BSD Systems and ACC Systems Market Size, Share & Trends 2031

Report Description

The global blind spot detection (BSD) systems and adaptive cruise control (ACC) systems market size was valued at USD 3.97 Billion in 2022 and is likely to reach USD 14.08 Billion by 2031, expanding at a CAGR of 15.1 % during 2023 – 2031. The market's growth is attributed to the growing adoption of automotive safety systems.

Growing adoption of automotive safety systems is expected to fuel the market. Blind spot detection (BSD) systems and adaptive cruise control (ACC) systems are integral parts of the automotive safety system designed to warn drivers of nearby vehicles or objects that are not visible in the rearview mirrors and maintain a safe distance from a leader vehicle. These benefits encourage consumers to adopt automotive safety systems such as blind spot detection systems and adaptive cruise control systems. For instance, 

• According to a research report, the market for automotive safety systems is expected to reach USD 127.2 billion by 2027 compared to USD 93.28 billion in 2021.

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Blind spot detection is a sensor device, placed in vehicles to detect other vehicles located in the blind areas such as the driver’s side and rear side of the vehicle. It monitors the risky blind spot area and reduces the risk of accidents while changing the lane. Adaptive cruise control is an advanced driver-assistance system that adjusts the vehicle speed automatically to maintain a safe distance from vehicles ahead.

The research report finds that the COVID-19 pandemic hindered the demand for blind spot detection systems and adaptive cruise control systems market. The disruptions in supply chain activities due to restrictions on travel by governments interrupted large-scale automobile manufacturing, which hampered the global market.  The interruption in automobile manufacturing affected vehicle sales, and demand for blind spot detection systems and adaptive cruise control systems. These systems are installed in passenger and commercial vehicles to enhance vehicle safety. For instance,

• As per the report published by the National Institute of Health on February 11, 2021, European countries' total vehicle sales dropped by 7.4% during the pandemic while China's new sales of vehicles fell by 92% in February 2020.

Impact of Artificial Intelligence on Blind Spot Detection (BSD) Systems and Adaptive Cruise Control (ACC) Systems Market

The growing technology is integrating artificial intelligence in blind spot detectors and adaptive cruise control. AI-powered blind spot detectors provide the driver with reliable and precise data such as recognizing lane changes and issuing an alert if a vehicle approaches from behind. AI uses machine learning to create customized and personalized ACC systems that learn from the driver's needs, behavior, and preferences. AI in these systems enhances safety and security by utilizing encryption, authentication, and verification methods. Companies are introducing AI-enabled adaptive cruise control systems in vehicles to boost safety, recently Hyundai Motor Group introduced an AI-based adaptive cruise control (ADAS) feature for upcoming HMG vehicles.

Blind Spot Detection (BSD) Systems and Adaptive Cruise Control (ACC) Systems Market Dynamics

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Major Drivers

Increasing incidence of road accidents is expected to boost the demand for blind spot detection (BSD) systems and adaptive cruise control (ACC) systems. These systems utilize sensors to detect and alert the driver of vehicles in blind spots to prevent accidents by providing visual or auditory warnings. This result encourages drivers to adopt blind spot detection systems and adaptive cruise control systems in vehicles to avoid road accidents, which further propels the growth of the market. For instance,

• As per the report published by the World Health Organization on June 20, 2022, approximately 1.3 million people die each year around the globe as a result of road traffic crashes.

Rising strict government regulations to install blind spot detection systems and adaptive cruise control systems in vehicles are anticipated to fuel the market. Governments around the globe are mandating the installation of BSD and ACC in all new passenger and commercial vehicles to improve road safety and reduce traffic accidents. For instance,

• As per the report published by the European Union on July 6, 2022, all vehicles should have reverse detection systems with cameras or sensors and blind spot systems to prevent collisions.

Existing Restraints

The inability of blind spot detection systems for accurate detection of lanes at heights is expected to restrict the market growth. Moreover, the poor performance of adaptive cruise control during heavy rain, fog, or snow is encouraging consumers to lessen their use, thus impeding the growth of the market.

Emerging Opportunities

The evolution of autonomous cars is an immense opportunity in the market. As Manufacturers are designing and delivering ACC or ADAS with the latest technologies to provide safety and traffic fluency. Autonomous cars utilize adaptive cruise control to prevent deaths and injuries as these cars are driverless cars or robotic cars.

Moreover, increasing demand for luxury cars creates a lucrative opportunity in the market. Luxury cars are equipped with these systems to help drivers maintain a safe following distance, stay within the speed limit, and give drivers a better view of what's alongside the cars. For instance,

• According to a research report, the Luxury Cars market is expected to grow at a CAGR of 2.66% and to reach USD 22,940 million by 2027 compared to USD 20,650 million in 2023.

Scope of the Blind Spot Detection (BSD) Systems and Adaptive Cruise Control (ACC) Systems Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Type Segment Analysis

Based on type, the blind spot detection (BSD) systems and adaptive cruise control (ACC) systems market is bifurcated into adaptive cruise control and blind spot detection. The adaptive cruise control segment accounted for a major market share in 2022, due to increasing consumer awareness about safety features in vehicles. Adaptive cruise control increases vehicle safety by maintaining a safe driving distance from front vehicles while controlling the speed. Moreover, several automobile companies are introducing new vehicles with adaptive cruise control such as MG Motor launched MG Gloster with adaptive cruise control to alert the driver to potential problems on the road by bringing together an automated safety ecosystem.

The blind spot detection segment is estimated to grow at a robust pace in the coming years, owing to its ability to improve overall safety. Blind spot detection system uses sensors such as short-range lidar to detect obstructions, which increases the overall safety of the vehicles. Additionally, companies are introducing new vehicles with blind spot detection systems, which is estimated to propel the demand for blind spot detection systems. For instance,

• On February 22, 2023, Tata Motor introduced the Safari Red dark edition with blind spot detection, rear cross-traffic alerts, and other features.

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Vehicle Type Segment Analysis

In terms of vehicles, the global market is divided into passenger vehicles and commercial vehicles. The passenger vehicle system held a large market share in 2022, due to preventing deaths and injuries by reducing the number of car accidents. BLD AND ACC technology are equipped in passenger vehicles to assist drivers in maintaining lane discipline, or a safe distance with the vehicle in front, which significantly reduces accidents. Additionally, key market players are manufacturing passenger vehicles with inbuilt BLD and ACC systems to offer enhanced safety & security, which is significantly boosting the demand for BLD and ACC in passenger vehicles. For instance,

• On August 10, 2022, Hyundai launched the new Hyundai Tucson with an inbuilt adaptive cruise (ACC) control and blind spot detection (BLD) to enhance safety and comfort.

The commercial vehicles segment is projected to grow at a quick pace during the assessment period. the growth of the segment is attributed to the reduction in accidents, as the ACC and BLD helps driver to control their vehicle. Commercial vehicle drivers feel fatigued due to irregular working hours, which increases the probability of accidents. ACC and BLD help drivers by adapting the vehicle's speed according to the flow of traffic and maintaining a safe and suitable distance from other vehicles. This feature of the BLD enhances the comfort and convenience of drivers, which allows them to better concentrate on the traffic situation. These benefits are encouraging commercial vehicle consumers to adopt BLD and ACC technology.

Sales Channel Segment Analysis

Based on sales channels, the blind spot detection (BSD) systems and adaptive cruise control (ACC) systems market are categorized into OEM and aftermarket.  The OEM segment dominated the market in 2022, due to better lifespan and quality. Original equipment manufacturer (OEM), blind spot detection, and adaptive cruise control are produced and designed by the original manufacturer of the vehicle, which enhances the lifespan and quality of the BLD and ACC system. Additionally, consumers prefer OEM as it provides a manufacturer-backed warranty and is guaranteed to fit, significantly boosting the demand for OEM blind spot detection (BSD) systems and adaptive cruise control (ACC) systems.

The aftermarket segment is expected to grow at a high CAGR during the forecast period, owing to low cost compared to OEM, which encourages vehicle owners to adopt aftermarket blind spot detection (BSD) systems and adaptive cruise control (ACC) systems. Moreover, aftermarket BLD and ACC are widely available and are purchased from several sources, such as independent mechanics, online retailers, and auto parts stores, thus propelling segment growth.

Regional Outlook

In terms of region, the blind spot detection (BSD) systems and adaptive cruise control (ACC) systems market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America accounted for a major market share in 2022, due to the presence of key market players such as Lear Corp, General Motors, and Tenneco Inc. Moreover, rising road accidents in the region are encouraging automobile manufacturers and governments to mandate the installation of blind spot detection (BSD) systems and adaptive cruise control (ACC) systems to avoid and reduce road accidents. For instance,

• As per the report published by the National Highway Traffic Safety Administration on April 20, 2023, 42,795 people died in motor vehicle traffic crashes in 2022 in the US.

Asia Pacific is projected to witness considerable CAGR growth during the assessment period, owing to growing awareness among consumers about vehicle safety. Moreover, the increasing adoption of luxury cars in the region is boosting the demand for blind spot detection (BSD) systems and adaptive cruise control (ACC) systems as these systems are pre-installed in luxury cars to enhance the safety and security of the car. For instance,

• According to a research report, the luxury cars market in Asia is expected to reach USD 3,515 million by 2027 at a CAGR of 3.55%.

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