ADAS and AV software and hardware revenues ‘to exceed US$35 billion by 2020’

A new study from Juniper Research forecasts that the advanced driver assistance systems (ADAS) and autonomous vehicle (AV) market will reach a total global value of US$35 billion in 2020, before representing a fourfold increase to reach US$144 billion in revenues by 2025.
January 9, 2017 Read time: 2 mins

A new study from 7194 Juniper Research forecasts that the advanced driver assistance systems (ADAS) and autonomous vehicle (AV) market will reach a total global value of US$35 billion in 2020, before representing a fourfold increase to reach US$144 billion in revenues by 2025.

The research, Autonomous Vehicles & ADAS: Adoption, Regulation & Business Models 2016-2025, found that whilst ADAS still lacks significant mass market penetration, its adoption is set to increase rapidly over the next five years driven by a number of factors:

Safety agency specifications will become more stringent, particularly with respect to vulnerable road users such as pedestrians. Juniper recommends that OEMs will need to invest in more sophisticated ADAS systems to obtain the coveted 5* ratings.

There is also increasing interest in AV by governments around the world due to safety and environmental reasons. In addition, the research found that commercial companies such as ride-sharing service providers will lead adoption of AV technology, enabling them to significantly reduce their operating costs.

Reduction in hardware costs, particularly sensors, will lead to commoditisation of ADAS systems.

The research found that although issues concerning performance and reliability exist today, increased sensor integration and the widespread adoption of sensor-fusion will lead to system redundancy and improved safety and reliability. Juniper believes that standardisation of components will accelerate this process.

Location Based Systems

Related Content

  • March 22, 2016
    Europe’s car safety framework needs ‘overhaul’
    Vehicle safety innovations are still benefitting too few road users in Europe due to an over-reliance on a voluntary testing programme rather than regulatory standards, according to a new report by the European Transport Safety Council (ETSC). For almost twenty years, increases in levels of car safety in Europe have been driven mainly by the voluntary Euro NCAP programme which awards the safest cars with a 5-star rating. But according to new data, only around half of new vehicles sold in 2013 had been aw
    Read More
  • July 3, 2015
    Smart transportation market expected to reach US$176.49 billion in 2021
    According to a new market report published by Transparency Market Research, Smart Transportation Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2021, the global smart transportation market was valued at US$45.10 billion in 2014, growing at a CAGR of 18.5 per cent from 2015 to 2021 to account for US$176.49 billion in 2021. The smart transportation market is primarily driven due to the emerging need for smart services across the globe. Moreover, the global increase in sa
    Read More
  • July 14, 2014
    Traffic management market ‘worth US$16.89 billion by 2019’
    A recent study by MarketdsandMarkets, Traffic Management Market by Solutions, Displays & Systems (Full Pedestrian, Parking Space and Toll Management, Above Ground Pedestrian and Vehicle Detection) - Global Advancements, Projects, Worldwide Forecast & Analysis (2014 - 2019) analysed and studied the major market drivers, restraints, and opportunities in North America, Western Europe, CIS and Eastern Europe, Middle East and Africa, Asia-Pacific and Latin America. The study reports that the traffic manageme
    Read More
  • January 20, 2017
    Automotive sensors market projected to grow at almost eight per cent by 2022
    A new report published by Allied Market Research, Automotive Sensors Market by Product and End User - Global Opportunity Analysis and Industry Forecast, 2014-2022, projects that the automotive sensors market was valued at US$22 billion in 2015 and is expected to reach US$37 billion by 2022, growing at a CAGR of 7.5 per cent from 2016 to 2022. Micro-electromechanical systems (MEMS) sensors are expected to dominate this market from 2016 to 2022. Europe will continue to lead, accounting for approximately 35
    Read More

Highlighted Content