Report Overview

An increasing demand for vehicle safety and government regulations mandating ADAS features are projected to propel the expansion of the UAE automotive advanced driver assistance systems market during the forecast period between 2023 and 2029.

UAE ADAS Market - Industry Trends & Forecast Report, 2029

UAE automotive advanced driver assistance systems (ADAS) market size was estimated at USD 372.52 million in 2022. During the forecast period between 2023 and 2029, the size of UAE ADAS market is projected to grow at a CAGR of 20.89% reaching a value of USD 1,162.89 million by 2029. Major growth drivers for the UAE ADAS market include an increasing awareness of road safety and growing preference for technologically advanced vehicles. ADAS offers various features that improve the driving experience, focusing on comfort and convenience. Also, the UAE government's regulations promote ADAS features in vehicles, driving market growth. Smart city initiatives enhance ADAS integration for improved traffic management and safety. Continuous innovation in ADAS includes features like autonomous emergency braking and driver monitoring. Integrating ADAS with connectivity and artificial intelligence leads to smarter vehicles. A prime example is the Toyota Crown, a luxurious, spacious, and reliable sedan highly regarded for its premium driving experience. UAE's commitment to advanced vehicle technologies positions it as a growing market for ADAS solutions.

UAE ADAS Market – Overview

The UAE Advanced Driver Assistance Systems (ADAS) Market refers to the industry and ecosystem in the United Arab Emirates that encompasses technologies, products, and services aimed at enhancing vehicle safety, improving driving experiences, and reducing accidents through various advanced driver assistance features. These features may include but are not limited to lane departure warning, adaptive cruise control, blind spot monitoring, autonomous emergency braking, pedestrian detection, and other technologies that assist drivers in making informed decisions and mitigating potential risks while driving. The UAE ADAS market is driven by government regulations, smart city initiatives, technological innovations, and a growing demand for intelligent and safer vehicles.

UAE ADAS Market

Growth Drivers

Increasing Demand for Vehicle Safety

The demand for advanced driver-assistance systems (ADAS) is set to increase in the next decade due to consumer and regulatory concerns about road safety and accident prevention. In 2021, the UAE government reported 2,437 road accidents and 256 fatalities. To address this issue, the UAE government plans to introduce 4,000 self-driving cars by 2030 and aims for 25% of the vehicle fleet to be fully autonomous by the same year. UAE vehicle buyers are also showing interest in ADAS features that enhance comfort and fuel efficiency, including blind-spot monitoring and parking assistance. This reflects a growing trend toward adopting ADAS technologies for safer and more convenient driving.

Restraints

High Cost of ADAS Systems

UAE ADAS Market faces a significant hurdle in the form of the high cost associated with advanced driver assistance systems (ADAS) components and technologies. This cost factor acts as a restraint on the market's growth. While ADAS systems offer substantial benefits in terms of safety and convenience, their expensive nature limits their accessibility to a wider consumer base, particularly in a price-sensitive market like UAE. The affordability of these systems remains a challenge, inhibiting their adoption, and necessitating strategies to make ADAS more cost-effective and accessible for a broader spectrum of consumers, thereby unlocking the market's full potential.

Impact of COVID-19 on UAE ADAS Market

COVID-19 pandemic adversely affected the UAE ADAS market. The market, which was initially poised for growth, faced disruptions and challenges during the pandemic. Lockdowns, travel restrictions, and economic uncertainty led to a decline in vehicle sales and production, affecting the adoption of ADAS technologies. Many consumers postponed or canceled vehicle purchases, slowing down the integration of ADAS systems. Also, supply chain disruptions and manufacturing challenges disrupted the availability of ADAS components, hindering market growth. However, as the UAE has recovered and economic activities have resumed, the ADAS market has rebounded, driven by an emphasis on road safety and government support for advanced automotive technologies.

UAE ADAS Market

Segmental Coverage

UAE ADAS Market – By System

By system, the UAE ADAS market is divided into Tire Pressure Monitoring System (TPMS), Drowsiness Monitor System, Intelligent Parking Assist System (IPAS), Adaptive Cruise Control System, Blind Spot Object Detection System, Lane Departure Warning System, and Adaptive Front-lighting System segments. The intelligent parking assist system segment holds the highest share in the UAE ADAS Market by system. ADAS includes a crucial feature: parking assistance, which aids drivers in parking their vehicles by utilizing sensors and cameras. This system evaluates parking space suitability and dimensions. Advanced versions even automatically adjust steering and speed during parking, preventing accidents. It accommodates both forward and reverse parking. In the UAE, consumers highly value this feature when buying vehicles, making it a significant factor in their purchase decisions, given the country's parking challenges. Meanwhile, the lane departure warning system segment holds the second highest place in the UAE ADAS market. The Lane Departure Warning System (LDWS) plays a pivotal role in enhancing road safety by alerting drivers when their vehicle drifts from its lane, reducing the risk of collisions, especially from rear-approaching vehicles. LDWS also mitigates accidents stemming from factors like distracted driving and fatigue, which are common causes of fatal incidents. This technology addresses prevalent issues such as lane-crossing and blind-spot accidents. Due to these advantages, UAE car buyers are increasingly favoring vehicles equipped with these advanced features.

UAE ADAS Market – By Sensor

By sensor, the UAE ADAS Market is divided into Ultrasonic Sensor, Infrared (IR) Sensor, Radar Sensor, Laser, Image Sensor, and LiDAR Sensor segments.

UAE ADAS Market – By Vehicle Type

By vehicle type, the UAE ADAS Market is divided into Passenger Car, Light Commercial Vehicle, Buses, and Trucks segments. The passenger car segment holds the highest share in the UAE ADAS Market by vehicle type. It is primarily due to the rising demand for advanced features and improved safety systems in vehicles. In 2021, passenger car sales surged by 26.4% year-on-year, with 156,780 units sold, compared to 129,901 units in 2020. This increase underscores the appeal of ADAS-equipped passenger cars to consumers. Automotive manufacturers are also prioritizing the integration of ADAS technologies into passenger cars to meet this growing demand, further establishing the passenger car segment's dominance in the UAE ADAS market.

Competitive Landscape

Major players operating in the UAE ADAS market include Bosch, Continental, Magna, Valeo, and ZF. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In February 2023 - Chery announced its plans to introduce the TIGGO 7 PRO MAX and TIGGO 8 PRO MAX models in the UAE, showcasing their advanced ADAS technology.

Scope of the Report

By System

• Tire Pressure Monitoring System (TPMS)

• Drowsiness Monitor System

• Intelligent Parking Assist System (IPAS)

• Adaptive Cruise Control System

• Blind Spot Object Detection System

• Lane Departure Warning System

• Adaptive Front-lighting System

By Sensor

• Ultrasonic Sensor

• Infrared (IR) Sensor

• Radar Sensor

• Laser

• Image Sensor

• LiDAR Sensor

By Vehicle Type

• Passenger Cars

• Light Commercial Vehicles (LCVs)

• Buses

• Trucks