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Seat Belts On; Safety First deriving growth for the global ADAS market

Seat Belts On; Safety First deriving growth for the global ADAS marketAs per statistics every year, almost 1.3 million individuals lose their lives in accidents on the road. Furthermore, twenty to fifty million people are injured. Advanced driver-assistance systems (ADAS) are designed specifically to bring down that number of lives lost or even injured. It enhances the car safety and more particularly, the road safety.

ADAS include features that are crafted to evade crashes by utilizing technology that warn the driver about potential problems or employ safeguards and take over the vehicle controls. These features are sometimes in-built in the cars, or made available as add-on package or are available in the form of aftermarket solutions; and may include automatic lighting, braking and lane centering, incorporation of GPS or traffic forewarnings, smartphones connectivity, or portrayal of the activities in the blind spots.

With increasing concern over one’s road safety, ADAS demand is expected to expand vastly by 2020. Both the United States and the European Union are making it mandatory for their cars to have built-in safety technology of systems of forward-collision warning and that of emergency braking. The more the technology makes life easier, be it in the blind spot parking, the more it is preferred to be incorporated in our four-wheelers.

Expected Market Growth

The ADAS market is forecasted to grow at a rate such that it reaches 59.1 billion USD by the end of 2020. This expansion in the growth of the ADAS market might be attributed to the ever-rising necessity for systems of road safety and the demand in favor of fuel-efficient four-wheelers.

While numerous high-tech companies are entering this market by investing in ADAS, like Panasonic, Sony, Samsung, Intel, Qualcomm, the existing market players and leaders (Aisin, Valeo, Delphi, Continental, Denso) are investing in innovation of the safety features of their existing products to dominate the market.

Feature-based Sales of ADAS Products

The worldwide market for ADAS is determined by the sales of the different products it stands to offer – sensors, processors, semiconductors, mapping and software algorithms. The chiefly noticeable trends in the global ADAS market include increased electronic integration, rising number of automatic cars and implementation of ADAS in economical cars.

As the global market for ADAS promises to record a growth of 10.44% CAGR by 2021 from 2018, the different continents will grow differently but will not remain stagnant.

  • North America: Owing to the huge market of the United States, and the stringent rules concerning safety and precautions on the roads and for vehicles, present in all the countries of this continent, North America will remain the greatest revenue contributor in the market.
  • Europe: With countries like Germany, Italy, United Kingdom and Spain, proving a stronghold on the automobile industry since time immemorial, it is but obvious that their dominance on the global ADAS market will not lack far behind the North American market.
  • Asia-Oceania: Presence of developed countries such as North Korea and Japan with prevailing strict regulations for road safety and the improvement in the socio-economic conditions of India, Indonesia and Thailand (which simply means better purchasing capacity) has boosted their market share in the global ADAS market. The region is expected to grow at the highest CAGR rate from 2016 to 2021. China is also expected to be one of the highest revenue earners in this market.

The Growing Technical trends in ADAS

Various companies are coming up with ways to feel safer while driving or being driven to one place from another. The single factor that influences adoption of ADAS is the growing rate of technological advancement. However, the ADAS system faces a number of problems and error in detection; for example, it is unable to identify objects in front while the car is being driven at high speed.

ADAS incorporates varied technological strains, but the future of it lies within four key control points that may influence product differentiation.

These include:

  • Sensors: Knowledge on the car’s immediate environment, like incoming cars or pedestrians, are picked up by these devices. However, it often becomes difficult for these devices to distinguish between the actual obstacles and other system like “noise”. The sensor’s ability may be further dampened by unfavorable weather conditions like heavy downpour or fog.

How are the companies planning to deal with it? It is quite simple really; invest more and implement better. Sensor fusion and integration is one way the companies are trying to optimize their ADAS performances. These people are attempting to find out cost-effective ways for better functionality– trying to replace solutions by lidar and radar with camera-based and laser.

Radar sensors are predicted to account to hold the largest share of the global ADAS market by 2021, because of its vigorous functionality as well as numerous applications.

  • Processors: It is the most important component of an ADAS application, processors also play a vital role in autonomous driving. For better development of the system, it is necessary for the processor to provide improved service requiring lesser power consumption.
  • Mapping: Travel includes riding in and out of the connectivity zone. In such situations, the GPS that critically depends on the network may prove to be a failure in preventing accidents, especially while driving through tunnels. This is where the mapping system comes into play. Therefore, the mapping feature is the better option for cars over GPS if the costs of implementing the same also go down for the former.
  • Software: The effective amalgamation of all the other components of the ADAS that will allow better processing and more precise sensor data synthesis can be attained by the creation of proper and apt algorithms. Development of algorithms can also aid in safer car maneuvering and predict corresponding human behavior, especially their potentially irresponsible and illogical responses to stressful situations (like head-on collisions and other accidents).

It is likely that in developing countries, as the purchasing power of the people will increase, the desire for improved versions of the automobile would also increase. With advancement in Science, if it is possible for the manufacturing companies to reduce the price of the ADAS products, the ADAS market size will also improve in lesser developed economies. Furthermore, options are being generated to install ADAS features in already purchased cars such that existing users of four-wheelers do not need to necessarily purchase a brand new car to enjoy the benefits of the ADAS safety features.


Author: Clive Cooper

Senior Digital Marketing Manager at Inkwood Research

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