NVS and DMS Market Size, Growth, Industry & Revenue | 2031

Report Description

The global night vision system (NVS) and driver monitoring system (DMS) market size was valued at USD 3.69 Billion in 2022 and is likely to reach USD 16.73 Billion by 2031, expanding at a CAGR of 18.29% during 2023 – 2031. The market's growth is attributed to the rising incidence of road accidents and the increasing demand for luxury cars.

Increasing demand for luxury cars is expected to boost the demand for night vision systems (NVS) and driver monitoring systems (DMS). Luxury cars are equipped with these systems to increase a driver's perception and help in judgment for distance in darkness or poor weather conditions. NVS and DMS use thermographic cameras, infrared lights, and heads-up displays which are expensive and, hence are placed in luxury cars. For instance,

• Luxury Cars market was valued at USD 20,650 million in 2023 and is expected to reach USD 22,940 million by 2027 at a CAGR of 2.66%.

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Driving monitoring is an advanced safety feature that uses a camera mounted on the dashboard to track driver distraction. It alerts the driver to an issue occurrence and gets the driver’s attention back. Night vision system detects people and pedestrians and highlights potential hazards to drivers to avoid accidents or collisions. This system uses LCDs that are mounted in the instrument cluster or on the dash.

Rising incidence of road accidents is estimated to fuel the market growth. DMS monitors the driver's attentiveness by tracking their eye movements using an infrared detector. NVS enables the driver to view the path that is beyond the car headlight's reach, enabling a better view during the night and in poor weather conditions. This in turn encourages people to adopt night vision and driving monitoring systems in cars to avoid road accidents, which is further propelling the market growth. For instance,

• According to the Centers for Disease Control and Prevention each year 1.35 million people are killed on roadways around the world and almost 3,700 people are killed every day in crashes involving cars, buses, motorcycles, bicycles, and trucks.

The research report finds that the COVID-19 pandemic hampered the demand for the night vision system (NVS) and driver monitoring system (DMS) Market. The abrupt rise of COVID-19 infection encouraged governments to impose lockdowns all across the world, which drastically hindered the production of automobiles significantly impeding the global market. These systems are installed in vehicles such as cars, trucks, and buses, so with the fall in the production of automobiles, the demand for NVS and DMS slowed down. For instance,

• As per the report published by the International Organization of Motor Vehicle Manufacturers, a 16% decline was seen in the production of automobiles in 2020.

Impact of Artificial Intelligence on Night Vision System (NVS) and Driver Monitoring System (DMS) Market

The implementation of artificial intelligence in the night vision system (NVS) and driver monitoring system (DMS) is an immense opportunity in the market. AI-powered NVS and DMS observe the driving habits of drivers and improve safety by allowing drivers to stay aware while driving. AI-enabled DMS allows the authorities to check who is at fault even when it is dark by providing strong video evidence of collisions. This feature helps drivers who may be wrongly accused of causing the accident. Additionally, artificial intelligence-powered DMS and NVS system predicts potential hazards that lead to accidents by using predictive analytics algorithms.

Night Vision System (NVS) and Driver Monitoring System (DMS) Market Dynamics

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Major Drivers

Growing need for automotive safety systems is projected to boost the demand for night vision systems (NVS) and driver monitoring systems (DMS). These systems are part of the automotive safety system that is designed to track vital sign parameters, and driver attentiveness, and provide assistance to drivers. For instance,

• As per data published, the market for automotive safety systems was valued at USD 93.28 billion in 2021 and is expected to reach USD 127.2 billion by 2027.

Increasing strict regulations to install night vision and driver monitoring systems in vehicles are estimated to drive the market. Governments all around the world are mandating the installation of NVS and DMS in all new passenger vehicles to reduce traffic accidents due to poor night visibility. For instance,

• European Union-mandated manufacturers of motor vehicles to provide driver drowsiness and attention warning (DDAW) systems in all new vehicles from 7 July 2024. The driver drowsiness and attention warning (DDAW) systems are also known as driver monitoring systems.

Existing Restraints

High costs associated with the installation of night vision systems and driver monitoring systems in vehicles are projected to restrict market growth. Moreover, software failure of GPS and cellular-based trackers is estimated to hamper market growth. GPS and cellular networks are utilized in these systems to track and share the movement of vehicles with highway emergency units.

Emerging Opportunities

Rising investment in research & development activities by key market players is expected to create lucrative opportunities in the market.  The development of new products in night vision systems and driver monitoring systems is expected to reduce traffic accidents which further promotes safer driving. For instance

• On October 27, 2022, Kyocera Corporation announced the launch of an Automotive Night Vision System that has the power to accurately identify collision-risk objects in low-visibility driving conditions. The system is designed to reduce traffic accidents and promote safer driving.

Scope of the Night Vision System (NVS) and Driver Monitoring System (DMS) 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

Vehicle Type Segment Analysis

Based on vehicle type, the night vision system (NVS) and driver monitoring system (DMS) market is divided into passenger vehicles, heavy commercial vehicles, light commercial vehicles, and others. The passenger vehicles segment accounted for a major market share in 2022, due to greater or improved security. This system enhances passenger safety and meets regulations by assessing the driver’s state such as drowsiness, distraction, and sudden sickness. Moreover, increasing road accidents are encouraging manufacturers to provide NVS and DMS technology in passenger vehicles to avoid or reduce collisions and accidents by providing better low light during the night and bad weather conditions, and alerting drivers towards hazardous situations. For instance,

• According to the National Highway Traffic Safety Administration, almost 49% of passenger vehicle occupant fatalities occur during nighttime due to high speed and poor light.

The heavy commercial vehicles segment is expected to witness robust growth during the assessment period, owing to increased visibility and reduced accidents caused by fatigue, drowsiness, and distractions. Heavy commercial vehicle drivers feel fatigued due to overnight shifts and irregular working hours, which lead to tiredness and distraction, significantly increasing the probability of accidents.  The ability of NVS and DMS systems to reduce the number of accidents by assisting drivers and providing better light during the night is estimated to propel the market.

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Regional Outlook

In terms of region, the night vision system (NVS) and driver monitoring system (DMS) market is segregated into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Europe accounted for a major market share in 2022, owing to the presence of established key players such as Autoliv, Inc, Robert Bosch GmbH, and Continental AG. Moreover, increasing road accidents are encouraging automobile manufacturers and governments to mandate the installation of night vision and driving monitoring systems to avoid and reduce road accidents. For instance,

• As per the report published by the European Commission on February 21, 2023, around 20,600 people were killed in road crashes last year in 2022, a 3% increase from 2021.

Asia Pacific is projected to grow at a high CAGR during the forecast period, due to increasing awareness among consumers about vehicle safety and rising demand for luxury cars. Additionally, the government's favorable initiative to mandate the installation of night vision systems (NVS) and driver monitoring systems (DMS) in passenger and commercial vehicles is propelling the demand for NVS and DMS. For instance,

• As per the report published by the Ministry of Road Transport and Highways of India on November 30, 2022, motor vehicles of categories M (passenger vehicles) and N (commercial vehicles) are to be equipped with certain advanced vehicle systems, including driver drowsiness and attention warning (‘DDAW’) systems or driver monitoring system (DMS).

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