India ADAS System in Cars Market Outlook to 2028

India ADAS System in Cars Market Overview

• The India ADAS (Advanced Driver Assistance Systems) market reached a valuation of USD 2.26 billion in 2023, driven by increasing demand for safety features, stringent government regulations, and advancements in automotive technology.
• The market is characterized by key players such as Bosch, Continental AG, Denso Corporation, and Valeo. These companies are noted for their technological innovations, wide product portfolios, and extensive distribution networks.
• In 2023, Bosch India announced the launch of an advanced ADAS solution tailored for the Indian market, focusing on enhancing vehicle safety and driver comfort. This development is part of Bosch's strategy to strengthen its market presence in India by offering cutting-edge safety technologies.

India ADAS System in Cars Current Market Analysis

• Rising disposable income among Indian consumers has led to higher spending on advanced automotive technologies. India's GDP per capita increased from USD 2,000 in 2018 to USD 2,800 in 2023, indicating enhanced purchasing power and demand for vehicles equipped with ADAS.
• Rapid urbanization and the development of smart city projects are key drivers for the ADAS market. The increase in India's urban population has significantly contributed to the growth of sectors that utilize ADAS technologies.
• The western region of India, particularly cities like Mumbai and Pune, dominates the ADAS market. This dominance is attributed to higher automotive activity, a growing manufacturing industry, and significant investments in safety infrastructure in these areas.

India ADAS System in Cars Market Segmentation

The India ADAS System in Cars market can be segmented by various factors like technology, application, and vehicle type.

• By Technology: The India ADAS System in Cars Market is segmented by technologies into radar-based systems, camera-based systems, and LiDAR-based systems. In 2023, radar-based systems dominate the market due to their lower cost, simplicity, and wide range of applications in passenger cars and commercial vehicles. Camera-based systems are primarily used in high-end applications requiring greater accuracy, such as luxury cars.

• By Application: The India ADAS System in Cars market is segmented by application into adaptive cruise control, lane departure warning, parking assistance, and autonomous emergency braking. In 2023, adaptive cruise control holds the largest market share, driven by increasing adoption in mid-range and premium vehicles.

• By Vehicle Type: The India ADAS System in Cars market is segmented by vehicle type into passenger cars and commercial vehicles. The passenger car segment is the largest end-user, utilizing ADAS for various applications including safety, comfort, and convenience.

Competitive Landscape Overview

• Bosch: Expanding in India with New Product Launches: Bosch has gained a significant market share in India due to its extensive product portfolio and robust distribution network. Bosch's focus on innovative automotive technology continues to drive its growth, with the company recording sales of 1,00,000 units in India in 2023, according to the Society of Indian Automobile Manufacturers (SIAM).
• Continental AG: Strengthening Market Position Through R&D: Continental AG, a key player in the ADAS market, is known for its high-quality products used in various automotive applications. The company's commitment to research and development has bolstered its market position, with increasing sales in India in 2023
• Denso Corporation: Expansion and Performance in Asia-Pacific and India: In 2023, Denso Corporation sold 2,00,000 ADAS units in India, according to the Automotive Component Manufacturers Association of India (ACMA). The company’s strategic initiatives, including local partnerships and tailored solutions for the Indian market, have significantly contributed to this growth.

India ADAS System in Cars Industry Analysis

Market Growth Drivers

• Government Regulations and Safety Standards: The implementation of stringent government regulations mandating the inclusion of certain ADAS features in vehicles has significantly boosted the demand for ADAS systems. In 2023, the Indian government announced new safety standards requiring the inclusion of features such as automatic emergency braking and lane departure warning in all new vehicles.
• Technological Advancements: The continuous advancements in automotive technology, including the development of more accurate sensors and advanced algorithms, have enhanced the capabilities of ADAS systems. This has led to increased adoption across various vehicle segments, driving market growth.

• Rising Incidence of Road Accidents: - The high rate of road accidents in India has underscored the need for advanced driver assistance systems to enhance road safety. According to the Ministry of Road Transport and Highways, India reported over 150,000 road fatalities in 2023. This alarming statistic has driven both consumers and policymakers to prioritize ADAS technologies, thereby boosting their adoption in vehicles.

Market Challenges

• High Cost of ADAS Systems: The high cost of ADAS systems remains a significant challenge for market growth, particularly in the price-sensitive Indian market. The cost of incorporating advanced safety features into vehicles can be prohibitive, especially for budget-conscious consumers.
• Infrastructure Limitations: The lack of adequate infrastructure, such as well-marked roads and reliable GPS signals, can hinder the effective functioning of ADAS systems. This is particularly challenging in rural and semi-urban areas where infrastructure development is still ongoing.
• Dependence on Imports for Key Components: - The Indian ADAS market heavily relies on imports for key components such as sensors, cameras, and semiconductors. Any disruptions in the global supply chain can lead to delays and increased costs, affecting the availability and affordability of ADAS systems in India. The dependence on foreign suppliers also limits the local manufacturing capabilities and self-sufficiency of the market.

Market Government Initiatives

• Automotive Mission Plan 2026: The Automotive Mission Plan 2026 aims to make India a global automotive manufacturing hub by promoting the adoption of advanced automotive technologies, including ADAS (Advanced Driver Assistance Systems), in vehicles manufactured and sold in India. The plan seeks to establish India as one of the top three countries in the world in terms of engineering, manufacturing, and exporting vehicles and auto components.
• FAME India Scheme: The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme also supports the adoption of ADAS technologies by promoting the development of advanced safety features in electric and hybrid vehicles. In 2023, the government allocated INR 10,000 crore towards this initiative, significantly supporting the ADAS market.

India ADAS System in Cars Future Market Outlook

The India ADAS System in Cars market is expected to continue its growth trajectory in the coming years. The market is anticipated to see increased adoption in various vehicle segments, driven by technological advancements and rising demand for high-performance safety solutions.

Future Market Trends

• Integration of AI and Machine Learning: The integration of artificial intelligence (AI) and machine learning (ML) in ADAS systems is anticipated to become increasingly prevalent over the next few years. These technologies will enhance the capabilities of ADAS systems, enabling more accurate and automated detection and analysis, thereby improving efficiency and reducing human error.
• Growing Demand for Connected Vehicles: The demand for connected vehicles equipped with advanced safety features is expected to rise significantly. By 2028, manufacturers will likely focus on developing ADAS systems that can seamlessly integrate with other connected vehicle technologies, enhancing overall vehicle safety and performance.