Advanced Driver Assistance System (ADAS) Testing Equipment Market

Advanced Driver Assistance System (ADAS) Testing Equipment Market by Product Type – Hardware and Software for 2021-2031

ADAS Testing Equipment Market Snapshot

As per a recent survey by Future Market Insights (FMI), the global advanced driver assistance system (ADAS) testing equipment market totaled US$ 222,486 Thousand in 2021.

The increasing adoption of advanced driver assistance systems (ADAS) in modern passenger vehicles is highlighting the need for accurate ADAS testing equipment to achieve optimal driving experience and safety.

This factor is a key growth accelerator for the advanced driver assistance systems (ADAS)  market. With a favorable demand outlook, FMI has projected the market to grow at a remarkable 12.10% CAGR during the forecast period 2021 to 2031.

Key Points Covered in ADAS Testing Equipment Market Survey

  • Market estimates and forecast 2021-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Brand share and Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on ADAS Testing Equipment and how to Navigate
  • Recommendation on Key Winning Strategies

ADAS Testing Equipment Market Historic Sales Compared to 2021-2031 Forecast Outlook

As per the report, demand for ADAS testing equipment grew at a steady pace, exhibiting a 3.7% CAGR between 2016-2020. In recent years, ADAS has emerged as an active safety system and its use has become more prevalent than ever.

Sales of ADAS testing equipment slumped in the first quarter of FY'2020 due to suspended production across industries and disrupted supply chains. Nevertheless, FMI projects a positive growth outlook for the ADAS testing equipment market, as the market experienced year-over-year growth at 9.1% between 2020 to 2021.

With rising concerns regarding road safety and the inception of autonomous vehicles, many technological advancements in ADAS testing equipment have come to light. These developments will further act as stepping stones for fully autonomous cars.

Increasing levels of automation onboard vehicles have underpinned the need for intelligent systems that deal with complex traffic scenarios and provide assistance in unfavorable climatic situations.

These systems comprise sensor fusion, object tracking, risk estimation, vehicle control, and driver status recognition. With a plethora of different sensor technologies, it is becoming infeasible for automotive manufacturers to test each system's performance by manually driving and labelling data for reference.

Owing to these factors, OEMs and tier-1 manufacturers are initiating product developments in the ADAS testing equipment market to device testing systems that simplify the process and derive accurate results.

Stringent Road Safety Regulations to Spur Demand For ADAS Testing Equipment

With recent uptake in the adoption of advanced driver assistance systems (ADAS) and automated driving systems (ADS), initiatives to establish safety standards to support mass deployment are gaining significance.

To ensure that autonomous vehicles are complying with the safety standards, manufacturers are emphasizing on efficient and cost-effective methods to thoroughly test and validate ADAS and ADS performance.

Countries including the U.S., Germany, and the U.K. have mandated the testing of autonomous vehicles and the inclusion of ADAS in all vehicles. For instance, in 2020, the National Highway Traffic Safety Association (NHTSA) launched the AV TEST Initiative with states, local governments, and private automotive manufacturers.

The goal of the initiative is to increase public awareness regarding on-road safety, precautions, and principles guiding the test. The initiative also provides direct access to information about testing of ADAS in vehicles, regulations, legislations, information on automation on roadways, and data provided by companies that are developing and testing ADAS.

Such regulations and initiatives across various countries are creating avenues for expansion for players operating in the ADAS testing equipment market.

Advancements in Sensor Technology To Propel ADAS Testing Equipment Sales

Sensor technology is an integral part of ADAS development. As ADAS constantly feeds off steams of information about the environment and surroundings, it is imperative to ensure the proper functioning of all the sensors deployed in the vehicle.

A sensor is required to detect everything that the driver can see, but also the elements that are away from the driver’s sight. A variety of sensors are already being used in autonomous vehicles, with each one having its own advantages and disadvantages in terms of capability and pricing.

As each sensor has its advantages and weaknesses, combining different technologies can potentially refine ADAS functions. Fusion of sensor technologies is a rapidly evolving norm in ADAS as it processes data gathered from multiple sources quickly and accurately.

After the deployment of sensors, it is imperative to test their durability and robustness. While some sensors are deployed inside the vehicle’s cabin, many are mounted externally to the vehicle’s vulnerable areas such as behind the grille and corners of bumpers.

These are considered to be hostile environments for sensitive equipment. Failure of these sensors and accidental damage results in high fixation. This has created a pressing need for highly efficient ADAS testing equipment in the automotive industry.

Further, the increasing uptake of ADAS is driving advancements in sensor technology. However, many sensors are currently operating at a basic level when it comes to object detection.

Current systems can potentially identify pedestrians, but they might fail to detect pedestrians beyond a very specific form. For example, sensors might fail to detect a person if they are wearing clothes that alter their outline, or if they are carrying a large object.

However, as the technology takes a robust shape, these limitations will be addressed. These developments are anticipated to spur the demand for high-tech ADAS testing equipment in the forthcoming years, opines FMI.

Will High Cost Associated With ADAS Hinder Market Growth?

Surging cases of road accidents in recent years have urged government authorities to introduce stringent regulations to ensure public safety. These regulations have mandated the incorporation of ADAS testing equipment which covers anti-collision systems, collision warning, navigation control, and so on.

However, speculations regarding proper safety of autonomous vehicles are impacting their sales in emerging economies. In addition, population in developing nations relies on two-wheelers for faster commute and convenience, where existing road conditions are unfavourable for ADAS-enabled vehicles.

Most ADAS-enabled vehicles are premium standard and fall under the 'luxury' category, making them more expensive in comparison with standard passenger vehicles. Moreover, the maintenance and repair costs of these vehicles are relatively higher than regular vehicles.

As per the report, these factors might impact sales of ADAS testing equipment in the long run. 

Country-wise Insights

How Will the ADAS Testing Equipment Market Expand Across the U.S.?

As per FMI’s regional analysis, the U.S. is anticipated to witness high demand for ADAS testing equipment during the forecast period, with the North American market expanding at a stupendous 11.30% CAGR through 2031.

Growth can be attributed to growing consumers’ preference towards autonomous cars and government initiatives mandating safe testing of autonomous vehicles. Emergence of autonomous passenger vehicles launched by companies such as Tesla, GM Motors, and Nissan is further providing tailwinds to ADAS testing equipment sales.

Moreover, rapid adoption of highly advanced technological innovations in the automotive sector in the U.S. will continue shaping the demand outlook for ADAS testing equipment through 2031.

Why Will the U.K. Exhibit High Demand for ADAS Testing Equipment?

As road accidents are surging at an alarming pace, the UK government has signaled its intent to incorporate Automated Lane Keeping Systems (ALKS) as a part of its regulations to reduce road fatalities.

In addition to ALKS, the UK government is also emphasizing on more strict driving tests and guidelines for proper ADAS testing before the vehicle is launched in the market. These factors are creating room for expansion in the ADAS testing equipment market.

ALKS falls under the wide umbrella of ADAS technology. The Automated and Electric Vehicles Act 2018 in the U.K. requires all automated vehicles to be capable of safely and lawfully driving themselves, without needing to be constantly monitored when they are in automated mode.

As a part of the initiative, U.K. autonomous car start-ups have also received financial and research, and development support. These aids are helping new entrants and existing players to compete with some of the world’s largest autonomous vehicle companies.

These factors are indicative of U.K. emerging as a leader in the European ADAS testing equipment market. FMI projects the European market to exhibit a robust 8.0% CAGR during the forecast period.

Will China Emerge as a Lucrative Market?

The influx of autonomous vehicles in China including truck fleets, robotaxis, and luxury passenger vehicles is creating opportunities for growth and expansion in the ADAS testing equipment market.

China is one of the biggest automotive hubs in the world, and domestic policies in the country further amplify the significance of autonomous driving for better transport systems. To cater to the ever-growing consumers' demand, automotive manufacturers, regional and global, are rapidly launching ADAS-equipped vehicles. This, in turn, is placing China as a lucrative market for ADAS testing equipment.

Besides this, China has a favourable environment for a larger scale of autonomous vehicle applications in the upcoming years. As the nation seeks to build a robust digital infrastructure via incorporation of artificial intelligence (AI), big data, and the Internet of Things (IoT), there is an immense scope of expansion for the ADAS testing equipment market in the upcoming decade.

India Set to Witness High Demand for ADAS Testing Equipment  

Autonomous driving technology is relatively new in India. However, consumers have expressed their interest in fully automated cars and transportation systems, which is encouraging OEMs to develop intelligent and sophisticated ADAS-equipped vehicles in the country.

In the annual Society of Indian Automotive Manufacturers (SIAM) convention, the government of India expressed its concerns regarding road safety and on-road fatalities in the country. The convention focused on shared and connected mobility and the cost of its implementation in the Indian automotive sector.

Apart from this, the government of India further emphasized on stringent crash test norms for newly launched vehicles. By 2022, all existing cars and newly launched vehicles are mandated to include standard safety features such as reverse parking sensors, speed reminders, airbags, ADAS, and so on. Taking cues from these developments, FMI projects a positive demand outlook in the Indian ADAS testing equipment market.

Category-wise Insights

Sales of Hardware ADAS Testing Equipment To Continue Gaining Traction

In terms of product type, hardware is anticipated to lead the segment. With increasing technological advancements in ADAS, car manufacturers are employing and validating novel ADAS testing equipment such as radar, lidar, sensors, and cameras.

These systems are key components in ADAS and require testing under unfavorable circumstances to achieve accurate results to help improve the driving experience. Moreover, hardware components can be customized to meet the end-users demand, which is further augmenting growth in the ADAS testing equipment market.

OEMs and Tier-1 Suppliers To Lead the Application Segment

As per the report, OEMs and tier-1 suppliers will be the most active end-users of ADAS testing equipment throughout the assessment period.

Increasing sales of ADAS-equipped vehicles, coupled with new product launches will bolster sales of ADAS testing equipment. Besides this, growing demand for safe and sophisticated ADAS equipment in emerging economies will further facilitate expansion in the global ADAS testing equipment market.

Competitive Landscape

Top 5 players in the global ADAS testing equipment market comprise Konrad GmbH, AB Dynamics plc, National Instruments Corporation, TKH Group NV, Oxford Technical Solutions Ltd., and Racelogic Ltd., holding 50% of the total market share.

As a part of their growth strategies, key market players are benefitting from strategic collaborations, partnerships, and acquisitions to expand their global footprints. Apart from this, product developments, intensive research and development, and new product launches will remain prominent growth strategies among key companies. For instance:

  • In May 2021, Konrad Technologies and LHP Engineering Solutions announced a collaborative project to deliver their latest ADAS Solution, a workflow management system equipped with test automation for ADAS functional safety standards. Konrad Technologies has been a global leader in automated testing equipment for electronics, automotive, and defense sector for the past 25 years. LHP Engineering Solutions is a leading engineering service provider and technology integrator in the transportation sector.
  • In March 2021, AB Dynamics, a leader in testing systems and measurement products, completed its acquisition of Vadotech and Zynit, collectively known as Vadotech Group, a global technical service provider in the automotive industry. The acquisition is facilitating AB Dynamic's strategic priorities such as expanding its global footprint by offering products in the Chinese market.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for Value

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa

 

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa

Key Segments Covered

Product Type, End-Users Type, and Regions

Key Companies Profiled

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered in the Report

  • What is the current ADAS testing equipment Market value?

    The ADAS testing equipment market reached a valuation of US$ 222,486 Thousand in 2021.

  • At what rate did the ADAS testing equipment market grow between 2016 and 2020?

    The ADAS testing equipment market experienced moderate growth, exhibiting a 3.7% CAGR between 2016 and 2020.

  • What are the key trends driving ADAS testing equipment sales?

    Increasing adoption of ADAS in autonomous vehicles, coupled with product innovations and developments by OEMs are anticipated to drive ADAS testing equipment sales.

  • Who are the leading players in the ADAS testing equipment market?

    Leading players operating in the ADAS testing equipment market include Konrad GmbH, AB Dynamics plc, National Instruments Corporation, TKH Group NV, Oxford Technical Solutions Ltd., and Racelogic Ltd.

  • What will be the demand outlook for North America ADAS testing equipment market?

    North America ADAS testing equipment market is projected to grow at an impressive 11.30% CAGR during the forecast period.

  • What is the market share of leading players in ADAS testing equipment market?

    Leading players in the global ADAS testing equipment market are estimated to account for 50% of the total market share.

  • What will be the ADAS testing equipment market share in Europe?

    The ADAS testing equipment market in Europe is anticipated to expand at a robust 8.0% CAGR between 2021 to 2031.

  • What is the current market share of Japan and South Korea in the global ADAS testing equipment market?

    Japan and South Korea are anticipated to hold 14% of the global ADAS testing equipment market share collectively.

Key Segmente

By Product:

  • Hardware
  • Software

By End-User Type:

  • Automotive OEMs
  • Tier-1 Suppliers
  • Labs and Other Institutes

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Middle East and Africa (MEA)

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Advanced Driver Assistance System (ADAS) Testing Equipment Market