Advanced Driver Assistance Systems (ADAS) Market - Growth, Trends, and Forecast (2017 - 2022)
BREAKING NEWS: Samsung, one of the largest smartphone manufacturers, plans to enter the connected car market. The company has established a Samsung automotive innovation fund of about USD 300 million to invest in tech startups and has already invested in TTTech, an Austria- based safety software and platform creator. Similarly, since the beginning of 2017, Ford and Volkswagen have also invested USD 1 billion and USD 180 million, respectively, in such companies.
The advanced driver assistance systems (ADAS) 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 over 28% during 2017-2022 (the forecast period). The demand for fuel-efficient vehicles, along with an increasing need for road safety systems, are expected to boost the global demand for ADAS significantly.
Over the last few years, growing concerns about automotive safety among consumers has resulted in high demand for advanced safety features, especially for low 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 will increase by 20% by 2020. These vehicles are equipped with basic components that have been designed and manufactured as per consumer preferences. ADAS manufacturers, like Autoliv and Continental, are collaborating with OEMs to develop and manufacture low-cost driver assistance systems. The move is expected to 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 future. A consistent increase in the demand for compact and mid-size automobiles, equipped with advanced safety features, is also expected to propel the market’s growth.