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

The Europe ADAS market size reached around USD 11.95 Billion in 2024. The market is projected to grow at a CAGR of 12.70% between 2025 and 2034 to reach nearly USD 39.50 Billion by 2034.

Europe ADAS Market Growth

In 2023, Europe witnessed nearly 3.2 million new electric car registrations, marking an increase of approximately 20% compared to 2022. Within the European Union, sales reached 2.4 million, reflecting similar growth trends. In 2022, the northern regions of Europe, such as Flevoland in the Netherlands, recorded the highest proportions of electric passenger cars, with 12.8% of registrations, followed by Utrecht, also in the Netherlands, at 6.6%, consequently expanding the Europe ADAS market size.

The rising demand for electric vehicles is driving the adoption of ADAS, as these vehicles often prioritise connectivity, safety, and advanced driving technologies. Features of ADAS, including adaptive cruise control and lane-keeping assistance, resonate with the expectations of electric vehicles drivers for high-tech and safe vehicles, thereby facilitating the shift towards autonomous and environmentally friendly transportation.

As per the Europe ADAS market analysis, the European Commission has put forward revised standards for driving licences and enhanced cross-border enforcement of road traffic regulations in 2023. The implementation of stringent road safety measures is driving the adoption of ADAS, as governments require features such as lane departure warnings, automatic emergency braking, and pedestrian detection in newly manufactured vehicles. These technologies contribute to a decrease in accidents and improve the responsiveness of drivers, thereby making roads safer and bolstering the overall safety of public transportation.

Key Trends and Developments

The Europe ADAS market growth can be attributed to implementation of rigorous safety standards, progress in autonomous vehicle technology, and heightened awareness of road safety.

October 2024

Xpeng introduced the P7+, the world's inaugural AI-defined vehicle, at the Paris Motor Show. This automobile incorporates artificial intelligence and cutting-edge mobility solutions, possessing an enhanced perception of time and space derived from its camera-based driving technology.

September 2024

Gauzy Ltd., a prominent global leader in solutions for light and vision control, introduced the inaugural generation of its AI-driven ADAS specifically designed for commercial trucks at the IAA TRANSPORTATION 2024 event. This event was held from September 17 to 22, 2024, at the Deutsche Messe AG venue in Hannover, Germany.

November 2023

BMW Group introduced highly automated driving as a new feature in the latest BMW 7 Series for customers in Germany. This innovative hands-free function allows drivers to engage in other in-vehicle activities while traveling at speeds of up to 60 km/h (37 mph), consequently driving up the Europe ADAS market share.

June 2022

Valeo and the BMW Group established a significant partnership in which Valeo will supply the ADAS domain controller, along with sensors and software for parking and maneuvering, for BMW's forthcoming platform generation known as "Neue Klasse," set to debut in 2025.

Rigorous Safety Standards

The European Union implements rigorous safety standards that mandate the inclusion of ADAS such as emergency braking, lane-keeping assistance, and drowsiness detection in new automobiles, thereby enhancing market demand.

Heightened Awareness of Road Safety

One of the notable Europe ADAS market trends is the implementation of rigorous road safety standards. An increase in public consciousness regarding road safety is leading consumers to favor vehicles that are equipped with ADAS, thereby stimulating demand in both luxury and standard vehicle categories.

Progress in Autonomous Vehicle Technology

Europe’s commitment to the development of autonomous vehicles promotes the integration of ADAS, as these technologies serve as crucial foundations for achieving complete autonomy, leading to the expansion of Europe ADAS market size.

Encouraging Government Policies

Government initiatives that provide incentives for the adoption of ADAS technology and funding for research and development foster innovation and contribute to market expansion, particularly in the realm of advanced safety systems.

Europe ADAS Market Trends

The market for ADAS is experiencing significant growth, propelled by stringent safety regulations, an increasing consumer preference for vehicle safety, and advancements in technology. The rising interest in autonomous vehicles is also contributing to the demand for ADAS, as these systems are critical for both semi-autonomous and fully autonomous vehicles, leading to the expansion of Europe ADAS market size. Additionally, the expansion of electric vehicles throughout Europe is further promoting the adoption of ADAS, as manufacturers of electric vehicles emphasise the importance of advanced safety features to improve driver assistance and connectivity.

Europe ADAS Industry Segmentation

The report titled “Europe 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 Country:

• United Kingdom
• Germany
• France
• Italy
• Others

Europe 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 14.0% during the4 forecast period, consequently leading to the Europe ADAS market development. The adoption of ADAS in passenger vehicles is increasing as consumers prioritise safer driving experiences. Features such as lane-keeping assistance, adaptive cruise control, and collision avoidance contribute to enhanced safety and convenience, rendering them highly sought after in both luxury and mainstream automobiles, thereby promoting safer road conditions and a decrease in accidents.

Leading Companies in the Europe ADAS Market

Major players are focusing on the adoption of technological advancements to gain a competitive edge in the market and improve Europe ADAS market outlook.

ZF Friedrichshafen AG

Established in 1915 and located in Friedrichshafen, Germany, ZF Friedrichshafen AG is renowned for its expertise in driveline and chassis technology, with a particular emphasis on ADAS and autonomous driving solutions. The company's innovations play a crucial role in enhancing vehicle safety and efficiency on a global scale.

NXP B.V.

Founded in 1953 and headquartered in Eindhoven, Netherlands, NXP B.V. stands as a leader in the semiconductor sector, delivering ADAS solutions that improve vehicle connectivity and safety. Their semiconductor products are integral to various automotive applications, facilitating the development of smarter and safer vehicles around the world, leading to the Europe ADAS market development.

Garmin Ltd.

Established in 1989 and based in Olathe, Kansas, United States, Garmin Ltd. is a key player in GPS and navigation technology. Their ADAS offerings provide driver assistance, sophisticated navigation, and situational awareness features, significantly enhancing both driving experiences and safety.

Valeo SE

Founded in 1923 and headquartered in Paris, France, Valeo SE is a leading supplier of automotive technology, particularly in the realm of ADAS systems. The company is dedicated to advancing electric, autonomous, and connected vehicle solutions, fostering innovation in safety and efficiency on a global scale.

Other major players in the market are Continental AG, Robert Bosch GmbH, Denso Corp., Magna International Inc., Hitachi Ltd., and Ouster, Inc., among others.