The market size is projected to grow at a CAGR of 8.0% during the forecast period, to reach USD 462.48 Billion by 2022.
It enhances the safety of vehicles and offers cloud storage facilities & data analytics, which would collectively contribute to the growth of this market globally.
Real Time Monitoring is estimated to have the highest growth potential in the global market. It is projected to grow at a promising CAGR from 2017 to 2022. This growth can be attributed to the proven benefits of the system in transport safety. The National Transportation Safety Board, U.S. included adaptive cruise control in its ten most wanted safety improvements in 2013. The European parliament also has plans to make adaptive cruise control mandatory in the next few years. These regulations are expected to drive the growth of the ADAS market in the next few years.
The market, by connectivity type, is led by the short range communication type during the forecast period. The short range communication technology can be used to share information regarding traffic jams, position, and best possible route and can also help in avoiding collisions. These advance system would further reduce traffic fatalities and increase operational efficiency thereby contributing to growth of short range communication market. The market for these technologies is on the rise and regulatory bodies in Europe and North America are planning to mandate some of these technologies. For example, in Europe, eCall has been mandated for all the new vehicles in the near future.
The key factors restraining the growth of this market include high cost of these systems and complex nature. Driver assistance systems have several electronic components, which make the system complex and increase the overall cost of the system.
The global market is dominated by key manufacturers such as Continental AG (Germany), Denso Corporation (Japan), Robert Bosch GmbH (Germany), IBM Corporation (U.S.) and Precious Shipping Company Public Limited (Thailand) among others. These companies have been focusing on developing new products and forming partnerships and collaborations with key organizations to expand their presence in the global tracking system market. Continental AG is currently the market leader and has adopted partnerships and collaborations as the key strategy to gain traction in the market. For instance, it entered into a strategic collaboration agreement with China Automotive Technology & Research Center (CATARC) to work closely in areas such as automotive security.
The Asia-Pacific region is estimated to be the largest market for smart fleet management during the review period. With increase in transport facilities in developing countries such as Japan, China, and India and stringent safety regulations, demand for market is to rise. It is expected with increase in adoption of connectivity technology, market for ADAS and telematics would rise in Asia-Pacific region. In 2015, the Indian government reviewed the policy for the usage of radar-based technologies in India, which would lead to an increase in the usage of ADAS system in the Indian market. The region also has some of the most stringent vehicle safety regulations in the world, which would boost the market for advanced driver assistance technologies and telematics.
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