The global ADAS and autonomous driving component market is expected to be valued at $39.79 billion and 518.6 million units in 2018 and is anticipated to grow at a CAGR of 12.51% and 13.29% respectively, during the forecast period, 2019-2029.
The increasing technological developments and advancements in ADAS systems, rising developments in connected infrastructure and intelligent transportation systems, the demand for ADAS features in commercial vehicles, and growing concerns and measures over road safety drive the market growth.
Technological advancements in the automotive industry have resulted in the worldwide adoption of ADAS and autonomous driving solutions. The changing paradigm of consumers as well as major automotive OEMs, the requirement of robust security mechanisms in the vehicle for the protection of drivers and passengers, impact of 5G technology enhancing the autonomous driving components, increasing adoption of an autonomous vehicle in shared mobility, and rising focus towards vehicle platooning are some of the factors substantiating the growth of ADAS and autonomous driving component market.
However, reliability issues and rising cyber threats in an autonomous vehicle, high costs associated with LiDARs, and lack of government rules and regulations in developing regions are pressing matters to be looked upon in the current scenario.
The growing number of autonomous vehicles are pushing the demand for the deployment of ADAS and autonomous driving component market. Owing to the popularity of these solutions and services, major players including Continental AG, Robert Bosch GmbH, Autoliv, Denso Corporation, Aptiv Plc, Texas Instruments, and Analog Devices Inc., among others are competing with each other to increase their market share.
Geographically, North America is expected to lead the global ADAS and autonomous driving component market in 2019, followed by Europe and is expected to maintain its dominance during the forecast period. The unprecedented growth in the North America region is primarily attributed to the growing number of high-end passenger cars which comprises Level 1 and Level 2 vehicles as well as the rising demand of ADAS and autonomous component by autonomous driving technology providers such as Waymo, Uber, and Zoox, among others, which has resulted in boosting the demand for ADAs and autonomous driving components in the North America region.