Market Overview

​The global number of ADAS and automated driving systems installed was 40,976,019 units in 2021, a rise by 17.5% from the previous year. The market size details by SAE level were as follows: Level 1 system (L1: Driver assistance) amounted to 25,173,873 units, occupying 61.4% of the entire market, followed by Level 2 (L2: Partial automation) having reached 14,935,260 units. Hands-off driving system (Level 2 +, hands-free driving operation limited on highways) amounted to 866,786 units, and Level 3 (L3: Conditional automation) 100 units (only in the Japanese market). In 2021, of the global number of new cars sold, the rate of those equipped with ADAS and automated driving systems accounted for 49.7%, a rise by 5.4 points from 44.3% in 2020.

Since 2020 the largest growth in the number of systems installed in vehicles was Level 2, as increasing numbers of vehicles started being equipped with the system that simultaneously boots ACC (auto cruise control) and LKS/LKA (Lane Keeping Support/Assistance) functions at highways. This elevated the performance of in-vehicle sensors (front cameras and radars) for ADAS. Installation of Level 2+ systems has also been increasing at automakers in the US and Japan, a rise by 72.8% on a YoY basis. As for Level 3 systems, Honda was the world’s first to announce the practical application, with 100 limited vehicles equipped with it were sold for leasing in 2021 (the sales have already ended).

Noteworthy Topics

Market Size of Level 2 Exceeds Level 1 in 2024

With adoption of ADAS as a standard in progress in the US, Europe, China, and Japan toward 2025, the number of Level 1 systems installed is expected to peak out by 2023 at 28 million units, while that of Level 2 systems to exceed 30 million units by 2024. The global number of ADAS and automated driving systems installed is projected to achieve 67,396,560 units by 2025. The rate of those systems equipped with is likely to rise to 70.6%, of the global number of automobiles sold.

When observing by level, Level 2 systems being equipped with is projected to be 35,020,000 units, occupying 52.0% of the total market, followed by Level 1 at 21,282,671 units (31.6%), Level 2+ at 10,688,221 units (15.9%), and Level 3 at 404,940 units (0.6%). Research and development on Level 4 (Advanced automation) systems has been currently underway for commercial vehicles used for MaaS (Mobility as a Service), but they are mostly for public roads testing vehicles, so that mass manufactured numbers at the time of 2025 are very little.

Future Outlook

By 2030, the global number of ADAS and automated driving systems installed is projected to amount to 79,153,000 units, with the installation rate rise to 76.9% in global new cars sold. The largest size by level is Level 2 at 36,752,500 units (46.4% of the entire market), but the number of Level 2+ installed is to increase in the US, Europe, China, and Japan, which is expected to grow to 23,399,000 units, exceeding the Level 1 at 12,023,000 units by 2030. Likewise, installation of Level 3 is invigorated chiefly in the flagship models of each automaker, amounting to 6,252,500 units.

After 2027, introduction of “Automotive E/E architecture (centralized control by integrated ECU [Electronic Control Unit])”, “Next-generation EV platform”, and “OTA (Over the Air)/software update” is expected to be in progress at major automakers, which is likely to form the market for Level 3 mainly installed in high-end EVs. Level 4 is mainly for MaaS (Mobility as s Service), and because the business is expected to fully launch in the latter half of 2020s, the global number of MaaS vehicles equipped with Level 4 system are projected to be 726,000 units by 2030.

Research Outline