Stringency in safety standards in countries such as China, India, Brazil, European Union, US, Canada and the anticipated increase in demand for premium and luxury cars to boost the demand for sensor fusion market, to grow at a CAGR of 25.4% till 2030.
According to the new market research report -Sensor Fusion Market for Automotiveby Technology, Data Fusion, Level, Software Layer, Vehicle and Region-Global Forecast to 2030,published by MarketsandMarkets, the market is projected to reach $ 22.2 billion by 2030 from an estimated $ 2.9 billion in 2021.
The growing adoption of ADAS features in automobiles due to enhanced safety and comfort is expected to drive the adoption of sensors such as cameras, radars and LiDARs. Therefore, the sensor fusion market for automotive is expected to witness significant growth in the coming years, the research firm said.
Several globally established players dominate the market, including Robert Bosch, ZF, Continental, NXP Semiconductors, Infineon Technologies, Denso, Aptiv and STMicroelectronics.
LiDAR To Grow Faster
LiDAR offers precise and accurate 3D measurement data from short to long ranges in challenging weather and lighting conditions. Furthermore, this technology can be combined with any other sensory data to accurately represent both still and moving objects in the vehicle's environment. Thus, LiDAR technology has become a suitable accessible solution to avoid collisions and enable obstacle detection and safe navigation in various environments in different vehicle types.
LiDAR is used in critical automotive and mobility applications such as ADAS and autonomous driving. Europe and North America are likely to witness early adoption of LiDAR in their vehicle models. It is expected to be used in passenger cars post 2023, and in heavy commercial vehicles post 2024, MarketsandMarkets said.
Increased production and developments are expected to drive the adoption of LiDAR in automobiles.
Heavy Commercial Vehicles
Currently, heavy commercial vehicles witness no penetration of sensor fusion. However, they require more cameras and radar for sensor fusion mainly because of the vehicle height, longer range, and distance. Trucks are expected to adopt sensor fusion before buses due to increasing requests by fleet managers to migrate to advanced safety technology. According to Aptiv, the European Union has mandated automotive manufacturers to fit ADAS, such as lane departure warning systems (LDWS) and autonomous emergency braking systems (AEB) in all heavy commercial vehicles weighing more than 7,000 kilograms. According to MarketsandMarkets analysis, the penetration of ADAS features in trucks and buses in countries like Germany and the US is around ~16% and 8%, respectively.
Penetration in countries such as China, India, and Brazil is very low; the adoption of safety features in heavy commercial vehicles is likely to pick up only after 2025. The actual growth in HCVs is expected to gain momentum post 2024, mainly in developed countries. The report noted that this growth is likely to be relatively slower than PCs and LCVs, but with more stringent safety standards.
Asia Pacific
In the Asia Pacific, China and Japan account for the largest share of the market. The market's growth in this region can be attributed to the high vehicle production and increased use of advanced electronics in Japan, South Korea, and China. The governments of these countries have recognised the growth potential of the automotive industry and have consequently taken various initiatives to encourage major OEMs to enter their domestic markets. Several European and American automobile manufacturers such as Volkswagen (Germany), Mercedes Benz (Germany), and General Motors (US) have shifted their production plants to developing countries in the region, the research firm said.
Courtesy: MarketsandMarkets. NB: Photo is representational; courtesy: NXP Semiconductors.