Advanced Driver Assistance System (ADAS) Market Report

Advancements in self-driving vehicle (SDV) technologies are significantly propelling the growth of the advanced driver assistance system (ADAS) market. As SDV technology progresses, the demand for more sophisticated ADAS functionalities increases. For instance, the integration of Lidar sensors in SDVs has revolutionized the perception capabilities of ADAS systems. In January 2024, Hesai Technology, a global leader in lidar technologies for autonomous mobility systems, ADAS, and industrial robotics applications, announced a series of high-profile product releases seeking to advance intelligent driving systems to improve the efficiency and safety of global transportation. One out of which was the launch of Hesai's new flagship AT512 ultra-long-range ADAS lidar, which is a top-of-the-line, category killer product and represents a leapfrog advancement in lidar innovation in a trim, compact form factor, targeting automotive OEMs who demand the very best in performance, reliability, and safety.

The AT512 offers an industry-leading range of 300 meters at 10% reflectivity with a maximum range of over 400 meters, and an industry-record 12,300,000 points per second point rate, multiples ahead of the ADAS competitors, resulting in the highest resolution point cloud among any lidar manufacturer at 2400 x 512. Companies such as Waymo and Tesla are leading the charge in developing these technologies, demonstrating how advancements in SDV can directly enhance ADAS capabilities. Furthermore, the development of advanced machine learning algorithms and artificial intelligence (AI) for SDVs contributes to more accurate and reliable ADAS systems.

These algorithms improve functions such as lane-keeping assist (LKA) and adaptive cruise control (ACC) by processing large amounts of sensor data to make real-time decisions. For instance, Tesla’s Autopilot system assists in highway driving and lane changes by using AI to provide such features. In April 2024, Mobileye announced it had delivered the first production-candidate hardware and software of its new EyeQ6 Lite system-on-chip to its customers, which will power advanced driver-assistance systems in multiple models launching in 2024. This milestone marks the beginning of the EyeQ6 family, with the EyeQ6L already set to be installed in 46 million vehicles over the next few years. The rapid advancements in SDV technologies are catalyzing the evolution of ADAS, driving the adoption of more advanced, integrated safety features. As SDVs push the boundaries of what is possible, ADAS systems become increasingly sophisticated, reflecting the advancements in autonomous driving technologies.

The growth of the advanced driver assistance system (ADAS) market faces significant hindrances due to the lack of adequate infrastructure and high costs, which may obstruct the widespread adoption of the system. Inadequate infrastructure is one of the primary hurdles in supporting advanced automotive software technologies. In many regions, especially in emerging countries, the road infrastructure is not well-resourced to fully take advantage of ADAS features. For instance, systems like lane departure warning (LDW) and adaptive cruise control (ACC) rely on well-maintained roads and clear lane markings to function effectively. In areas where road conditions are poor or lane markings are inconsistent, the performance of these systems can be compromised, reducing their utility and adoption rates.

Additionally, the high cost of implementing ADAS technologies poses a significant barrier, and advanced systems, including sensors, cameras, and radar, contribute to the overall cost of vehicles. The cost of ADAS features can range from US$1,000 to US$5,000, depending on the system and vehicle model. For instance, in August 2024, Xpeng, a Chinese EV maker, launched its electric vehicle, the Mona M03, which includes a ‘Max’ version equipped with autonomous driving features, priced at US$ 21,900 and the original M03 starts at US$ 16,800, which makes the difference of US$ 5,100. This added expense can make ADAS-equipped vehicles less accessible to the average consumer, particularly in price-sensitive markets. Moreover, the integration of ADAS technologies requires advanced manufacturing processes and high-quality components, which further escalates costs. While the ADAS market shows promising growth prospects, the lack of supportive infrastructure and high costs are significant barriers that may hinder its broader adoption and development.

Technological advancements that took place in recent years have more or less affected every industry positively as the scope for innovations and developments is broadened. The ADAS market has also seen significant innovations in the market. For instance, in May 2024, Dürr and Rohde & Schwarz, a global technology group, developed an innovative, cost-effective solution for over-the-air (OTA) vehicle-in-the-loop (VIL) testing. This solution validates conformity and effectiveness during end-of-line (EOL) testing or periodical technical inspection (PTI). Similarly, in April 2024, Horizon Robotics, a leading provider of advanced driver assistance systems (ADAS) and autonomous driving (AD) solutions for passenger vehicles, hosted its 2024 Product Launch Event and unveiled its ground-breaking Horizon SuperDrive full-stack AD solution. In collaboration with industry partners, Horizon Robotics is committed to developing smart driving solutions tailored to cover from ADAS active safety to all-scenario NOA (Navigate on Pilot), ensuring an enhanced driving experience with a focus on safety, comfort, and convenience for all consumers.

Some companies cope with the battle of innovation through investments, partnerships, collaborations, acquisitions, and mergers. For instance, in July 2024, L&T Technology Services and the Indian Institute of Technology Hyderabad (IIT Hyderabad) announced a collaboration aimed at fostering industry and academia advancement in the domains of advanced driver assistance systems (ADAS) and cellular vehicle-to-everything (CV2X) communication. This partnership represents a significant leap in the automotive landscape by bringing in cutting-edge technologies across these domains. In addition, in September 2023, Porsche, the sports car manufacturer, and Mobileye, the technology company, entered into a strategic collaboration for series production of premium ADAS solutions. Porsche plans to offer automated assistance and navigate-on-pilot functions based on the Mobileye SuperVision technology platform.

Similarly, in January 2024, Qualcomm and Bosch showcased a new cockpit and ADAS platform based on the Snapdragon Ride Flex system-on-chip (SoC) at CES 2024 in Las Vegas, United States. Built on Qualcomm Technologies’ expertise in digital cockpit and ADAS compute platforms, the Flex SoC is designed to support mixed-criticality workloads, allowing for digital cockpit, ADAS, and automated driving (AD) capabilities to be co-implemented on a single SoC. Similarly, in April 2024, Neusoft Reach Automotive Technology (Shanghai) Co., Ltd., a subsidiary of Neusoft specializing in intelligent vehicle technology, and Ambarella, Inc., an edge AI semiconductor company, announced the establishment of a strategic partnership at the Beijing Auto Show. This cooperation is based on the strong resources and advantages of both parties in areas such as automotive software, autonomous driving technology, electrification, and AI system-on-chip (SoC) products.

Similarly, in April 2024, BMW Group and Tata Technologies, an Indian product engineering company, announced a joint venture to develop automotive software and business IT solutions. This collaboration aims to enhance BMW’s premium vehicles with automotive software, including software-defined vehicle (SDV) solutions. Similarly, in April 2024, Momenta, a leading autonomous driving technology company, and Qualcomm Technologies, Inc., a global innovator in automotive technology, announced a range of scalable automotive products based on new intelligent driving solutions for advanced driver assistance systems (ADAS) and autonomous driving (AD). The intelligent driving solution for ADAS/AD features a comprehensive range of features to support diverse driving and parking assistance scenarios. These include the highly capable highway navigation pilot (HNP), the urban navigation pilot (UNP), the memory navigation pilot (MNP), the intelligent learned parking navigation pilot (LPNP), and the convenient parking navigation pilot (PNP).

North America dominates the market for advanced driver assistance systems (ADAS), driven by high adoption rates and stringent safety regulations. Due to increasing awareness of road safety and a willingness to invest in technologies that enhance driving security, the consumer base of the region shows a strong preference for vehicles equipped with advanced safety features. For instance, in May 2024, Arteris, Inc., a provider of system IP that accelerates system-on-chip (SoC) creation, announced the first deliverables of its ongoing partnership with Arm to speed up automotive electronics innovation based on the latest generation of arm automotive enhanced (AE) technologies. The collaboration integrated Armv9-based Cortex processors with Arteris system IP to enable autonomous driving, advanced driver-assistance systems (ADAS), cockpit and infotainment, vision, radar and lidar, body and chassis control, and other automotive applications. Vehicles with automatic emergency braking (AEB) systems can reduce rear-end crashes by up to 50%, which significantly influences consumer demand.

In addition, the regulatory landscape in North America pushes forward the adoption of ADAS in motor vehicles by manufacturers themselves. The U.S. National Highway Traffic Safety Administration (NHTSA) and similar regulatory bodies in Canada have established safety standards that mandate the inclusion of ADAS technologies in new vehicles. For instance, the NHTSA’s push for more comprehensive crash avoidance technologies has accelerated the integration of features like lane-keeping assist (LKA) and blind spot detection (BSD) into both standard and premium vehicle models. The combination of high consumer demand for safety features and stringent regulatory requirements fosters widespread adoption and significant market growth driving the dominance of North America.

The Asia-Pacific region is experiencing rapid growth in the advanced driver assistance system (ADAS) market due to significant advancements in automotive technology and increasing vehicle production. Countries such as China, Japan, and South Korea are at the forefront of this development. China, the largest automotive market in the world, is seeing a surge in ADAS adoption due to the exporting capabilities of its manufacturing facilities. In Japan and South Korea, the emphasis on technology and innovation fuels the adoption of features such as Adaptive Cruise Control (ACC) and Automatic Emergency Braking (AEB). Furthermore, the region’s automotive industry is benefiting from substantial investments in research and development.

Europe is a significant player in the ADAS market, driven by stringent safety regulations by the European Union and high consumer expectations for advanced safety features. European countries, including Germany, France, and the UK, have implemented rigorous standards that mandate the inclusion of ADAS technologies in new vehicles. For example, the European Union’s General Safety Regulation requires new cars to have features such as Lane Keeping Assist (LKA) and Emergency Braking by 2022. This regulatory push has significantly accelerated ADAS adoption, with a reported increase in AEB-equipped vehicles.