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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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About Clearview Market Insights:

Clearview Market Insights is a leading market research and consulting firm providing in-depth industry analysis and strategic recommendations for businesses worldwide.

 

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Bhavani K
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ClearView Market Insights
Mail: 
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Phone: +1 917-993-7369