| Study Period | 2019 - 2032 |
| 2024 Market Size | USD 60.4 Billion |
| 2025 Market Size | USD 67.3 Billion |
| 2032 Forecast | USD 156.4 Billion |
| Growth Rate (CAGR) | 12.8% |
| Largest Region | North America |
| Fastest Growing Region | APAC |
| Nature of the Market | Consolidated |
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The adaptive cruise control category held the largest revenue share in 2024, of 45%, and it is expected to highest CAGR as well in the coming years. This is due to the growing preference for ADAS in emerging economies, the increasing number of on-road vehicles, the rising incidence of traffic jams, and shifting consumers’ choices for technology-equipped vehicles. Moreover, the need for technologically advanced braking and collision avoidance systems has given a boost to the development of the system. ACC automatically adjusts the speed of the vehicle to match the speed of the vehicle moving in the front to avoid collision. This system plays an important role on highways where the vehicles move at higher speed, but can slow down due to some obstacle in the way. The governments in several countries recommend the installation of ACCS in the vehicles.
Here are the system types covered:
The radar category accounted for the largest revenue share in 2024, and it is further expected to maintain its position during the forecast period. This can be ascribed to its several benefits, such as the capability of identifying an object's exact location, determining its velocity, measuring its distance, distinguishing between stationary and mobile targets, focusing on many targets at once, collecting a lot of data, and obtaining information at multiple scales.
In addition, such products are gaining traction in the industry, due to the growing adoption of long-range radar sensors in vehicles owing to their ability to detect signals from up to 150 meters and their superior data collection capacity.
Ultrasonic is the fastest-growing category, with 16% CAGR during the forecast period. The Ultrasonic ADAS sensor is used for the detection of obstacles in the short range. They are mainly used in vehicle’s park assistance, blind spot detection. With the up gradation in technology, the Ultrasonic ADAS sensors are also being upgraded. The limitation in downsizing the pin-connector-type Ultrasonic ADAS sensors has now been eradicated.
These sensor types have been studied:
The level 1 category dominates the market with 40% share, as most vehicles with ADAS only have basic functionalities, and even then, they qualify as a level 1 autonomous vehicle. These are the most affordable of ADAS-integrated vehicles, which is why they find widespread adoption in developing countries. Moreover, many countries mandate automatic emergency braking, adaptive cruise control, and a few other basic ADAS functionalities, which are the hallmark of level 1 autonomous automobiles.
Level 3 is expected to be the fastest-growing category over the forecast period. This is because level 4 and 5 autonomous vehicles are still 4–5 years away from commercialization. Moreover, even when they are made available to the public, they are likely to be exorbitantly priced and, therefore, unaffordable for the masses. On the contrary, with the growing focus on OEMs on comfort and safety enhancement, they are engaging in extensive R&D. This is leading to the widening availability and reducing prices of vehicles with level 3 autonomy, which will drive their sales in developed and developing countries.
Here are the autonomy levels studied:
Passenger vehicles will continue to dominate the ADAS market over this decade and beyond. This is because of the higher manufacturing output of passenger cars than commercial vehicles. Additionally, any new automotive technology is first tested and launched in passenger cars, on account of the rising demand for improved passenger safety and comfort and people’s surging disposable income.
LCVs will likely witness the highest CAGR, of 16%, over the forecast period. This is attributed to the rising sale of vans and pickup trucks for urban e-commerce delivery and light-duty logistics purposes. ADAS features not only make driving easier but also collect operational data in real time and send it to the OEM, as well as the fleet operator. Further, many countries now mandate electronic logging devices to ensure optimum work hours for commercial drivers. Further, if a commercial vehicle gets in an accident, not only are people at danger but also valuable cargo, which is why LCVs are being rapidly integrated with at least level 1 or 2 ADAS functionalities.
These vehicle types have been analyzed:
The ICE category currently dominates the market with 65% value share as the conventional engine is the prevalent type of propulsion in all vehicle segments. Diesel and gasoline vehicles have been around for over a century, and they are manufactured in higher volumes; therefore, are affordable. Additionally, apart from diesel and petrol, CNG is more easily available around the world than efficient EV charging infrastructure.
The BEV category will witness the fastest growth during the forecast period. The increasing support of governments in the form of incentives and grants for the adoption of battery electric cars and stringent emission regulations are fueling the growth of BEV cars in the region. According to the Global EV Outlook 2024 by the International Energy Agency (IEA), around 17 million electric cars were sold around the world, accounting 1 in every 5 cars.
Furthermore, the deployment of fully autonomous technology is easier in BEVs as compared to other fuel type vehicles. To make a car self-driving, a number of cameras, sensors, radars, and other equipment are used. Smooth connectivity among electric components is more convenient to achieve in battery electric cars than conventional, fuel-based or hybrid electric models. Such factors further encourage the integration of the autonomous technology in BEVs.
We studied these propulsions:
Hardware is the largest category as a wide array of LiDAR, radar, ultrasonic, camera, and other kinds of sensors are necessary to deploy ADAS functionalities in vehicles. Depending on the functionality and autonomy level, a car could have up to 70 individual sensors for different purposes. With so many sensors and pieces of hardware, multiple electronic control units (ECUs) are also required. Moreover, advanced sensors and ECUs are continuously being developed, which are more expensive than those of the previous generations.
The software category will witness the higher CAGR, of 18%, during the forecast period. This is because whereas hardware is a one-time and long-term investment, the software needs to be upgraded regularly. OEMs and component manufacturers now enable regular software updates via the OTA route. Additionally, without software, ADAS hardware cannot function, and the former also enhances the functionalities of the physical components. The growth in the popularity of software-defined vehicle will also drive this category rapidly.
These offerings have been considered:
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North America accounted for the largest revenue share, of 45%, in 2024 and is further expected to maintain its position during the forecast period. This is attributed to the high number of vehicles per capita, a huge number of premium car ownerships, the mounting preference of consumers for ADAS-equipped vehicles, technological advancements, and the falling cost of sensors and systems that encourages automotive manufacturers to provide more models of vehicles with advanced ADAS offerings. The rising number of road accidents, high R&D spending on autonomous vehicles, and government mandates for such systems are also responsible for the industry expansion.
The APAC market will witness the fastest growth during the forecast period, with 14% CAGR. This high growth can be ascribed to the easy availability of sensors used in vehicles due to the extensive electronics industry; the rise in the number of vehicles used for the transportation of goods as well as private-owned cars; the surge in the demand for high-end cars due to the increasing number of HNIs; prominent automobile manufacturers shifting their production facilities to regional countries to expand capabilities; and several government measures, such as the introduction of adaptive cruise control and emergency braking systems, have been implemented to encourage OEMs to enter the advanced driver assistance systems market.
China dominates the regional market due to the extensive manufacturing hub of semiconductors that are used in automotive sensors, the growing sale and purchase of vehicles due to the mounting population, and the high investment by industry giants in R&D in the nation.
The market has been broken down geographically are below:
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