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

  • Bigger role for data protection and privacy policies in transportation
    June 11, 2015
    Dr Caitlin Cottrill, lecturer at the University of Aberdeen’s School of Geosciences, examines the impact of privacy legislation on the transportation sector. Growing reliance on big data, underscored by the increasing ubiquity of smart infrastructure and the ‘Internet of Things’, has profoundly impacted the regulatory environment experienced by transportation professionals. This is particularly the case in relation to the privacy of personally identifying information (PII). There has been increased attenti
    Read More
  • How Covid has impacted transportation
    May 2, 2022
    How have Covid-induced changes in transportation impacted health? And how can transport companies mitigate these effects? Soheil Sohrabi of S-Plus-M and Texas A&M University explains
    Read More
  • Volvo warns EU on its approach to electric vehicles and its transport white paper
    March 22, 2012
    Volvo Car Corporation warns that EU targets for cutting carbon dioxide emissions are being jeopardised by the absence of harmonised incentives to consumers. Another key issue is the urge for continuous support to automotive research and development, including electromobility. Stefan Jacoby, president and CEO of Volvo Car Corporation, told an industry seminar in Brussels yesterday that jobs, investment and competitiveness in the European car industry could be threatened by the European Commission's approach
    Read More
  • Satellite based goods vehicle tracking comes a step closer
    March 15, 2012
    A project aimed at proving the viability of satellite-based goods tracking in Europe has come to a close – establishing everything necessary for commercial services to flourish. A landmark stage was reached in tracking of goods across Europe in December last year, with conclusion of the Scutum project – ‘Securing the EU GNSS adoption in transport of dangerous materials’. This has validated the accuracy and reliability of the European Geostationary Navigation Overlay Service (EGNOS) for goods tracking and se
    Read More

Highlighted Content