Automotive and Transportation

ADAS Vehicles Market is Expected to Reach USD 2499.52 Billion by 2031

Apr 2024

Automotive and Transportation

As per the report published by Kings Research, the global ADAS Vehicles Market was valued at USD 826.57 billion in 2023 and is projected to reach USD 2,499.52 billion by 2031, growing at a CAGR of 14.99% from 2024 to 2031.

The growing demand for semi-autonomous and autonomous vehicles has supported the growth of the ADAS vehicles market in recent years. Consumers are increasingly seeking vehicles with advanced safety and convenience features, making the integration of ADAS technologies crucial. These systems enable higher levels of autonomy through functionalities such as adaptive cruise control, lane-keeping assistance, and automatic emergency braking. Manufacturers are meeting this demand by incorporating ADAS features into their vehicles, thereby fueling market growth. Technological advancements and regulatory support further contribute to the adoption of ADAS technologies, facilitating safer and more efficient transportation solutions in the evolving automotive industry.

Key Insights

  • Based on type, the adaptive cruise control (ACC) segment held the largest market share of 28.71% in 2023
  • Based on vehicle type, the passenger vehicle segment generated the highest revenue of USD 559.32 billion in 2023
  • Based on level of automation, the level 1 (driver assistance) segment dominated the market in 2023, registering a revenue of USD 615.86 billion
  • On the basis of region, Asia-Pacific is likely to emerge as the fastest-growing region, boasting a CAGR of 16.99% over the forecast years

BYD's Denza Launches Cheaper Driver Assistance System with NVIDIA

September 2023: Chinese electric vehicle manufacturer BYD's joint venture Denza introduced a more affordable driver assistance system developed in collaboration with NVIDIA. The new system, equipped with NVIDIA's technology, offered advanced features such as adaptive cruise control and lane-keeping assistance at a lower cost, making it more accessible to consumers. This move aimed to cater to the rising demand for vehicles equipped with advanced safety and convenience features.

Insurance Premium Reduction to Drive Adoption of ADAS Vehicles

Insurance companies are offering discounts on premiums for vehicles equipped with ADAS. These systems, such as collision avoidance and automatic emergency braking, reduce the risk of accidents and lower insurance claims. This is prompting consumers to prioritize safety when purchasing vehicles and incentivizes manufacturers to integrate ADAS technologies. As a result, the adoption of ADAS features is increasing, leading to improved road safety and reduced insurance costs for drivers.

Integration of ADAS with Smart Infrastructure to Unlock Enhanced Safety and Traffic Efficiency

The integration of ADAS with smart infrastructure presents a significant growth opportunity for the ADAS vehicles market. By connecting ADAS systems with traffic management systems and communication networks, vehicles can interact with surrounding infrastructure in real-time, leading to improved functionality and safety benefits. This integration may allow advanced features such as predictive traffic management, dynamic routing, and intersection collision avoidance, enhancing overall traffic flow and reducing congestion. Additionally, ADAS-equipped vehicles can receive real-time updates on road conditions, hazards, and traffic patterns, enabling proactive responses to potential risks. The synergy between ADAS and smart infrastructure enhances the driving experience for consumers while contributing to the development of more efficient and sustainable transportation systems.

Asia Pacific to Lead ADAS Vehicles Market with Highest CAGR of 16.99% Over the Forecast Period

Based on region, the global ADAS vehicles market is classified into North America, Europe, Asia Pacific, MEA, and Latin America. Asia Pacific is poised to emerge as the fastest-growing region, with the highest CAGR over the forecast period. This notable growth is mainly driven by rapid urbanization, increasing disposable incomes, and expanding automotive markets in countries such as China, India, and Japan. Stringent government regulations promoting vehicle safety and growing consumer awareness of the benefits of ADAS technologies further contribute to the region's market dominance.

Major Industry Players Ink Collaborative Deals to Strengthen Market Foothold

The global ADAS vehicles market reveals a fragmented landscape, featuring prominent companies including Continental AG, Robert Bosch GmbH, Aptiv PLC, Denso Corporation, Valeo SA, Magna International Inc., Mobileye N.V., NVIDIA Corporation, ZF Friedrichshafen AG, Hyundai Mobis Co., Ltd., and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their global business footprint and enhance their competitive position.

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