Growing awareness about the importance of advanced systems, including night vision, road sign recognition, and drowsiness monitoring among vehicle owners, propel the global advanced driver assistance systems (ADAS) market to surpass a valuation of $ 222 million in the year 2021, states Future Market Insights (FMI).
FMI, in its new report, offers an analysis of the global ADAS, analysing forecast statistics through 2021 and beyond. In addition, the study provides insight into the demand outlook for 2021-2031.
According to a survey conducted by FMI, the market is expected to register a robust CAGR of 12.1% between 2021 to 2031, as the sales in the market are likely to surge by 3.2 folds through 2031.
FMI, the leading provider of market intelligence and consulting services, says that rising cases of road accidents have made it imperative to incorporate ADAS in vehicles across all segments, commercial and passenger alike.
Some of the major players operating in the ADAS market include Konrad, AB Dynamics, National Instruments, TKH Group, Oxford Technical Solutions and Racelogic.
The report, quoting a study conducted by the World Health Organization (WHO) in 2021, says about 1.3 million people die every year due to road accidents, and around 20 to 50 million people across the globe incur non-fatal injuries because of the collisions. Thus, the demand to curb incidents of road adversaries will create significant sales opportunities for the ADAS market.
As a compulsory safety measure, the governments of several countries are focusing on mandating the use of ADAS. For instance, the Union Minister for Road and Highway Transport in India announced at the SIAM conference in November 2020 that all cars should use ADAS by the end of 2022. Initiatives like this are expected to help the demand for ADAS to soar significantly in the coming years.
According to an FMI analyst, the Original equipment manufacturer (OMEs) and ADAS producers are progressively investing in research and development to introduce advanced driver assistance designs that incorporate System on Chips (SoC) to support autonomous vehicles.
North America to grow faster
Owing to the rising occurrence of road accidents in the US and Canada, the North American market will likely register growth at a CAGR of 11.3% over the forecast period.
The market in Europe is anticipated to grow at a steady pace, demonstrating sales growth at a CAGR of 8% through 2031.
East Asia is expected to emerge as a highly lucrative market due to increasing automotive production in the countries like China and simultaneous focus on introducing advanced technologies to amplify vehicular safety.
South Korea and Japan are projected to collectively account for around 14% of the overall market share in 2021, states the market intelligence company.
The key drivers for the growth include government regulations to make ADAS compulsory across all vehicle models and the production of autonomous and hybrid vehicles.
However, the higher costs of vehicles with in-built ADAS and increasing adoption of two-wheelers for routine commute in low and middle-income economies are hindering the growth, observes the report.
According to FMI, the key manufacturers operating in the ADAS market emphasise developing innovative technologies and systems to gain a competitive edge over other market players.
Courtesy: Future Market Insights. NB: Photo is representational; courtesy: Continental.