Advanced Driver Assistance Systems (ADAS) Market Size, Trends and Growth Analysis by 2027

The global market for Advanced Driver Assistance Systems (ADAS) in the automotive sector is projected to expand significantly, increasing from approximately US$ 43,138.44 million in 2021 to around US$ 183,814.84 million by 2028. This growth represents a compound annual growth rate (CAGR) of 25.4% over the period from 2021 to 2028.

Several factors are propelling the expansion of the automotive ADAS market. Key drivers include technological advancements, the presence of major industry players, a higher acceptance of innovative technologies, enhanced manufacturing capabilities, and improved economic conditions in various regions. The alarming rate of road accidents, coupled with a rise in the sales of premium vehicles, particularly in countries like the United States and Canada, is fueling the demand for advanced safety technologies. Consequently, the increasing need for ADAS systems is a significant factor in the growth of this market.

In North America, the automotive ADAS market encompasses the United States, Canada, and Mexico. The region boasts a well-established automotive industry, characterized by the ongoing production of commercial vehicles. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), the United States produced 7,604,154 commercial vehicles in 2021, a decrease from 6,895,604 in 2020 and 8,367,239 in 2019. Canada?s production figures were 826,767 in 2021, down from 1,048,942 in 2020 and 1,455,215 in 2019. Mexico also contributed significantly, with 2,437,411 commercial vehicles produced in 2021, compared to 2,209,121 in 2020 and 2,604,080 in 2019. These statistics highlight North America?s leadership in global commercial vehicle production.

As the production of commercial vehicles continues, the demand for automotive ADAS is expected to rise sharply, thereby supporting market growth in North America. The ADAS market in this region is quite fragmented, featuring numerous key players such as Bosch, Continental AG, and Visteon Corporation. The landscape of the automotive ADAS market is evolving rapidly, with new technologies anticipated to emerge and challenge existing solutions. Companies specializing in ADAS technology and automotive manufacturers are actively expanding their market presence and enhancing their research and development efforts. For instance, in 2020, Hyundai Motor Group and Aptiv announced a joint venture aimed at developing a SAE Level 4/5 platform for autonomous taxis and fleet operators. Additionally, BMW introduced the 330e and 330e xDrive plug-in hybrids in 2020, featuring advanced ADAS capabilities such as active cruise control with stop-and-go functionality, frontal collision warnings, city collision mitigation, and lane departure warnings.

Turning to the impact of the COVID-19 pandemic on the European automotive ADAS market, the region faced challenges, particularly due to a semiconductor shortage, which was expected to be resolved by the third quarter of 2022. Despite these hurdles, the automotive manufacturing sector in Europe is projected to grow by approximately 13% in 2022. The European Union is also pushing for the mandatory inclusion of front-facing cameras and radar systems in all vehicles by 2024, which is likely to enhance ADAS technology adoption. For example, the implementation of collision warning systems and electronic stability control is expected to rise from 83% in 2021 to 100% by 2025. Furthermore, speed regulation compliance is anticipated to increase from 48% to 100% during the same timeframe.

By 2025, Europe is expected to lead in the adoption of ADAS technologies, driven by stringent regulations aimed at improving vehicle and passenger safety. Although new car registrations in the EU and the UK fell to 11.7 million in 2020, a decline of about 25% from the previous year, electric vehicle (EV) sales have surged in several European countries. In 2021, EV sales, including hybrids and plug-in hybrids, reached record levels, with a 63% increase to approximately 1.2 million units sold, marking a significant rise from 3.4 times the number of EVs sold in 2019. The market share of EVs surpassed 10% for the first time, climbing from 6.2% in 2020 to 10.2%.

The automotive ADAS market is categorized based on sensor types, including image sensors, LiDAR, radar sensors, ultrasonic sensors, and infrared sensors. Additionally, it is segmented by technology types such as adaptive cruise control, blind spot detection, electronic brake assist, drowsiness monitoring systems, lane departure warnings, head-up displays, night vision systems, park assist, e-call telematics, tire pressure monitoring systems, among others. Vehicle types are classified into passenger cars, light commercial vehicles (LCVs), and heavy commercial vehicles (HCVs). Geographically, the market is divided into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM).

The overall size of the automotive ADAS market has been determined through a combination of primary and secondary research methods. Extensive secondary research was conducted using both internal and external sources to gather qualitative and quantitative data related to the market. This process also aimed to provide an overview and forecast for the automotive ADAS market across all segments. Furthermore, primary interviews with industry participants were conducted to validate the data and gain deeper analytical insights. Participants included industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants specializing in the automotive ADAS market.

Key players in the automotive ADAS market include Continental AG, Cypress Semiconductor Corporation, First Sensor AG (TE Connectivity), Harman International (Samsung Group), Hitachi, Ltd., MG Motor India Private Limited, NVIDIA Corporation, Robert Bosch GmbH, Telefonaktiebolaget LM Ericsson, and Vector Informatik GmbH.