ADAS (Advanced Driver Assistance Systems) Market Witnessing Monumental Growth


Road accidents claim 1.35 million human victims across the world each year, claimed the World Health Organization in 2018. Failure to pay attention while driving, over-speeding, and driving under the influence of alcohol or drugs are some of the major human errors responsible for traffic crashes. Other causes include vehicle malfunction, due to which the vehicle can spiral out of control. To curb the number of road fatalities, governments across the world are making the integration of safety features in automobiles mandatory. Advanced driver assistance systems (ADAS) are among such features, which, apart from helping prevent collisions, also offers better driving comfort.

The ADAS market, in 2015, valued $19.8 billion, and by 2022, it is predicted to grow to $99.6 billion, at a CAGR of 27.0% during the forecast period (2016–2022). Tire pressure monitoring system, drowsiness monitoring system, park assist system, adaptive cruise control (ACC) system, blind spot detection system, lane departure warning system, and adaptive front lighting system are the various types of ADASs integrated in automobiles. Among these, ACC systems were the most popular during 2012–2015, as they help prevent crashes, by altering the speed of the vehicle, to maintain a safe distance from the one in front.

Across the world, regulations to make such systems compulsory in automobiles are being formed. For instance, the European Union has targeted a 50% reduction in road accidents between 2020 and 2030. Similarly, the National Highway Traffic Safety Administration (NHTSA) of the U.S. has made it mandatory for automakers to comply with the Federal Motor Vehicle Safety Standards (FMVSS). Such regulations continue to push the demand for safety features in vehicles, including ADAS.

Another reason for the increasing installation rate of ADAS is the rise in the number of high-net-worth individuals (HNI). As economic prosperity across the world is resulting in surging disposable income, people are starting to spend more on luxury goods, such as automobiles with advanced technology. Several countries, such as India, China, Italy, France, Switzerland, Russia, and Indonesia, have witnessed a significant growth in the HNI population in the past few years. As per a joint report by Royal Bank of Canada and Capegemini, the number of HNIs in India increased from 130,000 in 2009 to 200,000 in 2014.

With the rising demand for ADAS, solution providers are coming up with improved technologies. For instance, with Continental AG’s eHorizon solution, data can be easily shared between vehicles and cloud. Similarly, Autoliv’s driver assistance product, launched in 2014, offers light-based touchless sensing, with visual guidance. Another among the technological advancements are multifunctional sensors, with which just one sensor can perform numerous functions. This does away with the need for individual sensors, thereby helping automakers keep the purchase price of their vehicles competitive.

Across the world, the ADAS market growth in Asia-Pacific (APAC) is predicted to be the fastest during the forecast period. This would be due to the rapid urbanization and increasing demand for high-end vehicles, as a result of the growing disposable income in the region. China and India are two of the largest automobile producers and buyers in the world, and the road accident and resulting fatality rates in the countries are also quite high. Both these factors are forecast to have a combined effect on the popularity of ADAS in the region.

Thus, the demand for advanced driver assistance systems would continue increasing, as people become more aware about driver safety features and their spending power rises further.
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