The advanced driver assistance systems (ADAS) and autonomous vehicle (AV) market will reach a total global value of $35 billion in 2020, before representing a fourfold increase to reach $144 billion in revenues by 2025.
This is according to a Juniper research report titled Autonomous Vehicles & ADAS: Adoption, Regulation and Business Models 2016-2025, which found that whilst ADAS still lacks significant mass market penetration, its adoption is set to increase rapidly globally over the next five years.
The report notes the rapid adoption will be driven by a number of factors such as an increasing interest in AV by governments around the world due to safety and environmental reasons and reduction in hardware costs, particularly sensors, will lead to commoditisation of ADAS systems. In addition Juniper found Safety Agency specifications will become more stringent, particularly with respect to vulnerable road users such as pedestrians. The study recommends that original equipment manufacturers will need to invest in more sophisticated ADAS systems to obtain the coveted 5* ratings.
According to the World Economic Forum, the age of self-driving vehicles is fast approaching and city leaders need to take steps to prepare as the disruptive technology becomes a reality. Egil Juliussen, PhD, senior director and analyst at Automotive Technology, says: "Autonomous driving technology is probably the hottest topic in the automotive industry, with much of the credit going to Google due to tremendous press coverage and resulting interest across automotive original equipment manufacturers, suppliers, technology industry, and consumers."
Juniper rated the top 5 Tier-1 vendors in the ADAS and AV market, scored on factors including product range and offerings, creativity and innovation, partnerships and deployments, future potential, and market opportunity, as:
Bosch;
Continental;
ZF Friedrichshafen;
Autoliv; and
Delphi.
Research author Gareth Owen says: "A major supplier to Google and Tesla, Bosch was ranked the Number 1 supplier best placed to benefit from lucrative supply contracts when OEMs start manufacturing AVs en masse".
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