Increasing demand for safety vehicles coupled with fuel efficiency is expected to drive the global Advanced Driver Assistance Systems (ADAS) market to grow at a CAGR of 15.2% till 2028.
According to Brandessence Market Research, the ADAS market size was around 18.77 billion in 2021 and is anticipated to reach $ 50.55 billion by 2028.
According to the report, the ADAS market remains a fragmented and innovative landscape, with increased third-party ADAS making their way into consumers' hands. The growing demand for effective systems and vast disparity between consumer preferences remain notable drivers of growth for players in the ADAS market. The wide disparity continues to put power into the hands of OEMs and wealthy individuals to dictate the future development of the ADAS market, while third-party apps continue to lead innovation with promising feature-rich products. With limited innovation, and large purchasing power, key players in the ADAS market continue to rely on mergers and acquisitions to advance market share, Brandessence Market Research noted.
Some key players in the ADAS market include Bosch, Delphi, TRW Automotive, BMW, Mobileye, Hitachi Automotive, Valeo, Continental AG, Hyundai Mobis, Magna International, Aptiv, Denso, Valeo, ZF and Veoneer.
The report said that research by National Highway Traffic Safety Administration in the US showed that manual errors are responsible for over 94% of the accidents. While multiple factors contribute to these crashes, the failure to recognise hazards remains a key reason for most fatalities. The ADAS systems can recognise and respond to hazardous conditions better than a human driver. Moreover, these systems are already installed in police vehicles to help them gauge speeds from other drivers, recognise hazardous road conditions, and respond to threats. Such systems have proven their efficacy, with a long history in countries like the US.
Moreover, the growing demand to respond to key needs like emergency breaking, engaging in ideal driving experiences with adaptive cruise control, and much-required assistance for the disabled and elderly like park assist remain key features to promise growth in the ADAS market the report said.
The support from regulators for ADAS remains strong. For example, in December 2021, the European Union mandated the installation of automated emergency braking systems in vehicles. According to the European Transport Safety Council, automatic braking can reduce road fatalities by as much as 20%, resulting in over 4,000 lives saved each year. Moreover, in the US, such systems are also being installed in various advanced cars proactively, despite voluntary installation. The growing demand from consumers, the increased regulatory support, and increased progressive initiatives on the part of manufacturers remain key drivers to growth in the ADAS market.
ADAS systems have been around for a while. However, due to the prospect of advanced electric vehicles and their high status among consumers, the ADAS system promises far more commercial opportunities in the near future, the report identified.
Moreover, ADAS systems have also proven them commercially viable in recent times. Apart from the regulations supporting their inclusion, research also showcases their importance. For example, in 2021, AAA automotive researchers noted that the ADAS systems warned drivers about issues every eight miles, on average. Hence, ADAS systems are ready to take control of essential functions. However, their future prospect largely depends on their ability to deliver an effective service. With the inclusion of technology, the costs of sensor-based ADAS systems are likely to be high. Hence, companies need to ensure an optimum experience level for drivers with effective results. Issues like ADAS focusing heavily on non-issues like lane centering continue to plague the current systems. Moreover, the ADAS also disengage without notice or fade away in the background without proper communication with the driver. Such challenges continue to pose a restraint to the growth of the ADAS market, the research firm said.
Regional Analysis
Innovation continues to lead the way in countries like the UK, where ADAS are integrated into aerial car technology. For example, Airline Cars are making a promising entry into the UK region, which promise to replace short-haul flights. These airline cars are also being experimented with ADAS technology, promising to make them completely automated in the near future. Car Design Research, a UK-based agency, estimates that these cars can make 50 short hauls with the same airline emissions compared to 50 flights by a conventional airline.
In January 2022, Luminar, a key player in hardware and software automation, and Volvo announced plans to launch a next-generation EV. The EV promises to integrate advanced ADAS features like completely automated driving on highways. The feature will be introduced in California soon as an add-on subscription. However, the technology remains a significant leap for a critical player in the European region in advancing ADAS technology.
In June 2021, the US National Highway Traffic Safety Administration (NHTSA) mandated car companies testing ADAS technology to report accidents. The new rules were put on hold to provide an experimental trial period for car testing companies. However, new rules will mandate that ADAS systems above Level-2 will be required to report all accidents by the system moving forward.
In October 2021, Qualcomm entered into a definitive agreement to acquire Veoneer, a key provider of automated technology designed to deliver an open self-driving platform. The deal valued at $ 4.5 billion puts Qualcomm in charge of creating a robust RCS and active safety business need for the automotive industry.
In October 2021, the Japanese transport ministry announced a decision to expand the scope of automatic braking systems to include bicycles, starting in July 2024. The new ADAS technology continues to increase road safety for vehicles, and the transport ministry has mandated similar protection for bicycles, using cameras and radars installed on new bicycles.
Innovation also remains key in China, wherein a key player in the automotive industry, Baidu, has launched Apollo Air. The technology enables Level-4 autonomous driving capabilities, integrating both vehicle-to-everything technologies. In addition, the new ADAS system can rely on roadside sensing and remains a promising sign of innovation in China, the research firm added.
Courtesy: Brandessence Market Research & Consulting. NB: Photo is representational; courtesy: Continental.