According to our latest market study on "Automotive Camera Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Type, Application, Vehicle Type, and Level of Autonomy," the market was valued at US$ 6,911.10 million in 2021 and is projected to reach US$ 30,140.14 million by 2028; it is expected to grow at a CAGR of 24.3% from 2021 to 2028.
Growing Demand for Safety and Driving Comfort Features Fuels Automotive Camera Market Growth
As automotive technology advances, safety technology is becoming integral to vehicles. To combat the increasing number of road traffic accidents, governments worldwide have mandated the installation of cameras in all segments of vehicles. South Korea is among the developed countries that have mandated autonomous emergency braking and lane departure warning systems for all new passenger vehicles. According to the National Highway Traffic Safety Administration, traffic fatalities in 2021 showed a significant increase compared to 2020, highlighting the need for improving safety policies and standards. The government agencies have made significant investments in mitigating road accidents, and upcoming initiatives are anticipated to drive the demand for automotive cameras, thereby fueling the market growth. The rise in demand for safety and driving comfort features has boosted the adoption of advanced ADAS, which is driving the automotive camera market growth. For example, Maruti Suzuki planned to introduce its all-new Brezza with a 360-view camera that enables drivers to make more informed decisions while parking or maneuvering the vehicle in tight spots.
The automotive camera market is driven by the increasing need for safety features in vehicles, with technological advancements playing a key role. Integrating autonomous driving assists in models such as the Mahindra XUV700 and MG Astor has become more prevalent in recent years, with Hyundai planning to offer ADAS across its premium lineup by the end 2022. Neusoft Reach also introduced a central computing platform in 2021 that supports high-definition cameras, radar, and lidar for a 360-degree view of the vehicle. The growth of ADAS systems can be attributed to factors such as population growth, infrastructure development, and a thriving economy. Additionally, the demand for smart mobility solutions to achieve sustainability is boosting the adoption of autonomous vehicles, as seen in the UAE's recent autonomous taxi trial. The increase in demand for vehicles with advanced features is expected to drive the growth of the automotive camera market in the coming years.
Increasing sales of vehicles and growing regulations for ADAS make Europe a leading region for the automotive camera market. The rise in passenger and commercial vehicle sales in Europe drives the usage of cameras, thereby boosting demand for automotive cameras. According to the International Organization of Motor Vehicle Manufacturers, new vehicle sales in Europe increased from 16.71 million units in 2020 to 16.87 million units in 2021, with a growth rate of 1%. The European Commission has mandated advanced safety systems in vehicles from 2022 to protect passengers, pedestrians, and cyclists and reduce fatalities and injuries caused by human error. The initiative requires vehicles to have advanced safety features such as driver drowsiness warning, intelligent speed assistance, reversing safety with camera or sensors, and data recorder in case of an accident. Such government policies are increasing the adoption of ADAS that utilize various cameras. In May 2022, Tesla set a new target for self-driving electric vehicles by the end of 2022, which is expected to accelerate the adoption of automotive cameras in autonomous vehicles and drive the growth of the automotive camera market. Analyzing the automotive camera market can help understand the upcoming trends, new technologies, and macro and micro factors that influence market growth.
The North American automotive camera market is poised for significant growth due to the increasing adoption of advanced cameras in both commercial and passenger vehicles and the rising demand for electric vehicles, which drives the usage of advanced cameras. Stringent carbon emissions regulations are contributing to the growth of the automotive camera market, as they are increasing EV sales. According to a financial data firm Experian report, EV registrations in the US increased by 60% in the first quarter of 2022, accounting for a record 4.6% of all new vehicle registrations. Additionally, restructuring safety and comfort regulations for vehicles is boosting the demand for automotive cameras. In April 2021, US senators proposed legislation requiring all new cars in the US to have driver-monitoring systems within six years. The National Highway Traffic Safety Administration (NHTSA) recently proposed new methods for assessing ADAS. These developments, coupled with the growth prospects in the EV industry and favorable government regulations for incorporating ADAS, are driving the demand for automotive cameras and contributing to the growth of the automotive camera market. Therefore, the automotive camera market analysis provides comprehensive insights into the various applications and trends of automotive cameras in the market.
Key Findings of Study:
The automotive camera market is classified by vehicle type as passenger cars and commercial vehicles. In 2021, the passenger cars segment held a larger share of the automotive camera market due to the high adoption of advanced safety systems in cars. Cameras are used as standalone sensors or in conjunction with other components such as Lidar and radar sensors in cars. The broad usage of cameras in passenger cars is driving the growth of the automotive camera market for this segment. The automotive camera market is divided by application into park assist and ADAS. In 2021, the growth of the ADAS segment was fueled by stringent regulatory compliance with upcoming safety mandates and increased demand for semi-autonomous driving systems. The Asia Pacific region includes several developing countries that are experiencing significant growth in vehicle transformation and efficiency. The Asia Pacific economy is expanding at a faster rate. Key players are taking initiatives to incorporate autonomous cars, which is driving the demand for automotive cameras. In May 2022, South Korea planned to revise level 3 autonomous car safety rules, including eased speed limits. Thus, the government unveiled a revised roadmap for improving regulations for self-driving cars to accelerate their commercial adoption from 2022, which is boosting the growth of the automotive camera market.
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