Sensor Fusion Market in Autonomous Vehicles - Growth, Trends, Forecasts (2020-2025)

The global sensor fusion market in autonomous vehicles (henceforth, referred to as the market studied) was valued at USD 594.4 million in 2019, and it is projected to be worth USD 1563.5 million by 2025, registering a CAGR of 19.6% during the period of 2020-2025.

- Collaboration between automotive and software companies is a common trend in the market. For instance, Dura Automotive Systems is collaborating with Green Hills Software to develop sensor fusion modules for automated driving.
- The growing trend of autonomous vehicles and advanced driver assistance systems (ADAS) is further integrating new radar, camera, lidar, and GNSS sensors into these vehicles. This rapid change requires flexible test systems to quickly and safely deploy products, hence driving the need for sensor fusion systems in the industry. Therefore, the growing functionality of autonomous vehicles is mainly driving the growth of sensor fusion in the autonomous vehicle sector over the forecast period.
- Stringent government regulations, globally, are also fueling the demand for the products in the market studied. For instance, in Europe, Euro NCAP (European New Car Assessment Program) mandates the deployment of at least one driver assistance system. Countries like Japan and the United States are also adopting similar criteria in their national NCAP rules.
- The growing safety issue of autonomous technology can not only limit the adoption of autonomous vehicles but could claim the authenticity of sensor fusion solutions. Standardization is one of the factors hindering the evolution of sensor fusion systems. Without global standards, the level of complexity of devices and ICs is expected to increase exponentially.
- The COVID-19 outbreak has increasingly affected the commercial vehicles segment, especially the truck business, in the Asia Pacific region. Also, in emerging countries like India, Vietnam, and Malaysia, 70-80% of the market is small truck owners who don’t have that much funding to invest in autonomous trucks. However, in developed countries like Australia, of the 19.5 million vehicles on roads, four million are commercial, including 624,000* heavy vehicles.

Key Market Trends
Application of Sensor Fusion in Autonomous Emergency Braking (AEB) to witness a significant growth

- Autonomous emergency braking (AEB) is an enhanced active safety system that helps drivers avoid or mitigate collisions with other vehicles or vulnerable road users. nSafety has become an increasingly important issue in the automotive industry worldwide. To reduce traffic fatalities, UNECE launched the new EU Road Safety Program, which aims to decrease the number of road deaths by half by 2020. AEB is a very effective active safety system intended to reduce fatalities.
- According to the Bosch Study, upto 72% of all rear-end collisions with personal injury could be avoided with automatic emergency braking. Also, AEB can prevent 2/3rd of all rear-end collisions with personal injury and property damage up to 30 Km/h.)
- Current AEB systems mostly use radar and vision sensors to identify potential collision partners ahead of the ego vehicle. Multiple sensors are often needed for accurate, reliable, and robust detections while minimizing false positives. That is why sensor fusion technology plays an important role in the AEB system.
- New regulations in the European Union (EU) and the United States (US) require vehicles to be equipped with Automatic Emergency Braking systems and forward-warning systems. By providing ADAS features for cars at all price points, Phantom AI is filling a big gap in the market as car manufacturers are looking to add Level 1 - Level 3 automation capabilities to their new designs now.

Market Share of North America to increase significantly

- North America is one of the largest automotive manufacturing hubs in the world. The economic growth of the region has posed an impact on the sale of passenger cars and commercial vehicles. According to the American Automotive Policy Council, over the past five years, the exports from the automotive sector were valued at USD 692 billion, and the automotive sector alone contributes to 3% of the region’s GDP, which effectively contributes to the growth of the market.?
- The region is also expected to be one of the pioneers in adopting ADAS enabled vehicles and self-driven transportation solutions. According to Deutsche Bank, the US ADAS unit production volume is expected to reach 18.45 million by 2021.? ADAS (advanced driver-assistance systems) is capable of supporting adaptive cruise control (ACC), and automatic emergency braking (AEB), lane departure, blind-spot detection, 360° surround view, etc. Level 2 autonomy is quite common, not only in high-end vehicles but also in the USD 25,000 to USD 30,000 price-point range.
- Robotaxis (rely on a powerful array of advanced sensing technologies that include multiple LiDARs to safely maneuver complex urban environments) are not quite here yet, but Waymo, Cruise, and Uber are investing heavily in and operating experimental fleets in the United States.
- In 2019, US-based GeoCue Group launched its new hardware as a service (HaaS) Evergreen Subscription for its True View UAV LiDAR/Imagery Fusion Sensors to the drone industry. According to the company, it is the industry’s first integrated LIDAR/camera fusion platform designed from the ground up to generate high accuracy 3D colorized LiDAR point clouds.

Competitive Landscape
The intensity of competitive rivalry is moderately high, owing to large-scale companies, such as Bosch, STMicroelectronics, and NXP.

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