Advanced Driver-Assistance System (ADAS) Market - Forecasts from 2022 to 2027
The advanced driver-assistance system (ADAS) market is expected to grow at a compound annual growth rate of 18.73% over the forecast period to reach a market size of US$64.020 billion in 2027, from US$19.248 billion in 2020.
The advanced driver-assistance systems market is an electric technology that assists the driver with driving functions. ADAS uses sensors, cameras, and radars to detect signals, pedestrians, and any other obstacle, even in the blind spots of the vehicles. This allows us to prevent accidents and save human lives. This ADAS increases vehicle and road safety.
The key factors contributing to the advanced driver-assistance system market are the growing number of accidents and mandatory regulations by the government. Furthermore, the growing OEM market and increased R&D on automotive automation are both significant contributors to the market. The market is expected to rise along with rising demand for electric and automotive vehicles. Due to strict regulations, North America and Europe hold a significant share of the market. However, with the growing population and rising disposable income, the demand for ADAS has grown in the APAC region.
With the number of global road accidents increasing, some countries have made it a mandatory measure for driver safety. According to the World Health Organization (WHO), approximately 1.3 million people die each year due to road traffic crashes. Furthermore, around 20-50 million more people suffer non-fatal injuries. Around 90% of these accidents happen in low-and middle-income countries. The prime factors in road accidents are human errors like speeding, not using helmets, seat-bleats, child restraints, blind spots, and unsafe vehicles. In addition, unsafe road infrastructure and inadequate laws and regulations are some of the structural reasons for accidents. However, the use of ADAS can prevent most accidents with, systems like blind-spot detection, automatic emergency braking, pedestrian detection, and lane departure warning, amongst others.
With the rising concern for the environment and climate change, the demand for electric vehicles and eco-friendly vehicles has increased significantly. This increase in demand is expected to positively impact the advanced driver-assistance systems market. Many nations, especially in the region of Europe and North America, are systematically imposing a ban on the use of fossil-fueled cars. For instance, Britain has set a target to become net-zero emissions by the year 2050. The country has further imposed a ban on the sales of new petrol and diesel cars and vans from 2030. Furthermore, the European Union has imposed a ban on new petrol and diesel cars from the year 2035. In Norway, electric cars accounts for 60% of the monthly car sales. The country has set a target of 2025 to stop sales of fossil fuel-powered cars. In the United States of America, the state of California proposes to ban new gasoline-powered passenger cars and trucks from 2035. Moreover, the world's most populous country, China, has a rising demand for electric vehicles.
The automotive industry has been facing a downward trend for the past few years. According to the International Organization of Motor Vehicle Manufacturers, global sales of all vehicles fell to 77.97 million in 2020, which was down from 95.63 million in 2018. Slow growth in the industry can be attributed to factors such as overall slow economic growth and an increase in interest rates as a result of the non-banking financial crisis. Further, the COVID-19 pandemic has also impacted the sector.
The impact of the COVID-19 Pandemic on the Advanced Driver-Assistance System (ADAS) Market:
With the outburst of the COVIDpandemic, the Advanced Driver-Assistance System (ADAS) market, was also affected. With strict regulation and travel restrictions, the manufacturing and supply chain of the devices were affected. Further, the automotive industry plunged due to coronavirus, which affected the ADAS market directly. Due to the COVID crisis, the inflation rate and unemployment have increased significantly. This affects disposable income.
Automatic emergency braking
Blind Spot Detection
Traffic sign recognition
Lane departure warning
Middle East and Africa