ADAS Market to Surpass USD 219.5 Billion by 2031 as AI and Regulation Force Automotive Autonomy Revolution

[Hyderabad, April 3rd, 2025] – According to ClearView Market Insights Analysis, the global ADAS market, currently valued at USD 69.5 billion, is projected to grow at an 18.5% CAGR to USD 219.5 billion by 2031. This transformation is driven by unprecedented advancements in AI, strict regulatory mandates, and increasing consumer demand for autonomy functionality.
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2024 Autonomy Inflection Points
1. Regulatory Earthquake
- UN R157 ALKS Standard:
- Legalizes hands-off driving at 130km/h in 47 locations countries
- NHTSA 2027 AEB Mandate:
- Requires detection of pedestrians and cyclists for all new US vehicles
2. AI Processing Breakthroughs
- NVIDIA Drive Thor:
- 2,000 TOPS in single SoC
- Unifies ADAS, infotainment and autonomy
- Mobileye EyeQ6 Ultra:
- 144 TOPS at 5W enables edge processing
3. Sensor Cost Collapse
- LiDAR Below $200:
- Luminar Iris enables mass adoption
- 4D Radar at $50:
- Arbe Phoenix delivers 0.1° resolution
Regional Autonomy Leaders
- Europe (38% share):
- UN R157 early implementation
- China (32%):
- City NOA deployments at scale
- North America (24%):
- Robotaxi commercialization accelerating
Industry Firsts
- Q4 2024: First UN R157-certified vehicles enter production
- Q3 2024: LiDAR breaks $200 price barrier
- Q2 2024: 4D radar achieves 0.1° resolution
Executive Insights
"We've crossed the threshold where ADAS isn't just about safety anymore—it's the foundation for autonomous mobility."
– Prof. Amnon Shashua, Mobileye CEO
"Drive Thor's 2,000 TOPS will power everything from parking assist to full autonomy in a single architecture."
– Ali Kani, NVIDIA VP of Automotive
Roadmap to 2031
- 2025: 50% of new vehicles will offer L2+ highway assist
- 2027: LiDAR becomes standard on premium models EVs
- 2030: L4 robotaxis operate in 50+ global cities
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