According to a report by Research and Markets the global advanced driver assistance system (ADAS) market should reach $59.1 billion by 2021 from $23.8 billion in 2016 at a compound annual growth rate (CAGR) of 19.9%, from 2016 to 2021.
Parking assist system is the largest segment of the ADAS market. The market is expected to grow from $5.5 billion in 2016 to $10.1 billion in 2021 at a CAGR of 12.8% for the period 2016-2021.
The others segment of the ADAS market is expected to grow from $4.2 billion in 2016 to $13.3 billion in 2021 at a CAGR of 26.2% for the period 2016-2021.
The report says the overall growth of the market is primarily driven due to the growing focus on customer safety, and the impending demand for comfort in driving along with the need to adhere to the government regulations to ensure safety.
However, factors such as pricing pressures, inflation, and the complexity of and difficulty in testing systems are a few of the biggest challenges to this industry. The global ADAS market is calculated based on the sales of products such as processors (e.g., electronic control units and microcontroller units), sensors, semiconductors, software and its algorithms, mapping systems and electrical systems. The major trends that would have notable growth are increased electronic content and electronic integration, deployment of ADAS in low-cost cars and a rise in the number of driverless cars.