Global Lane Keep Assist System Market By Function Type (Lane Departure Warning System, Lane Keeping System, and Other Function Types), By Sensor Type (Video Sensors, Laser Sensors, Infrared Sensors, and Other Sensor Types), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, and Other Vehicle Types), By Sales Channel (OEM, Aftermarket, and Other Sales Channel), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Lane Keep Assist System Market size is expected to be worth around USD 40.80 Billion by 2032 from USD 7.13 Billion in 2022, growing at a CAGR of 19.60% during the forecast period from 2023 to 2032.

Lane Keep Assist is an advanced driver assistance system that utilizes cameras and sensors to assist drivers in staying within their lane while driving. It does this by detecting lane markings on the road and providing steering inputs to keep your vehicle centered in its lane. If a vehicle begins to drift out of its lane without signaling, the LKA system can provide gentle steering inputs to bring it back into the center of its lane.

The demand for LKA systems is being spurred on by several factors, such as growing safety concerns among consumers, government regulations requiring the use of advanced safety technologies, and advances in camera and sensor technologies that make these systems more dependable and budget-friendly.

Driving Factors

Rising Road Safety Regulations Drive the Market Demand for Lane Keep Assist Systems

Governments are encouraging the installation of LKA systems as part of stricter safety regulations for automobiles. For instance, in the US, the National Highway Traffic Safety Administration (NHTSA) has mandated that all new vehicles must have LKA systems and backup cameras by 2022. Due to rising road safety awareness, consumers are becoming more aware of the potential hazards associated with driving. They are looking for strategies that can minimize these dangers.

LKA systems provide an additional layer of safety which has led to an uptick in demand for this technology. As LKA systems are an integral component of ADAS systems, the demand for LKA systems will also grow rapidly as this market matures. Due to technological advancements in LKA systems, they’ve become more complex and efficient; some now feature cameras and sensors that detect lane lines and alert drivers visually and audibly when they start drifting off the course.

Restraining Factors

Higher Cost of Hardware & Software Systems Becomes the Major Restraint

One major deterrent for the LKA system market is its high cost. These systems require both hardware and software components, which can add significant costs to vehicle expenses. As a result, many consumers may not be willing or able to bear the extra expense associated with LKA systems installations. Many consumers may not be aware of the advantages of LKA systems or have a complete understanding of their operation. This lack of awareness can significantly impede adoption rates for these sophisticated software applications.

LKA systems are intended to keep vehicles within lane markings on the road, but may not be as effective in certain driving conditions like rain or poorly marked roads. This may limit their application in regions with such issues. Some consumers and manufacturers are concerned about the liability implications of LKA systems. If an LKA system fails to prevent an accident, manufacturers could be held liable – posing a significant financial risk. LKA systems are frequently integrated with other advanced driver assistance systems (ADAS), such as adaptive cruise control and collision avoidance systems. Unfortunately, compatibility issues between different ADAS can limit LKAS’ effectiveness and hinder its widespread adoption.

Growth Opportunities

Increasing Demand for Advanced Safety Features in Vehicles

There is an increasing demand for advanced safety features in vehicles owing to consumers becoming more safety-aware. Lane-keep assist systems are one such feature that can help overcome accidents caused by drifting out of lanes. Governments around the world are mandating the use of safety features in vehicles to reduce road accidents. Lane keep assist systems may be included in these regulations, providing manufacturers with a significant market opportunity.

As the market for autonomous vehicles expands, LKA systems will become a necessary feature of these vehicles. Furthermore, as electric cars become more prevalent, manufacturers are looking for ways to differentiate their products from those of competitors.

Lane-keep assist systems can be a key selling point for electric vehicles, providing manufacturers with an opportunity to design systems specifically for these vehicles. As the market becomes more competitive, manufacturers may benefit from joining forces to develop innovative lane-keep assist systems. Doing so allows them to expand their product lines and gain an edge over the competition.

Latest Trends

ADAS Technology Offer Drivers Greater Convenience and Safety will tend to Growing Adoption

Lane keep assist systems are included in the Advanced Driver Assistance Systems (ADAS) category, which also includes adaptive cruise control, automatic emergency braking, and blind spot detection. As these features offer drivers greater convenience and safety, their adoption is growing rapidly. Lane keep assist systems have become more advanced, often employing machine learning and AI algorithms to enhance their performance.

These systems can learn from driver behavior and adjust their responses accordingly, leading to more precise and dependable operations. Many automakers are partnering with technology firms to develop advanced lane-keep assist systems. BMW has collaborated with Mobileye, while Honda joined Intel for their lane keep assist system. Lane keep assist systems can be integrated with other vehicle features for a connected driving experience.

Function Type Analysis

The Lane Keeping System Function is the Dominant

Based on function type, the market for lane-keep assist systems is segmented into lane departure warning systems, lane-keeping systems, and other function types. Among these types, the lane-keeping system segment is the most lucrative in the global lane-keeping assist system market, with a projected CAGR of 20.8%. The total revenue share of the lane-keeping system function type is 55% in 2022.

LKA systems employ sensors to determine the position of a vehicle relative to lane markings and provide steering inputs in order to maintain centering within the lane. Followed lane departure warning function, is the fastest growing segment of the lane keep assist system market in 2022. Lane departure warning systems use sensors to detect when a vehicle is drifting out of its lane without its turn signal activated.

Sensor Type Analysis

The Video Sensors dominate the Sensor segment

By Sensor Type, the market is further divided into video sensors, laser sensors, infrared sensors, and other sensor types. The video sensors segment is estimated to be the most lucrative segment in the global lane keep assist system market, with a market share of 52% and a projected CAGR of 21.8%, in 2022. Video sensors are commonly referred to as cameras. These are the most prevalent types of sensors used in LKA systems. They offer high-resolution visual data which helps detect vehicle position relative to lane markings.

Also, the laser sensor segment is estimated to account for a revenue share of 27.4% and become the fastest-growing segment during the forecasted period. They use laser beams to measure distances between vehicles and their surroundings and can be employed in Lane Keep Assist systems to create detailed 3D maps of that area that enable detection of the position of a vehicle relative to lane markings or other objects.

Vehicle Type Analysis

The Passenger Car Vehicle Type is Dominant

Based on vehicle type, the market is segmented into passenger cars, light commercial vehicles, heavy commercial vehicles, and other vehicle types. Among these vehicle types, the passenger car segment is estimated to be the most profitable segment in the global lane keep assist system market, with the largest revenue share of 47% and a projected CAGR of 20.8% during the forecast period. Passenger cars are the most common vehicles enabled with Lane Keep Assist systems.

These systems are becoming more common in mid-range and high-end models, with some automakers offering LKA as a standard feature on many of their models. Lane Keep Assist systems are also becoming more widely used in commercial vehicles like buses, delivery trucks, and other large vehicles to improve safety and reduce accidents on the road.

Sales Channel Analysis

The Aftermarket Sales Channel is Dominant

Based on sales channels, the market is segmented into OEM, aftermarket, and other sales channels. Among these sales channels, the aftermarket segment is estimated to be the most lucrative segment in the global lane keep assist system market, with the largest revenue share of 60% during the forecast period, due to higher adoption and shorter life of electronic components such as sensors and wirings and safety concerns, especially in passenger vehicles.

The malfunction of these components is another major factor driving demand in this space. The OEM (Original Equipment Manufacturer) sector also has a higher demand and it is anticipated to grow in the global lane-keep assist system market during the forecast period.

Key Market Segments

Based on Function Type

• Lane Departure Warning System
• Lane Keeping System
• Other Function Types

Based on the Sensor Type

• Video Sensors
• Laser Sensors
• Infrared Sensors
• Other Sensor Types

Based on Vehicle Type

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Other Vehicle Types

Based on the Sales Channel

• OEM
• Aftermarket
• Other Sales Channel

COVID-19 Impact Analysis

The pandemic has disrupted supply chains across industries, including the automotive sector. This has led to delays and shortages of components required for producing lane keep assist systems, thus impacting the demand in this market. Additionally, this has caused a global drop in vehicle sales as consumers become warier about spending money.

This has resulted in the slowdown of lane keep assist systems adoption rates as fewer vehicles are sold with this feature. The pandemic has caused a shift in consumer priorities, with many placing greater value on affordability and practicality when purchasing a vehicle.

This has resulted in a decrease in demand for luxury models that typically include lane-keep assist systems. On the other hand, the pandemic has also spurred an increased focus on safety among consumers. This has resulted in a growing demand for contactless systems in vehicles as people attempt to minimize virus transmission. This could spur the development of new lane-keep assist systems that can be operated without physical contact.

Regional Analysis

Europe Dominates the Global Lane Keep Assist System Market

Europe is expected to dominate the lane keep assist system market with a projected market share of 45%, due to its commitment to environmental sustainability and safety. Vehicles now must include specific safety components, like lane departure warning systems, as per EU regulations. North America is seeing an increasing need for such systems due to the growth in automobile safety concerns.

Ford and General Motors are two prominent competitors in this market. Regional government regulations mandating automakers include specific safety systems are driving the adoption of ADAS technologies. Asia Pacific’s automotive sector is growing, therefore, increasing demand for safety features in cars in this region. There is a substantial growth for lane keep assist system sales throughout Asia Pacific over the coming years.

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:

Emerging companies are focusing on significant growth strategies such as product launches, approvals, patents, and events. Also, the sustainable strategies observed in the market included acquisitions and partnerships & collaborations that have created space for market players to expand their businesses and client bases.

With rising demand for lane keep assist systems across global markets, market players are expected to experience lucrative growth prospects in the future. The lane keep assist systems market is highly fragmented with several companies present. Furthermore, companies are investing in product development to remain competitively priced.

Market Key Players:

Listed below are some of the most prominent lane-keep assist system industry players:

• Bendix
• CONTINENTAL AG
• Delphi Automotive PLC.
• Denso Corporation
• Hitachi Ltd
• HYUNDAI MOBIS
• Magna
• MOBILEYE
• Panasonic Corp.
• Robert Bosch GmbH
• SDS
• VALEO
• Visteon
• WABCO Holdings Inc.
• ZF Friedrichshafen AG
• Other Key Players

Recent Developments:

• In May 2022, General Motors announced its collaboration with INRIX Inc. to deliver safety solutions data directly to the U.S. Department of Transportation through its analytics-powered cloud-based application under their Safety View by GM Future Roads & Inrix initiative.
• In 2022, Toyota Motors announced the addition of computer-based vision technology from Austin, Texas-based start-up company Invisible AI to their North American assembly plants. This cutting-edge system can process body motion data for improved quality, safety, and efficiency.

Report Scope