ADAS Market Size, Share, Trends and Forecast 2024-2033

As the automotive industry is transitioning, the last decade has seen tremendous growth. The Advanced Driver Assistance System (ADAS) has changed the industry altogether. With the help of smart lighting, sensors, speed control, and real-time decision-making abilities, road safety has reached a whole new level.

More and more countries and governments are keen to introduce ADAS as a necessary feature in automotives to prevent accidents. The global ADAS market size reached USD 56.4 billion in 2023, which is expected to reach USD 202.7 billion by 2033. This states that during 2024-2032, the ADAS is set to witness a growth rate (CAGR) of 13.6%.

In this blog, let us understand the ADAS market, challenges, and trends.

What is ADAS?

The Advanced Driver Assistant System (ADAS) was introduced to decrease the number of accidents on the road, which were mostly caused by human errors. To tackle this issue, automotive manufacturers partnered with semiconductor and electronic firms and created an optimal solution. With the ADAS, accidents can be prevented by increasing safety through longer reaction times. There are multiple manufacturers who have these facilities built within them, while others can be easily modified for an upgrade.

How Does the ADAS Feature Work? 

The automotive industry has started to prioritize safety and sustainability to keep up with the next generation of automobiles. ADAS industry systems have several systems on a chip (SoCs) that connect to various sensors through interfaces and electronic controller units. Autonomous vehicles and other self-driving cars use these sensors and chips to navigate a complete 360-degree vision of the environment around the automobile.

What Are the Applications of ADAS?

ADAS applications were initially introduced to improve the experience of driving an automobile with better security and convenience for a driver. Today, the industry has recognized the potential of ADAS and maximized its efficiency for enhancing the safety of the driver and minimizing injury.

Various cameras around the vehicle, along with sensors, utilize the knowledge of AI to process large amounts of data with the help of ultrasound sensors, lidar, and radar. This technology then helps the ADAS process and respond to the environment of the automotive faster than a human.

What Are The ADAS Market Trends for 2022 to 2033?

1. AI and Machine Learning: The ADAS market has been utilizing AI and machine learning to its best use by improvising their algorithms to easily navigate and improve real-time decision-making for drivers. This has not only made automotive vehicles safer but has also increased precision when it comes to detecting lanes, avoiding collisions, and smart object detection.

2. Cruise Control: Automotive ADAS and the smart cruise control features allows complete control over the vehicle while managing its pace. ADAS is said to be implemented due to its high demand for accident prevention and speed monitoring.

3. Sensor Fusion: Manufacturers are inclining towards the current trend of sensor fusion where the information from different sensors on the automotive helps in creating a better image of the surroundings of the vehicle. This image helps in navigating better in all kinds of situations. The different sensors involved in this include, radar, lidar, cameras and ultrasonic waves.

4. Adaptive Light Control: The ADAS have adaptive light controls that seem to interest manufacturers. Based on the outside environment of a vehicle, the lights automatically adjust its direction, strength and rotation for maximum visibility.

5. Autonomous Emergency Break (AEB) System: With the integration of AI and smart utilization of sensors, vehicles can automatically come to a stop when the system detects a possible collision with another vehicle, an external object or a human being. Along with a real-time breaking system or AEB it also has predictive analytics integrated in the system.

6. Government Policies: Government bodies are slowly recognizing the safety benefits of the ADAS and its role in preventing road accidents. With their benefits in place, more policies are being adapted by different governments across the world for safer roads.

7. Vehicle-to-Everything (V2X): With integrated advanced V2X technology in ADAS, vehicles can communicate with their surroundings, hence improving control over the vehicle and preventing collision along with collision management. There are various sensors performing the role of V2X, including: Vehicles communicating with each other- V2V, Vehicle to infrastructure around it- V2I, Vehicle to pedestrians- V2P and Vehicle with cloud- V2C.

8. Driver Monitoring System (DMS): With the advanced features of DMS integrated in ADAS, AI and machine learning can identify and monitor the attention span and alertness of the driver. These systems closely monitor the driver’s attention and act accordingly to prevent accidents.
   

ADAS Market Segmentation 

Solution Type Outlook 

• Adaptive Cruise Control (ACC)
• Blind Spot Detection System (BSD) 
• Park Assistance 
• Lane Departure Warning (LDWS) System 
• Tire Pressure Monitoring System (TPMS)
• Autonomous Emergency Braking (AEB) 
• Adaptive Front Lights (AFL)

The adaptive cruise control (ACC) system has been the fastest-growing in terms of revenue in the ADAS market. Based on a study conducted by NHTSA, the estimate of road accidents totaled over 42,795 in the year 2022. ACC offers automatic speed adjustment to the speed of the car. The algorithm in an ACC system automatically slows down the vehicle and maintains a safe distance between the two in order to avoid any collision.

The Blind Spot Detection (BSD) system alerts the driver when there are any other vehicles or objects in the blind spot. Over the forecast period, this segment had the fastest-growing CAGR of 13.4%. The BSD segment has a huge role to play when it comes to safety; this resulted in making this a popular, reliable, and affordable segment. 

Vehicle Type Outlook

• Passenger Car
• Commercial Vehicle:

1. Heavy Commercial Vehicle 
2. Light Commercial Vehicle 

Notably, many countries worldwide have already taken the initiative to recognize the importance of systems and incorporate them into their particular legislation. Major continents like Asia, North America, and Europe have taken initiatives from their respective governments to make the ADAS mandatory in order to reduce the number of deaths occurring due to road accidents by the end of the year 2050. 

In the year 2022, the passenger car segment held the largest share of 73.4% with a CAGR of 11.2%. The growth in this segment is due to increased customer awareness, more initiatives by governing bodies to increase road safety, and developing the ADAS market.

Component Type Outlook

• Processor
• Sensors:

1. Radar
2. LIDAR
3. Ultrasonic

• Software

The growth of this segment is mainly because of the increasing demand for sophisticated ADAS. These systems need powerful processors to handle complex algorithms that help in real-time tracking and detecting. Adaptive cruise control, lane tracking, and other complex tasks can only be performed smoothly if the ADAS has powerful processors. 

The component type segment is divided among processors, sensors, software, and others. In the year 2022, the sensor segment was the fastest-growing segment with 12.3% CAGR. Different sensors present in the ADAS are responsible for smooth functioning, including LIDAR, RADAR, ultrasonic, camera, etc.‍

Regional Outlook

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

The Asian Pacific region is said to be the fastest-growing among other continents, with a CAGR of 12.3%. The main reason for the growth of these regions is the increase in production in countries such as China, Japan, and South Korea. Governments of different countries have started to implement emergency brake systems and adaptive cruise control systems to allow more companies as well as OEMs to step into the market. 

In the region segment, until the year 2022, North America holds a large share of 32.9%. The growing market and the presence of major players in this region have made the fatality rate of these regions to grow immensely.

Who Are The Top Players in ADAS? 

1. Robert Bosh GmbH
2. Infineon Technologies AG
3. Audi AG
4. Denso Corporation 
5. HELLA GmbH & Co. KGaA
6. Autoliv Inc.
7. Ford Motor Company
8. Continental AG
9. Valeo SA
10. Magna International Inc. 

Wrapping Up

ADAS market has forecasted growth to USD 202.7 billion by 2033 underlines the increased role these systems will play in enhancing road safety and improving the driver experience. While sensor fusion and real-time decision-making continue to evolve, ADAS will go on to further enhance vehicle performance and greatly reduce accidents.

In this race, where key players keep outdoing each other in the race for innovation, ADAS will be the driving force for changes that are happening around the world toward more intelligent and safe transportation solutions.