Global Automotive Driver Monitoring System Market Research Report: Forecast (2023-2028)

Market Definition

A driver monitoring system (DMS) assists in combatting the dangers of drowsiness and distractions during long-distance and night driving. DMS is applied with two or more cameras to monitor the driver’s eyes and raise the alarm for these associated dangers. As these systems advance, they integrate with intensive interior sensing operations that deliver personalization, improved safety, and connection with smart home systems.

Market Insights & Analysis: Global Automotive Driver Monitoring System Market (2023-28)

The Global Automotive Driver Monitoring System Market is projected to grow at a CAGR of around 12% during the forecast period, i.e., 2023-28. Extended illness or immediate health complications can result in severe road accidents or crashes. Per The National Highway Traffic Safety Administration, almost 3,000 people died in 2019 due to distracted driving, up 10% over 2018. In addition, intoxicated driving also grown, resulting in the loss of 10,142 persons in the same year. However, automotive driver monitoring systems (DMS) can supersede the driving inputs and slow the vehicle until the driver realizes the alert, thereby curbing the casualties.

Along with this, the advent of autonomous cars, technological innovations in the automotive industry, and the incorporation of advanced driver-assistance systems (ADAS) elevated the adoption of such systems over the past few years. Yet, the Covid-19 pandemic has adversely obstructed the market, owing to commute restraints that weakened the market investments. Nonetheless, the automotive industry is in its recovery stage, and the increasing demand for ADMS would positively influence manufacturing units, adding to the industry's growth in the coming years.

Another factor adding to the expansion of the industry is the government's favorable regulations and policies to minimize road traffic injuries. Other than this, the escalating demand for advanced features, such as blink monitoring, facial recognition, steering angle sensor, heart rate monitoring, and a pre-collision system, has paved the way for market players to develop advanced features considering safety concerns. Therefore, the growing demand for driver activeness in automobiles and stringent government regulations regarding driver monitoring is likely to provide the impetus for market expansion.

Market Dynamics

Key Driver: Increasing Road Traffic Injuries Worldwide Influenced by Distracted or Drunk Driving

According to WHO, approximately 1.3 million people die yearly from road traffic crashes, costing most countries 3% of their GDP. Even though low- and middle-income nations have about 60% of the world's vehicles, they account for 93% of all traffic deaths. Given this, the UN General Assembly wants to cut in half the number of people killed and injured in traffic accidents worldwide by 2030. Backed by such ambitions and initiatives stemming from safety concerns, the need for systems that monitors Driver Alertness/Distraction, drunk driving, and Driver Fatigue, and recognition monitoring systems, including Identify, RFID, Fingerprint, and NFC Recognition, has gained traction in recent years.

Growth Opportunity: Stringent Regulatory Frameworks by Governments Citing Safety Concerns

Governments constantly frame vehicle laws and regulations to emphasize the incorporation of advanced safety systems in vehicles, especially four-wheelers, by manufacturers and automakers. Thus, installing driver alertness/distraction monitoring, driver fatigue monitoring, drunk driving monitoring, drowsiness monitoring systems, airbags, seat belts, and child & pedestrian safety systems have been almost obligatory in premium vehicles. Thus, mounting safety concerns have given rise to the adoption of DMS, aided by the government mandate, accelerating the expansion of the market owing to its rising applicability. For example, Implementing the US infrastructure package ensures around 4,200 lives from distracted driving every year. Thus, the aforementioned safety regulations are envisioned to steer the market's growth in the upcoming years.

Key Trend: Rapid Technological Advancement in (ADAS) & Ongoing Fast Developments in Autonomous & Connected Cars

While DMS is an excellent tool for identifying and warning drivers on its own, its true potential is seen when it is paired with an ADAS system that is directed outward. For instance, a fatigued driver can move quickly to avoid a collision by receiving both a drowsiness alarm and a forward collision warning alert. Thus, Automotive manufacturers are actively working toward integrating DMS with the Advanced Driver Assistance System.

Besides, incorporating artificial intelligence would further add to the features of monitoring systems, thereby pushing the market forward. For instance, in 2018, XPENG G3, launched in China by XPENG Motors, has driver monitoring systems integrated with artificial intelligence. Therefore, technological innovations in driver-assistance systems (ADAS), rapid developments in autonomous and connected cars, and intelligent parking assist systems will enhance the market's growth.

Market Segmentation

Based on the Offering Type,

• Hardware
• Software

Among these two, the hardware segment is projected to acquire a major market share owing to the increasing number of DMS installations in numerous models by OEMs. Cameras and sensors are just some important hardware devices automakers use. The cameras-based Driver Monitoring Systems (DMS) foundation is crucial to the next-generation ADAS systems. Further, it is extensively used by the automotive & transportation industries to decrease distraction and drowsiness that leads to collisions. Hence, it is requisite in all vehicles with SAE (Society of Automotive Engineers) levels 3-4 autonomous driving to alert the driver and regain control after “hands-off and feet-off” modes.

Based on Vehicle Type

• Passenger Vehicle
• Commercial Vehicle

The passenger segment holds the largest share, accounting for more than three-fourths of the DMS market, supported by government regulations and growing demand for luxurious vehicle features. In addition, the admiration for premium cars with the demand for advanced safety tools grants the segment substantial growth, especially in China, as it is emerging as the fast-growing and leading passenger vehicle manufacturer around the globe.

Around 5% of all car accidents in the United States, according to research by the American Automobile Association (AAA), include drowsy drivers. According to a different NHTSA research, driver distraction causes more than 15% of injury crashes in the United States. Thus, with their ability to influence traffic crashes and reduce them to insignificant levels with real-time monitoring, followed by alerts, DMs are likely to emerge as leaders among life-saving technologies installed in vehicles. Hence, the massive growth in the automotive segment paired with the regulatory mandates is estimated to impact the passenger segment positively.

Regional Projection

Geographically, the Global Automotive Driver Monitoring System Market expands across:

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

The Asia-Pacific region is predicted to register significant growth in the Automotive Driver Monitoring market during the forecast period. The technological improvements in the countries like India, Japan, and China foster the need for DMS in this region. Also, the growing admiration for premium cars and frequent traffic collisions are expected for new business enterprises. According to WHO, 93% of the world's fatalities on the roads occur in low- and middle-income countries, which is likely to pave the way for new and effective life-saving technologies. Further, economic development in this region directly impacts the sales of passenger vehicles.

Therefore, industries are enhancing their value chain by shifting to more aftermarket models. Likewise, the constant technological advancements toward realizing autonomous driving further elongate the scope of DMS across North America and Europe. In the realm of automotive safety, driver monitoring systems (DMS) are quickly overtaking all others. Level 2 driving assistance systems like GM's Super Cruise and Ford's Blue Cruise, which are rapidly gaining popularity in the US, are accelerating and significantly increasing DMS utilization.

Regulatory Landscape in the Market

As early as 2023, DMS will likely be a required safety element everywhere. The Department of Transportation is expected to develop regulations to prevent distracted and drunk driving and improve the U.S. New Vehicle Assessment Program under the bipartisan U.S. infrastructure package (NCAP) provisions. Along similar lines, European standards regarding traffic safety will apply to distracted and drowsy driving. Eventually, Europe will require impairment detection systems to include alcohol and drugs. Likewise, The Indian Government has implemented an amendment to the motor vehicle act, to mandate the utility of advanced brake systems (ABS) in all commercial vehicles form April 2022.

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