Advanced Driver Assistance Systems Market Snapshot
Future Market Insights in its new market analysis predicts that the advanced driver assistance systems (ADAS) market revenue will grow nearly 3.2x between 2021 and 2031, surpassing the market valuation of US$ 222 Mn in 2021, with a prolific growth rate of 12.10% CAGR.
Market research analysis has identified Konrad GmbH, AB Dynamics plc, National Instruments Corporation, TKH Group NV, Oxford Technical Solutions Ltd., and Racelogic Ltd. as key players operating in the ADAS market. Top five market players holds around half of the global ADAS market share.
Key Points Covered in Advanced driver assistance systems Market Study
- Market estimates and forecast 2015-2031
- 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 Advanced Driver Assistance Systems Market and How to Navigate
- Recommendation on Key Winning Strategies
Advanced Driver Assistance Systems (ADAS) Market Historic Sales Compared to 2021-2031 Forecast Outlook
As per the report, autonomous driver assistance systems (ADAS) is a rapidly emerging technology in automotive sector. Rise in road accidents and loss of property and human lives have made it necessary to develop and introduce advanced driver assistance systems (ADAS) in conventional vehicles.
World Health Organization has reported that, around 1.3 million road traffic accident fatalities are documented every year. 93% of the fatalities occur in low and middle income countries. Increasing government emphasis on mandating the use of ADAS as safety equipment to enhance the safety of the vehicle and the passenger will create opportunities for market growth.
In November 2020, the Union Minister for Road and Highway Transport at the SIAM conference announced that the government is emphasizing towards mandating the use of ADAS in all cars by the end of 2022.
Market players are focusing on new product development and provide better services in order to penetrate the potential markets. Automotive giants are taking initiatives to improve car safety and develop autonomous vehicles promoting OEMs to invest in ADAS.
Aptiv launched its next generation level 1-3 capable ADAS platform called “Aptiv’s Smart Vehicle Architecture™” in January 2021. The new platform is compatible with automated and electric vehicles and also allows the customers to understand its technological roadmaps. It provides faster and advance safety system at cheaper rate.
In May 2021, Toyota joined hands with ZF and Mobileye for developing ADAS having utility across multiple vehicle platforms. According to the signed agreement, ZF and Mobileye will provide its Gen21 mid-range radar and integrate camera and radar in wide range of Toyota vehicles.
Development of ADAS in automotive research institutes and increasing investment from OEMs will accelerate the demand for ADAS testing equipment in the forecast period.
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ADAS Testing Equipment Market - Key Research Findings
- The global ADAS testing equipment market size in 2021 is valued at ~US$ 222 Mn.
- The ADAS testing equipment market is expected to grow at a CAGR of 12.1% during the forecast period of 2021-2031.
- Owing to the increasing demand for advanced features in passenger vehicles, the global ADAS testing equipment market is expected to witness significant growth during the forecast period.
- In terms of revenue generation, East Asia and North America, collectively, are likely to account for more than half of the value shares in the ADAS testing equipment market in the current scenario.
- East Asia, attributing to the high automotive production, will continue to be a prominent regional market for ADAS testing equipment manufacturers.
- The automotive OEMs segment is expected to remain prominent end user in the ADAS testing equipment market owing to the rising incorporation of advanced safety features in vehicles.
- The automotive industry has witnessed significant growth over the recent past, owing to the increasing sales of compact passenger cars and light commercial vehicles with a robust adoption rate of ADAS sensors, particularly in few developed and developing countries.
- Increasing demand for ADAS testing equipment from research institutes is also one of the opportunistic end user segments identified in the global ADAS Testing Equipment market.
Key Factors Shaping the ADAS Testing Equipment Market
Prevalence of Safety Standard Propels the Demand for ADAS Testing Equipment
Advanced Driver Assistance Systems (ADAS) are automated systems that increase safety of the driver by improving the overall driving experience for the driver. Safety features are being installed in vehicles to avoid collisions and accidents. These features must be tested during development. Testing activities are becoming important in many countries such as Germany, U.K., and U.S.
To minimize the number of accidents and the impact of the accident, contemporary vehicles are being equipped with advanced driver assistance systems (ADAS). Rising global awareness regarding technological advancements has led to an upsurge in the consumer demand for innovative technologies, such as ADAS.
These innovations are capable of enhancing safety standards thereby, supporting the growth of the ADAS testing equipment market.
Focus on Installing Different Types of ADAS in Vehicles
The global ADAS market is set to witness significant growth in the upcoming years. The market growth will be primarily driven by improvements in automotive sensors technology for both OEM and aftermarket ADAS testing solutions.
Moreover, the NHTSA also announced that, by 2022, prominent OEMs in the U.S. must commit to apply emergency braking systems standard for all new vehicles. This will result in the enhanced safety of these vehicles by reducing the risk of fatalities caused by back over accidents in the country.
According to a study, ~40% of all the vehicles in U.K. are projected to be equipped with at least two types of ADAS by 2020.
OEMs are Developing Advanced Driver Assistance Systems for their Brands
ADAS applications are anticipated to create business opportunities in the automotive industry, and electronics & semiconductor companies are well positioned to grab it. Technological expertise of companies has now become more important, as they can provide solutions, services, and products for testing ADAS.
Several initiatives in the automotive industry are taken to improve car safety and develop autonomous vehicles are encouraging OEMs to invest in ADAS.
Features installed in the autonomous vehicles are required to be tested, translating to the growth of ADAS testing equipment manufacturers.
Adoption of ADAS in research institutes and OEMs is also expected to boost the demand for ADAS testing equipment in the forecast period.
ADAS Testing Equipment Market Structure Analysis
The global ADAS testing equipment market is significantly consolidated. There are very few small and medium sized ADAS testing equipment manufacturers due to the high manufacturing cost, low consumer awareness, and complex design completely depended on required units.
Global players accounted for ~60% to 70% in the market, whereas other small and medium-sized players accounted for ~30% to 40% in 2018.
Racelogic Ltd. and Oxford Technical Solutions Ltd. are estimated to be prominent market participants in the global market, relatively generating maximum revenue through ADAS testing equipment as compared to other market players. TKH Group NV (DEWETRoN), National Instruments Corporation, and AB Dynamics plc, are identified as among the prominent leaders in the global ADAS testing equipment market.
Prominent manufacturers of ADAS testing equipment are currently prioritizing expansion and new product launches to resonate with the growing consumption of ADAS testing equipment in China, Japan, U.S., Germany, and others.
ADAS Is All about Leveraging Sensors to Monitor Road Mishaps
Advanced driver assistance systems (ADAS) testing equipment are creating space in the automotive vehicle safety systems. Rapid adoption of sensor technology, such as Lidars, and cameras, among others, are facilitating drivers with functions including, lane keep assist, collision prevention, autonomous emergency, and so on.
However, operation of limited functionality of individual sensors is driving the need for sensor coupling; for instance, integration of radar, camera, and vehicle to vehicle communication provides exact data of the surroundings, in unfavorable settings which include night time, snow, fog, and others. Further, utilizing integrated circuits (IC) is enabling functional safety in the power supply systems of ADAS sensor modules.
ADAS test equipment and ADAS calibration equipment makers are highly inclined towards automotive radars due to their operation under all radar bandwidths. These radars are located behind bumpers and brand emblems, offer short-range and long-range detections.
Furthermore, manufacturers are leveraging guided soft targets (GST), a single-use archetype, to enable vehicle testing without compromising the actual cars used. These mockups, installed on an autonomous robotic platform, allow efficient recreation after getting contacted with the test vehicle.
However, innovations in ADAS test equipment imply unknown technology and algorithms designed by neural networks instead of the line-by-line code developed by software programmers.
High Price Point Remains the Key Limiter for Penetrating Developing Markets
Realizing an alarming upsurge in the cases of road accidents over the recent past, several policy makers are introducing reforms to ensure passengers’ and drivers’ safety.
The National Highway Traffic Safety Administration (NHTSA) and the European New Car Assessment Programme (Euro NCAP) are mandating testing sessions incorporating ADAS testing equipment, including anti-collision system, forward collision warning system, and others. In addition, increasing demand for technology-driven features in public and private transport is being observed within developed economies.
However, middle-class demographic in developing economies, such as India, are still relying on two-wheelers for their commute. Countries, including Thailand and other ASEAN economies, are posing restrictions on the launch of ADAS enabled vehicles, as the existing road conditions are inappropriate to complement the technology.
Furthermore, vehicles equipped with ADAS automatically reflect a higher price point than that of the traditional modes of road transportation, which is among the prime factors responsible for continued preference for conventional vehicles.
Stakeholders Unlocking Windows of Opportunities in North America and East Asia
Although Europe began the race, the market is currently upheld by North America and East Asia - the latter showcasing significant growth. China, witnessing roughly 700 road casualties a day, has been facing a challenge posed by intricate road networks operated by massive traffic of vehicles as well as pedestrians.
The country has myriad regulations in action, compelling manufacturers to evaluate autonomous vehicles (AV) in designated areas and offers a network of off-road AV testing centers for international testers.
On the other side, North American countries, particularly the US, witness about 40,000 automobile fatalities occur annually, followed by more than 90 deaths a day. Such an alarming situation triggers government bodies, such as the NHTSA, to mandate the automotive safety audit for automakers, which covers a multitude of features like collision detection and automatic emergency brakes, thereby fueling the demand for ADAS testing equipment
Automation and Advanced Detection Systems to Dictate Market Players’ Strategies
The advanced driver assistance systems (ADAS) testing equipment market is highly consolidated, with key market players including, Oxford Technical Solutions Ltd., and Konrad GmbH, among others.
Leading manufacturers are leveraging sensor fusion that facilitates constant and accurate prediction of potential mishaps and nearby settings under controlled lighting and bad weather conditions by accepting inputs from coupled sensors, for instance, combined radar and camera sensors.
Major market actors are maneuvering path-following software to maintain constant distance between the test vehicle and the guided soft target (GST) vehicle using combined brake and accelerator robot (CBAR).
Furthermore, manufacturers are shifting to autonomous driving from assisted driving with the adoption of V2V communication or 5G technology and high quality data acquisition and processing for better perception of surroundings while being on road.
How Growth Will Unfold
The advanced driver assistance systems (ADAS) testing equipment market is set to witness tremendous growth over the forecast period despite inept government regimes. About 94% of road casualties occur due to human error, and road mishaps have been among the top 10 leading causes of mortality for the past decade.
International regulatory bodies including the European Commission is urging manufacturers to equip upcoming vehicles with a wide array of safety features, for instance, forward collision warning (FCW), lane-keeping assist, among others by 2022.
The NHTSA and NCAP has instructed automotive manufacturers to arm all the vehicles with standard autonomous emergency braking (AEB) by the same timeframe.
Scope of Report
Historical Data Available for
USD Million for Value
Key Regions Covered
North America, Latin America, Europe, East Asia, South Asia, 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, GCC Countries, Turkey, Northern Africa, and South Africa
Key Segments Covered
By Product, By End User, and Region
Key Companies Profiled
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 advanced driver assistance systems market size?
Fueled by growing traffic accidents and need for safer driving and vehicle, the advanced driver assistance systems market size is forecast to reach US$ 222.48 Mn in 2021.
At what rate did the advanced driver assistance systems market expand in the last five years?
Between 2016 and 2020, the advanced driver assistance systems market observed sluggish growth at a 3.7% CAGR.
What are the key trends shaping the advanced driver assistance systems market?
Development of advanced driver assistance systems by the OEMs and technology providers to support autonomous vehicles will increase adoption rate of ADAS. These also are the key trends prevailing in the market.
What are the key factors fuelling advanced driver assistance systems market demand?
Rapid mandating of ADAS by governments across the globe and increasing awareness regarding the utility of ADAS among consumers will drive the market growth.
What is the North America advanced driver assistance systems market outlook?
Demand registered in North America will continue rising, backed increasing cases of road accidents in the U.S. and Canada, the North America market will expand at 11.30% CAGR during 2021 to 2031.
Who are the leading companies in advanced driver assistance systems market?
Konrad GmbH, AB Dynamics plc, National Instruments Corporation, TKH Group NV, Oxford Technical Solutions Ltd., Racelogic Ltd. are the top six companies in the market.
What is the cumulative share of top six companies in advanced driver assistance systems market?
Top players account for nearly 50% of the advanced driver assistance systems market share as of 2021.
At what rate will advanced driver assistance systems sales increase in Europe?
Advanced driver assistance systems sales will grow at 8% CAGR in Europe, backed by rising demand in the U.K., Germany, and other countries.
Which are the top five countries driving advanced driver assistance systems market demand?
Leading countries driving demand in the advanced driver assistance systems market are the U.S., U.K, Germany, China, and India.
What are the key statistics for advanced driver assistance systems market in Japan and South Korea?
Japan and South Korea held around 14% share in the overall advanced driver assistance systems market in 2021.
By Product Type
By End User
- Automotive OEMs
- Tier-1 Suppliers
- Labs and Other Institutes
- North America
- Latin America
- East Asia
- South Asia
- Middle East and Africa (MEA)