Report: ADAS market to double in growth by 2030

NORTHBOOK, Ill. —The global market for advanced driver assistance systems is projected to more than double by 2030, according to a new research report.

The report, "ADAS Market by System, Component, Vehicle, Level of Autonomy, Offering, EV and Region," projects the value of the global ADAS market will grow to $74.9 billion by 2030 from $27.2 billion in 2021, or a compound annual growth rate (CAGR) of 11.9 percent.

The report is offered by MarketsandMarkets Research, a Pune, India-based market research platform providing B2B research.

The firm reports that compliance with future safety mandates and increasing demand for semi-autonomous driving systems will drive the ADAS market. The passenger car segment is expected to see the most ADAS-related growth during the forecast period.

The report lists seven companies as prominent players in the ADAS market: Robert Bosch G.m.b.H. (Germany); Continental A.G. (Germany); ZF Friedrichshafen A.G. (Germany); Denso Corp. (Japan); Aptiv P.L.C. (United Kingdom); Valeo (France) and Magna International Inc. (Canada).

The report said that increased demand for safety systems in emerging markets is a result of improving road safety standards, supporting legislation and consumer awareness.

Several countries in Europe, North America and Asia have introduced regulations to mandate various types of ADAS in the passenger car segment. The report said that, for example, the European Union has outlined Vision Zero, an initiative to mitigate road deaths to zero by 2050.

This EU has a goal to cut fatalities and injuries in half by 2030. The strategic plan also mandates major safety features such as lane-departure warning, automatic emergency braking and drowsiness and attention detection in new vehicles by 2022.

South Korea is among the developed countries that have mandated autonomous emergency braking (AEB) and lane departure warning (LDW) systems for all new passenger vehicles, beginning in January 2019.

The report found that major original equipment manufacturers are incorporating ADAS in order to achieve higher safety ratings and attract more consumers. Because of that, OEMs either standardize safety systems across models or offer them as additional features.

Safety concerns in the wake of increasing number of accidents are driving growth in the ADAS market, increasing demand for radar sensors in the U.S., China and Europe.

The U.S. Federal Communications Commission (FCC) and European Telecommunications Standards Institute (ETSI) have restricted the usage of 24 GHz radar in 5 GHz bandwidth. The 24 GHz frequency range won't be available in the ultrawideband (UWB) beyond 2022.

Major OEMs and Tier 1 auto component manufacturers are shifting to long-range 77 GHz radars for better reliability and compliance with regulations, according to the report. This is expected to drive demand for radar sensors in the ADAS market.

An increased focus on collision avoidance systems in semi-autonomous driving systems is expected to boost the demand for radar sensors during the forecast period.

China, South Korea and Japan account for the largest share of the ADAS market in the Asia-Pacific region, the report said. High vehicle production and increased use of advanced electronics in Japan, South Korea and China have driven growth in the region.

The growth potential of the automotive industry have prompted countries to encourage major OEMs to enter their domestic markets. Several European and American automobile manufacturers such as Volkswagen A.G. (Germany), Mercedes Benz A.G. (Germany), and General Motors Co. (U.S.) have shifted their production plants to developing countries.

Japan is a key market for advanced electrical and electronic components in the Asia-Pacific. The country's Ministry of Land, Infrastructure, Transport and Tourism (MLITT) was scheduled to mandate AEB for all new passenger cars by November 2021. Existing models will have this feature by December 2025, while all imported vehicles will have AEB by June 2024.

India's Ministry for Road Transport and Highways also planned to adopt ADAS features by 2022, with features such as electronic stability control and automatic emergency braking being considered in the first phase.

Tier 1 suppliers such as Continental are collaborating with OEMs in India to support this by 2022-23.

The 441-page report contains 413 market data tables and 83 figures. It costs $4,950 and can be purchased here.