The commercialization graph of the global advanced driver-assistance systems (ADAS) market has seen exponential growth lately—a feat attributed primarily to the stringent regulations pertaining to passenger and pedestrian safety. Greater awareness subject to the significance of safety systems in vehicles and the subsequent rise in road-safety concerns have brought about numerous changes in the sales of driver-monitoring systems in recent times.
The escalating preference for these systems and similar other safety profile solutions has also led to a steady stream of advances in the field of automotive technologies.
What Factors are Fostering ADAS' Expansion in the Industry?
Increasing awareness pertaining to road safety
According to the World Health Organization, annually over 1.35 million people lose their lives in road traffic crashes. Road traffic accidents also cost many countries approximately 3% of their respective gross domestic product. To lessen this impact, the 2030 Agenda for Sustainable Development has established an ambitious target of cutting the global number of road crash injuries and deaths by 50% by 2020.
To showcase their commitment to this agenda, many government organizations across the world are introducing favorable regulations that further support and promote the integration of safety equipment and technologies in vehicles. This is likely to create an extremely lucrative opportunity for the global advanced driver-assistance systems market players, to leverage the intensity of the ongoing awareness and record substantial business gains.
Rising preferences for technologically advanced safety features in vehicles
A prominent determinant that's expected to work in tandem with increasing road safety awareness to boost the global ADAS market outlook is the growing demand for technological features from automobile customers.Today, customers look for an automobile brand’s ability to provide swift, seamlessly integrated passenger and driver experiences. One way automotive companies cater to these demands is by making the driving experience smoother through sophisticated ADAS.
With growing pace of technological development in the automotive sector and with more of the global population becoming economically capable of making a vehicle purchase, incorporation of ADAS is expected to increase substantially in coming years.
How Will Demand for Park Assist and Driver Monitoring Affect the ADAS Market?
Human error is one of the biggest factors responsible for vehicle damage and road crashes. It comes as no surprise, then, that park-assist and driver-monitoring systems are some of the most commonly ADAS capabilities found in automobiles today.
Greater availability of parking sensors at affordable rates, plus the ease with which they can be integrated into a vehicle, is driving the wide-scale penetration of ADAS. Statistical studies conducted in Britain have found that over two-thirds of the drivers who participated in the study admitted that they damaged their vehicles while parking.
Park assist substantially lessens the possibility of this happening by warning the driver of any potential objects getting too close to the vehicle. It not only saves the vehicle from damage and value depreciation, but also helps the owners avoid any unwanted insurance claims. In addition, with sensor costs dropping, park assist is slated to be the most widely selected ADAS feature during vehicle purchases over the forecast timeframe.
Distracted driving has often been classified as a common factor for vehicle collisions, resulting in loss of lives. Despite the extensive number of awareness campaigns that warn drivers about distracted driving or driving while tired, the problem of distracted-driving road collisions still persists today.
To tackle this issue, automobile manufacturers are incorporating driver-monitoring systems in their respective vehicles. Such initiatives are further expected to facilitate a noticeable boost to the global ADAS market share during the forthcoming timeframe.
An Overview of ADAS' Prominence Across APAC
In terms of region, the Asia Pacific (APAC) is expected to the have the biggest impact on global ADAS market trends. The anticipated growth can be attributed to the presence of prominent automotive industry players like Toyota, Nissan, Suzuki, Hyundai, and Honda in the region.
Another determinant, that is expected to help augment APAC ADAS industry share is that the region is home to some of the world’s biggest automotive markets such as Australia, China, Japan, and India, with the latter three among the top 10 automotive markets in the world.
Going forward, it's expected that India would substantially boost the global ADAS market during the forecast time period, owing to the Indian Government’s commitment to improve the nation’s road safety standards. Currently, Indian roads are ranked among some of the world’s worst in terms of road-safety record.
In an effort to reduce road crash fatalities and improve the country’s overall road-safety ranking, the Government of India announced that it's working on a strategy that would make Indian roadways much safer. The government aims to achieve this goal by making ADAS integration mandatory for all passenger vehicles sold across the country by the year 2022. This favorable regulation would allow the APAC ADAS market to seamlessly tap into the country’s immense automotive potential.
As awareness around road safety and world governments’ commitment toward tackling the issue increases, so will the need to establish appropriate measures and mandates. The incorporation of ADAS in vehicles would play a pivotal role in preventing road accidents, reducing insurance costs, and eliminating human discrepancies while driving. With the demand of these solutions seemingly surging by the minute, Global Market Insights Inc. estimates that ADAS market size will surpass an overall valuation of $74.5 billion by 2025.