Stringent government regulations, requirement for compliance with emission standards, and increasing consumer inclination towards innovative safety technologies are transforming automobile industry. Rising public spending has resulted in increased automobile sales and road traffic, thereby enhancing the probability of accidents, property loss, and fatalities.
According to National Highway Safety Traffic Administration (NHTSA), death tolls in road accidents increased from 37,461 in 2016 to 40,100 in 2017 even after government initiatives related to safety seat belt, warnings for alcohol consumption, and speed level enforcement. Requirement of automated warning and collision mitigation technologies is expected to drive the advanced driver assistance system market size.
Manufacturers are opting for vehicle safety technologies to reduce road casualty. ADAS units focuses on crash avoidance and injury prevention to address safety of all road users, thereby escalating industry growth. Multiple features offered by the ADAS system including tire pressure monitoring system, park assist, lane departure warning systems, collision warning will support the industry growth through 2024.
These technologies assist drivers and improves vehicle safety aspects for passengers and pedestrians, thereby enhancing vehicle comfort and driving experience efficiently. These factors will present strong growth platform for the advanced driver assistance system market growth.
Automobile manufacturers are continuously investing in R&D to deliver technologies with an aim to reduce fatalities. Crash avoidance technologies provide human machine interface (HMI) to improve driver behaviour while mitigation systems reduce crash severity through advanced breaking system and intelligent speed adaptation. Further, OEMs are implementing these systems as differentiating feature and enhance revenue from their automobile sales in turn fuelling the overall ADAS market share.
Limited sensor functionality that are available in the automotive space and relatively high cost have restricted their demand. This in turn reduces the options for budget cars in the automotive retail space. Most premium cars deploy them as standard vehicle features. Moreover, inter-sensor communication presents major development challenge owing to high bandwidth requirements and solutions for preventing network overloads. Optimisation of distribution and partitioning of system architecture is required contributing to additional costs, in turn hampering the overall advanced driver assistance system market.
ADAS market by technology
Forward collision warning is expected to dominate the industry share owing to its requirement to assist the driver in mitigating the collisions. Its application with AEB units enhances the probability of avoiding the vehicle collisions. Moreover, significant drop in the electronic component prices has encouraged the ADAS technology adoption.
Rising demand for commercial vehicles as well as passenger cars will provide a positive outlook for ADAS market. Head up display segment is estimated to grow at substantial rate during the forecast period. Stringent regulations to mandate the AEB and lane departure warning systems in heavy duty vehicles particularly in European Union will propel the advanced driver assistance system market growth over the forecast period.
ADAS market by sensor
Based on sensors, radars are expected to witness highest growth rate in the ADAS market share. Ability of signal penetration through mediums that include fog, clouds, snow, and insulators are key attributes expected to drive the segment demand. Additionally, effective target velocity determination and object distance measurement has contributed to the RADAR system market growth.
Shifting manufacturer preference for component automation has enhanced the RADAR adoption among OEMs. These sensors help in accident prevention caused by driver error, drowsiness, and distraction in turn fuelling the global advanced driver assistance system market growth.
ADAS market by vehicle
Passenger cars are expected to contribute to the largest market share through the forecast period. Rapid urbanisation accompanies increasing consumer spending on automobile has enhance the product demand. Increasing consumer awareness pertaining to road safety along with governmental regulations are major growth factors supporting industry demand.
Moreover, initial deployment of these technologies in passenger cars along with relatively large automotive sales share across the major economies of Europe and Asia Pacific will support the segment dominance through the forecast period.
ADAS market by distribution channel
OEM dominated the overall volume of the advanced driving assistance system market share in 2017. Necessity for ADAS systems to meet stringent government regulations on passenger safety and road accident prevention will propel the industry demand. Furthermore, vehicle manufactures are securing technology patents safety assistance technologies to maintain their industry foothold. For instance, Volvo filled a patent for external airbag in 2012.
In November 2018, Ouster introduced several innovative materials that can be used in the lidar systems for autonomous automotive technologies. Such trend is expected to foster strong growth platforms for the OEM advanced driver assistance system market share.
ADAS market by region
US dominated the global market share for adaptive cruise control, autonomous park assists, forward collision warning, and advanced emergency braking technologies across the globe. It possesses extensive research and development facilities that have made significant investments in smart automotive production methods and process automation.
Owing to this North America held the largest market share, is expected to lead the overall industry in technological developments. NXP Semiconductor, Hyundai Mobis, Infineon Technologies, Texas Instruments, Valeo, Continental, Robert Bosch, Renesas Electronics, Autoliv, Hella Kgaa Hueck & Co, Wabco Holdings, Mobileye, and Denso are some of the automotive safety systems suppliers that have established strong presence in North America ADAS market.
Competitive market share
Some of the major advanced driver assistance systems (ADAS) market participants include Continental AG, Robert Bosch, Autoliv, Magna International, Texas Instruments and TRW Automotive. Other notable industry participants are Delphi, NXP Semiconductor Inc, Aisin Seiki Co., Denso Corporation, Harman International, NVIDIA Corporation, and Hyundai Mobis.
Investment in R&D and introducing innovative technologies to achiever high degree of autonomous operations is among the major trends expected to drive the global competition. For instance, in April 2017, Autoliv and Volvo Cars entered into a joint venture to design and develop software for autonomous driving and driver assistance system which was named as Zenuity. This was to provide the customers with complete flexibility to choose a platform with modular solutions.
Industry participants have made significant efforts to introduce innovation in radar and sensor detection capabilities for mitigating the collisions with vehicles or pedestrians. For instance, in 2015, Bosch developed active protection system to assist in collision avoidance with pedestrians. In 2017, Ford introduced pedestrian detection system in 2018 Ford Mustang and 2017 Ford Fiesta. It utilises a camera and radar mounted in the bumper to detect pedestrian or any other path obstruction.
Introduction of such innovative technologies for improved safety is expected to provide strong advanced driver assistance system market traction over the coming years.