Automotive Adaptive Cruise Control Market Trends

Growth Drivers

• Growing Penetration of Autonomous Cars with Growing Adoption of Self Driven Cars – in which ACC functions are installed within vehicles such as cameras, radar, and laser equipment, that sense how close one car is to another, or any other object on the roadway. ACC is the basis for future smart car intelligence, and the surge in the demand for smart vehicles is expected to boost the automotive adaptive cruise control market in the forecasted period. For instance, in 2022, China have over 55% of all smart vehicles in the world with different levels of automation.

• Rising Concern About Increasing Road Incidences that Cause Major Injuries and Deaths - according to the World Health Organization’s 2022 statistics, road crashes are responsible for more than 1 million deaths worldwide every year.

• Increasing Number of Vehicles Production with Increasing Demand Among People for Personal Vehicles – which reached nearly 80 million motor vehicles worldwide in 2021.

• Rising Demand for Premium and Luxury Cars Owing to Increasing Disposable Income and Economic Growth of the Countries – for instance, in 2021, luxury car retails in India exhibited an upward trend and rose by 19% compared to 2020.

• Upsurge in the Sale of Light Vehicles as Fuel Prices Rise Across the World – which is expected to grow by 5% year-on-year by 2023 around the globe.

Challenges

• Reluctance in the Implementation of ACC in Regions with Extreme Weather - ACC is inefficient in regions that have a higher intensity of fog, rainfall, and snowfalls. The installation and programming of radar systems in extreme weather regions result in higher costs, increasing the overall cost of vehicles.
• High Expenditure Requirement for Customization & Installations
• Complex In-built Functions of Sensors