The automotive industry faces challenges such as regulatory hurdles, electrification, the rise of software-defined vehicles (SDVs), semiconductor shortages, and geopolitical chaos. OEMs and value chain partners are realigning their product strategies, roadmaps, and launch timelines to adapt to these challenges. They have rerouted investments to develop and deploy hands-off, eyes-on driving technologies to differentiate their offerings from competitors and generate revenue.
In 2025, Frost & Sullivan expects more OEMs to offer L2+ ADAS solutions and expand their geographic coverage to more developed regions. In the meantime, Chinese OEMs will continue to offer hands-on ADAS solutions due to regulatory hurdles for hands-off driving systems. They will launch more models with city assist features, including navigation on autopilot (NOA), a hands-on feature; however, in the future, these vehicles can be upgraded with hands-off capability through over-the-air (OTA) updates.
In this annual autonomous driving (AD) outlook study, Frost & Sullivan analyzes the global advanced driver assistance system (ADAS) and automated vehicle forecast, including global and regional regulations, ADAS and AD feature penetration, regional markets, notable collaborations, partnerships, mergers and acquisitions, and critical predictions. The analysis also lists all major trends influencing the AD market in 2025 and discusses the top 5 trends.
The key trends discussed in this study are:
1. Hands-off, eyes-on driving
2. Vision-based ADAS
3. ADAS/AD HPC
4. New business models
5. AI in ADAS and AD
- Transformation in the ADAS and Autonomous Driving Industry
- Why is it Increasingly Difficult to Grow?
- The Strategic Imperative 8
- The Impact of the Top 3 Strategic Imperatives on the ADAS and Autonomous Driving Industry
- Ecosystem
- Research Scope
- Segmentation by Automation Level
- Definition for Levels of Driving Automation
- Vehicle Segmentation
- Global Autonomous Vehicle (AV) Regulations
- 2024A Recap
- Top 5 Predictions for 2025
- ADAS and AV Overview
- ADAS Stacks by Major OEMs
- 2025 Global Economic Outlook
- Strategic Imperatives
- Top 10 Growth Opportunities
- Top 10 Trends for 2025
- Global GDP Growth Snapshot
- Trend 1: Global GDP Growth
- Growth Opportunity 1: Global GDP Growth
- Trend 2: Inflation and Interest Rates
- Growth Opportunity 2: Inflation and Interest Rates
- Trend 3: Oil Markets
- Growth Opportunity 3: Oil Markets
- Trend 4: Labor Market
- Growth Opportunity 4: Labor Market
- Trend 5: US Dollar and Gold
- Growth Opportunity 5: US Dollar and Gold
- Trend 6: North America
- Growth Opportunity 6: North America
- Trend 7: Latin America
- Growth Opportunity 7: Latin America
- Trend 8: Western Europe
- Growth Opportunity 8: Western Europe
- Trend 9: Middle East
- Growth Opportunity 9: Middle East
- Trend 10: Asia
- Growth Opportunity 10: Asia
- List of Countries by Region, 2025
- ADAS and AV Regulations
- ADAS and AD Regulations, Europe
- ADAS and AD Regulations, APAC
- ADAS and AD Regulations, North America
- Collaborations, 2024
- Notable ADAS and AD Collaborations, 2024
- Emerging Competitors in Related Industries
- Key Trends, 2025
- Top Trends Driving the Global ADAS and AD Industry
- Trend 1Mass-market OEMs Will Prefer ADAS Over AD
- Mass-market OEMs Will Prefer ADAS Over AD
- Trend 1Hands-off Eyes-on Driving
- Regulatory OverviewHands-off Driving
- Nissan Pro Pilot 2.0
- Trend 2Vision-based ADAS
- Mobileye's Approach to Hands-off DrivingSupervision
- Trend 3ADAS/AD HPC
- Case StudyContinentals HPC
- Trend 4New Business Models
- Trend 5AI in ADAS and AD
- Case StudyWaymo Using AI for Robotaxis
- Global AV Sales Trends, 20242031
- Market Assumptions
- Technology Assumptions
- Global Autonomy Level Forecast Analysis
- ADAS and AV Sales Forecast
- L4 AV Sales Forecast
- Regional Insights, 20242031
- Analysis by RegionNorth America
- Analysis by RegionEurope
- Analysis by RegionAPAC
- Top Predictions, 2025
- Top 10 Predictions for 2025
- Growth Opportunity Universe
- Growth Opportunity 1: Vision-based ADAS
- Growth Opportunity 2: L1 and L2 Solutions for Developing Countries
- Growth Opportunity 3: FoD through OTA Updates
- Next Steps
- Benefits and Impacts of Growth Opportunities
- Next Steps
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