Market Trends of North America ADAS Industry
This section covers the major market trends shaping the North America ADAS Market according to our research experts:
Growing Sales of Vehicles Fitted with LiDAR Driving the Market
Autonomous vehicle sales are rising in North America due to the increased focus on automotive safety, the rise in demand for comfort features in a vehicle, and a growing desire of vehicle owners to reduce the amount of human error in case of accidents. According to some estimates, 4.5 million vehicles out of 15.07 million vehicles sold in North America in 2021 featured some kind of ADAS technology.
The LiDAR segment is estimated to dominate the North American ADAS market due to its widespread adoption in ADAS systems like collision warning and detection systems, blind-spot monitors, lane keep assistance, lane departure warnings, and adaptive cruise control systems.
According to the US Department of Transportation's National Highway Traffic Safety Administration, in 20160 people lost their lives in road accidents and vehicle crashes in the United States in the first half of 2021, which is an increase of 18.4% over the first half of 2020.
This has propelled the sales of automobiles featuring ADAS technologies like collision warning and detection systems, and blind-spot monitors.
NHTSA (National Highway Transportation Safety Authority) launched Automated Vehicle Transparency and Engagement for Safe Testing Initiative. As part of the AV TEST initiative, states and companies can voluntarily submit information about testing of automated driving systems to NHTSA, and the public can view the information using NHTSA's interactive tool. As part of the AV TEST initiative, states and companies can voluntarily submit information about testing of automated driving systems to NHTSA, and the public can view the information using NHTSA's interactive tool.
This initiative which is anticipated to highlight the benefits of ADAS systems over the vehciles which are not fitted with ADAS systems which will further increase the demand for ADAS equiepped vehicles in North America.
The market is also expected to be driven by the launches of new vehciles featuring LiDAR based ADAS technologies, For instance,
- April, 2022: BMW Group announced to launch the new all electric BMW i7 sedan in North America featuring its LiDAR based Highway Asisstant ADAS systems.
Thus the market for LiDAR based ADAS systems for automotives is forecasted to expand at a healthy CAGR in Nort America due to the combination of above mentioned factors.
The United States to Play Key Role in Development of North American ADAS Market
In 2021, around 80% of the total passenger vehicles sold in the United States were equipped with at least one ADAS feature like Electronic Stability Control and front or reverse parking sensors.
The United States is anticipated to be the largest market for ADAS systems in North America due to various factors like the presence of large automobile OEMs, high levels of awareness about vehicle safety and comfort features amongst common vehicle buyers, well-developed automotive components industry, high R&D investments in automotive software and electronics, entry of many startups and technology companies in ADAS industry and growing sales of electric and hybrid vehicles.
The United States is also witnessing a rapid rise in the sales of electric vehicles. In 2021 around 667731 electric vehicles were sold in the United States, a remarkable increase of 103% from 2020. The best-selling electric vehicle in the United States is Tesla Model 3, which sold about 121 610 units and is equipped with various ADAS features like Tesla Autopilot, Tesla Vision camera-based vision systems, Automatic Emergency Braking, Forward and Side Collision Warning, Obstacle Awareness Acceleration, Blind Spot Monitoring, lane-departure Avoidance, Emergency Lane Departure Avoidance, and optional Full-Self Driving Capability. Thus the increasing sales of electric vehicles are also creating a healthy demand for vehicles equipped with ADAS technologies.
Canada is anticipated to be the second biggest market for ADAS in North America due to high technological awareness amongst vehicle buyers, rising demand for electric and autonomous vehicles, and a growing preference for vehicle safety, comfort, and connectivity over the power and torque specifications of the vehicles.
Thus with companies coming up with new launches to increase their market share in this segment, the market for ADAS is expected to grow over the forecast period in North America.
For instance,
- September, 2022 : Ford Motor Co. launched the seventh generation of its muscle car Ford Mustang. The seventh generation Ford Mustang offers an optional ADAS pack for the first time in the history of Mustang.
Thus the confluence of the above factors will see the ADAS market in North America expand at a healthy double-digit CAGR for the forecast period (2022-2027).
