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The advance driver assistance system market comprises technologies and systems that enable vehicles to detect their surroundings to avoid collisions or mitigate impacts from collisions. The key systems in ADAS include adaptive cruise control, autonomous emergency braking, blind-spot monitoring, lane departure warning, park assist, surround view camera and others. Such systems have gained high popularity owing to their ability to enhance road safety for drivers and pedestrians.
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.
The key opportunities in the advance driver assistance system market include an increased focus on autonomous vehicles, growing demand for luxury vehicles with advanced safety features and expanding aftermarket sales. Automotive OEMs and major technology companies are investing heavily in developing fully autonomous vehicles which is expected to boost the demand for ADAS systems in the coming years.
Globally, the adoption of advanced driver assistance systems is expected to significantly rise with stringent safety regulations and focus on minimizing road accidents. Regional markets like Europe and North America have shown high acceptance for such safety technologies. With rising incomes, emerging markets such as Asia Pacific and Latin America also offer huge growth opportunities. Several automakers are localizing ADAS production to cater to the demand in developing countries.
Market Drivers
The major driver boosting the advance driver assistance system market is the increasing road safety concerns and stringent government regulations for vehicle safety. With growing motorization leading to higher vehicular traffic, chances of road accidents have increased significantly. There is a rising consumer demand for active and passive safety features to reduce accidents. Many countries have made several ADAS functions mandatory which is supporting the market growth. Moreover, increasing spending power of consumers on premium vehicles with advanced technologies is also fueling the demand for advance driver assistance systems.
PEST Analysis
Political: Government regulations regarding road safety and autonomous vehicles play an important role in driving the adoption of ADAS features. Regulations define the legal framework for testing and deployment of self-driving cars.
Economic: Growing disposable incomes and increasing automobile production and sales are major factors fueling the ADAS market. The economic costs of accidents are also encouraging governments and automakers to develop advanced safety solutions.
Social: Changing attitudes towards safety, technology adoption and rising consumer awareness are increases the social acceptability of ADAS. Younger generations are more technology-savvy and open to new in-vehicle technologies.
Technological: The rapid pace of advancements in sensors, AI, connectivity and automation is enabling the development of more sophisticated driver assistance systems. Computer vision and deep learning algorithms are improving real-time object detection capabilities.
Geographical concentration
In terms of value, the Asia Pacific region holds the largest share of the global ADAS market led by China, Japan and South Korea. This is owing to the large automotive manufacturing bases and rising vehicle parc in emerging economies. Europe is another major regional market boosted by stringent safety norms and presence of leading automakers.
North America is projected to be the fastest growing region during the forecast period due to factors such as higher vehicle usage, increasing investment in autonomous vehicles by US companies and supportive regulatory environment for testing of self-driving technologies.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
