The global ADAS and autonomous driving component market size was valued at USD 23.8 billion in 2021. It is projected to reach USD 66.5 billion by 2030, growing at a CAGR of 12.1% during the forecast period (2022–2030). The increasing number of on-road vehicles presents a vast array of options but complicates the safe and secure transportation of goods and passengers. Numerous technological developments in the automobile industry in recent years are projected to progress the notion of vehicle safety on public roads. The dynamic evolution of the automotive industry is mainly attributable to changing consumer tastes, a greater emphasis on driver safety, environmental concerns, and strict regulatory requirements that emphasize crash avoidance instead of crash survival. These advancements have caused an increase in the number of vehicles on the road, hence increasing the need for safer automobile travel. The early incorporation of advanced driver assistance systems (ADAS) in automobiles is intended to improve vehicle safety on public roads. Automakers are projected to evolve from ADAS-equipped to semi-autonomous vehicles and, eventually, to completely autonomous vehicles.
Level 0 to Level 2 advanced driver assistance systems (ADAS) are becoming increasingly prevalent in the automotive industry. These are lane-keeping assist, braking assist, blind spot indication, adaptive cruise control, and parking assist. OEMs must be prepared for AD levels three and beyond because the switch from assisted to fully automated driving is quickly approaching. The ADAS and autonomous driving components market also relates to driverless vehicles' growth. Due to the requirement for safety, rising disposable income in developing countries, strict government regulations, and increased demand for luxury vehicles, the market for autonomous vehicles has seen a significant increase in sales, which has fueled the growth of its components.
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Strict Car Safety Regulations
The advanced driver assistance systems (ADAS) market will experience significant growth due to the significant increase in consumer awareness regarding car safety ratings and the widespread deployment of cameras and radars. Major original equipment manufacturers are adopting ADAS technologies to attain higher safety ratings and attract more customers. As a result, leading original equipment manufacturers (OEMs) either incorporate safety measures as a standard feature across all models or provide them as optional extras. As a result, there will be an increase in demand for parts like cameras, radar sensors, ultrasonic sensors, and LiDAR.
Growing Demand for Advanced Driver-Assistance Systems
The public and regulatory interest in safety applications that safeguard drivers and avert accidents are expected to increase demand for advanced driver-assistance systems (ADAS), which assist with monitoring, warning, braking, and steering tasks. A recent McKinsey survey reveals that consumers are becoming more interested in ADAS applications, such as parking assistance and blind-spot monitoring, that improve comfort and fuel efficiency. Although ADAS applications are still in their infancy, original equipment manufacturers (OEMs) and their suppliers are aware of their potential to become both a distinguishing feature of automobile brands and a significant source of revenue. Additionally, the same technology that underpins ADAS products are applied to the development of fully autonomous vehicles, which are currently a top priority for OEMs and high-tech companies that have just recently entered the automotive industry like Google. Therefore, if self-driving cars become widely accessible on the market, any ADAS system that receives early support may have a competitive advantage.
Insufficient Infrastructure in Developing Nations
Basic road infrastructure, such as marked lanes, structured roadways, and GPS accessibility, are necessary for advanced driver assistance systems to operate correctly. The advanced driver assistance systems market in developing countries is hampered by factors such as a lack of adequate driving training or driving discipline, financial issues, and insufficient infrastructure outside urban regions. The COVID-19 epidemic has also led to financial crises, which will further delay the development of cutting-edge transportation infrastructure.
Emergence of Self-Driving Vehicles
It is anticipated that the deployment of driverless vehicles would completely revolutionize the commute. Due to technological advancements in ADAS systems, such as lane monitoring, emergency braking, stability controls, and many others, driving has become considerably less complicated. Regarding information collection, autonomous cars rely on cutting-edge technology and systems such as LiDAR, radar, ultrasonic sensors, and high-definition cameras. A clever autonomous driving system built into the vehicle performs analysis of this data to navigate the vehicle safely. In the upcoming years, Tesla, Volkswagen, Ford, General Motors, and Waymo will release completely autonomous versions of their vehicles. Nissan announced they planned to implement Pro PILOT in 20 different models by 2022. The growing emphasis on autonomous driving systems will make it possible for original equipment manufacturers (OEMs) to include more advanced cruise control functions and safety systems in semi-autonomous vehicles.
The global ADAS and autonomous driving component market is segmented into Vehicle Type, Component, and Propulsion.
Based on vehicle type, the market is segmented into passenger, light commercial vehicles (LCV), and heavy commercial vehicles.
The passenger vehicle category is anticipated to maintain its market dominance due to the increasing demand for safe and high-performance automobiles in developing nations and the quick inclusion of autonomous technology into these vehicles. Reforms connected to eliminating conventionally powered vehicles and transitioning to electric vehicles are the key contributors to the segment. Improving road safety regulations, supportive legislation, and consumer awareness contribute to the rise in demand for safety measures in emerging economies. The European Union has outlined Vision Zero, a goal to eliminate traffic fatalities by 2050. The strategic plan also requires critical safety features like lane departure warning, automatic emergency braking, and fatigue and attention monitoring in all new cars.
Based on the component, the market is segmented into camera units, LiDAR, radar sensor, ultrasonic sensor, and infrared sensor.
The radar sensor is the most dominant in this segment and is anticipated to grow during the forecast period. Major automakers are implementing ADAS systems to attain improved safety ratings and attract more consumers. Therefore, they either standardize safety measures between models or make them available as optional extras. Increasing safety consciousness and rising accidents are the primary factors driving the expansion of the ADAS industry. The Federal Communications Commission (FCC) of the United States and the European Telecommunications Standards Institute (ETSI) have limited the use of 24 GHz radar in the 5 GHz spectrum. Major OEMs and Tier 1 auto component manufacturers are transitioning to 77 GHz long-range radars for improved reliability and regulatory compliance. It is anticipated that this will increase demand in the ADAS market for radar sensors. Additionally, it is anticipated that the demand for radar sensors will rise due to the growing importance of collision avoidance systems in semi-autonomous driving systems.
Based on propulsion, the market is segmented into Battery Electric Vehicle (BEV), Plug-in Hybrid Electric Vehicle, Hybrid Electric vehicles (HEV), and Fuel Cell Electric vehicles (FCEV).
Electric-based propulsion systems are growing substantially due to their highest incorporation of ADAS and autonomous driving components and the proliferation of fully autonomous electric propulsion-based vehicles. Petrol and diesel propulsion systems are also available. In the ADAS and autonomous driving components market, the electric sub-segment of the propulsion segment is anticipated to develop at the most significant CAGR during the forecasted time frame.
The global ADAS and autonomous driving component market is segmented into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
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North America dominates the global ADAS and autonomous components market with a significant CAGR during the forecast period. Federal attempts to raise road safety requirements, strong demand for automated vehicles, and growing manufacturing operations in the U.S. and Canada are anticipated to drive the growth of the autonomous vehicle market in North America. Consequently, this increase in driverless vehicles will improve the North American market for ADAS and autonomous driving components. In addition, an upsurge in the number of luxury automobiles (ADAS vehicles) such as BMW, Audi, Mercedes-Benz, and Volvo, among others, is anticipated to stimulate market expansion.
Asia-Pacific's ADAS and the autonomous driving component market is anticipated to expand quicker than Europe and North America. Some factors contributing to the Asian-Pacific region's market growth include expanding the automotive sector, rising disposable income, and expanding production facilities. In addition, strict government requirements regarding road safety contribute to the expansion of the market. Japan, South Korea, and China's high vehicle production and more significant usage of modern electronics have contributed to the expansion of the Asia-Pacific market. These nations' governments have recognized the automobile sector's growth potential and, as a result, have taken various measures to stimulate the entry of significant OEMs into their domestic markets. Several European and American vehicle manufacturers, including Volkswagen (Germany), Mercedes Benz (Germany), and General Motors (United States), have relocated their manufacturing facilities to emerging nations.
The global ADAS and autonomous driving component market’s major key players are