Growing number of road accidents has substantially increased road safety concerns across the world, and this has compelled manufacturers to thoroughly assess advanced driver assistance systems (ADAS) and their performance using efficient methods to validate the complacence of autonomous vehicles following safety standards. This is, in turn, propelling the ADAS testing equipment market to expand at a CAGR of 12.1% between 2021 and 2031.
According to the research conducted by Future Market Insights, the global ADAS testing equipment market is anticipated to reach $ 222,486 thousand in 2021. The sales of ADAS testing equipment is estimated to register year-on-year growth of 9.1% in 2021.
A significant rise in the number of autonomous vehicles sold in countries such as the UK, the US, and Germany has been helping in the expansion of the market, the report said. These countries have implemented several stringent regulations, mandating the testing of vehicles and the inclusion of ADAS. Implementation of stringent regulations to ascertain driver and passenger safety will bode well for the market.
The research firm said that the market historically grew at a CAGR of 3.7% over the past half-decade due to the suspension of production across industries amid the COVID-19 pandemic. The ongoing development of sophisticated ADAS equipment and increasing adoption of autonomous vehicles in various countries facilitate market growth.
According to an analyst from Future Market Insights, the leading automotive manufacturers extensively incorporate advanced technologies such as artificial intelligence (AI), the internet of things (IoT), and machine learning in new vehicles to provide an improved autonomous driving experience. This is expected to create immense scope for the ADAS testing equipment in forthcoming years.
The market in North America is anticipated to grow at a CAGR of 11.3% through 2031 due to the presence of leading autonomous vehicle manufacturers such as Tesla and GM in the US.
Favoured by implementing stringent regulation, mandating the testing of ADAS-based vehicles, the UK market is expected to drive sales across Europe.
China is projected to emerge as one of the fastest-growing markets in the Asia Pacific, driven by the increasing vehicle production and focus on improved road safety.
Japan and South Korea are forecast to collectively account for around 14% of the global ADAS testing equipment sales by the end of 2031.
Based on product, hardware is estimated to remain the most remunerative segment, supported by its ability to be customized as per end-user demand, Future Market Insights said.
Key Drivers
Growing demand for autonomous vehicles and implementation of road safety norms, mandating ADAS integration in vehicles will drive sales in North America, Europe, and the Asia Pacific. In addition, technological advancement in ADAS technologies by original equipment manufacturers (OEMs) spurs ADAS testing equipment sales. However, increasing speculations pertaining proper safety of autonomous vehicles and growing demand for two-wheelers across developing economies are hampering the sales of ADAS testing equipment.
As per Future Market Insights, the top five players in the global ADAS testing equipment market are Konrad GmbH, AB Dynamics plc, National Instruments Corporation, TKH Group NV, Oxford Technical Solutions, and Racelogic. These players are projected to capture nearly 50% of the total market share in 2021.
These key players focus on adopting inorganic strategies such as strategic collaborations, partnerships, mergers, and acquisitions to expand their global footprints. Apart from this, product developments, intensive research and development (R&D), and new product launches are also expected to remain prominent expansion strategies among key companies, the research firm said.
Courtesy: Future Market Insights. NB: Photo is representational; courtesy: AB Dynamics.