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

For more information on companies in this article

Related Content

  • Smart fleet management market predicted to grow by eight per cent by 2022
    June 19, 2017
    According to MarketsandMarkets’ latest report, Smart Fleet Management Market, the smart fleet management market is projected to grow at a CAGR of eight per cent from 2017 to 2022, to reach US$462.48 billion by 2022.
    Read More
  • Driven demos AVs operating ‘safely’ in London
    October 7, 2019
    The Driven Consortium has completed a week-long demonstration which it says shows that autonomous vehicles (AVs) can operate safely in London - with a safety driver. Driven - a £13.6 million initiative supported by the UK government - carried out the demo around Queen Elizabeth Olympic Park in Stratford in the east of the city. Driven has focused on completing fully-autonomous routes within the UK capital and the city of Oxford using Oxbotica’s autonomous software. Consortium members Moninet and Axa XL p
    Read More
  • Getting C/AVs from pipedream to reality
    October 17, 2019
    The UK government has suggested that driverless cars could be on the roads by 2021. But designers and engineers are grappling with a number of difficult issues, muses Chris Hayhurst of MathWorks Earlier this year, the UK government made the bold statement that by 2021, driverless cars will be on the UK’s roads. But is this an achievable reality? Driverless technology already has its use cases on our roads, with levels of autonomy ranked on a scale. At one end of the spectrum, level 1 is defined by th
    Read More
  • Intelligent transportation system market ‘worth $33.89 billion by 2020’
    July 17, 2015
    According to a new market research report by MarketsandMarkets, the intelligent transportation system market is expected to grow at a CAGR of 11.57 per cent between 2015 and 2020, and reach US$33.89 billion by 2020. The report, Intelligent Transportation System Market by Component (Interface Board, Sensor, Surveillance Camera and Others), System (ATMS, ATIS, ITS-Enable Transportation Pricing System, APTS, and CVO), Application, and Geography - Analysis & Forecast to 2015 – 2020, says that continuous inno
    Read More

Highlighted Content