ADAS Market worth 652.5 million units by 2032

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16-05-2025

DELRAY BEACH, Fla., May 16, 2025 /PRNewswire/ -- The ADAS market is projected to grow from 359.8 million units in 2025 to 652.5 million units by 2032 at a CAGR of 8.9%, according to a new report by MarketsandMarkets. The ADAS market is undergoing a significant transformation, driven by the shift toward integrated domain controllers and high-performance, low-power computing systems capable of supporting the complex requirements of autonomous driving. Currently, most new vehicles are equipped with Level 1 or Level 2 ADAS features, which have become mainstream, establishing ADAS as the foundation for autonomous vehicles. NCAP safety ratings, which reward vehicles with advanced safety features like ADAS technologies with higher or 5-star ratings, are encouraging OEMs to integrate these systems into their vehicle models. At the same time, the declining costs of LiDAR, radar, and camera systems are enabling the broader deployment of multi-sensor ADAS suites in mass-market vehicles. Technological advancements in edge computing and specialized SoCs are enhancing onboard data processing capabilities, reducing latency and reliance on cloud connectivity. Moreover, the integration of ADAS with commercial vehicle telematics, fleet management, and V2X communication is creating new revenue opportunities in all vehicle segments.
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Lane departure warning system is projected to account for the largest share of the ADAS market during the forecast period.
Lane departure warning (LDW) is projected to account for the largest share of the ADAS market by system type. The growth of LDW systems is primarily driven by the alarming rise in road accidents and the implementation of stringent safety regulations that mandate LDW integration into new vehicles. Additionally, automotive OEMs' emphasis on reducing side-swipe and single-vehicle crashes, coupled with advancements in cost-effective camera and radar sensor technologies, has accelerated LDW deployment. Many vehicle models launched in 2025 come equipped with LDW as a standard feature, often combined with lane keep assist (LKA). For instance, the 2025 Chevrolet lineup includes LKA with LDW, which monitors the vehicle's position within the lane using cameras and sensors. If the system detects unintended lane departure without signaling, it provides an audible alert and may gently steer the vehicle back into its lane. Further, government regulatory bodies are introducing regulations to mandate LDW systems for improved road safety. For instance, in November 2024, NHTSA updated its NCAP to include LDW in safety evaluations, while in March 2025, India's MoRTH proposed that from April 2026, all new passenger vehicles designed to carry more than eight passengers must include ADAS features such as LDW.
Camera units are expected to hold a significant share of the ADAS market during the forecast period.
Camera units are expected to hold a significant share of the ADAS market during the forecast period. Stricter global safety regulations mandating automated emergency braking and lane departure warnings, the rising adoption of Level 2+ driver-assist packages in mid-range vehicles, and the declining cost of CMOS image sensors are driving the adoption of camera units in the ADAS market. Additionally, the ongoing push toward semi-autonomous driving accelerates volume and investment in camera-based perception systems. Major Tier-1 suppliers and automakers are partnering to develop multi-modal sensor suites that tightly integrate cameras with radar and LiDAR. For instance, Continental's next-generation surround-view system uses eight high-definition cameras, while Bosch has introduced a low-light, high-dynamic-range camera optimized for night-time pedestrian detection. In September 2024, Continental AG introduced ProViu Mirror, a digital camera monitor system for commercial vehicles. This system replaces traditional side mirrors with high-definition cameras and displays inside the cabin. It improves visibility, safety, and vehicle aerodynamics, and also supports ADAS features. The proliferation of AI-powered edge processing to reduce reliance on centralized ECUs, the adoption of 8-megapixel and higher sensors for finer object classification, and the integration of spectral imaging (e.g., infrared) for adverse-weather robustness are expected to shape the market going forward. Invisible installations, such as those under the windshield or mirrors, are expected to become more common, along with V2X connectivity that enhances camera data with information from infrastructure and networks to enable more predictive ADAS functions.
North America is estimated to hold the second-largest share of the ADAS market during the forecast period.
North America is expected to be the second-largest ADAS market during the forecast period. The emergence of higher autonomy vehicles stands out as a pivotal trend within the North American ADAS market. Numerous companies are actively engaged in the creation of self-driving cars, necessitating sophisticated ADAS. For instance, in April 2025, Volkswagen AG partnered with Uber to introduce thousands of electric self-driving vans in the US. The vehicles will be equipped with autonomous driving technology, with commercial operations expected to begin in Los Angeles by 2026. The increasing interest in autonomous vehicles is expected to propel the ADAS market expansion in the foreseeable future as further advancements in technology are made and incorporated into vehicles. Additionally, government regulations mandating the adoption of these technologies are expected to contribute to market growth. For instance, in April 2024, the National Highway Traffic Safety Administration (NHTSA) finalized Federal Motor Vehicle Safety Standard (FMVSS) No. 127, mandating that all new light vehicles (weighing 10,000 pounds or less) be equipped with automatic emergency braking (AEB), pedestrian AEB (PAEB), and forward collision warning (FCW). The rule is set to take effect in September 2029. In November 2024, NHTSA updated its New Car Assessment Program (NCAP) to include evaluations of additional ADAS features, including lane keeping assist (LKA), enhanced lane departure warning (LDW), blind spot detection and intervention, and pedestrian AEB. These additions aim to provide consumers with more comprehensive safety information and encourage manufacturers to adopt advanced safety technologies.
Key Market ADAS Industry:
Prominent players in the ADAS Companies include as Robert Bosch GmbH (Germany), Continental AG (Germany), ZF Friedrichshafen AG (Germany), Denso Corporation (Japan), Magna International Inc. (Canada), Mobileye (Israel), Aptiv (Ireland), Valeo (France), Hyundai Mobis (South Korea), NVIDIA Corporation (US)
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This report provides insights on:
Analysis of key drivers (Increased focus on vehicle safety, ADAS driven comfort and safety enhancements, surge in premium vehicle demand, shift toward autonomous vehicles, and government regulations and safety standards), restraints (lack of adequate infrastructure, and public reception of autonomous vehicles), opportunities (advancements in autonomous vehicle technology, 5G integration in automotive networks, rising incorporation of IoT, EV manufacturers aim to enhance driving experience and safety, future of autonomous ride-sharing, and innovative LiDAR technology through key startups), and challenges (ADAS integration at a premium cost, and sensor limitations and security concerns)
Product Development/Innovation: Detailed insights into upcoming technologies and research & development activities in the ADAS market
Market Development: Comprehensive information about lucrative markets - the report analyses the ADAS market across varied regions
Market Diversification: Exhaustive information about untapped geographies, recent developments, and investments in the ADAS market
Competitive Assessment: In-depth assessment of market share, growth strategies, and product offerings of leading players like Robert Bosch GmbH (Germany), Continental AG (Germany), ZF Friedrichshafen AG (Germany), Denso Corporation (Japan), Magna International Inc. (Canada), among others in ADAS market
Related Reports:
Automotive LiDAR Market
Automotive RADAR Market
Automotive Safety System Market
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