Global ADAS Market – Forecast to 2030

The global ADAS Market is projected to reach $83.0 billion by 2030, from $27.0 billion in 2020, at a CAGR of 11.9%. The growth of the market is driven by the growing demand for driver assistance systems and stringent safety mandates for a safer driving experience.

Upcoming safety mandates and increasing focus on sophisticated driving assistance features would spur the growth of ADAS solutions. Increasing focus on active safety systems and car assessment programs would drive the demand for ECUs in modern vehicles. The increasing number of accidents due to distractions as well as alcohol-impaired driving fatalities have become a major concern for lawmakers and have sparked the demand for advanced safety features such as driver monitoring systems, automatic emergency braking, lane departure warning, and others.

The ADAS market is dominated by global players such as Robert Bosch (Germany), Continental AG (Germany), ZF Friedrichshafen (Germany), Denso (Japan), Aptiv (UK), Valeo (France), Magna International (Canada).

The Asia Pacific region is expected to be the largest market for ADAS solutions during the forecast period. Leading automakers in the region, such as Toyota, Honda, and Hyundai, leverage the advantages of safety systems and have made essential safety features a standard across their models. Major countries in this region, such as China, Japan, India, and South Korea, are expected to adopt new technologies in the future, while large-scale vehicle production in China is expected to drive the market in this region. The European Union has outlined Vision Zero, an initiative to mitigate road deaths to zero by 2050. The authority targets 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 and attention detection in new vehicles by 2022. Governments in countries such as India, China, the US, and European countries are subsidizing electric infrastructure, which has resulted in the growth of the BEVs segment. OEMs are focusing on launching new electric variants of existing ICE models. In addition, owing to tough competition from major EV manufacturers such as Tesla, major OEMs have planned to introduce more safety and driving assistance features to stay competitive. Leading automakers such as Nissan, Tesla, and Audi are increasingly focusing on green vehicles with more driving comfort features. Hence, the demand for ADAS solutions in the electric vehicle segment is expected to rise during the forecast.

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The ADAS market by component has been segmented into radar sensor, camera unit, LiDAR, ultrasonic sensor, and infrared sensor. All the ADAS features work on any of these components or a combination of them. For instance, blind-spot detection and lane keep assisting use cameras as well as radar sensors. The continuously evolving levels of autonomous driving systems boost the need for sensor fusion and development. The fully autonomous driving level, L5, is a mix of different sensors and components such as LiDAR sensors, radar sensors, ultrasonic sensors, and camera units. Radar sensors have a narrow field of view and reduced angular resolution, which uses the Doppler effect to provide velocity information of the object directly. LiDAR technology is an advanced version of radar technology that can scan objects at longer ranges. Hence, the number of LiDAR sensors required in vehicles is less, and the price is high compared to other components.

By autonomy, the advanced driver assistance systems (ADAS) market has been segmented into L1, L2 & L3, L4, and L5. Increasing investment by major OEMs and tier 1 auto component manufacturers to develop L2+ and L3 driving systems is likely to spark the adoption of more driving assistance systems in upcoming vehicles. For instance, ZF unveiled its coASSIST level 2+ driving system in January 2020 in an under USD 1,000 price range. Such affordable ADAS solutions will increase the penetration of major ADAS features in a standard ADAS package. According to the company, it will be in production with a major Asian OEM by the end of 2020. ZF offers copilot, a scalable ADAS solution for level 2+ to level 4 driving systems, which was co-developed with NVIDIA.

The report segments the ADAS market in terms of ADAS various systems. Major governments in developed and developing countries are gradually enhancing safety standards to include more ADAS features in safety ratings, which is encouraging OEMs to install ADAS systems in vehicles. For instance, the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS) formed an agreement with 20 OEMs to include automatic emergency braking (AEB) as a standard in all vehicles in the US by September 2022. AEB, BSD, and LDW are expected to contribute to the significant share of the ADAS market in the mid-term. In long term, level 3 ADAS systems such as Traffic Jam Assist and Intelligent Park Assist (IPA) is expected to showcase significant growth.

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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.