Advanced Driver Assistance System (ADAS) Market Size - By Sensor, By Vehicle, By Distribution Channel, By Technology, Growth Forecast 2025 – 2034

Advanced Driver Assistance System Market Size

The advanced driver assistance system (ADAS) market was valued at USD 42.9 billion in 2024 and is estimated to register a CAGR of 17.8% between 2025 and 2034.
 

Declining prices of sensors due to continual development in semiconductor technologies has accelerated the manufacturers capability towards compact and light weight sensors. This will help to reduce the system complexities and bulkiness in the ADAS system and make advanced driver assistance systems more accessible to a broader consumer base, thereby driving market growth.
 

For instance, the launch of the SmartSafe X-431 ADAS LITE in April 2023, which has effective calibration capabilities, the X-431 ADAS LITE is affordable for automotive uses. This improves the accessibility and growth of the market, hence making ADAS technology and other vehicle functions cheaper. Moreover, it is observed that the implementation of advanced technology along with the increasing sales of electric vehicles aids in the advancement of ADAS systems.
 

According to Global EV Outlook PowerPoint estimates, there are about 40 million registered electric cars in the world in 2023. This estimate was made possible due to about 14 million electric cars getting sold and registered in the year 2022. The increase of 3.5 million electric cars purchased from 2022 surpasses all the projected sales targets, which is in accordance with Global EV Outlook. The growing demand for electric vehicles calls for vendors of EV mobility services to upgrade their systems, especially associated with safety feature integrations.
 

To capitalize on the increased demand, Morris Garages India introduced a new iteration of one of their electric vehicles in July 2023. The ZS EV is now available with level two self-driving capabilities that support the 17 ADAS functions provided for the car. As more environmentally conscious consumers adopt electric vehicles, public safety expectations alongside consumer demands are bound to accelerate further advancements in the ADAS systems. These innovations are encouraged by the government, which seeks to take the public's perception of electric cars to the next level.
 

Advanced Driver Assistance System Market Trends

• The fusion of machine learning and artificial intelligence to enhance ADAS functionalities has dynamically changed the industry. The incorporation of advanced technologies in vehicles enhances the utility and effectiveness of the driving automation systems, thus facilitating better and more automated driving.
   
• For instance, in September 2023 AWS was selected to act as a strategic cloud partner for developing the autonomous driving platform for BMW Group. BMW Group expects to utilize AWS solutions in building ADAS for the next generation, “Neue Klasse” of BMWs. The new system will utilize AWS's AI, IoT, ML, and cloud services in addition to BMW’s existing cloud data hub to speed up the rollout of BMW’s highly autonomous vehicles.
   
• There is a noticeable focus on safety features in the market for advanced driver assistance systems (ADAS). Car manufacturers and service providers are now focused on designing ADAS features that primarily prevent traffic accidents and enhance the safety of the roads. This is driven by the increased importance placed on ADAS technologies as effective approaches to mitigating crashes which creates an appetite for vehicles with sophisticated protective features, encouraging safer driving.
   
• Regarding V2X connectivity, ADAS Integration is more readily achieved with vehicle to infrastructure communication. This innovation improves communication as well as situational awareness sensitivity by integrating traffic, road obstructions, and pedestrian identification. As an example, to improve augmented automated driving technology, Magna Mobility Technology Company partnered with NorthStar, Telia Sweden and Ericsson 5G Innovation Program for Industrial Enterprises in December 2023.
   
• This project aims to test modern ADAS technologies with an emphasis on V2X and vehicle-to-vehicle (V2V) communication. V2X technology enables advanced functionalities of ADAS like cooperative collision avoidance, traffic management, and intersection control, thus promoting road traffic safety and effective use of the road. With the expected further development of V2X technologies, these will have a large impact on future Advanced Driving Assistance Systems and the spread of technologies for connected vehicles.
   

Advanced Driver Assistance System Market Analysis

Based on the vehicle, the market is categorized into PCV, LCV, and HCV. The Passenger Commercial Vehicles (PCV) segment held more than 60% of the advanced driver assistance system market share in 2024 but HCV segment will reach over USD 9 billion by 2034.
 

• Designers and manufacturers of the passenger cars are now explicitly making steps to improve the comfort, safety, and convenience of the vehicles by implementing through ADAS cruise control, lane assist, automatic emergency brakes, and pedestrian monitoring technology which is targeted towards the modern consumer.
   
• The adoption of ADAS features in vehicles is escalating at an unprecedented pace and especially focus is directed towards driver safety and comfort. Furthermore, the operators of heavy-duty vehicles are also starting to apply ADAS systems to not only comply with safety norms but also for the increasing public demand for safer transportation methods.
   
• As a case study, Ford merged BlueCruise in April of 2023, which enables remote driving in some parts of the United Kingdom. This feature automagically steers the car as long as the operator's hands are off the wheel, and his or her gaze is directed forward.
   
• The passengers have growing expectations of safer features, hence Ford securely embedded in their vehicles and subsequently offering advanced driver support systems, such as hands-free operations, with further development expected down the road.
   

Based on sensor, the advanced driver assistance system market is divided into LiDAR, infrared, ultrasonic, radar, and image. The image sensor segment held a market share of around 34.9% in 2024 and the radar segment is expected to grow at CAGR of around 17.5% by 2034.
 

• Image sensors provide visual data that enable the detection and recognition of objects, such as pedestrians, lane markings, traffic signs and other elements, which is crucial for ADAS features like object detection, lane departure warning, traffic sign recognition and pedestrian detection. Image sensors provide visual longitudinal data that collecting and monitoring the movement of Andon carts at rest areas, for instance, recognize lane markings.
   
• To meet the effectiveness for low lighting and low power ADAS designs, manufacturers are creating next-generation image sensors to aid ADAS designers with feasible options.
   
• In May of 2023, Onsemi released the Hyperlux imaging sensors for ADAS applications use. The Hyperlux series contains 2.1 µm pixel image sensors, including the AR0823AT and the AR0341AT. The AR0823AT is an 8 Megapixel (MP) digital CMOS (Complementary Metal-Oxide-Semiconductor) camera with a form factor of 1/1.8 inch. The AR0341AT has a resolution of 3 MP. Advanced driver assistance systems receive superior imaging from both sensors.
   

Based on technology, the advanced driver assistance system market is divided into adaptive cruise control, automatic high beam control, blind spot detection, driver monitoring, forward collision warning, front lighting, AEB, night vision, head up display, lane departure warning, park assistance, surround view system, traffic sign recognition, and tire pressure monitoring system. The adaptive cruise control segment dominated the market accounting for USD 24% of market share in 2024.
 

• Regarding artificial intelligence, machine learning is now being incorporated into the anticipation and reaction development for different driving scenarios on the Adaptive Cruise Control (ACC System). These changes improve the accuracy of the cruise control systems which manage the speed of cars as well as minimize the annoying unnecessary actions and notifications.
   
• For instance, AWS partnered with BMW in September 2023. AWS will develop new capabilities engines for BMW’s “Neue Klasse” vehicles which are set for mass production in 2025. In exchange, BMW Group will use AWS as their cloud service provider for the automated driving platform.
   
• The forthcoming cloud artificial W AWS hybrid will integrate with BMW's cloud data hub on AWS and will combine AWS AI, generative AI, IoT, machine learning, and storage systems to speed up automation of BMW cars.
   
• Through the incorporation of vehicle-to-vehicle (V2V) communication systems, the automotive sector is progressing towards the CACC (Cooperative Adaptive Cruise Control) era. CACC enables vehicles to follow at closer intervals while coordinating their speed and stopping, which increases efficiency, reduces traffic congestion, and enhances highway safety.
   

Based on distribution channel, the ADAS market is divided into OEM and aftermarket. The OEM segment dominated the market accounting by over 90% of market share in 2024.
 

• The growth rate of the OEM sector is being fueled by the early adoption of ADAS features in new vehicles during the production phase. Automotive manufacturers are now more frequently including ADAS functionalities either as part of the base model or as an add-on. This practice during the production phase greatly aids the expansion of the OEM distribution channel. 
   
• Due to growing consumers’ knowledge as well as their demand for sophisticated safety measures in automobiles, OEMs are looking to shift more of their focus towards ADAS features. For instance, SmartSafe in April 2023 introduced SmartSafe X-431 ADAS LITE. X-431 ADAS LITE has a strong calibration capability making it an economically ideal ADAS for most automobiles. 
   
• The increasing attention given by OEMs to the driving experience and comfort of the customers is expected to escalate the demand for ADAS. The adaptive cruise control, lane departure warning, and blind spot detection components all work together to enhance the convenience of driving.
   

In 2024, the U.S. dominate the North American advanced driver assistance system (ADAS) market with revenue around USD 12.1 billion.
 

• The active interest of automobile and technology firms to modernize the region with ADAS systems integrated with vehicles along with the consumers’ interest in enhanced safety features and the existing rigid safety norms has ensured the rapid adoption of ADAS technologies in the region.
   
• For instance, in December 2023, LG and Magna entered into a joint venture to develop autonomous vehicles and sophisticated in-house entertainment systems. This partnership aims to upgrade Magna's advanced Automated Driving (AD) and Enhanced ADAS with LG’s cutting-edge in-car information and entertainment (infotainment) systems.
   
• To meet the needs of the advanced driver assistance system market, this collaboration aims to provide comprehensive solutions to the automotive sector, which will stimulate the expansion of ADAS technologies in North America.
   
• Due to shifts in customer preferences and substantial regulatory attention, various OEMs are increasingly embedding automobile ADAS capabilities in the vehicles they manufacture. This enhances the likelihood of users adopting ADAS technology. For instance, BMW Group declared in September 2023 that they entered into strategic partnership with Amazon Web Services. AWS will furnish automated driving infrastructure services within the context of BMW Group driving. Therefore, BMW is introducing new class cars with higher level of ADAS technology and greater safety and comfort when driving in the US.
   

Predictions suggest that from 2025-2034, the Germany ADAS market will grow tremendously.
 

• Because of the proliferation of consumer awareness, advanced technology, and rigid adherence to safety regulations, the ADAS segment in Germany is growing rapidly. European automakers are adding ADAS features into their vehicles to satisfy the Euro NCAP requirements and the ever-increasing demand for safety and comfort while driving in Europe.
   
• Rebounding at a strong pace, the market of Germany is dependent on strict compliance standards and the continuous introduction of new technologies, which pushes automakers to add advanced safety features to their cars. For example, Bosch and Daimler recently collaborated with Here Technologies to develop an ADAS for commercial vehicles in January 2024. This is part of the introduction of Here’s Advanced Traffic Patterns technology which determines traffic conditions with the aid of sensors, telematics systems, and mobile devices.
   

The Chinese advanced driver assistance system market will experience prosperous growth during the prediction period from 2025 through 2034.
 

• In China, the ADAS market expansion is particularly notable because of increased sales of automobiles, road safety vigilantism, and increasing regulations regarding safety. Growth in the technology sectors and collaboration in businesses between automotive companies and technology companies will also enhance the growth of this market.
   
• Rapid urban development coupled with government policies and advanced technological applications in vehicle production have resulted in the surge of the ADAS market. For example, in December 2023 XPENG, a Chinese smart electric vehicle manufacturer, announced the XNGP ADAS coverage extension across China. The XNGP system will now be usable in 200 cities including large cities like Tianjin, Chengdu, Changsha, Xi'an, Xi'an, and Wuhan.
   

Advanced Driver Assistance System Market Share

• The 10 companies in the market are Continental, Bosch, BorgWarner, Magna, VALEO, ZF Friedrichshafen, Gentex, HELLA, Mobileye, and Renesas Electronics which have around 50% of the market value in 2024.
   
• Bosch Group has been enhancing its sensor technology development programs to improve the mobility solutions offered. The firm is integrating its own IoT cloud to provide users with connected & cross-domain solutions from one provider.
   
• The company’s broad portfolio incorporates advanced ADAS including radar video and ultrasonic sensors as well as the iBooster. Bosch's next-generation radar sensors set a new standard with their superior range, wide field of view, and capability for high angle separation. In tune with advanced technological development, Bosch's next-generation radar sensors have longer range and better angle separation capabilities, while their multifunctional cameras dramatically improve perception of the environment.
   
• The continental has shifted its attention to the Asian market for automotive components, technology, and systems, including expansion of its ADAS business unit. Most company sales in the region are generated by Japanese manufacturers with Chinese OEMs implementing the incremental growth opportunities.
   
• Along with these changes, the company also increased its engineering ADAS software development activities in India for the purpose of enhancing the ADAS business unit. The company established a new entity at its Technical Center India (TCI) in November 2022 to augment its contributions to in-vehicle safety technologies development. In addition, the company is widening its advanced mobility solutions through the construction of new facilities in different parts of the world.
   
• Delphi Technologies tends to focus on innovations that enable an OEM to make shifts towards higher levels of autonomy and connectivity. In addition, the company is pursuing technology partnerships with the aim of increasing relevant technologies’ delivery margins for customers and creating flexible cost structures. Delphi Technologies’ ADAS solution serves 31 brands, more than 146 models with radar, and 284+ models with cameras. The program for constant quality improvement enlarging the scope of coverage with new software updates.
   

Advanced Driver Assistance System Market Companies

Major players operating in the advanced driver assistance system (ADAS) industry include:

• BorgWarner
• Continental
• Gentex
• HELLA
• Magna
• Mobileye
• Renesas Electronics
• Bosch
• VALEO
• ZF Friedrichshafen
   

The advanced driver assistance systems market is highly competitive owing to the presence of key players including Bosch Group, Delphi Technologies, Denso Corporation, Continental AG, and ZF TRW. Improvements in product design, configuration, and after-sales services are the major concerning areas for industry players. The industry is expected to witness high competition owing to the adoption of multiple strategies including portfolio diversification, new product development, and mergers & acquisitions to gain high visibility in the market.
 

Competitive pricing is another detrimental factor affecting brand success in the advanced driver assistance systems (ADAS) market share. The key cost optimization initiatives adopted by manufacturers include product upgrades and the optimization of supply chain operations to reduce the time associated with product manufacturing & delivery. Market players are enhancing product quality by using advanced technologies
 

Advanced Driver Assistance System Industry News

• In February 2024, Infineon Technologies teamed up with Honda on the last day, by signing a memorandum of understanding (MoU). Infineon was selected by Honda to serve as its semiconductor collaborator so that both parties would be able to align their product and technology timelines. In return, Honda will be provided with the necessary technologies and tools for advanced competitive vehicle development. The help will mostly focus on power semiconductors, ADAS, and the E/E architectures.
   
• In February 2024, a collaboration between Bosch and Microsoft aimed at looking into the possibilities of using artificial intelligence (AI) in vehicles. This partnership centers around a generative AI which can create text, images, and intricate statistical models, with the goal of improving driver assistance systems. This collaboration looks into the possibility of changing the way AI technology can improve the safety features in automobiles, and in turn, change the automotive industry.
   
• In January 2024, NXP Semiconductors incorporated a new integrated radar SoC that is capable of streaming rich low-level radar sensor data at 1GB/s. This expands the company’s family of automotive radar one-chip SoCs. The system helps automotive manufacturers enhance next-generation ADAS partitioning for software-defined vehicles, offering a smooth transition to new architectures.
   
• In September 2023, Mobileye partnered with Valeo Imaging to produce high-definition imaging radars for global automakers. The collaboration seeks to develop software-defined imaging radars for modern driver-assist and automated driving functionalities. This imaging radar technology can support hands-free Advanced Driver Assistance Systems (ADAS) solutions and eyes-free automated driving features by providing rich four-dimensional imaging of the environment up to 300 meters away.
   

The advanced driver assistance system (ADAS) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) and shipment (Units) from 2021 to 2034, for the following segments:

Click here to Buy Section of this Report

Market, By Technology

• Adaptive cruise control
• Automatic high beam control
• Blind spot detection
• Driver monitoring
• Forward collision warning
• Front lighting
• Automatic Emergency Banking (AEM)
• Night vision system
• Head-up display
• Lane departure warning system
• Park assist system
• Surround-view system
• Traffic sign recognition
• Tire pressure monitoring system

Market, By Sensor

• LiDAR
• Infrared
• Ultrasonic
• Radar
• Image

Market, By Vehicle

• PCV
• LCV
• HCV

Market, By Distribution Channel

• OEM
• Aftermarket

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Italy
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Thailand
  • Indonesia
  • ANZ
  • Singapore 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Iran
  • Turkey