How Are Technological Improvements Driving ADAS Sensor Demand?

[Business Point 2021]

Bosch claims that its fourth-generation long-range radar (LRR) for automobiles has a detection range of up to 250 meters, while Continental’s fifth-generation LRR is claimed to have a range of 300 meters. Many more automotive technology companies are bringing innovations in their radar, light detection and ranging (LiDAR), ultrasonic, and camera sensors considering the rising demand for autonomous vehicles. This is because autonomous vehicles require advanced driver assistance systems (ADAS) to drive on their own, which, in turn, require all these kinds of sensors to function.

Therefore, with the increasing popularity of self-driving vehicles, P&S Intelligence expects the ADAS sensor market value to escalate to $40.8 billion by 2030 from $11.5 billion in 2019, at an 11.7% CAGR between 2020 and 2030. The demand for autonomous vehicles is itself being driven by the rising number of road accidents, which already kill more than 1.3 million people each year, according to the World Health Organization (WHO). Since human error is the cause of most such mishaps, not letting humans have the driving control could help lower the road accident and mortality rates.

Even though true self-driving vehicles are still at least four years away from being a common sight on roads, ADAS sensors are still being integrated into automobiles in high numbers. This is because Level 1–3 autonomous vehicles, which are considered semi-autonomous, have been available for a long time. Radar, LiDAR, ultrasonic, and camera sensors are integral to a number of ADAS features, including blind spot detection (BSD), adaptive cruise control (ACC), automatic emergency braking (AEB), lane keeping assistance system (LKAS), cross traffic alert (CTA), adaptive front light (AFL), driver monitoring system (DMS), night vision system (NVS), and intelligent park assist (IPA) system.

A higher number of these sensors are integrated into passenger cars because they outnumber the commercial vehicles produced each year. Moreover, many governments around the world have mandated some degree of driver assistance, to make roads safer. For instance, electronic stability control (ESC) feature was made mandatory in all passenger cars produced since 2012 by the National High Traffic Safety Administration (NHTSA) of the U.S., which essentially gave all of them Level 1 autonomy.

Many other initiatives are being taken around the world to encourage the development and testing of autonomous vehicles. For instance, 27 European Union (EU) member states, Switzerland, and Norway signed the EU’s letter of intent that seeks to improve the cooperation while testing autonomous vehicles. Similarly, 33 U.S. states introduced bills related to self-driving vehicles in 2017, with 15 more taking similar steps in 2018. Moreover, in 2018 and 2019, the U.S. government gave a funding of $100 million and $60 million, respectively, for research and development (R&D) in this area.

As a result, Europe and North America have been among the largest contributors to the ADAS sensor market till now. Moreover, the regions are home to numerous semiconductor and automotive technology companies, as well as automakers, who are all working together on the enhancement of the autonomous driving technology and making it a reality. For instance, in its pilot program conducted in 2019, Waymo ferried 6,299 passengers in its robotaxis across California. Similarly, France, Switzerland, the Netherlands, Sweden, Norway, and Spain have modified their road transportation laws to encourage the testing and future adoption of self-driving vehicles.

Hence, with efforts being made on a global level to make roads safer, the integration rate of ADAS sensors in vehicles will boom.