The global Advanced Driver Assistance Systems (ADAS) market was worth USD 24.7 billion in 2020 and is further projected to reach USD 54.2 billion by 2027, at a CAGR of 12.0% during the forecast period (2021-2027). The increasing demand for a safe, efficient, and convenient driving experience as well as the rising demand for luxury vehicles across the globe are the key factors driving the growth of the ADAS market.
With engineering advancements and the growing need for safer technology, Original Equipment Manufacturers (OEMs) offer a number of features, including Automated Emergency Braking (AEB), airbags, lane departure warning systems, and others. These features have greatly reduced road accidents worldwide. According to the US Department of Transportation, frontal airbags saved 50,457 lives between 1987 and 2017. Moreover, the explosive growth of the automotive industry has led to many sensor technologies being implemented to make driving more luxurious, efficient, safe, and convenient. Thus, the growing demand for automated warning systems and collision mitigation technologies is expected to drive the market size for advanced driver assistance systems.
The European Union has outlined Vision Zero, an initiative to mitigate road deaths to zero by 2050. The authority has targeted to reduce fatalities and injuries by 50% by 2030. Additionally, the National Transportation Safety Board held a roundtable discussion on July 24, 2017, on advanced driver assistance systems and how commercial fleets (heavy trucks) can increase acceptance of the life-saving ADAS technology. Such fruitful Government initiatives are playing a key role in driving the growth of the market.
Geographically, North America dominates the overall ADAS market and is expected to dominate the market over the forecast period, followed by Europe. Due to its extensive research and development facilities, the United States is the leading country in the North American automotive sector due to its significant investments in smart automotive production methods and process automation.
Some of the key players in the global ADAS market are Robert Bosch, ZF Friedrichshafen, Denso, Aptiv, Brentwood Industries Inc., Enexio, Intel, NVIDIA, Continental, Valeo, Hella, Magna, Samsung, Aisin Seiki Co. Ltd, Delphi Technologies, Harman International, NXP Semiconductor, Panasonic Corporation, Hyundai Mobis, and other prominent players.