional Forecasts, 2021-2028

The global advanced driver assistance system market size was valued at USD 37.31 billion in 2021 and is projected reach USD 124.31 billion by 2029 from its value USD 43.62 billion in 2022, at CAGR of 16.1% during the forecast period. The Asia Pacific dominated the Automotive Advanced Driver Assistance System Market with a share of 43.82% in 2021. Based on our analysis, the global market exhibited a growth of 18.12% in 2020 as compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with automotive advanced driver assistance system experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels.

The advanced driver assistance system covers a wide range of active and passive systems designed to assist the driver by providing safety, comfort, and efficiency while driving and also improves driver, passenger, and pedestrian security and safety. ADAS has multiple vital components such as sensors, cameras, radars, and software that help the system function precisely. Autonomous emergency braking, park assist, adaptive cruise control, and lane warning departure system are a few of the many systems included in the ADAS. Artificial Intelligence (AI) has taken the automotive industry to the next level. Moreover, the increase in urbanization, expansion in industrialization, improving standards of living, and rise in disposable income are positively impacting the growth of this market.

Driver’s negligence and errors cause most accidents. According to the National Motor Vehicle Crash Causation Survey (NMVCCS), more than 90% of car crashes in the U.S. are caused by driver error. ADAS helps reduce traffic congestion and road accidents and enhances the safety and security of vehicles, occupants, and pedestrians. Furthermore, the governments of various regions are spending a lot on adopting advanced technologies, developing safety features, and supporting automated vehicles across the globe. Also, the governments have made it mandatory for automotive manufacturers to integrate different advanced driver assistance systems into all cars.

COVID-19 IMPACT

Reduced Overall Automobile Sales During COVID-19 Pandemic Led to a Short-term Decline in Market Growth

The COVID-19 crisis led to supply chain disruptions and the suspension of vehicle production, which brought the automotive industry to a halt. Governments’ lockdown measures impacted the production industry and workforce. Though many tech companies could continue to run their operations through remote work, automotive manufacturing and automotive-related industries could not continue their operations. Major impacts on ADAS and autonomous vehicle technologies include:

• Research and development of Robotaxi were significantly affected by the financial turbulence during COVID-19. Robotaxi deployments are expected to delay by a few years due to the economic impact on key players working on this technology.


• ADAS and low-level autonomous driving will bounce back once the economy rebounds. A revival in ADAS is anticipated post-2021; however, this market witnessed a downward trend due to the reduction in automotive demand.

Companies working to develop completely autonomous driving systems will still have to rely on remote operators, backup drivers, and other human staff. As such, advancements toward complete automation were slowed down majorly due to COVID-19 restrictions. With the connected car and autonomous driving technologies market taking shape, ADAS will continue to grow. Moreover, in the short term, this market has been seriously impacted by COVID-19. However, in the medium and long term, the demand for ADAS technology will pick pace with the rise in demand for driverless vehicles, and markets will return to normal.

LATEST TRENDS 

Improving Automotive HMI Design Due to Increasing Consumer Preference toward Autonomous Driving is One of the Key Advanced Driver Assistance System (ADAS) Market Trends

The growth of the ADAS market ultimately depends upon undistracted interaction with the driver. Improved vision systems, sensors, advances in touchscreen technology, and connectivity infrastructure help ensure easier interaction with the driver and passengers when the vehicle is parked. However, for enhancing the driving experience, the advancement in Human-Machine Interface (HMI) vehicular systems seems to be the most promising trend.

Systems for driver interaction without requiring drivers to move their hands from the steering wheel are known as contact-less HMI systems. Voice-operated and advanced driver monitoring systems that use eye-tracking technologies are some of the contactless HMI systems that replace touch-based interfaces. For instance, Texas Instruments’ Digital Light Processing (DLP) chips project high-contrast images to the imaging devices in the Head-up Displays (HUD). This helps the drivers maintain their focus on the road. ADAS possesses the abilities and features necessary to streamline the driving process and bring down the number of accidents owing to rapid advancement in sensors, HMI technologies, connectivity, and infrastructure. However, automotive electronics designers need to find cost-effective solutions for more effective implementation of ADAS technology.

Additionally, due to the rising need for safety measures in vehicles and a highly efficient driving experience, automotive manufacturers and OEMs are investing heavily in developing ADAS and automated vehicles. Also, they are preparing themselves for level-3 and beyond autonomous driving technology, owing to the growing trend for driverless or automated cars worldwide.

DRIVING FACTORS

Strict Government Regulations and Growing Consumer Demand Concerning Passenger Safety to Drive Market Growth

Increasing road accidents lead to traffic congestion and accidental deaths. From many surveys and analyses by the traffic departments of various countries, it was observed that driver’s negligence and errors caused most accidents. According to a research by the United Nations, around 1.3 million people die every year in road accidents worldwide. Moreover, governments are tremendously investing money in adopting advanced safety technologies and supporting the use of automated vehicles. Furthermore, automotive manufacturers are required to fulfill the regulations and obtain safety ratings from various organizations such as the New Car Assessment Program (NCAP), the Insurance Institute of Highway Safety (IIHS), and the International Centre for Automotive Technology (ICAT) to access the authorization of vehicles.

• For instance, Tire Pressure Monitoring Systems (TMPS) have been made mandatory in some European countries, the U.S., and South Korea from 2019-2020. At the same time, Japan and China are in the process of mandating this ADAS function.


• Also, in 2021, the Government of China and the Ministry of Industry and Information Technology (MIIT) China rolled out a bill for autonomous vehicles and developing technologies. Through this legislation, China can become the leading player in the global market.

Along with government’s support, consumers’ shifting preferences are also helping the market grow. For instance, in the vehicle's braking system, initially, drum brakes were prevalent. However, disc brakes emerged, penetrating the market quickly, and have now become a basic necessity. The additional stopping power that disc brakes provided gave birth to the emergence of Anti-lock Braking Systems (ABS), which again have become the norm. Hence, governments’ support and consumers’ fast adoption are propelling this market.

Surging Demand for ADAS from Carmakers to Drive the Market Growth. 

The advanced driver assistance system avoids distraction and assists the driver through AI and other advanced technologies. The rapid adoption of advanced technology in software algorithms, mapping, processors, cameras, and sensors has increased the applicability of advanced driver assistance systems in vehicles. Owing to continuous increase in safety and security of drivers and passengers and to curb road fatalities, manufacturers are integrating ADAS in cars. This is eventually increasing the demand for ADAS in the automotive industry.

For instance, in 2016, at the Motorshow in Geneva, Kia Motors announced the development of a partially autonomous driving car planned for 2020, and a fully-automated vehicle is to be made by 2030. Some of the technologies under development are Highway Driving Assist (HDA) and Traffic Jam Assistant (TJA). The HDA combines an Advanced Cruise Control (ACC) and a Lane Guidance System (LGS). HDA automatically maintains a safe distance from cars in front and keeps the vehicle in its lane on the highway. Additionally, it adheres to local speed limits using information from the navigation system and also assists in overtaking other cars safely on the motorway.

On the contrary, Traffic Jam Assist (TJA) is currently under development. This technology will help vehicle riders during traffic congestion by tracking the vehicle in front. This system requires sensors that keep the vehicle within its lane and maintain a safe distance from the car in front, similar to the HDA. After being fully developed, TJA will assist drivers in navigating traffic jams on often-congested roads and plan their journey accordingly. Hence, developing new ADAS features and subsequent demand from the carmakers will propel the market growth.

RESTRAINING FACTORS

Malfunctioning and High Initial Costs May Hamper the Market Growth. 

Despite the high demand for smart driver assistance systems in the automotive sector, manufacturers are upgrading the company set up by investing highly in ADAS technology to meet technological needs. The automotive advanced driver assistance system consists of adaptive cruise control, automated emergency braking, and park assist, among others. These highly advanced technological systems bring many technical challenges and complications with them. All these systems function with the help of radars, sensors, cameras, mapping, and other software. All sensors may not work all the time properly. For instance, the sensors might mistake a car in the next lane for an oncoming vehicle and apply the AEB while driving. Therefore, entirely relying on these systems may add a calculated risk of malfunctioning and failures.

Also, the dysfunction of electronic components in the ADAS may cause it to display incorrect information. Also, the high risks of cyber security threats and the complexity of handling the system may lead to vehicle accidents. Any malfunctions or forced errors in the ADAS may be dangerous and life-threatening for users.

Therefore, the key players have invested heavily in the R&D of driver assistance systems equipped with advanced technologies and AI. These premium features in automobiles incur additional costs and ultimately lead to the rise in the initial price of vehicles which may restrain the growth of this market over the forecast period.

SEGMENTATION

By System Type Analysis

Autonomous Emergency Braking (AEB) System to Hold Largest Market Share Due to Growing Demand from Passenger Cars and Commercial Vehicles

Based on system type, the ADAS market is segmented into adaptive cruise control, park assist, Autonomous Emergency Braking (AEB), lane departure warning system, forward collision warning, e-call system, and others. Autonomous Emergency Braking (AEB) held the largest market share in 2021. This system is responsible for slowing down or stopping a vehicle before impact to avoid a collision by autonomously activating the brakes. The lane departure warning system holds second place in the global market. This system assists the driver by keeping the car in its lane on the road.

The adaptive cruise control segment holds the third-largest Advanced Driver Assistance System market share. High penetration and application of ADAS in a wide range of vehicles are the deciding factors for its dominance in the global market. The parking assistance system detects the objects surrounding the vehicle and assists the driver in parking the car. The wide range of features and options that the OEMs provide propel the growth of the global market during the projected period.

By Component Type Analysis

Radar Sensor to Hold the Largest Market Share Owing to Growing Safety Awareness and Increasing Number of Accidents

By component type, the market is segmented into LiDAR, radar, camera, and sensor. Radar sensors are used in many systems such as emergency brake assists and adaptive cruise control systems. It is also expected to be the fastest-growing component over the forecast period. Further, the increasing number of accidents and growing safety awareness are the key drivers for the market growth, which resulted in increased demand for radar sensors in the U.S., China, and major European countries.

The sensor segment is anticipated to show significant growth in this market. The ADAS and automated vehicle functions require continuous data inputs from the surrounding vehicle provided by the sensors. The sensors detect everything from the seen to unseen or unnoticed. An extensive set of sensors integrated into different parts of the car helps the ADAS to monitor accurately and function quickly. The semiconductors deliver highly sophisticated ICs that integrate sensor signal chains for conditioning and processing the information. For example, automotive system designers are manufacturing systems that predict the reduction of friction between tire and road by combining data from tire pressure sensors, vehicle acceleration sensors, electronic stability control, and anti-lock braking systems.

By Vehicle Type Analysis

Passenger Car Segment to Dominate Owing to Increasing Demand for Advanced Safety Systems and Electrification in Vehicles

By vehicle type, the market is segmented into passenger cars, Light Commercial Vehicles (LCV), and Heavy Commercial Vehicles (HCV). The passenger cars segment holds the largest market share. Increasing urbanization, expansion of industrialization, and rising disposable incomes have led to increased sales and production of vehicles across the globe. Moreover, governments are spending a lot on developing advanced technologies in the automotive sector. The surge in demand for passenger cars with enhanced safety features, comfort, and efficiency in driving the Advanced Driver Assistance System market growth.

REGIONAL INSIGHTS

Asia Pacific is projected to hold the largest market share owing to the region's high sales and production of vehicles and a significant rise in the adoption of electric vehicles in China and Japan. The automotive OEMs are planning to expand their production volume and rapid technological advancements in manufacturing facilities in emerging countries such as China, India, and others. Also, lawmakers are keen to mandate ADAS features into new vehicles. For instance, the Indian Union Minister, Nitin Gadkari recently announced that India is planning to mandate adaptive cruise control in all cars to be rolled out in 2022 at the SIAM annual convention.

On the other hand, the European market is estimated to hold the second-largest share, owing to stringent government regulations imposed to curb fuel emissions. The European government is also taking initiatives to promote safety features in vehicles. For instance, the new vehicle safety regulation mandates 15 ADAS features in all cars built and sold as of 2022. This factor will ultimately propel the sales and volume of ADAS-equipped vehicles in this region.

North America is also projected to witness substantial growth in the market over the forecast period. The presence of prominent automotive manufacturing companies and the rapid adoption of advanced driver assistance systems in vehicles are leveraging the growth of the market in this region. The U.S. lawmakers are making special efforts to regulate ADAS into safety norms by mandating ADAS features such as Tire Pressure Monitoring System (TPMS) and lane departure warning system in new vehicles to be rolled out.

The rest of the world contains African and Middle Eastern countries. ADAS will experience significant growth in the Middle East countries as autonomous driving and connected car technology is on the rise. The development is more than that of the African countries due to high disposable income of the citizens of the Middle Eastern countries.

KEY INDUSTRY PLAYERS

The market is highly competitive and fragmented, with the presence of key market players such as Robert Bosch GmbH, Continental AG, ZF Friedrichshafen, Denso Corporation, Aptiv PLC, Valeo SA, Magna International Inc., Aisin Seiki Co. Ltd., Autoliv Inc., Gentex Corporation, Harman International, Hyundai Mobis, NXP Semiconductor, Mobileye N.V., Panasonic Corporation, Jayson Electronics, and Renesas Electronics Corporation, among others. These market players adopted new product launches and expansions to gain traction in the market.

Robert Bosch GmbH dominated the market earlier and is expected to continue leading the global ADAS market in terms of high sales. This is owing to a wide range of intelligent assistance solutions developed essentially for urban traffic. Additionally, continuous R&D efforts in component manufacturing are leading to technological advancements and are some of the prominent factors responsible for the dominance of this company. However, DENSO CORPORATION and Continental AG have retained their competitive positions, with DENSO CORPORATION mostly dominating the Asia Pacific region. This is projected to positively influence the market during the forecast period.

LIST OF KEY COMPANIES PROFILED:

• Robert Bosch GmbH (Germany)


• Continental AG (Germany)


• ZF Friedrichshafen AG (Germany)


• DENSO CORPORATION (Japan)


• Aptiv PLC (Ireland)


• Valeo SA (France)


• Magna International Inc. (Canada)


• Aisin Seiki Co. Ltd (Japan)


• Autoliv Inc. (Sweden)


• GENTEX CORPORATION (U.S.)


• Harman International (U.S.)


• Hyundai Mobis (South Korea)


• NXP Semiconductor (Netherlands)


• Mobileye (Israel)


• Panasonic Corporation (Japan)


• Renesas Electronics Corporation (Japan)

KEY INDUSTRY DEVELOPMENTS:

• April 2021 – DENSO CORPORATION Develops Advanced Driver Assistance Products for New Lexus LS and Toyota Mirai DENSO CORPORATION developed Advanced Drive, an ADAS technology, to improve vehicle sensing and safety. This product is featured on the new Lexus LS and Toyota Mirai.


• July 2021 – Magna International Inc. to Acquire Safety Tech Major Veoneer Inc. Magna International Inc. entered into a definitive merger agreement with Veoneer Inc., and under that, the company plans to acquire Veoneer Inc., a leading player in automotive safety technology. With this acquisition, Magna aims to strengthen and broaden its ADAS portfolio and industry position.


• September 2021 – Continental and Horizon Robotics Joint Venture Accelerates the Commercialization of Automotive AI Technology Continental AG signed a Joint Venture (JV) contract with Horizon Robotics, a leading player in edge Artificial Intelligence (AI) computing platforms. This JV contract offers software and hardware integrated solutions for ADAS and automated driving.


• November 2021 - Hyundai Mobis announced the world’s first urban automotive advanced driver assistance system, the Mobis Parking System (MPS). The MPS integrates Reverse Assistance (RA), Narrow Space Assistance (NSA), and Remote Smart Parking Assistance (RSPA). This technology is designed using its own software logic ultrasonic sensors, which are mass-produced.


• June 2022 - Valeo and the BMW Group partnered on a deal regarding ADAS. Valeo will provide ADAS sensors, domain controller, and software for maneuvering and parking for BMW's upcoming EV platform.

REPORT COVERAGE

The report provides a detailed market analysis. It focuses on crucial aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights vital industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth in recent years.

Report Scope & Segmentation