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The report provides critical insights which indicate that the global sales of advanced driver assistance systems (ADAS) testing equipment accounted for the revenues worth ~$67 million in 2018, and is projected to witness strong growth at a CAGR of ~12% over the foreseeable period.
Growing significance of advanced safety techniques among automakers as well as passengers to prevent the rising incidents of road adversaries is set to fuel the demand for ADAS in road transportation mediums, says FMI study. Stringent government reforms will continue to compel automobile manufacturers to conduct safety trials on four-wheeler models, with an aim to promote new-age solutions that can eventually lead to the development of 'one-size-fits-for-all' ADAS testing equipment and thereby, facilitate comfortable driving.
Accidental fatalities between two vehicles as well as between vehicles and pedestrians have become a growing concern at a global level. As the production of vehicles in increasing, this has further amplified concerns vis-à-vis human safety. FMI's study examines how the advent of connected technologies and other microeconomic factors are propelling the ADAS testing equipment market.
The report findings suggest that hardware equipment leave software tools behind by a huge margin. Car manufacture validation teams are employing combination of sensors in ADAS testing equipment, for instance, radar and camera, to provide precise and dynamic results in extreme scenarios unlike individual sensors that have restricted operation. Further the hardware components can be tailored to the needs of the end users.
On the other hand, cases of fatal accidents involving self-driving automobiles are compelling customers to doubt the efficiency of software technology, motivating carmakers to undergo technology disruptions, says FMI. ADAS developers are increasingly inclining towards System on Chips (SoC) that are created to allow autonomous driving operations in hardware, decreasing the number of lines of software code needed in the arrangement to a huge extent, which further assists counter operational safety risks.
Furthermore, both automobile OEMs and Tier-1 suppliers are coming up with innovative designs that incorporate SoCs, enabling greater processing bandwidth, lessened system latency, and decreased power utilization.
Four-wheeler drivers are increasingly shifting towards OEMs from tier-1 suppliers, although the latter is exhibiting faster growth. FMI's study suggests that rising demand for automobiles that are fully-equipped with ADAS are finding favor among different economies as these vehicles have already undergone the testing stage, facilitating a more comfortable and safer experience for customers, while driving. Many countries have further decided to double the production of compact and mid-size vehicles that are armed with ADAS, realizing the legal constraints and significance of driver's safety.
However, both the automobile OEMs and tier-1 suppliers are likely to be witnessing a slight decline over the forecast timeframe, owing to rising adoption of two-wheelers among the demographic in low and middle-income countries (LMIC) for routine commute. The policymakers of these economies are refusing to permit the launch of ADASs due to unfavorable road conditions, which is an important growth influencer for the market according to the report. Further, high costs associated with ADAS-fitted vehicles remain a prime barrier restricting consumer preference.
Future Market Insights (FMI) is a leading market intelligence and consulting firm. We deliver syndicated research reports, custom research reports and consulting services which are personalized in nature. FMI delivers a complete packaged solution, which combines current market intelligence, statistical anecdotes, technology inputs, valuable growth insights and an aerial view of the competitive framework and future market trends.