ADAS Market by System (ACC, AFL, DMS, NVS, IPA, PDS, TJA, FCW, CTA, RSR, LDWS, AEB, & BSD), Component (Radar, LiDAR, Ultrasonic, and Camera Unit), Vehicle (PC, LCV, Buses, & Trucks), Offering (Hardware, Software), EV and Region - Global Forecast to 2027
NEW YORK, Oct. 29, 2019 /PRNewswire/ --
The ADAS market (advanced driver assistance system) is estimated to be USD 30.0 billion in 2019 and is projected to reach USD 134.9 billion by 2027, at a CAGR of 20.7% during the forecast period. This technology improves the driving experience, while enhancing the vehicle and pedestrian safety. It is becoming an integral part of modern automobiles and is now adopted in passenger cars as well as commercial vehicles which are driving the growth of adas market. The rising disposable income levels, increased vehicle production in developing countries such as India and China, and increase in the number of luxury vehicles in countries such as Japan are expected to fuel the growth of this market in the Asia Pacific region. However, non-availability of required infrastructure in developing countries is the key restraint for the growth of the market.
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Market Dynamics
Rise in the demand for a safe, efficient, and convenient driving experience
The automotive industry is witnessing a rapid evolution of safety features. The growth rate of safety features is expected to increase exponentially in the coming years. The main objective behind the implementation of these features in the vehicle is to provide a safer, efficient, and convenient driving experience.
Increasing demand for autonomous vehicles has also fueled the safety system market. Driver errors can be minimized by transforming the vehicle into a self-driving one as automated driving technology helps to reduce the errors caused by drivers. As per NHTSA, the total number of fatalities due to road accidents in the US in 2016 was 37,461, which grew by 5.6% from 2015. ADAS would play a crucial role in reducing the number of road accidents and would lead to a safe, productive, and efficient driving experience. Nowadays, active safety systems such as blind spot detection (BSD), AEB system, and LDW system play a major role in the automated driving technology.
Non-Availability of required infrastructure in developing countries
Advanced driver assistance systems require basic infrastructure such as well-organized roads, lane marking, and availability of GPS for effective functioning. Also, V2V and V2X communications require adequate connectivity infrastructure. For highways, the information such as a lane change, object detection, distance between vehicles, traffic, and services such as navigation and connectivity are very important for semi-autonomous and autonomous trucks. However, due to the limited network connectivity on highways, vehicles are not connected to each other and the cloud data. In developing countries like Mexico, Brazil, and India, the development of IT infrastructure on highways is slow as compared to developed economies. 3G and 4G-LTE communication networks, which are required for connectivity, are offered in urban and semi-urban areas only. While several third-party logistics companies operate in semi-urban and rural areas, there are issues of low connectivity. Also, these developing countries need support from the government for the adoption of ADAS features in a vehicle. Therefore, lack of information technology communication infrastructure in developing regions and lag in government norms are the major restraints for the growth of ADAS in developing regions. Also, poor infrastructure outside the urban areas, cost considerations, and poor driving training or driving discipline restrain the growth of the ADAS market in these countries.
Rising demand for electric vehicles
According to the US Environmental Protection Agency, the transportation sector was responsible for nearly 27% of the total greenhouse gas emissions in 2015, becoming one of the leading causes for the increase in global warming. Hence, various governments are promoting the use of electric vehicles for transportation as they significantly reduce automotive emissions. For instance, the US government offers rebates from USD 1,000 to USD 6,000 and an additional federal tax credit of up to USD 7,500 on the purchase of electric vehicles. As a result, the production and sale of electric vehicles are expected to increase rapidly. Moreover, OEMs are expanding their manufacturing facilities worldwide to increase the production of electric vehicles. For instance, in August 2017, Tesla planned to raise USD 1.5 billion to fund the development of its cheapest electric car, which proves the aggressiveness of manufacturers in the market. As electric vehicles are equipped with various safety technologies, their increased popularity among consumers is expected to boost the ADAS market.
Security threats
Most of the safety features comprise sensors such as radar, LiDAR, ultrasonic, camera, infrared, and several actuators. These sensors and actuators monitor fields that are near and far in every direction and ensure the safety of the vehicle, driver, passengers, and pedestrians. The functioning of the system depends on several factors such as traffic and weather. In addition to functional requirements, ADAS must be secured from hackers with malicious intent. A hacker that infiltrates the system could gain considerable control of the vehicle. Several studies have shown that vehicle control can be gained through Bluetooth, Wi-Fi, or even GPS. These security threats pose a significant challenge for system manufacturers and OEMs.
Road Sign Recognition segment is estimated to be the fastest growing adas market during the forecast period
The road sign recognition uses image sensors to recognize the traffic signs such as, "turn ahead," "speed limit zones,'' and "no-overtaking," on the road. The technology was adopted by many automobile manufacturers, such as Volvo, Audi, BMW, Mercedes-Benz, Opel, and Volkswagen. The European road sign recognition market is estimated to be the fastest growing market, by value, due to the increase in road infrastructure development activities in the region.
Asia Pacific market is expected to register the fastest growth during the forecast period
The Asia Pacific market is expected to witness the fastest growth, followed by RoW and North America. Increase in luxury vehicle sales and safety concern among consumers would positively impact on adas market in Asia Pacific. Safety regulations are present in a few Asia Pacific countries such as Japan and South Korea, and demand in these countries is anticipated to be on a rise for the next 5 years. Countries such as China, South Korea, and Japan are estimated to come up with the vehicle and road safety regulations regarding installation of ADAS in vehicles due to growing population as well as vehicle demand.
Passenger cars is expected to be the largest market during the forecast period
Passenger cars is expected to be the largest market, followed by light commercial vehicles. Owing to the growing demand for safer and more comfortable vehicles. The increasing demand for luxury vehicles is another key driving factor. Governments in developed and developing nations are planning to mandate the ADAS system in PCs. For instance, the European Union has extended the scope of mandating ADAS system as AEB and LDW systems in PCs. This mandate will be assessed by the Commission in the framework of the report foreseen in Article 17 of the General Safety Regulation. Developed countries such as South Korea have mandated the AEB and LDW systems for all new passenger vehicles from January 2019.
Key Market Players
The global ADAS market is dominated by major players such as Robert Bosch (Germany), ZF Friedrichshafen (Germany), Aptiv (UK), Continental (Germany), and Intel (US). These companies have strong distribution networks at a global level. In addition, these companies offer an extensive product range in this market. These companies adopt strategies such as new product developments, collaborations, and contracts & agreements to sustain their market position.
Recent Developments
- In May 2019, Mitsubishi Electric Corporation and HERE Technologies have successfully piloted a system which enables vehicles to automatically warn about upcoming road hazards with lane-level precision. This technology was successfully tested in US.
- In April 2018, Robert Bosch developed a highway assist system to help drivers keep their vehicle in lane in order to mitigate accident. The new Bosch highway assist system is installed on the 2018 Maserati Ghibli, Levante, and Quattroporte.
- In April 2018, Continental developed new concepts designed to warn drivers about an imminent risk of aquaplaning. Aquaplaning assistance concepts utilize surround view camera images and signals from tire-mounted sensors (eTIS) for advanced tire information.
- In January 2018, ZF Friedrichshafen expanded its manufacturing and engineering footprint in Poland to produce products including advanced camera for driver assist systems. The 10,000-square-meter manufacturing facility will be fully operational by the end of 2019. The expansion would add more than 300 jobs.
- In January 2018, Continental opened Center for Deep Machine Learning in Budapest, Romania. The company's advanced driver assistance systems business unit is using machine learning and neural networks for developing high performance driver assistance system.
Critical Questions:
- Many companies are operating in the market across the globe. Do you know which are the front leaders and what strategies have been adopted by them?
- The industry is focusing on ADAS platform . Which are the leading companies who are working on ADAS platform and what organic and inorganic strategies have been adopted by them?
- Analysis of your competition that includes major players in the ADAS ecosystem. The major player includes Robert Bosch (Germany), ZF Friedrichshafen (Germany), Aptiv (UK), Continental (Germany), and Intel (US) among others.
- Discuss on your client's imperatives based on our existing research on ADAS and its ecosystems
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