No.4181
Global Autonomous Driving and Advanced Driver Assistance System Market: Key Research Findings 2026
By 2035, The Number of L2+ (Highway NOA) and L2++ (Urban NOA) Installations Will Reach 42.28 Million Units Worldwide
Yano Research Institute (the President, Takashi Mizukoshi) conducted a survey on the global market for autonomous driving (AD) and advanced driver assistance systems (ADAS). The survey provided an overview of the market, including regional installation trends and the business strategies of individual manufacturers. This article forecasts the number of AD and ADAS installations in new cars worldwide through 2035
Market Overview
In 2025, a total of 68.251 million of autonomous driving (AD) and advanced driver assistance systems (ADAS) units were installed in new cars worldwide. Level 1 and 2 installations (driver assistance) accounted for 84.6% of the total, reaching 57.72 million units. Level 2+ and Level 2++ (advanced driver assistance) installations increased to 10.516 million units, accounting for 15.4% of the total. Meanwhile, installations of Level 3 (conditional automation) and Level 4 (advanced automation) remained at 0.1% or less, indicating a limited market at this time.
Deployments of Level 2+ (Navigation on Autopilot [NOA] on highways) and Level 2++ (NOA in urban areas) are flourishing in China. NOA is an advanced driving assistance feature that supports operations in complicated traffic environments, such as lane changes and driving at road mergers and junctions. Technologies being adopted to facilitate ADAS include systems on chips (SoCs), 8-megapixel (8MP) cameras (equivalent to high-resolution cameras with eight million pixels), millimeter-wave radars, light detection and ranging (LiDAR), and artificial intelligence (AI). The prevalence of ADAS in China has prompted European and Japanese automakers to adopt these technologies and partner with Chinese AD and ADAS companies to deploy L2+ NOA highway and L2++ urban NOA technologies in their automotive models for the Chinese market.
Noteworthy Topics
AI Empowerment for High-Performance ADAS (L2+/L2++) Prevalent in China
In conjunction with the proliferation of L2+ (highway NOA) and L2++ (urban NOA), China is quickly adapting to advancements in artificial intelligence (AI) technology. AI empowerment in driver assistance systems, including end-to-end (E2E) AI, foundation models, vision-language models (VLMs), and vision-language-action (VLA) models, has entered the realm of mass-produced vehicles. These deployments aim to enhance operational safety and L2+ and L2++ functionality by enabling the detection of the vehicles' surroundings, perception of vehicle status, and comprehension of complex driving environments. The advancement of AI models is prompting automakers to develop their own SoC technology and increase AI computational performance.
Additionally, increased performance and lower costs for these systems are expanding L2+ and L2++ installations beyond high-end automotive models to include more affordable ones. E2E AI models, ELMs, and VLA models are areas in which China currently leads and will be implemented by major automakers worldwide. This is expected to accelerate the competition to develop AD and ADAS.
Future Outlook
After 2030, L2+ (highway NOA) and L2++ (urban NOA) installations, which are already widespread in China, are expected to expand to a broader range of vehicle models in the United States, Europe, and Japan. Advanced driver assistance systems centered on AI-powered L2+ and L2++ technologies will likely drive market expansion.
By 2035, the number of AD and ADAS installations in new cars is expected to reach 93.56 million units. Of these installations, 47.63 million will be L1 and L2 (driving assistance), 42.28 million will be L2+ and L2++ (advanced driving assistance), and 3.65 million will be L3 (conditional automation) and L4 (advanced automation).
The market size for L1 and L2 installations is expected to remain stable, as these levels of automation are anticipated to become prevalent in emerging countries and regions, including ASEAN and India. L3 installations are predicted to be limited to specific high-end models under certain conditions, such as on highways. Meanwhile, an increase in the market size is anticipated for L4 installations in commercial services for specific purposes and areas. Examples include robotaxis, autonomous shuttle buses, and logistics vehicles.
To increase the market size, international standardization and legislation on AD and ADAS are essential, in addition to the progress in AI advancements. Technological and institutional developments are predicted to increase the AD and ADAS market sustainably.
Research Outline
2.Research Object： Automakers, tier1 suppliers, and semiconductor manufacturers
3.Research Methogology： Face-to-face interviews (including online interviews) by expert researchers, surveys via telephone, and literature research
What are Autonomous Driving (AD) and Advanced Driver Assistance Systems (ADAS)?
The Society of Automotive Engineers (SAE) International has defined six levels of driving automation, ranging from 0 to 5, in the SAE Levels of Driving Automation™. Levels 1 and 2 are referred to as "driver assistance levels," in which drivers are responsible for monitoring their surroundings. Levels 3 and above are considered "automated driving levels," in which the vehicle's systems are responsible for dynamic driving operations. Levels 1 and 2 require drivers to bear primary responsibility for driving operations. Level 1 vehicles are equipped with individual driving assistance features, such as autonomous emergency braking (AEB) and adaptive cruise control (ACC), while Level 2 vehicles provide combined steering, acceleration, and deceleration driving assistance.
Recently, Level 2+ vehicles, which have hands-free driving and NOA (navigate on autopilot functions on highways, and Level 2++ vehicles, which have NOA in urban areas, have become prevalent. While these levels are not defined by the SAE, they are considered advanced driver assistance systems belonging to Level 2. These systems provide consolidated control of the accelerator, brakes, and steering and assist drivers with navigated driving on highways and general roads.
Level 3 (conditional automation) allows the system to perform all the dynamic driving operations, but the driver must be prepared to take over when prompted. Level 4 (advanced automation) enables the system to conduct all dynamic driving operations, regardless of the circumstances, and does not require driver involvement. However, Level 4 allows the driver to define an operational design domain (ODD), which is the set of conditions in which the automated driving system operates. Level 5 is full automation, also known as complete self-driving, which lets the system perform all dynamic driving operations without restrictions based on location or driving conditions.
The research was conducted targeting AD and ADAS installed in new cars, which are passenger cars or small commercial vehicles weighing 3.5 tons or less. Market size is calculated based on the number of vehicles with AD and ADAS installed.
＜Products and Services in the Market＞
Advanced Driver Assistance Systems (Level 1, Level 2, Level 2+ Highway NOA, and Level 2++ Urban NOA), Autonomous Driving Systems (Level 3, Level 4, and Level 5)
Published Report
Contact Us
The copyright and all other rights pertaining to this report belong to Yano Research Institute.
Please contact our PR team when quoting the report contents for the purpose other than media coverage.
Depending on the purpose of using our report, we may ask you to present your sentences for confirmation beforehand.