Why Advanced Driver Assistance Systems has been a bust
Posted by Mrudula Anil Karmarkar on March 30th, 2021
The global advanced driver assistance system (ADAS) market is expected to reach USD 67.43 billion by 2025, growing at a CAGR 19.0%, according to a new report by Grand View Research, Inc. Increasing government initiatives for mandating driver assistance system in order to lower road accidents is expected to proliferate market growth. Moreover, increasing adoption of these systems in small cars is anticipated to further boost the market demand.
The automotive & transportation industry is amongst the most exposed verticals to the ongoing COVID-19 outbreak and is currently amidst unprecedented uncertainty. COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive sector. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for automotive products. The demand for commercial vehicles is expected to plummet with the shutdown of all non-essential services. Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications on the near future growth of the industry. Meanwhile, liquidity shortfall and cash crunch have already impacted the sales of fleet operators, which is further expected to widen over the next few months. We are continuously monitoring the COVID-19 pandemic, and assessing its impact on the growth of the automotive & transportation industry. The report will account for Covid19 as a key market contributor.
Rising level of technological innovation as well as growing initiatives towards vehicle automation and self-driving cars has raised the demand for driver safety and assistance systems over the past decade. For instance, European Union has mandated the automotive manufacturers to fit ADAS systems such as lane departure warning systems (LDWS) and autonomous emergency braking systems (AEBS) in all heavy commercial vehicles weighing over 7,000 Kilograms.
ADAS technologies such as night vision, drowsiness monitoring system and road sign recognition systems among others are anticipated to grow considerably over the forecast period. Tire pressure monitoring system also expected to have significant penetration in the overall market owing to their low prices and easy aftermarket availability. Moreover, Adaptive cruise control provides much better driver safety and helps to avoid fatal road accidents, thus the demand for these systems is expected to witness high growth by 2025.
Further key findings from the report suggest:
The sensor components accounted for largest market share in 2016. The automotive industry is in process of deploying self-driving vehicles on road, such types of autonomous vehicles require combination of large number of sensors such as cameras, Radar, LiDAR, ultrasonic sensors for performing different operations accurately. Thus, the demand for sensors is anticipated to increase significantly over the forecast period. Among different sensor types Lidar sensors are anticipated to gain high traction by 2025, owing to their crucial function in self-driving cars.
In 2016, passenger cars accounted for over 72% share in global ADAS market, however commercial vehicle segment is expected to witness fastest growth over the forecast period owing to aforementioned government regulations for improving safety of heavy commercial vehicles. The market has high growth potential, however, the lack of awareness of these system among most of the vehicle owners decelerates the market growth. Additionally, high cost of these systems ultimately increases the overall cost of cars and is considered to reduce the preference of car owners to adopt such systems.
The rising demand for advanced systems such as drowsiness monitoring, night vision, and road sign recognition system is expected to impact the overall industry over the next seven years. The demand for traditional ADAS systems such as adaptive cruise control, autonomous emergency braking system is anticipated to grow exponentially owing to increased government regulations to reduce road accidents and improve road safety. For instance, the European Union has passed a bill that mandates the implementation of adaptive cruise control systems in heavy commercial vehicles by 2020, which is further projected to spurs the industry demand for these systems in European countries.
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The ADAS industry is highly competitive and fairly concentrated, with top five companies accounting for over 43% market share in 2016. Key players including Continental AG, Autoliv Inc., Magna international, Mobileye N.V, and Hyundai Mobis dominated the global ADAS market. Innovative technology and low prices are expected to be a key parameter for being competitive, with frequent mergers and acquisitions being undertaken as an attempt to diversify the product portfolio and gain market share.
Grand View Research has segmented the global advanced driver assistance system market report on the basis of solution type, component type, vehicle type:
Advanced Driver Assistance System Solution Type Outlook (Revenue & Volume, 2014 - 2025)
Advanced Driver Assistance System Component Type Outlook (Revenue & Volume, 2014 - 2025)
Advanced Driver Assistance System Interior Design Outlook (Revenue & Volume, 2014 - 2025)
o Light commercial vehicle
o Heavy commercial vehicle
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
For More Information:www.grandviewresearch.com
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About the AuthorMrudula Anil Karmarkar
Joined: July 2nd, 2020
Articles Posted: 851
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