Advanced Driver Assistance System Market Forecast to Reach $33.28 Billion in Asia-Pacific by 2020 on the Back of Increasing Shipments and Consumer Preferences
“Advanced Driver Assistance Systems (ADAS) Market Analysis - By Modules (ACC, TPMS, BSD, LDWS, FCMS, AEB); By Sensors (Image, RADAR, Laser); By Vehicle (Passenger, LCV, HCV) - With Forecast (2015 - 2020)", published by IndustryARC, the market to Reach $33.28 Billion by 2020.
Browse 49 Market Tables, 111 Figures spread through 188 Pages and an in-depth TOC on “
Advanced Driver Assistance Systems (ADAS) Market(2015 - 2020)”
ADAS is a technology that is designed under complex systems consisting of sensors, microprocessors and software all functional under algorithm driven arrangement. ADAS is installed in automobiles to make the driving experience safer and comfortable for the drivers as well as the passengers. The ADAS assists the driver in complex traffic situations and avoid them in taking wrong decisions that could lead to fatal accidents. Apart from providing safer experience, integration of ADAS systems with embedded technology helps in controlling efficiency of the fuel and expands scope of monitoring vehicle surroundings. The introduction of ADAS has led to the semi-autonomous phase of the automobile industry. The product is still at the introductory stage of the Product Life Cycle and the increase in penetration rate will pilot it to the maturity stage by 2020. According to a recent report published by Industry ARC, Advanced Driver Assistance System market generated revenue of about $27.26 billion in 2014 and forecast to grow with CAGR of 14.9% from 2015 to 2020. The market is estimated to grow from $39 billion in 2015 to reach $78.2 billion by 2020. APAC region occupied the highest market share in the global ADAS market generating a total revenue of $11.23 billion in 2014. This region is forecast to generate revenue of $14.02 billion by 2020 growing with CAGR of 18.9%.
The recent government traffic safety legislations passed in North America and European regions have triggered demand for ADAS applications such as Autonomous Emergency Braking System (AEBS) and Lane Departure Warning System (LDWS) in passenger as well as commercial segments of the automobiles. Awareness among the consumers regarding safety in automobiles and the willingness to spend more on the automobiles are also the salient factors driving the ADAS market.
However, this market has a few challenges that can hamper or slow down the growth of the technology. The development cost of the ADAS is quite high that limits the extent of margin earned by the manufacturers. The automobile industry is a diverging market and there are numerous categories of vehicles used across different regions. Manufacturers are investing substantial amounts into R&D to make the ADAS technology configured with each class of vehicle. The attempt to match compatibility of ADAS technology with technical specifications of different segments of automobiles is an opportunity as well as a challenge for the ADAS suppliers as well the end user industry.
ADAS is currently accessible to luxury vehicles and in some of the models of the passenger cars, mostly sedans. The deployment of ADAS requires specific configurations that are only available in premium vehicles which make this a parameter affecting the technology penetration rate. Manufacturers have shifted their focus towards making the ADAS applicable to economy class passenger vehicles. Significant investments made by the leading OEMs into R&D in 2014 backed the idea of this transition of shift into different automobile segment. Applications such as Adaptive Cruise Control (ACC) and Advanced Parking Assistance have undergone stunning penetration rates compared to other ADAS applications. The other ADAS applications are expected to unveil better penetration rates compared to the past few years because of the increase in the need for safety in all classes of vehicles and the efficiency of these systems in meeting the safety objective.
The presence of the following leading automotive components manufacturers makes the ADAS a high value market.
- TRW Automotive
- Others ( Mobileye, Hitachi Automotive, Valeo, Magna International and others)
The Americas region witnessed a considerable rise in the shipments of Surround View System and ACC in 2014 as the deployment of back-up cameras were made mandatory in passenger cars in the region. Demand for the Advanced Parking Assist perceived high shipments in the Asia-Pacific markets such as China and Japan. A recently published report by IndustryARC uncovered South East Asian region as the most potential market that is projected to grow at a CAGR of 40.5%. The sturdiness in the economies of Thailand, Indonesia and Taiwan has boosted the purchasing power of the consumers that opens up the opportunity for the automobile industry. The European ADAS market will continue to grow at a steady rate and new penetration levels will be perceived in the next five years. Furthermore, ascending adaptation of ADAS is building up unerring platforms for the launch of self-driven or driverless vehicles by 2020.
Browse Related Reports:
- Driver Monitoring Systems Market: By Key Technology (Image Sensing, Pressure Mats, Infrared Sensing, Strain Gauges, Steering Angle Sensors & Other) By Type of Monitoring ( Distraction , Driver Fatigue, Drunk Driving)-Forecast (2013-2020)