Adaptive Cruise Control Market

Market Overview

The global adaptive cruise control market revenue was valued at USD 4.38 billion in 2023. It is estimated to reach USD 13.36 billion by 2032, growing at a CAGR of 13.2% during the forecast period (2024–2032). In recent years, owing to a surge in urbanization, a subsequent rise in traffic congestion has been estimated to boost market expansion. Consumers demand vehicles with enhanced safety features to protect themselves from road crashes and fatal accidents, thereby augmenting the global adaptive cruise control market. Moreover, with the advancement of the automotive industry towards the introduction of fully autonomous vehicles, it is anticipated that ACC systems will become more advanced and seamlessly integrated with other autonomous driving capabilities, which is estimated to create opportunities for market expansion.

Adaptive cruise control is an advanced automotive technology that enhances traditional cruise control systems. Unlike traditional cruise control, which keeps a steady pace chosen by the driver, Adaptive Cruise Control (ACC) automatically modifies the vehicle's speed to maintain a safe gap between it and the car in front.

The ACC uses sensors like radar or cameras to determine how far ahead a vehicle is and how fast they are moving, enabling it to accelerate or decelerate as necessary. This adaptive feature enhances safety by reducing the likelihood of rear-end collisions and alleviates driver fatigue during long journeys. ACC systems often incorporate additional features such as collision warning and automatic emergency braking to improve safety further. Thus, adaptive cruise control offers drivers a more relaxed and stress-free driving experience while improving road safety.

Market Dynamics

Market Drivers

Rising Traffic Congestion

Rising traffic congestion is a significant driver of the adaptive cruise control (ACC) market, as urbanization and increasing vehicle density have led to road gridlock. Traffic congestion increased in many of the world's most congested cities for the second consecutive year in 2022, following pandemic-related declines in 2020. In fact, in 2022, some urban areas exceeded their 2019 levels of traffic congestion, according to the 2022 Global Traffic Scorecard published by INRIX, a data analytics company studying movement around the globe.

ACC systems address this challenge by automatically adjusting vehicle speed to maintain safe distances, even in congested traffic conditions. By mitigating stop-and-go traffic, ACC enhances traffic flow, reduces bottlenecks, and minimizes the likelihood of rear-end collisions. This technology offers drivers a smoother, more stress-free commute, improving overall road efficiency and reducing travel times. As congestion worsens in urban areas globally, the demand for ACC systems is predicted to rise, driving market growth as consumers seek solutions to navigate increasingly congested road networks.

Increased Demand for Enhanced Safety

Safety concerns are a primary driver of the adaptive cruise control (ACC) market, as these systems play a critical role in stopping accidents and enhancing road safety. According to WHO, roughly 1.19 million individuals die annually due to road traffic accidents. In most countries, the economic consequences of road accidents account for 3% of GDP.

Furthermore, the UN General Assembly set the ambitious target of a 50% global reduction in road traffic accident-related deaths and injuries by 2030. Therefore, there is an increasing emphasis on reducing road accidents and improving driver safety, which increases the demand for ACC systems, as it helps maintain a safe space from the vehicle ahead and reduces the risk of rear-end collisions. As a result, automotive manufacturers are integrating ACC into their vehicles to meet consumer expectations for advanced safety features, driving market expansion.

Market Restraint

Inadequate Infrastructure

The adaptive cruise control (ACC) market faces constraints due to inadequate infrastructure support. ACC uses advanced road infrastructure to function optimally, such as reliable GPS systems, road sensors, and communication networks. However, many regions lack the necessary infrastructure for seamless integration of ACC technology.

Poorly maintained roads, inconsistent road signage, and unreliable GPS signals can hinder the accuracy and effectiveness of ACC systems. Moreover, the deployment of infrastructure for ACC, such as dedicated lanes or roadside equipment, requires significant investment and coordination between government agencies, technology providers, and automotive manufacturers. Adopting ACC may be limited in regions where infrastructure development lags, constraining market growth.

Market Opportunities

Integration with Autonomous Driving Technologies

ACC is often a component of more advanced autonomous driving systems. As the automotive industry progresses toward the launch of fully autonomous vehicles, ACC systems are expected to become more sophisticated and integrated with other autonomous driving features. For instance, in December 2023, Suzuki introduced the Jimny XL, a 5-door version of the Jimny manufactured in India, to the Australian market. Compared to the India-spec model, the Jimny XL has significant enhancements like the integration of Advanced Driver Assistance Systems (ADAS). These ADAS features include adaptive cruise control, autonomous emergency braking, lane departure warning, and a twin-camera brake support system.

Furthermore, in July 2023, Volkswagen introduced the newest version of their well-liked small SUV, the T-Cross (also known as the Taigun in India), including a range of thrilling enhancements. The new T-Cross boasts a revamped look, upgraded standard equipment, innovative technological capabilities, and an updated interior with premium elements such as Matrix headlamps, adaptive cruise control, lane keep assist, and versatile storage options. Such factors create opportunities for market growth.

Regional Analysis

Based on region, the global adaptive cruise control market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

North America's adaptive cruise control market share is expected to expand substantially during the forecast period. The regional market is propelled by the high traffic density, particularly in urban areas, leading drivers to seek solutions to alleviate congestion and enhance commuting experiences, making ACC an attractive option. For instance, in 2022, the average driver in a large urban region in the United States, where half of the world's top 10 most congested cities are located, experienced 51 hours of traffic congestion, an increase of 15 hours compared to 2021.

Moreover, there has been a rise in the number of road accidents in the region in recent years. For instance, as reported by USA Today, there was a 16% increase in the number of fatal car wrecks in the United States from 2018 to 2022. Specifically, the figure rose from 36,835 in 2018 to 42,795 in 2022. Therefore, there is an increasing emphasis on road safety and reducing accidents, prompting consumers and regulators to demand advanced driver assistance systems like ACC. According to a recent study by the University of North Carolina and the American Automobile Association (AAA) Foundation for Traffic Safety, advanced driver assistance systems (ADAS) like forward collision warning, adaptive cruise control, and automatic emergency braking can prevent tens of millions of crashes and save hundreds of thousands of lives.

Furthermore, major automotive manufacturers and tech companies in North America foster innovation and competition in the ACC market, further propelling its growth. For instance, in July 2021, the Ducati Multistrada V4 received radar certification in North America, enabling riders to utilize the adaptive cruise control technology, the first of its kind on a commercially available motorbike. The radar-based system provides adaptive cruise control and blind spot detection capabilities. These combined factors create a conducive environment for the widespread adoption of adaptive cruise control systems across the continent.

Asia-Pacific is estimated to grow at a significant pace. The expansion of the adaptive cruise system market can be attributed to factors such as the rising demand for luxury and premium cars. Moreover, in the Asia Pacific region, developing countries such as China, India, and Thailand are driving the expansion of the market. Moreover, the increasing number of road accident mortalities has led to a rise in the security concerns of vehicles. For instance, according to the WHO's Global Status Report on Road Safety 2023, the overall number of road traffic fatalities in India increased from 134,000 in 2010 to 154,000 in 2021.

Furthermore, automotive manufacturers are increasingly integrating adaptive cruise control features in their vehicle production. For instance, Kia Motors released glimpses of the forthcoming updated generation of its Sonet sub-compact SUV, providing insights into several aspects of the vehicle. The car is scheduled to be officially launched in December 2023 at a ceremony in Delhi. There will probably be up to 10 Advanced Driver Assistance Systems (ADAS) capabilities, including blind spot monitoring, collision warning, and adaptive cruise control. This is anticipated to foster regional market expansion.

Segmental Analysis

The global adaptive cruise control market is bifurcated into technology, vehicle type, and end-user.

Based on technology, the global adaptive cruise control market is segmented into lidar, radar, laser, and ultrasonic.

Lidar (Light Detection and Ranging) technology enhances adaptive cruise control systems. By emitting laser pulses and measuring the time it takes for them to bounce back after hitting objects, lidar creates high-resolution 3D maps of the vehicle's surroundings. In adaptive cruise control, lidar enables real-time detection and tracking of nearby vehicles, pedestrians, and obstacles. This data allows the system to dynamically adjust the vehicle's speed and distance from other objects, ensuring safe and efficient driving.

Unlike other sensor technologies like radar or cameras, lidar operates effectively in various lighting and weather conditions, making it particularly valuable for autonomous driving applications. Integrating lidar into adaptive cruise control systems enhances their accuracy, responsiveness, and ability to navigate complex environments, ultimately contributing to safer and more reliable driving experiences.

Based on vehicle type, the global adaptive cruise control market is bifurcated into passenger cars and commercial vehicles.

Commercial vehicles are automobiles designed primarily for business purposes rather than personal use. These vehicles transport goods, equipment, or passengers to generate revenue or support commercial activities. Examples include trucks, vans, buses, and trailers. In commercial settings, such as long-haul trucking or public transportation, ACC can mitigate the risk of rear-end collisions and improve fuel efficiency by optimizing speed fluctuations.

Additionally, ACC reduces driver fatigue by assisting with speed management, especially during monotonous highway driving conditions. By providing a more consistent and controlled driving experience, ACC in commercial vehicles promotes safer operations and contributes to overall fleet productivity. Furthermore, as autonomous driving technology evolves, ACC serves as a foundational component toward achieving higher levels of automation in commercial transportation, potentially leading to improved efficiency and cost savings for fleet operators.

Based on end-users, the global adaptive cruise control market is bifurcated into OEMs and aftermarket.

Aftermarket adaptive cruise control refers to installing adaptive cruise control systems in vehicles after they have left the factory. Typically, aftermarket installations are performed by third-party companies or individuals specializing in automotive modifications. While aftermarket adaptive cruise control can enhance driving comfort and safety, there are potential drawbacks. Installation quality may vary, impacting system performance and reliability. Compatibility issues with the vehicle's existing systems can also arise, leading to malfunctions or incomplete functionality.

Additionally, aftermarket modifications might void the vehicle's warranty, and there could be legal implications if the installation doesn't comply with safety standards. Despite these challenges, properly installed aftermarket adaptive cruise control systems can offer an affordable option for drivers seeking advanced driving assistance features in their vehicles.

Recent Developments

November 2023- Moto Guzzi, an Italian bicycle manufacturer owned by Piaggio, introduced the Stelvio, a road-oriented adventure bike, to the international market. In addition to a 5.0-inch TFT display and switchgear, the Stelvio is equipped with traction control, cornering ABS, cruise control, and five customizable riding modes.

August 2023- ZF developed an innovative technology called ZF Eco Control 4 ACC, which is a predictive adaptive cruise control system. This advanced system allows vehicles to increase their driving range by an additional 8%. This ACC add-on incorporates a Model Predictive Control (MPC) optimization technique developed by Embotech.