ADAS Market to Witness A Phenomenal Growth by 2030

Advanced Driver Assistance Systems (ADAS) Market

Advanced driver assistance systems (ADAS) monitor the surroundings of a vehicle as well as the driving behaviour within it to pre-emptively detect potential hazards.

The global Advanced Driver Assistance Systems (ADAS) Market is projected to grow at a CAGR of 11.9% during the forecast period, to reach USD 83.0 billion by 2030. The key growth drivers of the market are the increasing stringency of vehicle safety regulations, upcoming safety mandates, and increasing demand for a comfortable driving experience.

Opportunity: Emergence of autonomous vehicles

The introduction of autonomous vehicles is expected to transform commuting. ADAS technologies have significantly reduced the complexity of driving, with features such as lane monitoring, emergency braking, stability controls, and others. Autonomous vehicles rely on advanced technologies and systems such as LiDAR, radar, ultrasonic sensors, and high-definition cameras to collect data. This data is analyzed by an onboard smart autonomous driving system to manoeuvre the vehicle safely. Tesla, Volkswagen, Ford, General Motors, and Waymo plan to launch fully autonomous vehicles in the coming years. In March 2018, Nissan announced plans to deploy ProPILOT in 20 models by 2022. The increasing focus on autonomous driving systems would enable OEMs to incorporate more cruise control features and advanced safety systems for semi-autonomous vehicles.

Top Players:

Robert Bosch (Germany), Continental AG (Germany), ZF Friedrichshafen (Germany), Denso (Japan), Aptiv (UK), Valeo (France), Hyundai Mobis (South Korea), Veoneer (Sweden), Magna International (Canada).

Startups:

Luminar Technologies (US), ADASKY (Israel), Bright Way Vision (Israel), TriEye LTD (Israel).

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Radar sensor will have a major share in the ADAS market during the forecast period

Major OEMs are incorporating ADAS solutions to achieve higher safety ratings and attract more consumers. Hence, they either standardize safety systems across models or offer them as additional features. Growing safety awareness and the increasing number of accidents are the major drivers for the growth of the ADAS market, which has resulted in more demand for radar sensors in countries such as China, the US, and major European countries. The US Federal Communications Commission (FCC) and European Telecommunications Standards Institute (ETSI) have restricted the usage of 24 GHz radar in 5 GHz bandwidth. The 24 GHz frequency range will not be available in the ultrawideband (UWB) beyond 2022. Major OEMs and tier 1 auto component manufacturers are shifting to long-range 77 GHz radars for better reliability and compliance with regulations. This is expected to drive the demand for radar sensors in the ADAS market. In addition, increasing focus on collision avoidance systems in semi-autonomous driving systems is expected to boost the demand for radar sensors during the forecast period.

The passenger car segment is expected to be the largest during the forecast period

The passenger car segment makes a major contribution to the ADAS market. The increased demand for safety systems in emerging markets can be attributed to improving road safety standards, supporting legislation, and consumer awareness. 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. 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. The strategic plan also includes mandating major safety features such as lane departure warning, automatic emergency braking, and drowsiness & attention detection in new vehicles by 2022. Developed countries such as South Korea have mandated AEB and LDW systems for all new passenger vehicles from January 2019.

Europe is expected to be the largest ADAS market in 2020

Stringent safety regulations are expected to drive the demand for ADAS in Europe. France is one of the fastest-growing markets for ADAS in Europe. In 2018, France contributed approximately 12% to the total vehicle production in the region as per the European Automobile Manufacturers Association. Several safety mandates have been implemented by the French government. For instance, in 2015, the government made it compulsory to install automatic emergency braking (AEB) and lane departure warning (LDW) in all new heavy trucks.

The increasing production and sales of luxury vehicles due to strong economic growth play a major role in Germany. Major German OEMs such as Volkswagen and Daimler AG have incorporated advanced features to enhance the driving experience. These OEMs offer most ADAS features as standard in their premium segment vehicles. In mid-segment SUVs and sedans, essential ADAS features are offered under additional packages.

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Recent Developments:

• In February 2020, Veoneer was selected to supply active safety systems based on next-generation vision and radar systems. Veoneer scalable system has been developed to meet Euro NCAP 5-star safety rating as well as provide several driver assistance features such as highway assist, lane centring control, stop and go adaptive cruise control, automatic emergency braking, traffic sign recognition, and automated high beam control.
• In February 2020, Continental announced a new production plant for ADAS in Texas, US, with an investment of USD 109 million over the next 3 years. The new production facility will manufacture radars from 2021.
• In January 2020, ZF launched ZF coASSIST, a Level 2+ automated driving system, which is its first step into the modular Level 2+ hardware and software suite and highlights ZF’s capabilities as a full system supplier.
• From 2020, ZF will equip production vehicles with this new ZF system for a major Asian manufacturer.
  In November 2019, Denso partnered with Metawave to accelerate the development of smart radar systems for autonomous cars. Denso also invested USD 17 million in Metawave in May 2018.
• In August 2019, Continental unveiled new system solutions for safer automated driving. It developed a combined camera system comprising an inward-looking infrared camera and an outward-looking camera. The system can simultaneously monitor the driver as well as surrounding vehicles.