Global Adaptive Cruise Control System Market By Component Type (LiDAR, RADAR, Image Sensor, Ultrasonic, Infrared Sensor, and Other types), By Vehicle Type (Passenger Cars and Commercial Vehicles), By End-Use (OEMs and Aftermarket), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Adaptive Cruise Control System Market size is expected to be worth around USD 65 Billion by 2032, From USD 34.7 Billion by 2023, growing at a CAGR of 6.60% during the forecast period from 2023 to 2032.

The market for cutting-edge driver assistance systems created to assist drivers in keeping a secure distance from other vehicles on the road is known as the global Adaptive Cruise Control System (ACCS) market. Radar or cameras are used by ACCS to monitor the distance and speed of the vehicle in front and to automatically change the vehicle’s speed to keep a safe distance.

The market for ACCS is expanding quickly as a result of rising auto safety feature demand and increased acceptance of autonomous driving technology. Government regulations that mandate the installation of cutting-edge safety features in vehicles are another factor driving the industry.

Driving Factors

Increasing demand for advanced driver assistance systems (ADAS): The demand for advanced driver assistance systems (ADAS), including adaptive cruise control systems, is being driven by rising consciousness of vehicle safety as well as an increase in the frequency of traffic accidents.

Technological Advancements: The accuracy and efficiency of ACC systems are being improved, making them more dependable and increasing the adoption rate, thanks to the creation of sophisticated sensors and radar technology.

Government Regulations and Safety Standards: Several governments all over the world have made it mandatory for cars to have specific safety features, like ADAS. This is encouraging the use of ACC devices across the world.

Increasing Consumer Preference for Convenience and Safety Features: Customers are increasingly looking for vehicles with ACC systems as they become more conscious of the advantages of these features. This is fueling the automotive industry’s desire for ACC systems.

The Growing Trend Towards Autonomous Driving: The demand for ACC systems is rising as automated driving technology is being adopted more widely; ACC systems are an essential part of many autonomous driving systems.

Restraining Factors

Numerous challenges could temporarily obstruct the worldwide market for adaptive cruise control systems. The high cost of ACC systems may be more expensive than conventional cruise control choices, which is one significant barrier.

Unfortunately, these cost factors may limit some consumers, especially in areas with lower buying power, which will reduce their adoption rate. Additionally, ACC systems might be less helpful and less widely adopted in situations with poor driving conditions, such as congested traffic or bad weather.

Another challenge is sensor technology, as ACC systems depend on sensors and radar to identify other vehicles on the road. If these sensors fail, ACCS’s effectiveness may suffer, possibly resulting in reduced dependability. In addition, there may be challenges for both manufacturers and customers due to the absence of standards in ACC system design and implementation.

Finally, concerns about data privacy and security may make some consumers leery of ACC systems, which could restrict their adoption. The market for ACC systems is anticipated to keep growing despite these challenges as technology advances and prices decline, making them more affordable for a broader range of people.

Growth Opportunities

The global adaptive cruise control system market also presents several opportunities for growth and innovation in the coming years. One of the most significant opportunities is the increasing demand for advanced driver assistance systems, including ACC systems, as consumers become more aware of the benefits of vehicle safety features.

Furthermore, advances in sensors and radar technology are increasing the accuracy and efficacy of ACC systems, making them more dependable and increasing their adoption rate. Additionally, government regulations and safety standards requiring certain safety features in vehicles, are encouraging manufacturers to increase their market share through ACC systems.

The growing trend towards autonomous driving is fueling demand for ACC systems, as they form an essential element of such programs. Furthermore, aftermarket sales channels for these safety components are becoming more commonplace as more consumers look to retrofit older vehicles with this safety feature, providing manufacturers with a chance to expand their customer base.

In conclusion, the global ACC system market presents several opportunities for growth and innovation, which manufacturers can capitalize on to increase their market share and meet the growing demand for advanced safety features.

Trending Factors

Trends are shaping the growth and development of the worldwide adaptive cruise control systems market. As customers become more aware of its safety benefits, ACC systems are becoming more commonplace in high-end luxury vehicles as well as mid-range cars.

Another development is the creation of sophisticated ADAS which incorporates various safety components, including ACC systems, for a comprehensive safety package. Furthermore, there is an increasing tendency towards combining ACC with other features like lane departure warnings and automatic emergency braking to provide drivers with a safer experience that feels seamless and effective.

Additionally, the market for ACC systems is expected to benefit from the rise of electric cars, which may require special safety features that ACC systems can fulfill.

Furthermore, the design and implementation of ACC systems have become more standardized, improving their dependability and making them accessible to a wider range of consumers. Overall, these trends are shaping ACC system markets around the world; manufacturers must stay abreast of them to remain competitive.

Component Type Analysis

Based on component types the market for adaptive cruise control system market is divided into LiDAR, RADAR, Image Sensor, Ultrasonic, Infrared Sensor, and Other types. From this segment, the RADAR segment is dominant in the market. The safety of drivers in the vehicle is the main reason for the dominance of this sector. Cameras are used to detect the position of other vehicles and objects on the road. These cameras can include monocular, stereo, and infrared cameras. Other components of an ACCS system can include displays, communication modules, and software.

Vehicle Type Analysis

Based on vehicle type the market for adaptive cruise control is segmented into passenger cars and commercial vehicles. Among these vehicle types, the passenger car segment is dominant in the market.

ACC systems are becoming increasingly common in modern vehicles, particularly in higher-end or luxury models. Passenger car includes sedans, coupes, hatchbacks, and other types of cars designed for personal use. ACC systems are also becoming more common in commercial vehicles, such as buses and delivery trucks.

End-Use Analysis

Based on end-use, the market is segmented into OEMs (Original Equipment Manufacturers) and aftermarkets. The original equipment manufacturers segment is dominant in the market.

Many vehicles now come with ACCS as standard or optional features from the OEMs themselves, often covered under warranties. Alternatively, aftermarket suppliers and retailers provide ACCS for vehicles that weren’t originally equipped with this feature.

Key Market Segments:

Based on Component Type

• LiDAR
• RADAR
• Image Sensor
• Ultrasonic
• Infrared Sensor
• Other types

Based on Vehicle Type

• Passenger Cars
• Commercial Vehicles

Based on End-Use

• OEMs
• Aftermarket

COVID-19 Impact Analysis

The COVID-19 pandemic has had a considerable effect on the global adaptive cruise control (ACC) system market, both positively and negatively. On the plus side, the pandemic has accelerated the adoption of remote work and e-commerce, leading to increased demand for delivery vehicles and autonomous driving systems that utilize ACC technology.

Additionally, the pandemic has increased consumer awareness of the significance of safety features in vehicles, such as ACC systems, leading to an uptick in demand for these systems. On the downside, the pandemic has caused a slowdown in the automotive industry, leading to decreased vehicle production and sales, ultimately impacting demand for ACC systems.

The pandemic’s supply chain disruptions have also adversely affected the production and delivery of ACC systems, leading to delays and increased expenses. Furthermore, the economic downturn caused by the pandemic has resulted in a decrease in consumer purchasing power, leading to lower adoption rates of ACC systems in some regions.

Finally, the closure of vehicle dealerships and service centers during lockdowns has hindered the installation and servicing of ACC systems, further decreasing their adoption rate. Despite these difficulties, the ACC system market is expected to recover once the pandemic ends and the automotive industry starts its recovery process. The growing demand for safety features and autonomous driving systems will further propel its expansion in the long term.

Regional Analysis

The Asia Pacific region is having the largest market share of 36% among all of the regions. Mandatory regulations are made by some major countries such as India, Japan, and China to install these systems in all types of vehicles.

Due to the widespread use of advanced driver assistance systems in the continent, the North American market for ACC systems ranks among the second biggest. The region’s rising demand for luxury and high-end cars is also anticipated to fuel market expansion.

Due to stringent vehicle safety regulations in Europe, ACC systems have become a significant market. Furthermore, the region’s increasing use of electric and hybrid cars is expected to fuel demand for these systems. Although still small in size, the Middle East and Africa ACC system market are expected to expand steadily over the coming years as more sophisticated driver assistance systems become commonplace.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share & Key Players Analysis

The market for adaptive cruise control systems is still developing and has several major players competing for market dominance.

It is anticipated that key players will continue to invest in this developing market while heavily involved in the research and development of adaptive cruise control technology. As the market expands, we can anticipate more rivalry and innovation from both existing players and recent entrants.

Market Key Players

Listed below are some of the most prominent adaptive cruise control system industry players.

• Autoliv Inc
• Continental Ag
• Delphi Automotive PLC
• Denso Corporation
• Ford Motor Company
• Hyundai Mobis
• Magna International
• Other Key Players

Recent Developments

• In January 2020: Bosch launched its long-range LiDAR for vehicles at the Consumer Electronics Show. This sensor is suitable for use both in city centers and on motorways as this technology includes both long and short-range radars.
• In January 2020: Luminar launched perception engineering i.e., advanced LiDAR technology for automobiles to enhance the safety of the vehicles. Its capability to detect and classify objects in real-time is up to 250 meters.

Report Scope: