China: A recent report by IMS research, now part of IHS, forecasts that the market for automotive Advanced Driver Assistance Systems (ADAS) in China is forecast to grow quickly from $971.0 million in 2013 to $3.1 billion in 2019 in light of rising awareness on ADAS benefits among the Chinese.
Fitment rates for most ADAS products are currently very low in China, typically installed only in luxury and some high-end light vehicles because of their high cost. However, most ADAS mechanisms are predicted to see a big increase in China in both shipments and fitment rates starting this year until 2019, due to the growing awareness of driver safety from both consumers and vehicle manufacturers. Some of the ADAS products set to enjoy growth in the country include adaptive cruise control, blind-spot detection and self-parking systems.
Overall, the China ADAS market will triple in value within six years from the present. Growth rates will mostly be in the 19 to 20 percent range during the initial years of the forecast, moderating to a still-robust 13 percent in the last two years.
And while the overall ADAS market is set for tremendous expansion, not all ADAS products will enjoy strong growth. Systems like driver monitoring, high-beam control, night vision, multiview systems and intelligent speed adaptation will encounter a slower market because of high product costs, unique driving behavioral patterns in China and low consumer awareness or acceptance. .
To date, most ADAS products are currently imported into China either as a system awaiting installation in cars, or as already fitted into imported light vehicles. Two reasons account for this phenomenon. Not only are transportation costs overall very low compared with the cost of ADAS products, ADAS sales in China are also not big enough to justify local manufacturing.
But with market demand for ADAS growing in the country, some system suppliers are expected to transfer production to China. Even so, imported systems will continue to account for the majority of ADAS units in the China market during the forecast period.
Michael Liu, Senior Analyst from IHS Automotive, said: “Similar to other regions like Europe and America, particular regulations and C-NCAP assessments will greatly drive the deployment of some ADAS products in China. Tire-pressure-monitoring systems (TPMS), for instance—although not usually considered as part of ADAS—will explode in the China market and quickly reach 100 percent penetration by the end of the forecast period, up from a current fitment rate of only about 4 percent. This is due to the possibility of upcoming mandatory regulations in China, even if the regulations are not likely to extend to many other ADAS products. In fact, more basic safety systems such as electronic stability control will be deployed before ADAS.”
Source: IMS Research