Market Overview

The global number of advanced driver assistance systems (ADAS) and autonomous driving systems installed was 53,555 thousand units in 2023. The market size details by the SAE level were as follows: the Level 1 system (L1: driver assistance) amounted to 23,277 thousand units, Level 2 (L2: partial automation) reached 28,460 thousand units, Level 2+ (L2+: hands-free driving operation limited to highways and driver assistance on general roads) reached 1,810 thousand units, and Level 3 (L3: conditional automation) 8 thousand units.

Level 2 (L2: partial automation), which occupies 53.1% of the total global installations of ADAS/autonomous driving systems in 2023, has been strengthened to have a standard feature of simultaneous activation of auto cruise control (ACC) and lane keeping support/assistance (LKS/LKA) on highways. Dashcam and automotive radars have been strengthened, which includes an increase in the number of radars at corner position application, improving the driver assistance performance.

Practical use of the Level 2+ systems has begun, which not only includes hand-free operation limited to driving on highways but also driving assistance on general roads. The L2+ driving assistance function on general roads, commonly called Navigation on Autopilot (NOA) in China, has been increasingly adopted in luxury electric vehicles from emerging Chinese automakers. This has led to a full market launch in China in 2023.

While European luxury automakers have made the Level 3 (conditional automation) system standard in Germany and the United States, global installations of the system remain at 8,000 units in 2023.

Noteworthy Topics

Level 2 to Occupy 53.6% of Total Global ADAS/Autonomous Driving System Installations in 2025

With the increasing standard installations of ADAS in the United States, Europe, China, and Japan, global installations of Level 2 systems are estimated at 30,255 thousand units in 2024, which is expected to exceed the Level 1 system installations of 22,760 thousand units.

In 2025, another growth is expected for global installations of ADAS/autonomous driving systems, reaching 60,026 thousand units, with Level 2 continuously driving the market. By level, Level 2 installations are expected to reach 32,180 thousand units, which accounts for 53.6% of the total global installations, followed by Level 1 at 20,062 thousand units (33.4%), Level 2+ at 7,459 thousand units (12.4%), and Level 3 at 325 thousand units (0.5%). Level 4 (advanced automation) is being researched and developed for commercial vehicles aimed at Mobility as a Service (MaaS) but mainly applies to experimental vehicles on public roads. Production volumes are therefore still very low.

Future Outlook

Global ADAS/autonomous driving system installations are projected to grow to 83,998 thousand units in 2035. The largest share by level is Level 2+ with 31,810 thousand units, occupying 37.9% of the total global ADAS/autonomous driving system installations. Level 2+ installations have been increasing in the United States, Europe, China, and Japan since the second half of the 2020s, and are expected to reach 22,554 thousand units in 2030, surpassing the Level 1 installations of 14,692 thousand units.

As slowdown in the installations of Level 1 and Level 2 is expected in the United States, Europe, China, and Japan by then, the installations are likely to be concentrated in Southeast Asian countries from the second half of the 2020s. As the New Car Assessment Program for Southeast Asian Countries (ASEAN-NCAP) plans to change driver assistance ratings from 2026, the market for L1 and L2 installations is predicted to be led by the ASEAN countries after 2030. In 2035, global L1 installations are projected to be 13,968 thousand units and L2 installations are projected to be 25,635 thousand units.

With the market for Level 3 installations expected to be launched in Europe and China, global installations are forecast to reach 3,369 thousand units in 2030 and 6,520 thousand units in 2035. After 2030, some luxury cars are projected to be equipped with L3 systems, which allow 120km/h on highways. The introduction of a system that can automatically switch from L3 (conditional automation) to L2 (driving assistance) when the driver takes over the driving authority from the system is expected.

Level 4 (advanced automation) is likely to enter the market around 2031 or later, when vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) wireless communications are organized and autonomous driving software is developed. Global L4 installations are forecast to reach 800 thousand units in 2030, increasing to 6,065 thousand units in 2035. Note that the figures do not include commercial vehicles (robotaxis, shuttle buses, unmanned delivery vehicles) with L4 installations. 

Research Outline