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Future of the Advanced Driver Assistance Systems (ADAS) Market: Key Drivers and Projections | 2025–2029

8 Sep, 2025

Insight by Abdul Wasay, Chief Operating Officer at The Business Research Company

In response to fluctuating tariffs and geopolitical trade developments, the Advanced Driver Assistance Systems (ADAS) Market Outlook 2025 analyses how businesses are adapting through supply chain diversification and strategic sourcing.

What Is the Projected Market Size of the Advanced Driver Assistance Systems (ADAS) Industry in 2024 and 2025?

The market size of the Advanced Driver Assistance Systems (ADAS) has seen a swift expansion in the past years. The market, which was worth $43.03 billion in 2024, is projected to increase to $49.56 billion in 2025 at a Compound Annual Growth Rate (CAGR) of 15.2%.

What Is the Projected Market Size of the Advanced Driver Assistance Systems (ADAS) Market in 2029?

The Advanced Driver Assistance Systems (ADAS) global market is expected to reach a value of $88.16 billion in 2029, growing at a compound annual growth rate (CAGR) of 15.5%.

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What Are the Key Drivers of Advanced Driver Assistance Systems (ADAS) Market Growth?

The key drivers in the advanced driver assistance systems (adas) market are:

• Rising demand for semi-autonomous and autonomous vehicles
• Need for precise and efficient diagnosis of issues to lessen repair times and costs
• Increasing investment in artificial intelligence for ADAS
• Integration of vehicle-to-everything (V2X) communication technology in ADAS

What Are the Primary Segmentation Categories in the Advanced Driver Assistance Systems (ADAS) Market?

The advanced driver assistance systems (adas) market covered in this report is segmented –
1) By System Type: Tire Pressure Monitoring System (TPMS), Drowsiness Monitor System, Intelligent Parking Assist System (IPAS), Adaptive Cruise Control System, Blind Spot Object Detection System, Lane Departure Warning System, Adaptive Front-lighting System, Other System Types
2) By Offering: Hardware, Software
3) By Vehicle Type: Passenger Car, Light Commercial Vehicle, Buses, Trucks

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What Are the Major Trends Shaping the Advanced Driver Assistance Systems (ADAS) Market in 2025 and Beyond?

The key trends in the advanced driver assistance systems (adas) market are:

• A key emerging trend is the development of AI-based driver monitoring systems.
• The expansion of augmented reality (AR) in head-up displays is another prominent trend.
• Enhanced connectivity with advanced sensors is shaping the ADAS market's future.
• The evolution of automated parking systems and integration of machine learning for improved decision-making are other significant trends.

Who Are the Emerging Players in the Advanced Driver Assistance Systems (ADAS) Market?

Major players in the advanced driver assistance systems (adas) market are:

• Continental AG
• Nippon Denso Co. Ltd.
• Magna International
• Robert Bosch GmbH
• NXP Semiconductors NV
• ZF Friedrichshafen AG
• Autoliv Inc.
• Valeo SA
• Mobileye Global Inc.
• Hella KGAA Hueck & Co.
• Aisin Corporation
• Infineon Technologies AG
• Hyundai Precision Co. Ltd.
• Aptiv plc
• Gentex Corporation
• Texas Instruments Inc.
• STMicroelectronics NV
• Renesas Electronics Corporation
• ON Semiconductor Corp
• Analog Devices Inc.
• Melexis NV
• Ambarella Inc.
• Nvidia Corporation
• Intel Corporation
• Qualcomm Inc.
• Samsung Electronics Co. Ltd.
• LG Corporation
• Panasonic Corporation
• Sony Corporation
• Neural Propulsion Systems Inc.

Which Regions Are Leading the Growth in the Global Advanced Driver Assistance Systems (ADAS) Market?

North America was the largest region in the ADAS market in 2024

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