United States ADAS Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The United States ADAS market size reached around USD 9.73 Billion in 2024. The market is projected to grow at a CAGR of 15.80% between 2025 and 2034 to reach nearly USD 42.19 Billion by 2034.

United States ADAS Market Growth

The United States boasts one of the most significant automotive markets globally. According to Autos Drive America, international manufacturers produced 5 million vehicles within the United States in 2020. In 2019, the total foreign direct investment in the United States automotive sector amounted to USD 143.3 billion. During 2020, the United States exported 1.4 million new light vehicles and 108,754 medium and heavy trucks, collectively valued at over USD 52 billion, to more than 200 international markets, consequently leading to the United States ADAS market expansion. The growth of the automotive sector fuels the demand for ADAS, as an increasing number of vehicles integrate safety and automation technologies. The rising consumer demand for improved safety, coupled with regulatory requirements for crash avoidance, propels the adoption of ADAS, thereby enhancing driving safety and facilitating the shift towards semi-autonomous and fully autonomous vehicles.

As per the United States ADAS market analysis, in 2023, electric vehicle sales approached 14 million units, with 95% of these sales occurring in Europe, China, and the United States. By the conclusion of 2024, it is anticipated that electric vehicle sales in the United States will increase by 20% compared to the previous year, resulting in nearly half a million additional sales relative to 2023 figures. The growth of the electric vehicle market is driving an increased demand for ADAS, as manufacturers of electric vehicles emphasise safety, efficiency, and automation features. The integration of ADAS is in harmony with electric vehicles advancements, providing collision avoidance and intelligent driving functionalities that enhance the user experience and facilitate the transition towards autonomous and sustainable transportation solutions.

Key Trends and Developments

The United States ADAS market growth can be attributed to rising focus on road safety, rising demand for driver assistance, and supportive regulatory framework.

September 2023

The ADAS market is witnessing significant expansion throughout North America, with a multitude of automotive manufacturers providing SAE Level 2 to 3 ADAS features as optional enhancements within their vehicle offerings. Bosch, a frontrunner in mobility technology, showcased its newest advancements during the Experience Days event held at the Bosch Technical Center in Plymouth, Michigan.

September 2023

Mercedes-Benz revealed a production-ready variant of its Drive Pilot automated driving system in the United States. Drive Pilot holds the distinction of being the first and only system globally that offers conditionally automated driving with internationally recognized type approval, leading to the United States ADAS market expansion.

July 2023

General Motors (GM) introduced a new consumer education initiative titled "Hands Free, Eyes On." This program was designed to enhance customers' comprehension of the advantages and safe operation of advanced driver assistance systems (ADAS), featuring GM's acclaimed Super Cruise technology.

January 2023

Mercedes surpasses Tesla in the realm of self-driving technology, achieving the distinction of being the first company in the United States to receive certification for Level-3 autonomous vehicles.

Rising Focus on Road Safety

One of the notable United States ADAS market trends is the rising focus on road safety. Government initiatives and various organisations are placing significant emphasis on the enhancement of road safety. ADAS are designed to alert drivers in potentially dangerous situations, thereby contributing to a reduction in accidents and promoting safer roadways.

Accelerated Technological Progress

The advancement of contemporary sensors, camera technologies, and artificial intelligence is enhancing the effectiveness and reliability of ADAS, consequently stimulating interest and demand within the market.

Rising Demand for Driver Assistance

As the number of vehicles on the road increases alongside growing traffic congestion, there is an escalating necessity for systems that assist drivers, thereby facilitating a safer and more manageable driving experience, leading to the United States ADAS market development.

Supportive Regulatory Framework

Government regulations are progressively requiring the integration of ADAS in vehicles, particularly for critical safety features such as automatic emergency braking and lane departure warnings, which further bolsters market expansion.

United States ADAS Market Trends

The market is witnessing significant growth, propelled by advancements in technology, supportive regulations, and a rising consumer preference for enhanced safety in driving. Prominent trends include the incorporation of artificial intelligence and machine learning, which improve the precision of real-time threat detection and response mechanisms. There is also a heightened emphasis on the use of sensors and cameras to enhance adaptive cruise control, lane-keeping assistance, and emergency braking systems. The expansion of electric vehicles further stimulates the demand for ADAS, as manufacturers of electric vehicles prioritise the implementation of sophisticated safety features. Moreover, regulatory agencies are advocating for the mandatory inclusion of safety systems, thereby accelerating the integration of ADAS in both luxury and standard vehicle categories, which promotes widespread acceptance.

United States ADAS Industry Segmentation

The report titled “United States ADAS Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Solution:

• Adaptive Cruise Control
• Adaptive Front Light
• Blind Spot Detection (BSD) System
• Park Assistance
• Lane Departure Warning System
• Tire Pressure Monitoring System
• Autonomous Emergency Braking
• Others

Market Breakup by Vehicle Type:

• Passenger Cars
• Commercial Vehicles
• Light Commercial Vehicles
• Heavy Commercial Vehicles

Market Breakup by Component:

• Processors
• Sensors
• Radar
• LiDAR
• Ultrasonic
• Others
• Software
• Others

Market Breakup by Region:

• New England
• Mideast
• Great Lakes
• Plains
• Southeast
• Southwest
• Rocky Mountain
• Far West

United States ADAS Market Share

Based on vehicle type, the market is segmented into passenger cars and commercial vehicles. The passenger cars segment is projected to dominate the market, representing a CAGR of 17.4%, leading to the United States ADAS market development. The integration of ADAS in passenger vehicles is increasing, propelled by enhanced safety features including adaptive cruise control, automatic braking, and lane-keeping assistance. These innovations not only provide greater convenience for drivers but also meet regulatory standards, contributing to their widespread implementation in modern automobiles.

Leading Companies in the United States ADAS Market

Market players are focusing on the adoption of technological upgradation to improve the United States ADAS market outlook and to gain a competitive edge in the market.

Garmin Ltd.

Established in 1989 and located in Olathe, Kansas, Garmin Ltd. is a leader in GPS technology, catering to a wide range of applications such as aviation, automotive, and marine sectors. The company offers communication, navigation, and sensor-based products designed for both consumer and professional markets.

Valeo SE

Founded in 1923 and headquartered in Paris, France, Valeo SE is a prominent global supplier in the automotive sector. The company emphasises smart mobility, ADAS, and solutions for electric vehicles, significantly contributing to innovation and sustainability within the automotive sector, leading to the United States ADAS market development.

Hitachi Ltd.

Hitachi Ltd., founded in 1910 and based in Tokyo, Japan, operates in various sectors, including information technology, automotive systems, and infrastructure. The company provides digital and sustainable solutions that benefit global sectors and communities.

Ouster, Inc.

Founded in 2015 and situated in San Francisco, California, Ouster, Inc. focuses on digital lidar sensors utilised in robotics, autonomous vehicles, and industrial automation. The company delivers high-resolution imaging solutions that improve safety and accuracy.

Other major players in the market are Continental AG, Robert Bosch GmbH, Denso Corp., Magna International Inc., ZF Friedrichshafen AG, and NXP B.V., among others.