The Advanced Driver Assistance Systems (ADAS) and Autonomous Vehicle (AV) market will reach a total global value of $35 billion in 2020, before a fourfold increase to reach $144 billion in revenues by 2025, according to a new study from Juniper research.
Adoption of ADAS set to increase rapidly
The new research, Autonomous Vehicles & ADAS: Adoption, Regulation & Business Models 2016-2025
, found that whilst ADAS still lacks significant mass market penetration, its adoption is set to increase rapidly over the next five years driven by a number of factors:
• Safety Agency specifications will become more stringent, particularly with respect to vulnerable road users such as pedestrians. Juniper recommends that OEMs will need to invest in more sophisticated ADAS systems to obtain the coveted 5* ratings.
• Increasing interest in AV by governments around the world due to safety and environmental reasons. In addition, the research found that commercial companies such as ride-sharing service providers will lead the adoption of AV technology, enabling them to significantly reduce their operating costs.
• Reduction in hardware costs, particularly sensors, will lead to commoditisation of ADAS systems.
Top five players driving the market
Juniper Research ranked the top five Tier-1 vendors in the ADAS and AV market. They were scored on factors including product range and offerings, creativity and innovation, partnerships and deployments, future potential, and market opportunity.
3. ZF Friedrichshafen
Research author Gareth Owen commented: “A major supplier to Google and Tesla, Bosch was ranked the number one supplier best placed to benefit from lucrative supply contracts when OEMs start manufacturing AVs en masse”.
Standardisation of ADAS components critical
The research found that although issues concerning performance and reliability exist today, increased sensor integration and the widespread adoption of sensor-fusion will lead to system redundancy and improved safety and reliability. Juniper believes that standardisation of components will accelerate this process.A complimentary whitepaper, On Track with Self-Driving Vehicles 2.0, is available for download, together with further details of the full research.