Global ADAS and Autonomous Driving Component Market

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Global ADAS and autonomous driving component market to grow at a CAGR of 22.31% from 2018-2028.

The automotive industry is in the process of constant evolution since its origin in the nineteenth century.The increasing number of on-road vehicles provide immense number of opportunities as well as also leads to complications for safer and more secure movement of goods and passengers.

In the recent times, there have been many technological advancements in the automotive industry, which in turn, is expected to further advance the concept of vehicle safety on public roads.The dynamic evolution of the automobile industry is attributed primarily to the changing consumer preferences, growing focus towards driver safety, environmental concerns, and stringent government regulations which are focusing towards crash avoidance rather than crash survival.

In the past years, automobiles have undergone rapid technological advancements in terms of vehicle performance, passenger safety, communication capabilities, and driving comfort. These improvements have led to a surge in the number of on-road vehicles, thus raising the need for the safer movement of automobiles. These goals of automakers are profoundly supported by several federal authorities such as "National Highway Traffic Safety Administration" (NHTSA), "European Commission" (EC), and "Ministry of Land, Infrastructure, Transport and Tourism" (MLIT), among others. This is expected to advance the vehicle safety on public roads with an early integration of advanced driver assist systems (ADAS) in automobiles. Considering ADAS as the founding stone, automakers are expected to advance to semi-autonomous vehicles and ultimately, towards fully-autonomous vehicles.

The ADAS and autonomous driving components market is also proportionally relative to the development of the autonomous vehicles. The need for safety, rising demand for luxury cars as a result of the increasing disposable income of the developing countries, and stringent government regulations have influenced the autonomous vehicle market to substantially enhance its sales, which has subsequently propelled the growth of its components.

The ADAS and autonomous driving component market is anticipated to grow at a significant rate during the forecast period 2018-2028. The growth is attributed to the rise in demand of autonomous driving solution for passenger cars such as auto pilot, lane departure system, and blind spot detection, among others, along with growing emphasis toward road safety, rapidly increasing number of automated vehicles, reduction in road congestion, and growing demand for safety sensors.

North America dominated the global ADAS and autonomous components market with a prominent share in the year 2017. Factors such as initiatives made by the federal bodies to increase road safety standards, high demand for automated cars, and increased manufacturing activities in the U.S. and Canada are expected to propel the growth of the autonomous vehicle market in the region. Thus, this increase in autonomous vehicle will boost the ADAS and autonomous driving components market in North America. Additionally, increasing number of high-end passenger cars (ADAS vehicles) such as BMW, Audi, Mercedes Benz, and Volvo among others is expected to boost the market growth. The ADAS and autonomous driving component market in the APAC is expected to grow at a faster rate in comparison to Europe and North America between 2018 and 2023. Factors such as the growing automotive industry, rising disposable income, and increasing manufacturing facilities are some of the factors contributing to the growth of the market in the APAC region. Additionally, factors such as stringent government rules and regulations for road safety boost the market growth.

The key players in the global ADAS and autonomous driving component market are Autoliv Inc., Continental AG, Aptiv PLC, DENSO Corporation, Magna International Inc, Murata Manufacturing Co. Ltd, Quanergy Systems Inc, Robert Bosch GmbH, Valeo, Velodyne Lidar, and ZF Friedrichshafen AG, among others. These companies adopt different strategies such as business expansions, product launches, and product developments, among others in order to enhance its market share and to increase its geographical foothold.