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.
