Advanced Driver Assistance System Market Forecast to Reach $33.28 Billion in Asia-Pacific by 2020

6 juillet 2016

Advanced Driver Assistance System Market Forecast to Reach $33.28 Billion in Asia-Pacific by 2020 on the Back of Increasing Shipments and Consumer Preferences

ADAS is a technology that is designed under complex systems consisting of sensors, microprocessors and software all functional under algorithm driven arrangement. ADAS is installed in automobiles to make the driving experience safer and comfortable for the drivers as well as the passengers. The ADAS assists the driver in complex traffic situations and avoid them in taking wrong decisions that could lead to fatal accidents. Apart from providing safer experience, integration of ADAS systems with embedded technology helps in controlling efficiency of the fuel and expands scope of monitoring vehicle surroundings. The introduction of ADAS has led to the semi-autonomous phase of the automobile industry. The product is still at the introductory stage of the Product Life Cycle and the increase in penetration rate will pilot it to the maturity stage by 2020. According to a recent report published by Industry ARC, Advanced Driver Assistance System market generated revenue of about $27.26 billion in 2014 and forecast to grow with CAGR of 14.9% from 2015 to 2020. The market is estimated to grow from $39 billion in 2015 to reach $78.2 billion by 2020. APAC region occupied the highest market share in the global ADAS market generating a total revenue of $11.23 billion in 2014. This region is forecast to generate revenue of $14.02 billion by 2020 growing with CAGR of 18.9%.

The recent government traffic safety legislations passed in North America and European regions have triggered demand for ADAS applications such as Autonomous Emergency Braking System (AEBS) and Lane Departure Warning System (LDWS) in passenger as well as commercial segments of the automobiles. Awareness among the consumers regarding safety in automobiles and the willingness to spend more on the automobiles are also the salient factors driving the ADAS market.

However, this market has a few challenges that can hamper or slow down the growth of the technology. The development cost of the ADAS is quite high that limits the extent of margin earned by the manufacturers. The automobile industry is a diverging market and there are numerous categories of vehicles used across different regions. Manufacturers are investing substantial amounts into R&D to make the ADAS technology configured with each class of vehicle. The attempt to match compatibility of ADAS technology with technical specifications of different segments of automobiles is an opportunity as well as a challenge for the ADAS suppliers as well the end user industry.