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

  • Monitoring and transparency preserve enforcement's reputation
    July 30, 2012
    What can be done to preserve automated enforcement's reputation in the face of media and public criticism? Here, system manufacturers and suppliers talk about what they think are the most appropriate business models. Recent events in Italy only served to once again to push automated enforcement into the media spotlight. At the heart of the matter were the numerous alleged instances of local authorities and their contract suppliers of enforcement services colluding to illegally shorten amber signal phase tim
    Read More
  • Integrate systems to reduce roadside infrastructure
    January 27, 2012
    David Crawford reviews promising current developments. Instrumentation of the road infrastructure has grown to become one of the most dynamic sectors of the ITS industry. Drivers for its deployment include global concerns over the commercial and environmental pressures of traffic congestion, the importance of keeping drivers informed throughout their journeys, and the need to reduce accident rates and promote the safety of all road users, for example by enforcing traffic safety rules.
    Read More
  • Ukraine turns to ITS to cope with traffic increases
    June 9, 2015
    With increasing road fatalities the Ukrainian government is planning to introduce ITS technology in 2016-2017. Eugene Gerden finds out more. The government of Ukraine is considering a massive introduction of ITS in the national system of traffic during the period 2016-2017, according to a recent statement by the Ukrainian Ministry of Transport. According to the Ukrainian government, implementation of the project is an acute need, as in recent years the number of road accidents in Ukraine has significantly
    Read More
  • Analysis shows driverless cars could generate motorway advertising revenue
    October 28, 2016
    Engineering consultancy Ramboll has today published analysis on the potential revenue which could be generated by motorway advertising on gantries, designed to appeal to driverless car passengers. Figures have shown suggested income of over US$5.4 million (£4.5 million) in 2026, rising steadily over subsequent years as the new technology is introduced and leading to total revenue between 2025 and 2070 of over US$4.8 billion (£4 billion). Many have estimated that self-driving cars are likely to be common
    Read More

Highlighted Content