Asia-Pacific Automotive ADAS Market
Asia-Pacific Automotive ADAS Market
The Asia-Pacific automotive ADAS market is expected to reach USD 1625.32 million by 2023, at a CAGR of 23.73%. The market is majorly driven by the growing customer awareness about vehicle safety features and the implementation of NCAP programs in the Asia-Pacific region. Companies, like Continental AG, Robert Bosch GmbH, Autoliv Inc., Denso Corporation, and Delphi Automotive PLC, are some of the global ADAS manufacturers. These players contributed nearly 50% to the Asia-Pacific automotive ADAS market in 2016.
Increasing Adoption of Passenger Cars
Owing to the increase in regulations on ADAS requirements, automakers are making efforts to include these features in most of their cars. The ADAS features, which were only available in premium cars, are now being brought to other car segments as well; these systems are being offered as an optional equipment in cars other than the high-end vehicles. These features are also being included in commercial vehicles. Globally, around 80% of the passenger vehicles and commercial vehicles are featured with ADAS system. The number is almost the same in Asia-Pacific as well. The reasons for customers opting cars with ADAS are the improved safety and ease of driving. Hyundai, the Korean automaker, recently stated that up to 50% of its new sales include some or the other variants of these features. Because of the regulations, where the cars need to have these features and the demand for vehicles with ADAS, the automakers are adopting ADAS features more rigorously and the market for automotive ADAS is estimated to grow immensely.
Increasing Awareness About ADAS Cars
In developing countries, such as India, China, Japan, and Indonesia, with the increase in the number of vehicle sales, more customers are opting ADAS features in their vehicles, owing to the need for safety and comfort. Initially, a majority of the consumers did not adopt these systems due to their high cost and lack of awareness. However, with the new government regulations in place and proven safety benefits, these systems have gained consumer interest. Most of the ongoing installations are being done in the aftermarket, as consumers do not usually prefer new vehicles just for having ADAS. The Indian market, at present, is relatively in the initial stages of adoption as compared to European (EU) or North American (NA) Markets. However, there are a number of aftermarket solutions in the commercial vehicle space and third parties, who are foraying with very advanced solutions. The market is lacking an integrated offering from OEMs in India as compared to NA or EU, and the consumer is very cost-conscious. However, the consumer awareness is on the rise due to technology exposure and experiences in the personal space, The government is also aggressively bringing in reforms/policies toward increased digitization. The OEMs and third parties are also shifting gears, developing relevant and compelling connected car features that can be offered to the customers. Currently, most technology companies are preferring to create connected car solutions unique to this market, with the intent to have a share in the revenue pie.
Over the past two to three years, even the OEMs have paid more attention to educating customers about the benefits of new technologies in the ADAS sector. The major motive is to let people know about the safety of their vehicles and the reason they need to go for pre-installed ADAS. The OEMs offer customers an option to choose the needed features and make a customized combination of the different ADAS features for their vehicles. Customers who got ADAS installed in their vehicles (more than 70% of them) have shown the willingness to repurchase these systems.
Key Developments in the Market
• Object Detection and Differentiation: This is a new technology in ADAS that helps recognize both moving (vehicles, cyclists, pedestrians, etc.) and stationary objects (traffic signs, signals, etc.), and transfers information to the driver in a graphical format. NVIDIA and Nextchip are among the companies that provide software solutions for object detection and differentiation.
• 360-degree Surround View: Unlike cameras that give only the rear-end view, the 360 degree view of the vehicle’s surrounding is extremely helpful for driving, parking, and maneuvering the vehicle at low speeds.
Major Key Players: CONTINENTAL AG, ROBERT BOSCH GMBH, AUTOLIV INC., DENSO CORPORATION, DELPHI AUTOMOTIVE PLC
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