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Automotive Adaptive Cruise Control Market to Develop Rapidly by 2025
According to the research report, the global automotive adaptive cruise control market is expected to be worth US$22.1 bn by the end of 2025 from US$66.08 bn in 2016. During the forecast period of 2017 and 2025, the global market is expected to surge at a significant CAGR of 14.27%. Out of the two technologies, the RADAR sensors segment is expected to lead the global market.
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Its share in the global market stood at 83.12% in terms of revenue in 2016. Geographically, North America is the prominent regional segment in the global market as the countries in the region have stringent laws pertaining to human safety. As of 2016, this regional segment held a share of 38% in the overall market.
The rising number of accidents due to increase in traffic flow is one of the prime reason that is contributing to the growth of automotive adaptive cruise control market. The implementation of such safety systems by the automobile industry has rapidly increased. Since adaptive cruise control ensure stress free driving and safety of the passengers, customers are frequently looking for such advanced safety features.
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Rising stiff competition among the automobile manufacturers are likely to introduce one or the other product differentiators in their vehicles which is likely to contribute to the overall demand. The manufacturers are continuously upgrading their models so as to cater to the huge demand of innovative safety features that can be used for various applications.
Organizations such as New Car Assessment Program (NCAP), are investing in research and development to design automobiles possessing various safety features. The increasing use of sensors due to the advancements in technology is another factor that is contributing to the growth of this market. Government initiatives towards fuel efficiencies and safety attributes of the vehicle are encouraging manufacturers to implement such integrated systems that can ensure safety as well as comply with such regulations.
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However, adaptive cruise control systems are not efficient in regions with adverse weather conditions. Regions with continuous snowfall and rainfall make such safety systems inefficient in tracking and monitoring the surrounding objects. This makes the owners of such regions reluctant in implementing these systems. Another challenge to the growth of this market is the standardization of such systems. Since every manufacturer competes for offering unique safety features, each manufacturer integrates high-tech sensors having different applications. Such integrations make car owners difficult and confusing to understand the exact operating procedures for different car models. Hence, due to the technicality involved, the car owners are reluctant to install innovative safety systems.
Transparency Market Research (TMR) is a next-generation provider of syndicated research, customized research, and consulting services. TMR’s global and regional market intelligence coverage includes industries such as pharmaceutical, chemicals and materials, technology and media, food and beverages, and consumer goods, among others. Each TMR research report provides clients with a 360-degree view of the market with statistical forecasts, competitive landscape, detailed segmentation, key trends, and strategic recommendations
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