The global ADAS market size was US$ 26.1 billion in 2021. The global ADAS market is forecast to grow to US$ 71.6 billion by 2030, registering a compound annual growth rate (CAGR) of 11.5% during the forecast period from 2022 to 2030.
Advanced driver assistance system (ADAS) is an advanced technology that assists the driver about the vehicle safely. ADAS includes subsystems and functions that work together to offer convenient services to modern car drivers and enhance the safety of the vehicles.
COVID-19 Impact Analysis
Vehicle production significantly declined during the COVID-19 pandemic. The sudden onset of the pandemic raised various concerns for industries all around the world. Industries had to suffer significant losses, and the automotive industry was one of them. Moreover, the production and manufacturing of automobiles reduced abruptly. As a result, it affected the demand for ADAS.
Factors Influencing the Market
Government regulations mandating the installation of ADAS are driving the growth of the market. In addition, the growing trend pertaining to driverless vehicles or automated vehicles is forecast to offer ample growth opportunities for the global ADAS market during the study period.
The growing number of accidents and increasing security concerns are forecast to drive the growth of the global ADAS market during the forecast period. In addition, rising awareness about the importance of ADAS safety features will propel the market growth during the forecast period.
The rapidly growing automotive industry is forecast to accelerate the growth of the global ADAS market. Furthermore, the functions of ADAS, such as alert features and growing advancements, are forecast to benefit the market during the study period.
The increasing demand for electric vehicles and the growing production of EVs and hybrid vehicles will benefit the ADAS market players during the forecast period.
The lack of proper infrastructure in emerging economies may hamper the growth of the ADAS market.
Geographic Analysis
North America is forecast to hold the largest share in the global ADAS market. The growth of the region is attributed to the rising demand for safe and efficient vehicles and growing government initiatives in the region. Moreover, ongoing progress in autonomous driving and rising demand for light truck vehicles will fuel the region's ADAS market growth.
Because of the growing number of electric vehicles in the region, Asia Pacific is forecast to register significant growth. Furthermore, rising vehicle production and a spike in advanced electronics adoption in Japan, South Korea, and China will fuel the market growth.
According to the International Energy Agency, China will be the major contributor to the electric car industry by 2030. Thus, the global ADAS market is forecast to witness ample growth opportunities in the country during the projected period. In addition, favorable government initiatives, such as "Made in China 2025" and "Made in India", will boost the manufacturing of battery and electric vehicle segment, thereby propelling the market growth.
Competitors in the Market
Market Segmentation
The global ADAS market segmentation focuses on System, Sensor, Vehicle, and Region.
By System Type
By Sensor Type
By Vehicle Type
By Region
