A new report says the global advanced driver assistance systems market will reach US$67.43 billion by 2025, growing at a compound annual growth rate of 19.0%.
Grand View Research’s study says that 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.
It says 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.
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.