A new report by IHS Technology reveals that the global semiconductor market for advanced driver assistance systems (ADAS) will quadruple over a one-decade period powered by increasing demand for car- and driver-augmented safety features.
Worldwide revenue for ADAS chips is projected to reach $2.6 billion in 2020, more than fourfold the size of the market of $643.8 million a decade earlier in 2010. The first eight years of this 10-year growth period will see ADAS global revenue increase by strong double-digit percentages, with the last two years of the forecast window slightly moderating to still-impressive 9 percent increases.
This year alone, growth is expected to reach 20 percent, even higher than last year’s 18 percent. Revenue will break the $2 billion mark for the first time by 2017. With autonomous vehicles expected to further stoke the market, ADAS will continue to generate high growth rates even into the next decade from 2020 to 2030.
According to Luca DeAmbroggi, principal analyst for automotive demand at IHS, ADAS content in cars is expected to grow steadily for many years, owing to an increasing number of features that will be implemented, with an aim towards deploying increasingly autonomous vehicles. He adds the market will also be helped by the implementation of data-fusion modules because of the need for more sensing redundancy and for higher functional-safety requirements in vehicles.
ADAS systems are designed to help drivers manoeuvre their cars more safely, which is achieved through various means including providing alerts that notify a driver when something is amiss, or by equipping a car to operate more securely through built-in safety features. In all instances, sensitive semiconductors are paramount for attaining efficient ADAS.
ADAS is also implemented for adaptive cruise control in a car where the system automatically adjusts vehicle speed to keep the car a safe distance away from vehicles ahead. Lane-departure warning notifies a driver when a car starts to swerve from its own lane if the turn signals are not being used, while blind-spot detection sends an alert when drivers switch lanes and enter the dangerous blind-spot zone without visibility that could cause collisions.
ADAS examples also include automatic parking to help align cars in parallel parking; night vision to increase a driver’s seeing distance in darkness or bad weather; and driver-drowsiness detection to help prevent accidents when the car detects a driving pattern deviating from normal patterns.
The front-view camera is also another source for ADAS revenue, with customer demand and safety regulations acting as the major drivers. Here, image sensors in the camera systems can analyse video content for vehicular functions such as lane-keeping assistance, lane-departure warning, traffic-sign recognition and high/low-beam headlight control.
Other applications generating tremendous interest are based on radar and LiDAR, with both using remote-sensing technology to help determine any number of variables the vehicle is encountering, such as road conditions, objects surrounding the vehicle, or the speed of other nearby cars. Revenue for semiconductors used in both front-camera and LiDAR modules is forecast to grow steadily,
These findings are part of the report, ‘ADAS Semiconductor Market Tracker – H1 2014’ from the IHS Automotive & Transportation service.