The global advanced driver assistance system (ADAS) testing equipment market is likely to attain a valuation of USD 56.4 billion in 2023 and is projected to reach USD 202.7 billion by 2033, trailing a CAGR of 13.6% during the forecast period.
The increasing adoption of advanced driver assistance systems (ADAS) in modern passenger vehicles is highlighting the need for accurate ADAS testing equipment to achieve optimal driving experience and safety.
This factor is a key growth accelerator for the advanced driver assistance systems (ADAS) market. With a huge demand outlook, FMI has projected the market to expand at a remarkable 13.6% CAGR from 2023 to 2033.
The increasing demand for advanced driver assistance systems (ADAS) in compact passenger cars is anticipated to drive market growth. Furthermore, the rising enforcement of government regulations mandating the incorporation of ADAS in vehicles is predicted to augment the demand.
Increasing disposable income, economic growth, and a rising preference for materialistic lifestyles are driving the sales of luxury vehicles. Developed countries such as the United States, Canada, Japan, Spain, South Korea, and Germany have a significant share of luxury car owners.
However, there has been notable growth in the sales of luxury cars in developing countries like India and China in recent years.
Germany stands out as a significant country for luxury cars due to the presence of key industry leaders such as BMW, Mercedes-Benz, Audi AG, and Volkswagen.
Germany also holds the distinction of being the large exporter of luxury cars worldwide, while the United States remains one of the large consumer markets for all types of luxury vehicles.
In the coming years, the overall market growth is anticipated to be influenced by the surging demand for advanced systems like road sign recognition systems, night vision systems, and drowsiness monitoring systems.
There is projected to be exponential growth in the demand for traditional ADAS systems, including autonomous emergency braking systems and adaptive cruise control systems, driven by increased government regulations aimed at enhancing road safety and reducing accidents. For example,
| Report Attribute | Details |
|---|---|
| Expected Market Value (2023) | USD 56.4 billion |
| Anticipated Forecast Value (2033) | USD 202.7 billion |
| Projected Growth Rate (2023 to 2033) | CAGR 13.6% |
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The advanced driver assistance system (ADAS) testing equipment market was worth USD 35.7 billion in 2018. It accumulated a market value of USD 49.5 billion in 2022 while expanding at a CAGR of 8.5% during the historical period.
As per the report, demand for ADAS testing equipment grew at a steady pace, exhibiting an 8.5% CAGR from 2018 to 2022. In recent years, ADAS has emerged as an active safety system and its use has become prevalent.
Sales of ADAS testing equipment slumped in the first quarter of FY'2020 due to suspended production across industries and disrupted supply chains. Nevertheless, FMI projects a positive growth outlook for the ADAS testing equipment market, as the market experienced year-over-year growth at 10.1% between 2022 and 2023.
Many technological advancements in ADAS testing equipment have come to light with rising concerns regarding road safety and the inception of autonomous vehicles. These developments are going to further act as stepping stones for fully autonomous cars.
Increasing levels of automation onboard vehicles have underpinned the need for intelligent systems that deal with complex traffic scenarios and provide assistance in unfavorable climatic situations. These systems comprise sensor fusion, object tracking, risk estimation, vehicle control, and driver status recognition.
It is becoming infeasible for automotive manufacturers to test each system's performance by manually driving and labeling data for reference with a plethora of different sensor technologies.
Owing to these factors, OEMs and tier-1 manufacturers are initiating product developments in the ADAS testing equipment market to devise testing systems that simplify the process and derive accurate results
Initiatives to establish safety standards to support mass deployment are gaining significance, with recent uptake in the adoption of advanced driver assistance systems (ADAS) and automated driving systems (ADS),.
Manufacturers are emphasizing efficient and cost-effective methods to thoroughly test and validate ADAS and ADS performance to ensure that autonomous vehicles are complying with the safety standards.
Moreover, countries including the United States Germany, and the United Kingdom have mandated the testing of autonomous vehicles and the inclusion of ADAS in all vehicles. For instance,
The goal of the initiative is to increase public awareness regarding on-road safety, precautions, and principles guiding the test.
Further, the initiative also provides direct access to information about the testing of ADAS in vehicles, regulations, legislation, and data provided by companies that are developing and testing ADAS.
Regulations and initiatives across various countries are creating avenues for expansion for players operating in the ADAS testing equipment market.
Principal Consultant
Sensor technology is an integral part of ADAS development. As ADAS constantly feeds off steams of information about the environment and surroundings, it is imperative to ensure the proper functioning of all the sensors deployed in the vehicle.
A sensor is required to detect everything that the driver can see, but also the elements that are away from the driver’s sight. A variety of sensors are already being used in autonomous vehicles, with each one having its advantages and disadvantages in terms of capability and pricing.
Combining different technologies can potentially refine ADAS functions, as each sensor has its advantages and weaknesses. The fusion of sensor technologies is a significantly evolving norm in ADAS as it processes data gathered from multiple sources quickly and accurately.
After the deployment of sensors, it is imperative to test their durability and robustness. While some sensors are deployed inside the vehicle’s cabin, many are mounted externally to the vehicle’s vulnerable areas such as behind the grille and corners of bumpers.
Sensors are considered to be hostile environments for sensitive equipment. Failure of these sensors and accidental damage result in high fixation. This has created a pressing need for highly efficient ADAS testing equipment in the automotive industry.
The increasing uptake of ADAS is driving advancements in sensor technology. However, many sensors are currently operating at a basic level when it comes to object detection.
Current systems can potentially identify pedestrians, but they might fail to detect pedestrians beyond a very specific form. For example, sensors might fail to detect a person if they are wearing clothes that alter their outline, or if they are carrying a large object.
However, as the technology takes a robust shape, these limitations might be addressed. These developments are anticipated to spur the demand for high-tech ADAS testing equipment in the forthcoming years, opines FMI.
Surging cases of road accidents in recent years have urged government authorities to introduce stringent regulations to ensure public safety. These regulations have mandated the incorporation of ADAS testing equipment which covers anti-collision systems, collision warning, navigation control, and so on.
Speculations regarding the proper safety of autonomous vehicles are impacting their sales in emerging economies. In addition, the population in developing nations relies on two-wheelers for fast commutes and convenience, where existing road conditions are unfavorable for ADAS-enabled vehicles.
Most ADAS-enabled vehicles are premium standard and fall under the 'luxury' category, making them expensive in comparison with standard passenger vehicles. Moreover, the maintenance and repair costs of these vehicles are relatively high than regular vehicles.
As per the report, these factors might impact sales of ADAS testing equipment in the long run.
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As per FMI’s regional analysis, the United States is anticipated to witness high demand for ADAS testing equipment during the forecast period, with North America market expanding at a stupendous 12.8% CAGR through 2033.
Growth can be attributed to growing consumers’ preference toward autonomous cars and government initiatives mandating safe testing of autonomous vehicles.
The emergence of autonomous passenger vehicles launched by companies such as Tesla, GM Motors, and Nissan is further providing tailwinds to ADAS testing equipment sales.
The rapid adoption of highly advanced technological innovations in the automotive sector in the United States might continue shaping the demand outlook for ADAS testing equipment through 2033.
As road accidents are surging at an alarming pace, the United Kingdom government has signaled its intent to incorporate Automated Lane Keeping Systems (ALKS) as a part of its regulations to reduce road fatalities.
In addition to ALKS, the United Kingdom government is also emphasizing strict driving tests and guidelines for proper ADAS testing before the vehicle is launched in the market. These factors are creating room for expansion in the ADAS testing equipment market.
ALKS falls under the wide umbrella of ADAS technology.
The Automated and Electric Vehicles Act 2018 in the United Kingdom requires all automated vehicles to be capable of safely and lawfully driving themselves, without requiring to be constantly monitored when they are in automated mode.
As a part of the initiative, the United Kingdom autonomous car start-ups have also received financial and research, and development support.
These aids are helping new entrants and existing players to compete with some of the world’s leading autonomous vehicle companies. These factors are indicative of the United Kingdom emerging as a leader in Europe’s ADAS testing equipment market.
FMI projects Europe market to exhibit a notable 10.2% CAGR during the forecast period.
The influx of autonomous vehicles in China including truck fleets, robotaxis, and luxury passenger vehicles is creating opportunities for growth and expansion in the ADAS testing equipment market. The sales of advanced driver assistance systems (ADAS) in China are expected to increase with an impressive CAGR of 13.3% in the forecast period.
China is one of the significant automotive hubs in the world, and domestic policies in the country further amplify the significance of autonomous driving for better transport systems.
To cater to the ever-growing consumer demand, automotive manufacturers, regionally and globally, are significantly launching ADAS-equipped vehicles. This, in turn, is placing China as a notable market for ADAS testing equipment.
China has a favorable environment for large-scale autonomous vehicle applications in the upcoming years. As the nation seeks to build a robust digital infrastructure via the incorporation of artificial intelligence (AI), big data, and the Internet of Things (IoT), there is an immense scope of expansion for the ADAS testing equipment market in the upcoming decade.
Autonomous driving technology is relatively new in India. However, consumers have expressed their interest in fully automated cars and transportation systems, which is encouraging OEMs to develop intelligent and sophisticated ADAS-equipped vehicles in the country. The demand for ADAS testing equipment in India is projected to rise with a CAGR of 13% during the period of projection.
In the annual Society of Indian Automotive Manufacturers (SIAM) convention, the government of India expressed its concerns regarding road safety and on-road fatalities in the country. The convention focused on shared and connected mobility and the cost of its implementation in the Indian automotive sector.
Apart from this, the government of India further emphasized stringent crash test norms for newly launched vehicles. In 2022, all existing cars and newly launched vehicles were mandated to include standard safety features such as reverse parking sensors, speed reminders, airbags, ADAS, and so on. Taking cues from these developments, FMI projects a positive demand outlook in India’s ADAS testing equipment market.
In terms of product type, hardware is anticipated to lead the segment by accumulating over 58% market share in 2023. The demand from the hardware segment is expected to rise with a significant CAGR of 14.4% in the forecast period.
Car manufacturers are employing and validating novel ADAS testing equipment such as radar, lidar, sensors, and cameras, with increasing technological advancements in ADAS.
These systems are key components in ADAS and require testing under unfavorable circumstances to achieve accurate results to help improve the driving experience. Moreover, hardware components can be customized to meet the end-users demand, which is further augmenting growth in the ADAS testing equipment market.
As per the report, Original Equipment Manufacturers (OEMs) and tier-1 suppliers are expected to be the active end-users of ADAS testing equipment throughout the assessment period. The OEM segment is anticipated to expand with a promising CAGR of 17% from 2023 to 2033.
Increasing sales of ADAS-equipped vehicles, coupled with new product launches are expected to bolster sales of ADAS testing equipment. Besides this, the growing demand for safe and sophisticated ADAS equipment in emerging economies is anticipated to further facilitate expansion in the global ADAS testing equipment market.
Start-ups play a vital role in identifying growth opportunities. With their ability to efficiently convert inputs into outputs and adapt to market uncertainties, start-ups contribute significantly to the expansion of the industry.
A few of the startups involved in manufacturing and providing services in the advanced driver assistance system (ADAS) testing equipment market are:
Competitive Landscape
The market for advanced driver assistance system (ADAS) testing equipment is highly competitive, with numerous prominent industry players making substantial investments in increasing their manufacturing capabilities.
The key industry players are Konrad GmbH, AB Dynamics plc, National Instruments Corporation, TKH Group NV, Oxford Technical Solutions Ltd., and Racelogic Ltd.
Recent Developments in the Advanced Driver Assistance System (ADAS) Testing Equipment Market
Continental AG and Beijing Horizon Robotics Technology R&D Co., Ltd. announced a Joint Venture (JV) contract in September 2021. The JV aims to offer integrated solutions for advanced driver assistance systems and autonomous driving, encompassing both software and hardware components.
| Report Attribute | Details |
|---|---|
| Market Value in 2023 | USD 56.4 billion |
| Market Value in 2033 | USD 202.7 billion |
| Growth Rate | CAGR of 13.6% from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD billion and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | By product, By end-user, By region |
| Regions Covered | North America; Latin America; Europe; East Asia; South Asia; The Middle East and Africa (MEA) |
| Key Countries Profiled | The United States of America, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, India, China, Japan, Malaysia, Singapore, Thailand, South Korea, Australia, New Zealand, South Africa, Israel |
| Key Companies Profiled | Konrad GmbH; AB Dynamics plc; National Instruments Corporation; TKH Group NV; Oxford Technical Solutions Ltd.; Racelogic Ltd. |
| Customization | Available Upon Request |
The advanced driver assistance system (ADAS) testing equipment market is valued at US$ 56.4 billion in 2023.
The growth potential of the market is 13.6% CAGR through 2033.
Surging demand for road safety programs and increasing sales of automotives are catalyzing the market growth.
The market expanded at a CAGR of 8.5% in the historical period.
The leading market competitors are TKH Group NV, Oxford Technical Solutions Ltd., and Racelogic Ltd.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product 5.1. Hardware 5.2. Software 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End-User Type 6.1. Automotive OEMs 6.2. Tier-1 Suppliers 6.3. Labs and Other Institutes 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 18. Assumptions & Acronyms Used 19. Research Methodology
Automotive
November 2023
REP-GB-10914
315 pages
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Advanced Driver Assistance System (ADAS) Testing Equipment Market
