Global ADAS & Autonomous Driving Components Market Research Report: Forecast (2023-2028)

Market Insights & Analysis: Global ADAS & Autonomous Driving Components Market

The Global ADAS & Autonomous Driving Components Market is expected to grow at a CAGR of around 21% during the forecast period, i.e., 2023-28. Most of the market is likely to be driven by the swiftly improving economic conditions of people & their rising inclination toward connected & autonomous cars for enhanced comfort & convenience, coupled with strict government mandates for automakers to include advanced safety features like ADAS (Advanced Driver Assistance Systems) in their vehicles.

More & more people are becoming aware of the benefits of ADAS, such as Lane Keeping Assist, Blind Spot Indication, Braking Assist, Adaptive Cruise Control and Parking Assist, i.e., another prominent aspect augmenting the demand for these technologies in vehicles and, in turn, stimulating the overall market growth. Furthermore, influenced by the transition from assisted driving to fully automated driving as well as swift improvements in sensor technologies, high-definition mapping, & adaptive algorithms, leading automakers are actively working toward expanding their production capacities and taking vehicle automation to Level 3 & even beyond.

In addition, the growing application of multifunctional sensors in automobiles that act as smart systems and are being used increasingly in EVs & autonomous cars for providing mechanical stimulation and environmental information, like strain, pressure, light adjustment, etc., is another crucial aspect projected to spur growth in the Global ADAS & Autonomous Driving Components Market over the coming years.

Market Dynamics

Key Driver: Stringent Safety Standards & the Mounting Demand for Autonomous Vehicles

Governments of various countries worldwide are mandating the integration of advanced safety features in vehicles, such as LDW (Lane Departure Warning) & AEB (Automatic Emergency Braking), to provide drivers with enhanced safety & comfort and reduce the rising number of road accidents. Several consumers are showing greater interest in autonomous vehicles integrated with advanced technologies like LiDAR, radar sensors, ultrasonic sensors, & HD cameras for data collection that help increase driving accuracy. These ongoing trends in the automotive sector are the major aspects projected to drive the Global ADAS & Autonomous Driving Components Market during 2023-28.

Growth Restraint: High Repair Costs & Data Misinterpretation Issues Associated with ADAS

ADAS often miscalculates or misinterprets the outside data due to challenging weather or light conditions. It, in turn, results in users facing issues while driving, i.e., the main challenge to the widespread adoption of this technology. Moreover, the high repair cost associated with the application of ADAS is another aspect that poses questions in the minds of potential end users. Hence, these factors are projected to hamper the growth of the Global ADAS & Autonomous Driving Components Market during 2023-28.

Market Segmentation

Based on Vehicle Type:

• Passenger Cars
• Commercial Vehicles

Of them all, passenger cars hold a significant share of the Global ADAS & Autonomous Driving Component Market. It owes to the surging consumer demand for enhanced safety features & comfort in sedans, hatchbacks, station wagons, SUVs, & MUVs, etc., on account of their improving disposable incomes, coupled with the growing penetration of luxury & autonomous vehicles worldwide. Governments & private sector organizations are massively investing in the deployment of advanced technologies in the automotive sector. Many countries in regions like Asia-Pacific, North America, & Europe are laying out stringent regulations for automakers to integrate different types of ADAS features, such as automatic emergency braking, lane departure warning, and attention & drowsiness detection into passenger cars in order to ensure superior passenger safety and mitigate road accidents. Hence, these aspects indicate lucrative prospects for the market in the passenger car segment over the coming years.

Based on Component Type:

• Camera
• Radar
• Ultrasonic Sensors
• LiDAR
  • Mechanical Automotive LiDAR
  • Solid State Automotive LiDAR
• Electronic Control Unit

Here, LiDAR is projected to attain a notable market share in the coming years. Amongst the most promising sensor-based technologies for autonomous or self-driving cars, LiDAR technology makes vehicles aware of their surroundings and helps eliminate collision risk while driving. The increasing integration of LiDAR by automakers in vehicles equipped with ADAS in order to meet stringent safety regulations set by governments is the prime aspect likely to drive the market for LiDAR components, which make precise split-second decisions based on numerous careful calculations from multiple data points.

Over the years, LiDAR technology has undergone remarkable innovations, like reduction in size & cost and improved image detection & tracking. Nowadays, these sensors comprise several features like ACC (Adaptive Cruise Control), GRID-based processing, ABS (Anti-lock Braking System), Micro-Motion Technology, obstacle detection & avoidance, and EBA (Emergency Brake Assist), among others. These aspects are leading to the ever-increasing demand for LiDAR technology in autonomous vehicles and, in turn, project a significant market expansion in the future.

Regional Projection

Geographically, the Global ADAS & Autonomous Driving Components Market expands across:

• North America
• South America
• Asia-Pacific
• Europe
• The Middle East & Africa

Of all regions globally, Asia-Pacific is expected to acquire a prominent share of the ADAS & Autonomous Driving Component Market during 2023-28. It owes to the ever-increasing consumer demand for safer, more efficient, & convenient driving experiences, their increasing disposable incomes, and the rising penetration of connected cars & EVs, especially in China & Japan. Several automotive OEMs are actively working on expanding their production volume and bringing technological advancements in manufacturing facilities to meet ever-evolving consumer requirements.

Governments of many countries are taking proactive measures toward mandating the integration of ADAS features into new vehicles. India is emerging as a high-potential & opportunistic market for ADAS as the country is making heavy investments in attaining an automated & artificial intelligence-based automotive sector. Moreover, due to the easy availability of cheap labor & raw materials and cost-effective production, many European & American automakers are shifting their manufacturing units to Asian countries, i.e., another prominent aspect projected to drive the Asia-Pacific ADAS & Autonomous Driving Component Market over the coming years.

Recent Developments in the Global ADAS & Autonomous Driving Components Market

• In February 2023, ZF Friedrichshafen AG launched OnTraX Lane Keeping Assist Technology, combined with ReAX adaptive steering, for 2023 PACCAR Trucks to help enhance fleet efficiency & driver safety.
• In February, Valeo & the BMW Group announced to co-develop fully-automated parking technologies up to Level 4. Earlier on 28 June 2022, both companies entered into a partnership under which Valeo will provide the ADAS domain controller, sensors, & software for parking & manoeuvering for BMW's next-generation modular 'Neue Klasse' platform for EV, which are expected to launch in 2025.
• In February 2022, Opsys-Tech announced that it will supply LiDAR systems to a Germany-based automotive parts supplier, HASCO Hasenclever GmbH + Co KG based, for inclusion in vehicle production as early as 2024 or 2025.

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