Increasing demand for safety sensors, including seat belt tension, impact sensors, anti-theft, parking sensors, etc., is expected to create significant opportunities for manufacturers advanced driver assistance systems (ADAS), contributing significantly to the growth of the ADAS market to expand at a value CAGR of 9% between 2021-2031.
According to a recent report by Persistence Market Research (PMR), a 3rd-party research organisation, the ADAS market is expected to reach a valuation of $2.28 billion by 2031.
ADAS are groups of electronics technologies that assist drivers in driving and parking functions. Through a safe human-machine interface, an ADAS increases car and road safety. These systems use automated technology such as sensors and cameras to detect nearby obstacles or driver errors and respond accordingly.
Persistence Market Research said that at a CAGR of 8%, adaptive cruise control is projected to be the fastest-growing segment under system type from 2021 to 2031.
Park assist systems are expected to hold the highest share of 20% under the system type segment in terms of volume.
By technology, radar sensors are projected to enjoy more than 27% market share by 2031. In terms of vehicle type, passenger cars are projected to be the segment leader with a market share of more than 64%.
The report said that Europe is projected to hold the highest share in the global market, accounting for more than 34%. The US is projected to register the highest absolute $ opportunity of more than $312 million from 2021 to 2031.
By sales channel, OES is anticipated to lead with more than 84% market share.
According to a Persistence Market Research analyst, increasing active safety features in vehicles are expected to be key drivers for the development of the automotive sector, which is anticipated to drive demand for ADAS in the aftermarket.
Market Landscape
On a regional, national, and global basis, the worldwide automotive parts aftermarket is highly competitive and fragmented.
Some of the key ADAS manufacturers include Robert Bosch, Continental, ZF, Denso, Aptiv, Valeo, Magna International, Veoneer, Aisin, Hitachi Astemo, Nidec, Infineon Technologies, Ficosa Internacional, Hella, Pacific Industrial and Mobileye.
The ADAS aftermarket is characterised by the presence of major players from North America, Europe, and East Asia. Demand for passenger cars and commercial vehicles equipped with advanced safety features are increasing around the globe, which is expected to propel the demand for technologically advanced products over the decade.
Technological developments along with collaborations and mergers and acquisitions by key market participants are expected to fuel the ADAS aftermarket space, the report added.
Courtesy: Persistence Market Research. NB: Photo is representational; courtesy: ZF.