The ADAS and autonomous driving component market is anticipated to grow at a CAGR of 22.31% during the forecast period 2018-2028, according to a report by ResearchAndMarkets.com
The key findings of the report are:
The automotive industry has grown organically and is on a transitional shift from traditional mechanism to autonomous driving, which boosts the demand of components such as camera, ultrasonic sensors, radar, LiDAR, and ECU.
ECU dominated the global ADAS and autonomous driving component market and contributed a major share of the total market in 2017 and is expected to continue its dominance throughout the forecast period. This is mainly due to the higher cost of ECU as compared to other components such as camera, ultrasonic sensors, radar, and LiDAR. Additionally, a growing number of sensors and electronic components is anticipated to boost the demand for ECU.
Owing to the critical nature of autonomous systems and the need for development for effective sensors, the automotive industry witnessed the introduction of LiDARs. It offers a greater range, wide field of view and improved accuracy to spot the obstacles when compared to other object sensing components such as camera, radars, and ultrasonic sensors. Therefore, the LiDAR market is expected to grow at the fastest rate during the forecast period in comparison to the other components of ADAS and an autonomous driving component.
Depending upon the levels of automation – Level 1 dominated the global ADAS and autonomous driving component market and contributed a majority share of the total market in 2017 and is expected to continue its dominance throughout the forecast period. This is mainly due to higher penetration of ADAS features in passenger vehicles such as adaptive cruise control, glare-free high beam and pixel light, adaptive light control, and automatic parking, among others.
The market for level 4 and level 5 components is comparatively new as compared to the other levels of automation. However, the expected increase in the number of level 4 and level 5 prototypes and commencement of level 4 and level 5 automated vehicles in the future years is anticipated to increase the components market at a rapid growth rate.
ADAS and autonomous driving components are integrated with passenger cars and commercial vehicles. The passenger car segment was estimated to be the largest contributor to the overall market revenue in 2017. The high production rate and registration of high-end passenger cars in comparison to commercial vehicles also form an important factor for generating high market revenue.
Also, the integration of a large number of autonomous system in passenger cars, as compared to commercial vehicles boosts the market growth. Additionally, the passenger car segment is expected to grow at the fastest rate during the forecast period.
The major factors such as the growing sales of level 1 and level 2 passenger cars, especially in the emerging countries, increasing disposable income, and technological advancements in ADAS and autonomous driving industry boost the overall market for passenger cars.
Source: Press Release