Japan Advanced Driving Assistance System (ADAS) Market Assessment, By Stage, By System Type, By Sensor Type, By Vehicle Type, By Region, Opportunities, and Forecast, FY2017-FY2031F

Japan Advanced Driving Assistance System (ADAS) Market size was valued at USD 3.78 billion in FY2023 which is expected to reach USD 7.76 billion in FY2031 with a CAGR of 9.4% for the forecast period between FY2024 and FY2031. The Japan ADAS market has witnessed significant growth and advancements in recent years owing to several factors.

Firstly, the rising demand for improved road safety and the increasing number of accidents have led to the adoption of ADAS technologies in Japan. The government has been actively promoting the deployment of ADAS systems through regulations and initiatives to minimize road accidents. Secondly, technological advancements and innovations have played a crucial role in driving the ADAS market. Japan is known for its prowess in automotive engineering and electronics, enabling the development of cutting-edge ADAS technologies. These systems include features like adaptive cruise control, lane departure warning, forward collision warning, and automatic emergency braking, among others.

Moreover, the growing trend of electric and autonomous vehicles has further fueled the demand for ADAS in Japan. As electric and self-driving vehicles become more prevalent, the need for advanced safety features to support these technologies has increased. Recent developments in the Japanese ADAS market include the integration of artificial intelligence and machine learning algorithms into ADAS systems. This enables the systems to analyze vast amounts of data from sensors, cameras, and radar to make more accurate and intelligent decisions in real time.

For example, in January 2023, Continental and Ambarella formed a partnership to collaborate on assisted and automated driving systems, complete with a comprehensive software stack. The aim of this collaboration is to develop scalable hardware and software solutions, leveraging artificial intelligence (AI) technology, for assisted and automated driving (AD) applications, as a step towards achieving autonomous mobility.

Advancement in the Automotive Electronics

The Japan Advanced Driving Assistance System market has witnessed significant advancements in automotive electronics, which have played a pivotal role in driving the growth and adoption of ADAS technologies. The development of powerful microprocessors and sensors has enabled the integration of sophisticated functionalities into ADAS systems. These advancements have led to improved object detection, recognition, and tracking capabilities, enabling features like adaptive cruise control, lane-keeping assist, and automatic emergency braking. Moreover, the incorporation of artificial intelligence and machine learning algorithms has bolstered the cognitive abilities and decision-making process of ADAS systems. The automotive electronics sector in Japan persistently invests in research and development endeavors to continually elevate the effectiveness, dependability, and efficiency of ADAS technologies. This relentless pursuit ensures that consumers experience safer and more sophisticated driving encounters.

For instance, in 2021, ZF and NVIDIA collaborated to create an advanced driver assistance system called ZF coPILOT. This cutting-edge system offers centralized control over multiple functions, enhancing the overall driving experience by prioritizing comfort and safety.

Growing Demand for ADAS Features from Consumer

The Japan Advanced Driving Assistance System (ADAS) market is experiencing a growing demand for ADAS features from consumers as they are increasingly concerned about road safety and are actively seeking vehicles equipped with advanced safety technologies. ADAS features such as adaptive cruise control, lane-keeping assist, and automatic emergency braking are seen as essential in mitigating the risk of accidents and enhancing overall driving safety. Also, the convenience and comfort provided by ADAS features are highly appealing to consumers. Features like parking assistance, blind-spot detection, and traffic sign recognition enhance the driving experience and reduce the stress associated with navigating busy roads. Overall, the growing demand for ADAS features reflects a shift towards prioritizing safety and enhanced driving experiences, driving the growth of the ADAS market in Japan.

For example, in 2022, Magna's ICON™ Radar is an unprecedented industry innovation that surpasses analog radar technology in terms of performance. This ground-breaking solution addresses significant challenges faced by the automotive industry and contributes to the advancement towards autonomous driving.

Government Regulations

The Japanese government has implemented various regulations to promote the adoption and development of Advanced Driving Assistance Systems (ADAS) in the country. These regulations are aimed at enhancing road safety and reducing accidents. Here are some key government regulations for the Japan ADAS market:

New Car Assessment Program (NCAP): The Japanese NCAP evaluates, and rates vehicles based on their safety performance, including ADAS features. The program encourages automakers to integrate advanced safety technologies into their vehicles to achieve higher ratings.

Traffic Safety Vision 2025: The Japanese government has set a long-term vision called Traffic Safety Vision 2025, which aims to reduce traffic fatalities and injuries. The vision promotes the use of ADAS technologies as a means to achieve this goal.

Increasing Development for Low-Cost Assistance System

There is a growing development trend for low-cost assistance systems in the Japan Advanced Driving Assistance System (ADAS) market. As the demand for ADAS features continues to rise, there is a need for more affordable solutions that can be incorporated into a wider range of vehicles. The development of low-cost ADAS systems aims to make these technologies more accessible to a broader consumer base, including entry-level and mid-range vehicles. Companies are working on optimizing sensor technologies, improving algorithm efficiency, and utilizing cost-effective manufacturing processes to achieve lower production costs. These low-cost ADAS systems focus on essential safety functionalities such as forward collision warning, lane departure warning, and blind-spot detection, providing effective assistance to drivers while ensuring affordability. The development of low-cost assistance systems will help accelerate the adoption of ADAS technologies across various vehicle segments, contributing to overall road safety in Japan.

Impact of COVID-19

The COVID-19 had a mixed impact on the Japan Advanced Driving Assistance System (ADAS) market. On one hand, the market faced disruptions due to temporary shutdowns of manufacturing facilities and supply chain disruptions. This led to a decline in vehicle production and sales, affecting the installation of ADAS systems. On the other hand, the pandemic highlighted the importance of safety and created a heightened awareness regarding road safety, leading to increased interest in ADAS technologies. As the market recovers from the pandemic, the focus on road safety and the adoption of advanced technologies are expected to drive the growth of the ADAS market in Japan.

Impact of Russia-Ukraine War

The Russia-Ukraine war has the potential to impact the Japan Advanced Driving Assistance System (ADAS) market. The conflict could disrupt global supply chains, including the procurement of key components and technologies used in ADAS systems. Disruptions in the supply chain may lead to shortages, delays, and increased costs for Japanese automotive manufacturers, impacting their production and installation of ADAS systems. Additionally, geopolitical tensions can create an uncertain business environment, which may impact investments and collaborations in the ADAS market.

Key Players Landscape and Outlook

The Japan Advanced Driving Assistance System (ADAS) market comprises several key players that are actively contributing to its growth. Some of the key players in the market include Robert Bosch, Continental AG, ZF Friedrichshafen and others. These players are focusing on developing innovative ADAS technologies and expanding their product portfolio to meet the growing demand from automakers.

For instance, in 2023, Valeo and BMW have entered into a strategic partnership to collaborate on the development of automated parking systems, with a specific focus on private grounds and parking facilities. The agreement aims to incorporate advanced technologies, including automated maneuver assistance and L4 automated valet parking (AVP). These functions will be based on in-car technology and sensors, further building upon the existing software stack introduced with the BMW iX in 2021. The partnership between Valeo and BMW aims to advance the capabilities of automated parking and provide enhanced parking solutions for customers.