Advanced Driver Assistance Systems Market size was valued at USD 33.69 billion in 2024 and is set to exceed USD 127.8 billion by 2037, registering over 10.8% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of advanced driver assistance systems is evaluated at USD 36.6 billion..
The reason behind the market expansion is the increasing sales of electric vehicles across the globe, leading to extensive adoption of advanced driver assistance systems (ADAS), as they possess the capacity to significantly increase traffic safety by providing alerts or automated brakes to drivers to prevent or lessen collisions. As per the International Energy Agency, sales of electric vehicles increased by 3.5 million in 2023 compared to 2022, a 35% annual rise.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
10.8% |
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Base Year Market Size (2024) |
USD 33.69 billion |
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Forecast Year Market Size (2037) |
USD 127.8 billion |
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Regional Scope |
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Vehicle Type (Passenger Cars, Light Commercial, Heavy Commercial)
Passenger cars segment is anticipated to capture around 45% advanced driver assistance systems market share by the end of 2037. The segment growth can be credited to the rising number of road accidents. A primary goal for automakers, fleet managers, and individual car owners alike is to enhance passenger car safety due to the growing complexity of road networks, the rise in traffic-related events, and distracted driving. According to the statistics of the World Health Organization (WHO), approximately 1.19 million people lose their lives in automobile accidents each year.
As a result, there are more and more new passenger cars with sophisticated ADAS systems that make use of sophisticated cameras, radar, and sonar to raise the level of traffic safety.
For instance, ADAS system integration can avert around 39% of all passenger vehicle incidents, over 35% of the injuries that follow, and nearly 28% of the fatalities associated with them.
Furthermore, adaptive cruise control, lane departure warning, collision warning and avoidance systems, blind-spot detection, and driver fatigue monitoring are a few of the ADAS technologies that are frequently found in commercial vehicles that may benefit workers from increased safety.
System Type (Park Assistance, Blind Spot Detection, Adaptive Cruise Control, Lane Departure Warning, Tire Pressure Monitoring, Autonomous Emergency Braking, Intelligent Headlight, Head-Up Display, Adaptive Front Lights, E-Call, Forward Collision Warning)
The blind spot detection segment in ADAS market is set to garner significant revenue by 2037. Additional elements of ADAS include blind spot detection, which can be used with corner radar sensors or ultrasonic sensors, which makes it easier for drivers to see cars or other items that might be in their blind areas to lessen collisions that occur while the driver is changing lanes.
One of the first functions offered by advanced driver assistance systems (ADAS) on cars was blindspot detection for keeping an eye out for pertinent objects within the detecting zone.
Electric Vehicle (Battery, Hybrid, Plug-in, Fuel Cell)
The battery segment in ADAS market is expected to register an enormous share driven by the growing preference for battery-electric vehicles. In 2023, battery-electric vehicles ranked as the third most popular option among consumers owing to the considerable efforts being made to become carbon neutral.
The autopilot ADAS features are available on BEV models like the Tesla Model X, which are algorithms that carry out predetermined tasks based on input data from cameras, radar, LiDAR, and ultrasonic sensors.
For instance, sales of battery-electric vehicles increased from approximately 4 million in 2021 to an expected 7 million in 2022.
Our in-depth analysis of the market includes the following segments:
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System Type |
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Component Type |
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Offering |
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Vehicle Type |
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Electric Vehicle |
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North American Market Statistics
North America industry is predicted to hold largest revenue share of 44% by 2037. The market demand in the region is also expected on account of the presence of government initiatives to mandate ADAS. Agencies such as the National Highway Traffic Safety Administration (NHTSA) in North America increase consumer awareness by emphasizing how ADAS may improve performance and productivity, as well as the benefits of ADAS when weighing costs versus benefits to assist propel mass market deployments and increase uptake.
To guarantee that the United States leads the globe in automated vehicles (AVs), the US government is dedicated to promoting advances in surface transportation and is working to update current laws to assist OEMs in creating and testing essential safety technologies and navigating the more cumbersome regulatory procedures. For instance, as of September 1, 2022, automakers, who account for more than 95% of the new car market in the United States, have promised to make AEB the first ADAS that is standard on all light-duty cars (NHTSA).
Besides this, on Sep. 1, 2020, Transport Canada asked for comments on revising its laws to incorporate advanced driver assistance systems (ADAS) in a notice that stated that new Canada Motor Vehicle Safety Standards would replace the current ones for ADAS safety regulations applied to commercial trucks and school buses, and other types of vehicles such cars, trucks, motorbikes, and passenger buses.
APAC Market Analysis
The Asia Pacific region will also register a robust revenue share for the advanced driver assistance systems market during the forecast period and will hold the second position owing to the increasing integration of ADAS in vehicles. The Asia Pacific region's automotive megamarkets in China, India, Japan, and South Korea are contributing to the growth of ADAS enabling automobiles to drive more intelligently and autonomously.
In several Indian cars, ADAS are extensively being installed due to the rising importance of road safety. According to the forecast, by 2030, more than 25% of new cars sold in India will have Level 2 ADAS installed.
Additionally, China aspires to lead the world in advanced driver assistance systems, or ADAS to take advantage of the advantageous advanced driver assistance systems market conditions and contend with international automakers.
Furthermore, the Japanese car ADAS business seems to be doing well, with opportunities in the big, luxury car, crossover, and mid-size vehicle sectors suggesting a shift in focus toward safety and better driving experiences.
The advanced driver assistance systems market is fragmented by major key players who are adopting several strategies and are establishing long-term contacts with various stakeholders.
Author Credits: Saima Khursheed
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