Toronto, Ontario -- The value of the Advanced Driver Assistance System market is expected to expand to five times its current size by 2034.
According to a new report from Research and Markets, the global ADAS sector generated about US$42.9 billion last year. It is also expected to US$212 billion by 2034. Researchers found several factors are fueling this explosive growth.
Foremost among these, technological improvements are making ADAS features smaller, cheaper to produce and more reliable. Currently, about 90 percent of these technologies are created by original equipment manufacturers for new cars. As these technologies improve, however, it is likely that third-party vendors will begin to produce their own products at a much faster pace.
Regulatory changes are also pushing up the value of the global ADAS market. As safety systems prove to be effective at reducing road accidents, regulators become more inclined to mandate their inclusion on all new vehicles.
The report also found that North America is in a strong position to benefit from an explosion in the ADAS market. Last year, the North American ADAS segment reached US$12 billion in value — or about 28 percent of the entire global market. While the continent's market value is certain to grow over the next decade, it is unlikely to retain the lion's share of the global market.
