ADAS Market to Reach $165.68B by 2031: Advanced Driver Assistance Systems Growth Driven by AI, LiDAR, Radar & Autonomous Driving

Market Size and Growth

Global Advanced Driver Assistance Systems Market reached US$44.96 billion in 2023 and is expected to reach US$165.68 billion by 2031, growing with a CAGR of 17.71% during the forecast period 2024-2031, according to DataM Intelligence report.

Key Development:

United States: Recent ADAS (Advanced Driver Assistance Systems) Developments

✅ In October 2025, Lucid announced plans to launch a mid‐size EV powered by Nvidia DRIVE AGX Thor, targeting Level 4 "eyes‐off, mind‐off" driving, a big step up from current ADAS.

✅ In July 2025, Lucid began rolling out an over‐the‐air update for its DreamDrive Pro system, adding hands-free driving and lane-change assist (Level 2) to the Lucid Air.

✅ In June 2025, NXP Semiconductors completed the acquisition of TTTech Auto, a leader in safety-critical middleware for software-defined vehicles - accelerating NXP's roadmap for ADAS-capable, safety‐first platforms

✅ In April 2025, Texas Instruments unveiled a new automotive chip portfolio including an integrated LiDAR laser driver, mmWave radar sensor, and clock generators to boost ADAS performance and safety.

✅ In January 2025, Rivian confirmed it will introduce a hands‐free ADAS for its R1T and R1S vehicles, with an "eyes‐off" version expected in 2026 for mapped highways.

Japan: Recent ADAS Developments

✅ In September 2025, Valeo and Momenta struck a global long-term partnership to co-develop mid- and high-level ADAS and autonomous driving systems, combining Valeo's sensors with Momenta's AI.

✅ In September 2025, Momenta highlighted its ADAS‐to‐robotaxi strategy in Japan, noting its Level 2++ systems are based on real-world driving data and shared across markets.

✅ In July 2025, Microchip Technology announced a partnership with Nippon Chemi-Con and NetVision to build the first ASA-ML (Automotive SerDes Alliance Motion Link) camera development platform for the Japanese auto market.

✅ In June 2025, ZF revealed it is strengthening its ADAS capabilities in Japan by developing turnkey sensor‐software systems (smart cameras + AI) aimed at both integrated and standalone driving functions.

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Key Players:

=> Robert Bosch GmbH, Continental AG, ZF Friedrichshafen AG, DENSO CORPORATION, Aptiv PLC, Valeo SA, Magna International Inc., Aisin Seiki Co. Ltd, Autoliv Inc., GENTEX CORPORATION, Harman International, Hyundai Mobis, NXP Semiconductor, Mobileye, Panasonic Corporation, Renesas Electronics Corporation.

Growth Drivers of Advanced Driver Assistance Systems (ADAS):

✅ Rising demand for vehicle safety and accident prevention features is driving ADAS adoption.

✅ Advancements in sensors, cameras, radar, and AI-based software enhancing system accuracy and functionality.

✅ Increasing integration of autonomous driving features in passenger and commercial vehicles.

✅ Growing regulatory mandates and safety standards promoting adoption of ADAS technologies.

✅ Expansion of connected and smart vehicle ecosystems accelerating market growth.

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Key Segments:

By Type

Adaptive cruise control leads with 18% share, driven by increasing demand for semi-autonomous and safety-enhanced vehicles. Blind spot detection follows with 15%, reflecting growing regulatory requirements and consumer focus on road safety. Collision avoidance systems hold 14%, supported by advancements in AI and sensor technology. Lane departure warning systems account for 12%, while adaptive light control represents 10%, tire pressure monitoring 8%, parking assistance 7%, driver drowsiness detection 6%, night vision 5%, E-call telematics 3%, and other systems make up 2%, catering to niche safety and driver-assistance applications.

By Offering

Hardware dominates with 60% share, driven by the need for sensors, cameras, radars, and electronic components. Software accounts for 40%, supported by advanced driver assistance algorithms, integration platforms, and vehicle control systems.

By Vehicle Type

Passenger cars lead with 55% share, fueled by widespread adoption of ADAS features in mass-market and premium vehicles. Light commercial vehicles account for 15%, buses and trucks 12%, electric vehicles 10%, and other vehicle types 8%, reflecting adoption across mobility segments including fleet, logistics, and specialized vehicles.

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By Region

North America - 36% Share
North America leads with 36%, supported by advanced automotive technology adoption, regulatory mandates for vehicle safety, and high consumer demand for smart and semi-autonomous features.

Europe - 28% Share
Europe holds 28%, driven by stringent safety regulations, automotive innovation, and growing penetration of ADAS across passenger and commercial vehicles in Germany, France, U.K., Italy, and Spain.

Asia Pacific - 22% Share
Asia Pacific accounts for 22%, fueled by rapid EV growth, increasing automotive production, and rising consumer awareness of safety systems in China, Japan, India, and South Korea.

Latin America - 6% Share
Latin America holds 6%, supported by urbanization, fleet modernization, and adoption of ADAS in passenger and commercial vehicles across Brazil, Argentina, and neighboring countries.

Middle East & Africa - 8% Share
The Middle East & Africa represent 8%, driven by luxury and fleet vehicle adoption, regulatory focus on road safety, and increasing infrastructure for connected vehicle technologies.

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