Automotive Lane Warning System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The automotive lane warning system market was valued at USD 5.94 Billion in 2021 and is estimated to reach USD 14.79 billion by 2027 end, registering a CAGR of over 16.6% during the forecast period 2022-2027.

During COVID-19, the supply chain of automotive lane warning systems was muted, attributed to rising virus infection and strict lockdown measures taken by governments of all the nations. In addition, during the same period, a chip shortage was seen, which caused a major setback in the production of lane warning systems.

The increasing number of road accidents worldwide has led governments and international organizations to enact various stringent safety norms, thereby leading automotive manufacturers to equip vehicles with technologies such as Automotive Lane Warning System (ALWS). A lane departure warning system can avoid nearly 7% of all fatal accidents.

Stringent government norms and regulations regarding passenger safety have driven the market growth for the lane departure warning system. In Europe, Regulation (EC) 661/2009 deals with installing lane departure warning systems in commercial vehicles. The income in the emerging economies, such as India and China, has been increasing, and the customers have been opting for expensive vehicles in luxury cars and SUV segments. This factor has been propelling the market growth for the automotive lane warning system.

Vehicle OEMs have collaborated with technology companies to produce ADAS systems, such as lane warning systems. For instance, Nvidia provides artificial intelligence services for autonomous vehicles and augmented reality, software, and hardware support in the form of DRIVE AP2X, Nvidia DRIVE, and Nvidia DRIVE AGX.

Moreover, after Q2 2021, the government's supply chain and procurement ease has resulted in the market's regaining growth. With ongoing research and development in better and more advanced lane warning system offerings, the market is expected to witness a major boost in the forecast period.

Scope of the report

The lane warning system is a sensor fitted near the vehicle's windshield. This sensor accesses the locus of the vehicles and keeps the vehicle in the lane. Governments across the globe are trying to implement this technology under their automotive safety initiatives.

Automotive Lane Warning System Market is segmented by Function Type, Sales Channel, Sensor Type, Vehicle Type, And Geography.

By Function Type, the market is segmented into Lane Departure Warning systems and Lane-Keeping systems.

By Sensor Type, the market is segmented into Video Sensors, Laser Sensors, and Infrared Sensors,

By Sales Channel, the market is segmented into OEM and Aftermarket,

By Vehicle Type, the market is segmented into Passenger Cars, Light Commercial Vehicles, and Heavy Commercial Vehicles,

and based on Geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World

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Key Market Trends

Increasing Demand for Lane Departure Warning System

Lane departure warning systems are a group of safety technologies designed primarily to prevent high-speed accidents on highways, expressways, and freeways. They warn the driver and sometimes take corrective measures to prevent collisions and run-off-road accidents.

The consistent increase in vehicular accidents, primarily due to abrupt lane changes, has led to concerns among consumers and governments worldwide. Thus, in the automotive industry, technological advancements have been highly essential to reducing road accidents while enhancing the safety of passengers and drivers.

Furthermore, rising consumer safety concerns have been propelling the need to implement advanced driver assistant systems (ADAS). Today, autonomous cars and connected vehicles are gaining consumers’ interest and are anticipated to gain wider acceptance over the forecast period. The advanced driver assistance systems (ADAS) featured are expected to diminish the penetration gap between classic cars and tomorrow’s cars. Moreover, With the rising technological advancements in the automotive industry, end-users are ready to spend more on the latest technologies, which enhance the driving experience and increase the safety of drivers and riders.

ADAS features such as collision warning, lane assistance, blind spot detection, etc., significantly impact consumer behavior and are expected to enhance vehicles' performance by reducing vehicle downtime by alerting the owner of any faults in the vehicle. This, in turn, has been driving the demand for lane departure warning systems (LDWS).

Accidents involving commercial vehicles often result in serious consequences for the driver and other commuters on the road. Since November 2015, all new commercial vehicles, which weigh more than 3.5 metric tons, and buses, which weigh more than five metric tons, must be equipped with a lane departure warning system. About 38.9% of all accidents involving trucks are primarily caused by unintentionally leaving the lane. Such incidents can be prevented by the usage of lane departure warning systems.

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