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
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