Who will dominate the future of ADAS market?

The global advanced driver assistance systems market was valued at USD 22.69 billion in 2015 and is projected to reach USD 78.19 billion by 2020, at a CAGR of 28.07% during the forecast period from 2015 to 2020 (Source: Mordor Intelligence). The demand for fuel-efficient vehicles along with an accelerating need for road safety systems will help to boost the global demand for ADAS significantly.

Over the last few years, growing concern about automotive safety among consumers has resulted in high demand for advanced safety features, especially for inexpensive and mid-price segment vehicles. The dynamics of the global automotive industry are also changing rapidly. Automobile manufacturers expect that the demand for mid-price segment cars is expected to increase by 20% by 2020. These vehicles are equipped with basic components that have been designed and manufactured as per consumer preferences. ADAS manufacturers such as Autoliv and Continental are collaborating with OEMs to develop and manufacture low-cost driver assistance systems. This will help manufacturers to attain economies of scale and reduce the price of ADAS, and thereby, increase implementation of ADAS in low-cost cars in the coming years. A consistent increase in the demand for compact and mid-size automobiles equipped with the advanced safety features is also expected to propel the growth of this market.

Driver Assistance Systems- Influencing Factors

The development of driver assistance systems is governed and regulated by international safety standards such as IEC-61508 and ISO-26262, as these systems depend on electronics for their functionality. In the United States, the FMCSA aims to reduce the number of fatalities and accidents involving passenger vehicles, large trucks, and buses. It had collaborated with the commercial vehicle industry to test, evaluate and certify onboard safety systems in the commercial vehicles segment. The key safety goal of the U.S. Federal Motor Carrier Safety Administration (FMCSA) is to reduce the number and severity of commercial motor vehicle (CMV) crashes. In recent years, the FMCSA has collaborated with the truck industry to test, evaluate and facilitate the use of various onboard safety systems for commercial vehicles to improve the safety of all pedestrians. In addition, initiatives like the National Highway Traffic Safety Administration (NHTSA)'s Safecar Project have helped to significantly drive the adoption of ADAS systems in domestic vehicles of North America, in turn acting as a driver for the market growth in this region.

The European automotive industry is one of the major and most innovative automotive markets in the world. With a massive transformation in the industry post the recession period of 2010, there has been rapid market penetration and mass adoption of ADAS amongst customers. There are regular upgrades in the ADAS technology that facilitate competitiveness in the market, making it one of the largest markets in the global ADAS industry. 

The growth of the ADAS market is currently hindered by the growing incidence of software failures in sensors, coupled with the expensive pricing of these systems that has acted as a major friction factor for the wide acceptability of these systems. However, the rapidly expanding hybrid and electric vehicle market, along with the growth of the autonomous vehicles, will help augment the ADAS in these vehicles, thereby driving the growth of the market significantly during the given forecast period.

The global ADAS market is segmented on the basis of type, technology and geography.

  • On the basis of geography, the market has been segmented into North America (United States, Canada, others), Europe (Germany, United Kingdom, France, Italy, Spain, Russia, others), Asia-Pacific (China, Japan, India, Australia, South Korea, others), Middle East & Africa (UAE, Saudi Arabia, Israel, others), and Latin America (Brazil, Argentina, Mexico, others).

Some of the key players in the global ADAS market are:

  • Denso
  • Mobileye
  • Continental AG
  • Delphi Automotive
  • Robert Bosch
  • Valeo

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