The global night vision system market size is projected to reach USD 3,630.1 million in 2024. It is estimated to grow at a CAGR of 13.1% during the forecasted period to reach a value of USD 12,418.2 million by 2034. The industry is projected to witnesses a Y-o-Y growth of 11.8% in 2024.
Night vision systems are advanced automotive technologies that assist in enhancing the driver’s ability to see in low-light or nighttime conditions by detecting infrared light or thermal radiation. These systems can easily capture heat signatures or reflected infrared light, thereby providing the drives with a real-time visual feed of the surroundings. They help drivers to detect pedestrians and animals and prevent them from being hit by the car.
These systems are often used in high-end and premium cars. Advancements in these systems is anticipated to align with the development of autonomous driving. With further developments, these systems are estimated to be incorporated in a wider range of cars to enhance safety in all driving conditions.
| Attributes | Description |
|---|---|
| Estimated Global Night Vision System Market Size (2024E) | USD 3,630.1 million |
| Projected Global Night Vision System Market Value (2034F) | USD12,418.2 million |
| Value-based CAGR (2024 to 2034) | 13.1% |
The surge in demand for night vision system is prominently driven by the increasing consumer awareness regarding road safety. According to statistics, almost 40% road fatalities occur at night. Due to such devastating figures, several countries have come up with stringent policies and measures that are estimated to promote vehicle safety.
The European Union, for instance, in regard to vehicles, has imposed the compulsory use of advanced night vision systems in new cars, thereby increasing their demand in the global market.
Innovations in infrared sensors and thermal imaging technologies is playing a vital role in significantly improving visibility in low-light conditions. The luxury vehicle segment in the industry is poised to witness substantial expansion with a projected growth percentage of 15% annual as 70% premium models now offer these systems as a standard equipment. The automotive industry is steadily adopting these systems.
The transformation is visible not only from the ever increasing demand for safety technology in the industry but also in the increasing acceptance of this technology by consumers.
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The below table projects the estimated CAGR for the global night vision system market over semi-annual periods ranging between 2023 and 2024. The examination offers companies with a better understanding of the growth over the year by revealing critical shifts in performance and growth patterns of the industry. The first half (H1) of 2023 spans from January to June. The second half or H2 includes July to December.
Numbers showcased in the table show the growth rate for each half from 2023 to 2024. The industry is anticipated to grow at a CAGR of 12.1% in the first half (H1) of 2023. The second half of the same year is predicted to experience a surge in the growth rate at a CAGR of 13.5%.
| Particular | Value CAGR |
|---|---|
| H1 | 12.1% (2023 to 2033) |
| H2 | 13.5% (2023 to 2033) |
| H1 | 12.4% (2024 to 2034) |
| H2 | 13.8% (2024 to 2034) |
Preceding in the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to dip to 12.4% in the first half (H1) and then substantially increase to 13.8% in the second half (H2). In the first half (H1), the industry is estimated to witness an increase of 30 BPS while the second half (H2) is also anticipated to experience an increase of 30 BPS.
Increasing Focus on Improving Pedestrian Safety, especially in Urban Settings to Boost Growth
There is a growing emphasis on improving pedestrian safety in urban environments, where traffic density and the presence of pedestrians is higher. These systems are crucial in this case as they assist a driver to spot pedestrians and avoid accidentally hitting them, especially in low-light conditions.
These systems use infrared or thermal imaging sensors that detect heat, which assists drivers to see beyond the range of standard headlights. This ability helps to substantially lower potential accidents resulting from technical failures of the driver, especially during night time when the field of vision tends to be small and the risk of running into a person or any other object is at its peak.
The ability to recognize and track moving objects including people has advanced remarkably in the night vision systems. Modern systems are now equipped with algorithms that can differentiate between humans, animals, and other obstacles.
This feature enables the system to highlight pedestrians on a display, providing real-time alerts to the driver. Such enhancements not only increase the time for a response but also enhance the feature of autonomous driving, thereby enhancing overall road safety.
The push for these innovations is driven by increasing regulatory pressure and consumer demand for safer vehicles. Automakers are integrating these systems into high-end models and gradually making them available in mid-range vehicles. With the continuous urbanization and increasing needs and concerns for peoples’ safety including that of pedestrians, the advanced night vision systems are likely to be adopted leading to safer experiences while driving at night.
Growing Consumer Awareness and Demand for Advanced Safety Features in Vehicles Drive Adoption
The trends revolving around safety in vehicles have opened possibilities for the uptake of automotive night vision systems that enhance sight and reduce the likelihood of accidents that would otherwise be experienced in low-light conditions.
According to the National Highway Traffic Safety Administration (NHTSA), 65% of pedestrian fatalities occur during nighttime, despite lower traffic volumes. This alarming fact emphasizes the need for novel technologies that assists in night driving. Night vision systems can detect possible threats up to 200 meters away, which is much beyond the range of typical spotlights.
Over the last few years, the consumers’ perception of night vision systems has increased especially in premium and luxury car segments where consumers appreciate safety features.
78% of luxury automobile customers as reported by JD Power place great emphasis on the safety features in the cars they purchase. This trend encourages manufacturers to include night vision equipment in premium cars, thereby boosting their value proposition and competitiveness.
ADAS Technologies Likely to Compete With or Substitute Night Vision Systems
Competitive pressure from other ADAS technologies such as adaptive headlights and radar-based systems poses a significant threat to the adoption of night vision systems in the automotive sector. Adaptive headlights, for example, have increased in demand due to their capability to change the strength and direction of the light when the vehicle moves with the road.
It offers better light around curves and over hills with no need for night vision. A recent survey has reported that, in the emerging economies, more than half of the new cars will be equipped with these sophisticated headlights.
These systems perform effectively in a wide range of weather conditions, including heavy rain and fog, where night vision systems may struggle.
The ability to recognize objects and pedestrians from a distance, particularly in low-visibility conditions, gives a competitive advantage in driver safety applications, pushing manufacturers to prioritize their incorporation into automotive visual systems. Night vision systems are frequently priced as luxury additions, thereby limiting their applications.
Integration of these Systems with Advanced Driver-Assistance Systems (ADAS) to Open New Opportunities
The integration of night vision systems with advanced driver assistance systems represents a considerable opportunity in the automotive sector. Technologies that comprise ADAS such as automatic emergency brakes, lane support systems, and adaptive cruise control, are already gaining traction, with global sales projected to exceed USD 32 billion by 2025.
Manufacturers may increase vehicle safety by integrating night vision systems with ADAS, which enables early detection and swift reaction times in low-light conditions. This integration has the potential to significantly reduce the risk of nighttime accidents, which account for more than half of all fatal road accidents across the globe, despite lower traffic volumes at night.
For example, the European Union’s Vision Zero initiative aims to eliminate road fatalities by 2050, by encouraging the implementation of new advanced safety measures in all vehicles and integrating systems such as night vision and ADAS in the cars. If manufacturers are able to improve the ADAS with the add-on of night vision, they will be able to meet the rather stringent safety measures efficiently, thereby enhancing their competitiveness.
Principal Consultant
The global night vision system industry grew at a CAGR of 5.3% during the forecast period. Growth of the marker was positive as it reached USD 3,247 million in 2023.
The industry, before the COVID-19 pandemic was growing steadily owing to the increase in installations in high-end passenger vehicles. According to the OICA, 67 million passenger cars along with 24 million commercial vehicles were produced globally in 2019.
Premium automobiles were the leading users of night vision systems, particularly in the European and North American regions where the demand for safety features was expanding steadily.
The industry, during the COVID-19 period, witnessed serious shock due to the inadequate supply chains, decreased consumer demand, and production shutdowns. Despite this setback in the overall industry, the demand for these systems remained strong in nations like China where automotive recovery was rapid. The luxury cars segment experienced less effect owing to a robust client base.
In 2022, the global vehicle production remained at 66.1 million units in passenger vehicles and 23.3 million units for commercial vehicles, showcasing a sturdy recovery after the pandemic.
The market is anticipated to reach USD 3,630.1 million by 2024 and is further predicted to grow at a CAGR of 13.1% during the assessment period. It is projected to reach USD 12,418.2 million by 2034.
The market, during the forecast period is estimated to surge along with the primary automobile industry. Nations across the globe are progressively implementing advanced safety measures. This coupled with the rise in autonomous systems is accelerating the demand for night vision systems. Innovations in the industry like camera sensor-based systems are gaining traction owing to their improved detection capabilities.
Tier 1 segment comprises of reputed companies that have a revenue of above USD 80 million and capture a significant share ranging between 50% to 55% in the global market. These leaders are characterized by their expertise in manufacturing and a broad geographical reach that is underpinned by a robust consumer base.
These companies offer a wide product portfolio and employ advanced technologies in their production processes to ensure regulatory compliance. Well-known organizations within the Tier 1 segment are Continental AG, Mobileye, Magna International, Aptiv, Denso Corporation, KYOCERA Corporation, HELLA GmbH & Co. KGaA, Valeo SA and Z.F. Friedrichshafen AG.
Tier 2 segment is made up of companies functioning within the regional sphere and catering to the specialized needs of the industry. These businesses leverage their extensive knowledge in manufacturing to meet the local demands.
Tier 3 segment consists medium-to-small-sized enterprises operating at the local presence. They have a annual revenue of below USD 80 million. These firms serve niche markets and are notably oriented toward fulfilling the local demands of the industry. They have a limited geographical reach that results in less competition and are less structured and formalized compared to organizations in Tier 1 and Tier 2.
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The section provides companies with an overview of the industry. It comprises a detailed analysis of the emerging trends and opportunities in the market on a country-by-country basis. This country-specific examination of the dynamics of the market is predicted to help companies in understanding the complex nature of the industry.
The examination comprises key factors, potential challenges, and forecasts influencing the demand, production, and consumption of the market within each country. This section aims to helps businesses in making informed decisions and developing strategies tailored to individual countries.
India is estimated to dominate the country-wise growth in the industry during the forecast period with a predicted CAGR of 13.4%. China, the United States, and the United Kingdom are projected to follow behind the India to become the leading countries in the industry with predicted CAGRs of 12.9%, 12.3%, and 10.6% respectively.
| Countries | CAGR 2024 to 2034 |
|---|---|
| India | 13.4% |
| China | 12.9% |
| United States | 12.3% |
| United kingdom | 10.6% |
| Germany | 10.1% |
The Indian night vision system market is anticipated to grow at a CAGR of 13.4% between 2024 and 2034, reaching the size of USD 702.3 million by 2034. India is likely to lead the South Asia Pacific region on account of the increasing trend towards luxury vehicles and better safety features.
Luxury automobile sales in India reached 46,000 to 47,000 units for the first time in 2023, representing a 21% increase over the previous year. The surge in luxury automobile sales is often driven by young professionals and corporate earnings, with a sizable proportion of customers under the age of 40.
There is also an increasing need for various supplementary services, like as night vision systems, since more and more high-end automobiles are equipped with such technology.
In 2023, the United States automotive industry saw continued strong production output from key domestic manufacturers. Ford, General Motors, and Stellantis remained significant contributors, ensuring that approximately 75% of all vehicles sold in the country are produced domestically.
In 2022, the USA produced over 9.2 million vehicles, and forecasts for 2024 indicate that this trend will keep going, supported by further investments in automation and modern vehicle technology.
With this manufacturing scale, manufacturers in the United States have prioritized the integration of advanced safety systems, like night vision technology, to meet regulatory requirements as well as consumer demand for safety features. The United States night vision system market is estimated to grow at a CAGR of 12.3%, reaching a value of USD 1,911.6 million by 2034.
China has been forecasted to keep a commanding stance in the night vision system (NVS) business with more than 80% of East Asian market share by 2023. The contribution of increasing sales and increasing annual rates of NVS installation is associated with wider usage of these systems in new automobiles.
In 2022, NVS installed into passenger automobiles increased 370% to 24,400 units which was a 37% increase over the global demand per year. The modern safety equipment ADAS with nighttime vision to maximize safely driving cars at night is the reason for the rising demand from China.
China’s position as the leader in car production further accelerates growth. With an increasing emphasis on road safety and autonomous driving, night vision systems-particularly thermal imaging and infrared-are becoming critical components in premium and mid-range vehicles.
The section provides businesses with insightful data and analysis of the two leading segments of the target industry. Segmentation of these categories is likely to assist companies in understanding the dynamics of the industry and investing in beneficial zones.
Examination of the growth is anticipated to assist organizations in gaining a thorough understanding of the trends, opportunities, and challenges. This analysis is predicted to assist companies in navigating the complex environment of the business world and make informed decisions.
Camera sensor is predicted to lead the capacity segment with a value share of 42.2% in 2034. In terms of vehicle type, passenger vehicle is anticipated to dominate with a value share of 48.5% in the same year.
| Segment | Camera Sensor (Technology) |
|---|---|
| Value Share (2024) | 42.2% |
The camera sensor technology segment is projected to register a CAGR of 13.2% during the period the assessment period, with the market surpassing USD 893.7 million by the end of 2034. Luxury vehicles typically feature 5 to 8 camera sensors, far more than ultrasonic sensors (4 to 6), which are used for parking assistance. On average, a vehicle can have 1 to 3 LiDAR and radar sensors. As a result, it is the camera which is utilized for increased safety and less night vision.
All these reasons make a camera sensor a common sensor in a night vision system as it can capture high-quality, resolution images and ensure clear visibility in dark condition.
While LiDAR, radar, and infrared sensors are required for ADAS, camera sensors provide sharper views, making them indispensable for night driving. Their widespread use in premium automobiles emphasizes their relevance over other sensors since they integrate effectively for total situational awareness.
| Segment | Passenger Vehicle (Vehicle Type) |
|---|---|
| Value Share (2024) | 48.5% |
The passenger car category is predicted to attain a size of USD 6,016.8 million by 2034, rising at a CAGR of 12.2% during the forecast period. According to OICA, in 2023, the production rate of passenger vehicles stands at 67.1 million units and that of LCV and HCV commercial vehicles is 26.4 million units.
Night vision systems are seen to be integrated into luxury as well as upper mid-segment passenger cars which are inclined towards safety features like camera systems.
Night vision systems are prevalent in passenger vehicles compared to LCVs and HCVs due to the fact that the high-end models are aimed at enhancing driver safety. Such sensors can enhance the detection, performance and clarity which results in advanced vehicles using such devices.
Key players in the industry include Continental AG, Mobileye, Valeo SA , Magna International, and Texas Instruments Incorporated. Manufacturers in the industry are enhancing their presence and competitiveness in the industry by deploying several strategies. They are progressively incorporating modern technologies in their systems to advance their products and provide consumers with improved safety features.
Organizations are launching new products to address the need for cutting-edge solutions. Geographic expansion is a key strategy that is helping companies broaden their reach. Startups are likely to emerge in the market, thereby making it competitive.
Industry Updates
Technology is segmented into infrared sensors, camera sensors, radar sensor, LIDAR sensors and ultrasonic sensors. Each of these sensors is further segmented into OEM and Aftermarket.
Passenger vehicle, light commercial vehicle and heavy commercial vehicle are the vehicle types.
The industry is spread across North America, Latin America, Western Europe, East Asia, South Asia and Pacific, and the Middle East and Africa.
The market is anticipated to reach USD 3,630.1 million in 2024.
The market is predicted to reach a size of USD 12,418.2 million by 2034.
Continental AG, Mobileye, Valeo SA , Magna International , and Texas Instruments Incorporated.
Two leading technologies used in night vision systems are infrared cameras and radar sensors.
The market is estimated to experience a CAGR of 13.1% during the forecast period.
India is predicted to lead with a CAGR of 12.3% during the assessment period.
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